Hostel Prices...
Hostels come in all varieties and forms.
Some are professionally operated and some are not. Some are operated by amateurs, who have no business being in the hospitality business at all.
Some are located close to attractions and some are not.
Some offer that great view, some do not.
The bottom line (for me) is that I never pay the price for a room that they want from me.
I worked in the hotel business for 12 plus years.
Here I learned some tricks.
The hotel or hostel business is very competitive and they all run on some pretty tight budgets. The ones that survive are the ones that are smarter.
Prospective guests want different things and it is the hotel/hostel that MUST learn what you want and how to deliver that quality to the prospective guest without giving too much away. That is a fine line and it is the professionals that know how to walk that line and be profitable in the process.
Okay lets look at some facts.
Hostels operate (or should operate) on a wholesale budget for that room or bed.
The wholesale price is what it takes to maintain, clean and present to the prospective guest that space.
The retail price is what they want to charge you.
The difference between the wholesale price and that advertised retail price is the area of negotiation.
Okay lets say the (developing country) room costs $15 retail. Transfer that to your local currency.
The wholesale price of that room is probably around $2.50 for the cost the establishment needs to break even on that room.
I never pay that $ 15.00 retail cost and go for something in between. That is in between the wholesale price and the advertised retail price.
I want a lower price yes, but I also have to be reasonable.
I know that the hostel wants to makes as much money as they can on that space and I know that I want to pay as little as possible for that space.
Getting the price down is the trick.
If you are a senior citizen then you can ask for the seniors rate. That should knock off a little from the room price.
You can also say you belong to a travel group, or a car insurance group, or a even a large company or whatever. All of these areas should get the price down a little...Usually you do not have to even prove that you are associated with any company or organization.
You have to remember if you are dealing with a professional hostel well they want you to stay there. But if they are amateurs, well they will just stick to the price they want and will not sell that room at anything lower... That is a loss for them.
It is a loss because the cost of maintaining that space is $2.50 remember and therefore that room is now costing them revenue they could have sold. Amatuer operators do not even realize this... and if you're brave enough you could even remind them that by not selling you a room at that price that you want to pay, that they are actually not just losing money on that space but that the empty room is costing them money while being empty.
Some hotel owners have no idea how to operate a business at all... they are amateurs.
Another thing to mention when all else fails is to just say, is that the best price you can give me? If they say yes.... then stall a little as if you are thinking, perhaps pull out a small pad and write down their best price and tell them that you are going to check out the competition.
Or you could even call a competitor right in front of them... even asking prices and what the competitor offers. You could even say " I am in
"such and such hostel" and that "can you beat their price?"
Lets call this shock tactics.
Remember it could work... and you have nothing to lose attempting this..
You can also ask to speak to the manager.
I remember one motor hotel in the United States that I stayed at, while on a long driving journey using similar tactics.
When arriving there on a friday night I had noticed that their very large parking lot was mostly empty. That there was very little customer presence seen inside the hotel either. I surmised that they were either undergoing some renovation project or the hotel had been taken over by new owners. I was correct on both accounts.
When all attempts to lower that price fairly, had failed, I politely thanked the front desk clerk then turned and slowly walked away.
Behind the desk and also behind the front desk clerk I earlier noticed a man in a business suit. When I walked away he did not just ask me to stop, but came after me and asked me what I wanted to pay.
The hotel was under new management and under a total refit of the rooms, so they were not renting many rooms out at all. Any sale of any room was to the total advantage of the hotel at that time, so they were able to give me that room at my price. Yes this is a very rare example but one that is possible under certain circumstances.
Remember you have nothing to lose but a little time.
Also one thing to remember is the season you are there. If there is some big event going on in the area , well you will most likely have to pay their price and it may be even an inflated price.
But if the area is dead of tourists, has a glut of half empty places well that makes you more in control of the situation.
Being direct may make you seem bossy or not liked, but the bottom line here is that you are doing all of this to stay cheaper.
Read the reviews on their place. If they have some bad reviews ask them if they have been fixed. Remember you have nothing to lose. If they are amateurs this is your opportunity to take control.
Some places sell a great view, and can you believe it, some try to sell great coffee.... as an advantage to stay there... Duh..what!!!
Well as a seasoned traveller that great view and that (so called great) coffee do not cut it for me. I need a secure and quiet place, with access to the property on my terms, comfortable and a clean room, with staff that know the value of great customer service. I also want to pay a price that I feel is fair... fair for them and yes fair for me..
Happy hunting...
Remember it can be fun... so take charge and get that right price for you...
You have nothing to lose, so try it.
