Budget Hotels: Whose Budget Are We Talking About?

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Budget Hotels ... What are they really? An analysis of the budget hotel sector in the UK and how increasingly hostels are plugging the gap in the market budget hotels originally intended to accommodate. Far from being the traditional 'backpackers hostel,' Euro Hostel provides multiple rooming options that will actually meet everyone's 'budget.'

Now there's a question that's on every budget hotel company's lips. What budget are we targeting? With modern usages of budget basically stemming from 'a careful estimate or allotment of funds,' the hotel industry is assuming that budget means 'cheap.' But a true budget hotel should simply provide more than is expected for the fee charged.

When budget hotels enter a city, they invariably make a splash with cheap prices, exceeding guest expectations for that price point. Invariably, once occupancy builds, the price starts to rise as the budget hotel operator sees the rates other operators are charging in the city. Suddenly they are no longer in the budget sector. Expectations for some clientele are no longer met and this segment of the market will seek another operator who does offer the value for money the guest seeks.

Increasingly the hostel market is plugging this gap in the segment.

"We call ourselves a 'hostel' for a very good reason," says William McClelland, Operations Director of http://www.euro-hostels.co.uk, "we will never need to question the ethos of our business because we have particular market segments in mind."

"If we had tried to sum up the meaning of our properties with standard industry vernacular, they would have ended up being called super budget accommodation for the financially prudent."

Far from being the traditional 'backpackers hostel,' Euro Hostel provides multiple rooming options that will actually meet everyone's 'budget.' From 12-person shared rooms to private, ensuite doubles with all the trimmings.

"Because we are a firmly committed hostel, you will never see us rise above our station and start overcharging for the product on offer," he continued, "we don't need to revisit our original plan, it's incorporated into our logo."

With their flagship property in Glasgow, a summer property in Edinburgh and expansion plans well under way, something seems to be working for this Scottish company.

"When we took over this 10 story ex-hotel in Glasgow, we knew that we needed to show the budget hotel chains how to do it right," he said "by bringing the market we wanted right up to our doorstep we started breaking down the barriers associated with the word 'hostel' ... and it's been working now for five years."

"We are adamant about changing the perception of this word that, to us, simply represents value for money."

Every room that the Euro Hostel sells is en-suite, even the big rooms. They have three of the traditional dormitories, with 12 beds in each, but compared to the 115 bedrooms that are single, double, quad or family, this is insignificant. This hostel averages over 80 percent for its 364 beds annually. It has a bar, guest kitchen, guest laundry, free WiFi, travel desk, Internet kiosk and breakfast is included.

When asked why call it a hostel, Mr. McClelland replied, "It was a tough decision at the time" and continued "but we knew we could lead the way with this concept and give ourselves an edge over the traditional budget hotels."

"Hostel numbers are growing at an alarming rate now, on the back of the growth in budget hotels. We simply put the two together, really."

"We talk in beds around here, never rooms. With our occupancy figures, outstanding design, effective use of space and a large number of quality bunk beds in place, as well as our doubles, it's no wonder we make more actual profit per square metre than the budget hotels do."

So what about customer satisfaction ... "Through the roof!"

Euro Hostels Ltd is well established in the budget accommodation segment, having started in January of 2000. They are considered an industry leader and operate hostels in Glasgow and Edinburgh in Scotland and Newcastle in England.

For further details please contact:

Steve Mackenzie

Euro Hostels Ltd

PH: 077 044 12370



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