Managing a hostel is not easy. Staying on top of reservations, inventory, products, cash flow, overseeing the day-day of the hostel are a few activities performed daily by those who have a business in this branch.
Trying to keep up, it’s common to get overwhelmed and lose sight of the goals you had for the hostel. It’s a strong warning that you’re making mistakes in the management your own business. With that in mind, we’ve put together a list of four most common hostel management mistakes, including several tips to get you back on track!
1. Not recording every single operation performed
One of the most common mistakes in managing a hostel is failing to record the operations performed on the property. This record helps you keep track of your hostel. It’s the most effective way to know if you need new sheets, how much money is at the cash register after your happy hour this week, how much it’s left to pay the bills, how many guests were hosted this month, and so on.
Record every operation is the first step to improve your business! Look at it as a comprehensive map that will help you plan your next steps;)
2. Neglecting your cash flow
How much was your cash flow today? Did the money come from bookings or from a party you threw at the hostel? How much did you have to spend at that event, and how much did you have left? How much are you spending on your bills? What about your team’s wages?
If you can’t answer these questions, you are committing one of the most common mistakes in running a hostel: neglecting your cash flow. In addition to providing detailed control over the capital movement of your property, a hard look at your cash flow can reveal strategic data to generate important analysis, such as helping you identify what your hostel has invested in events that do not provide a positive cash flow return.
3. Not knowing the exact costs and expenses of your hostel
Calculating the cost of a guest is no easy task. There are several external and internal factors that weigh on the price of a reservation. Due to the number of variables, external factors may take some time to be known, but internal factors are within your reach.
Start with guest-related costs, such as:
- The average amount of consumption of breakfast products by each guest,
- How much is spent to change the bed linen,
- Amount spent with laundry to wash the towels of each guest,
- Other expenses domestic consumption.
Knowing the exact costs and expenses of your hostel is a key starting point in pricing everything, from rooms to beer to breakfast. If you have no idea how much each guest costs, you could be running your business to the ground!
4. Not having a management system
A management system controls every detail of the operations and processes that involve your business. It’s the best way to avoid all the most common mistakes in managing a hostel we mentioned in this article, and much more – otherwise, you could be stuck in a confusing web of excel sheets, pieces of paper, word documents that not only keep you in the dark, but make your operation prone to more mistakes.
Being on top of your reservations, cash flow, products in stock, cost of inventory, managing your team, among many other activities, is important for a healthy management of your hostel. Consider them strategic to your business.
Did you know that hqbeds has a line of management software for properties of all kinds?
If you have a hostel, a camping, a hostel or a hotel and need help to organize your business, improve procedures and increase profits with simplicity, speed and efficiency, choose the plan that best fits your model. business and control everything right on your computer, tablet or smartphone.