Sydney Central YHA | EBE Conference

Sydney Central YHA | EBE Conference

•Organisation / business overview

•Marketing

•Human Resources

Hostelling International

• 1909: German school teacher Richard Schirrmann sees the need for overnight accommodation on school trips

• 1932: The organisation was founded and Richard Schirrmann appointed President

• 2018: More than 3,500 not-for-profit hostels worldwide – it is one of the largest international membership organisations in the world with 3.7 million members

YHA Australia

• The largest provider for budget travel accommodation in Australia with a network of 80 hostels in all states and territory’s in the country

• Not-for-profit, membership organisation

• Best quality and highest standards in the industry

YHA Australia’s MissionTo provide an opportunity for all, but

especially young people, for education by personal development, fostering

friendship and bringing about a better understanding of others and the world

around them

Sydney Central YHA• 54 private rooms / 97 dorm rooms = 151 rooms

• 556 beds

• The main gateway hostel and the largest in the YHA Australia network

• Important network responsibilities to give a good impression and feed the network

Youth / Backpacker accommodation industry

• YHA – 80 hostels

• Base / Nomads – 17 hostels in Australia

• Small chains – Mad Monkey

• Good quality independent hostels – have started a network “Hostels Australia”

• Low quality independent hostels

Sydney Central YHA’s Market Mix• We welcome all travellers regardless of their demographic• Core market 18 – 35 year old international travellers• 65% International / 35% Domestic

• England• Germany• China• France• Korea• USA

Sydney Central YHA’s Market Mix

•20% Groups / 80% FIT

•34% International / 66% Domestic

•Groups consist of 57% High School / 21% Tertiary

Competitors Market Mix

•Primary focus on 18-25 year international travellers

•Larger % of international guests than YHA

YHA vs Competitors

• YHA’s Business model is adaptable to changing market trends

• YHA have strong direct booking channel

• Competitors have all eggs in one basket

• Competitors reliant on agents

YHA’s Marketing Goal

• To maintain a strong direct booking channel / getting people booking direct and staying in the network:

• less commission to agents

• Keeping guests in the network is cheaper than marketing to new guests

YHA’s Strategy• Collaborative marketing with HI organisations on the Pacific Rim

• Rewarding guests that book direct with a best rate guarantee

• Partner relationships to market globally e.g. Tourism Australia campaigns

• Emarketing – using the membership base to market to guests based on demographics and travel trends

• E.g. when a guests checks out of a Sydney hostel that is aged between XX and from XX, email them a discount promotional code to book in key locations that may be on their next travel route

The most important factor in YHA’s business model and marketing strategy

The most important factor in YHA’s business model and marketing strategy

Employees

The most important factor in YHA’s business model and marketing strategy

EmployeesTo be able to engage with the guests, to build relationships to give them the best experience and a good impression of the organisation, so they continue to stay with YHA as they travel

around Australia

YHA’s Most Important Resource• Mix between Working Holiday Maker’s and local employees

• Ensures a strong core team that provides leadership to young, dynamic members of staff that greatly contribute to the atmosphere of the hostel.

• Due to the planned staff turnover efficient staff training is necessary to save on payroll expenses, however it needs to be thorough to ensure productivity, which saves on payroll expenses in the long run.

• A team that is sales focused to keep guests in network – not pushy sales – talk to guests with a purpose, ask guests where they’re going and offer assistance as required.

Staff onboarding process• Job ad – usually on seek.com• Look for employees that fit the market with high energy and sales skills to

provide good customer service and keep guests in the network• Thorough training – two days systems training – two weeks operational

training• Three month probationary review• Regular one-on-one meetings• Team meetings quarterly• Annual performance appraisal

Sydney Central YHA | EBE Conference

Questions