Zostel Entrepreneurship Development Programme

Zostel Entrepreneurship Development Programme

www.zostel.com/beyou

India’s First Chain of Backpackers’ Hostels

CONFIDENTIAL

ZostelTable of Contents

Market Overview

Global Market – Size and Growth

Global Market – Competitive Landscape

Indian Market – Competitive Landscape

Indian Market – Size and Growth

Zostel – Product Description

Case Studies

Zostel Entrepreneurship Development Program

Appendix

Backpackers’ MarketMarket Definition – Who are backpackers?

Backpackers are low-cost leisure travelers with typically the following

characteristics:

• A preference for budget accommodation

• An emphasis on meeting other travellers

• An independently organized and flexible travel schedule

• Longer, rather than brief, holidays

• An emphasis on informal and participatory holiday activities

Source:

1. beforeyoubackpack.com; www.holidaysafe.co.uk

The concept is pretty popular, especially among young travelers, who

move out of their native places for a few months to explore the world.

Some of the biggest segments among backpackers are:

• Gap year travellers – The ones who take a gap year after college to travel the world

• Career breakers – Travellers who are on sabbatical or those who have taken time off

their careers to travel the world

Backpackers generally rely on internet forums, websites and word of mouth from

the community of fellow backpackers for designing their trip itinerary with limited

influence of travel agents and other package tour providers.

Zostel

Market Overview






Case Studies


Appendix

Backpackers’ AccommodationMarket Size and Growth – Global Market

Because of the peculiar requirements, given an option, backpackers prefer to stay at non-traditional and budget-friendly

stay options such as hostels, couch-surfing or Air BnB where they get to stay in a social, casual environment and get a

chance to interact with fellow backpackers.

The backpacker accommodation market is very well developed in Oceana (New Zealand and Australia) and Europe

while Asia is also catching up fast with a number of backpacker hostels coming up in South East Asian countries such as

Thailand, Vietnam and Malaysia

Source:

1. WYSE Travel Confederation, New Horizons III (Sept. 2013)

Backpackers with Avg.

Daily Expense >$33

40%

Average Trip

Duration

58 days

Total Trip Spend

$3,300

1 2 3

Most preferred

Stay option

Hostels (32%)

4

2013

2007 52 days $2,350 Hostels (31%)28%

Key

backpacker

stats1

The total global market size for youth travel stood at around $183 billion as of 20121

Zostel

Market Overview






Case Studies


Appendix

There is a

complete

white space

in upcoming

and rapidly

growing

backpacker

destinations

of Asia and

South

America –

target

markets for

Zostel

Backpackers’ Hostel ChainsCompetitive Landscape – Global Market

There is a huge untapped potential for backpackers’ hostels in rapidly growing Asian and South American

markets

Source:

1. Zostel Research and Analysis

A&O

Hostels

Loki

Hostels

Plus

Hostels

Meininger

Hostels

HighLow

Low

High

Market Growth

Reach

(# o

f H

oste

ls)

Generator

Hostels

Equity Point

Hostels

Nomads

Hostels

Base

Hostels

USA

Hostels

K’s

Hostels

Lub d

Hostels

Most of big

hostel

chains are

operating in

European

and Oceana

Market – a

market

that’s

getting

saturated

fast

Note: Bubble Size

denotes bed

capacity of particular

hostel chain

Zostel

Zostel

Market Overview






Case Studies


Appendix

Indian Leisure Travel MarketMarket Size and Growth – India

As per various independent reports such as World Travel and Tourism Council, India is one of the fastest

growing tourism market in the world – making it a tourism powerhouse in the next decade

• At 9% - India’s FTA (foreign tourist arrival) growth rate is already double the global average

Source:

1. World Travel and Tourism Council

Incredible India1

Zostel

Market Overview






Case Studies


Appendix

Independent units – no

cross selling

Non-Existent

Quite cheap but still

expensive than hostel

Obscure, off-center

locations – difficult to

find and commute

Major Problem Area

Backpackers’ AccommodationCompetitive Landscape – India

In India, Backpackers have to stay in filthy lodges as that’s the only option fitting their modest budget

