The hostel reported losses in revenue from the low turn out of guests between March and October and the consistent rise in utilities and government’s recent report of inflation.
A good number of guests turn out in November and December could not make up for the loss it incurred in the past months of 2017, however, this is not stopping the hostel from being aggressive in applying marketing strategies using Google and Facebook to keep the brand of the hostel growing and keeping its old and new market aware of its presence in the Ortigas Central Business District (CBD).
“We’re okay but we’re not making money the way businesses are suppose to be making profit to pour it back into the business and improve the property’s features and services.” says its owner Kristoffer Atienza. “What’s making it more challenging for us are the rising costs of utilities and the impending nature of inflation that seems to be in a free fall right now. Inflation in The Philippines is up from 1.4 points in 2014 to a high of 3.5 now as reported by the country’s Central Bank. Inflation is bad news for a micro business like Crossroads Hostel Manila because it dictates the price of goods and services that the hostel relies on to deliver its promise to its customer.
“The number one ‘enemy’ of property businesses in the country are our utilities. I constantly pay the electric company, Meralco, between 20% to 40% off of my gross sales and that does not include yet the manpower, maintenance, and other taxes I have to pay the city and the state.” added Atienza.
To keep its hopes alive, the hostel is banking on the high ratings it keeps receiving from guests and this is the saving grace for Atienza. The hostel is rating a high of >9 of 10 stars and a low of 4.4/5 stars depending on what online travel agency you book from or make your reservations from.
“So far, the interest is there and I have barely scratched the surface of my local market, which I am banking on the heaviest. Without them, my business is done for.” lamented Atienza.
2018 seems to be a good year as it is now receiving inquiries from local evangelical churches all over the country for January and if the bookings are up then more guests can be sure that the owner will fend off any rising costs of utilities that is plaguing the property right now. “No one wants to raise prices to help you offset costs but in an economy where you saw a dip in the number of guests coming in into the country, you have to do something to make sure you have consistent number of guests coming in and adding more price cuts is not going to be beneficial for us because the labor you put in is not something you put a discount on. Discounts are an incentive and not a way to attract more business. So we’ll see how it goes and I only hope we can have a brighter 2018 with more guests coming in and enjoying the services we offer in this area of Metro Manila.”
We hope all the best for Crossroads Hostel Manila. For reservations, please call (0937) 378 0400 or add yourself on their FB page here to send them an inquiry.