• Zostel, being India’s first and only world-class backpacking hostel chain is clear market leader filling

this gap and is the only major brand in Indian backpacking space

Se

rvic

e P

ara

me

ters

Accomm. Options

Youthful

Ambience,

Branding &

Engagement

Affordability

Location

Lodges and

Guesthouses

Cross-Selling

Opportunity Possible only in case

of chains

Somewhat possible

because of chain effect

Independent units –

no cross selling

1-3 Star Hotels YHAI HostelsStandalone Small

Hostels

Zostel Hostel

Chain

Hygiene and

Security

With presence at

various tourist spots,

its highly prevalent

Very formal –

focused on families &

business travelers

Non-Existent – No

innovation in decades

of its existence

Very much there

except lack of brand

Strong branding with

focus on creating fun,

youthful atmosphere

Expensive for

backpackers

Dirt cheap but hardly

any facilityVery affordable Very affordable

Off the center Obscure locations Decent locations but

away from main areasBang at center –

amidst the action

Pretty Decent Major Problem AreaPretty Good,

though security

isn’t that great

Full focus on

hygiene and

security of guests

Source: Zostel Research and Analysis

Zostel

Market Overview






Case Studies


Appendix

Product and Market Presence

Milestones Achieved

Brand Reach

Team

ZostelProduct and Market Presence

Product Description Footprint in March 2015

Nov’14, 120

Oct’14, 60

Oct’13, 25

Aug’13, 25

Jul’14, 56

Nov’14, 70

Legend

(x,y): (Launch Month, # of beds)

Leased

• One line: Hygienic, Secure & Centrally located acco. at

INR 349-499 per bed and INR999 per room

• Facilities: Dormitory with bunk beds, common room with

entertainment facilities, library, community kitchen

• Features: AC, Wi-Fi, Pvt. Lockers, Regular Events

• Model: First 7 properties are leased; now expansion via

partnerships

50 Beds to 450 Beds (9x) in 7 cities in <6months

Sept’14, 75

ZostelProduct and Market Presence

The First Chain of Backpacker’s Hostels in India providing hygienic, secure and centrally located

accommodation at affordable prices

Zostel

Market Overview






Case Studies


Appendix


Milestones Achieved

Brand Reach

Team

ZostelMilestones Achieved

With presence across 7 cities across 5 states, Zostel Passport programme is used to get

discounts in their multiple stays; significantly improving customer loyalty and repetition

Approx. 60% of bookings made directly through our website; Strategic usage of

Adwords marketing to drive traffic

Partnership with youth organizations such as AIESEC; Brand ambassadors in

50+ colleges

With domestic and International players - India Someday, Kilroy Travels

and travel companies - Virasat, Padharo, Red Panda & Dare the

Himalayas

Best Internship Ever: Partnered with MTV, Redbull to deliver the

biggest campaign for H1 2014; 70K+ applications from pan-India

Best Value Leisure Product Award at the Travel &

Tourism Fair 2015; HOSCAR for best Hostel in India

54K+ Organic Likes with a reach of 9 million

people through FB page; highly active on

Quora, Twitter

Hostelworld rating: 90%+; Listed on

10+ portals

#1 on TripAdvisor for

most properties

within 2 months

Zostel Pan-India

Passport

Website Booking/

Adwords

College Festivals

Travel partners

Best Campaigns

Awards

Social Media

OTA Listings

Tripadvisor

Zostel

Market Overview






Case Studies


Appendix


Milestones Achieved

Brand Reach

Team

ZostelBest Internship Ever – Best Campaign for 2014

• Campaign design/Tech/Marketing ensure virality across social media

• Cool website & Multiple videos to engage youth

• Reach 3L youth from 550 colleges via social, email and traditional print media

• Youth centric channels like Times Group, Hindustan Times, Yourstory, Campus Diaries

Maximum organic reach

80,000 participants for 4

months

Proprietary property of

Zostel

Pre Launch Promotion: Post Launch Traction:

• 80,000 registered Users, 45:55 Women!

• 10,00,000 unique visitors, Significant mobile users

• 30MM impressions on facebook

• Sponsors and Partners - MTV, Redbull, American Tourister, Holiday IQ

Best Internship Season 1 – Able to garner sponsorship 15Lakh+

Best Internship Season 2 – to go on Air!

Best Campaign of H1 2014 - http://www.socialsamosa.com/2014/07/social-media-campaigns-half-

yearly-review-2014/

ZostelBrand Reach

Note: All news articles are hyperlinked

http://www.ndtv.com/article/india/why-these-iim-calcutta-grads-do-not-want-placements-488837

http://www.ndtv.com/article/india/why-these-iim-calcutta-grads-do-not-want-placements-488837

http://yourstory.com/2014/01/zostel/

http://yourstory.com/2014/01/zostel/

http://www.socialsamosa.com/2014/03/social-media-campaign-review-zostel-bestinternshipever/

http://www.socialsamosa.com/2014/03/social-media-campaign-review-zostel-bestinternshipever/

http://articles.economictimes.indiatimes.com/2014-05-09/news/49743085_1_rs-5-crore-angel-investment-20-lakh

http://articles.economictimes.indiatimes.com/2014-05-09/news/49743085_1_rs-5-crore-angel-investment-20-lakh

https://www.youtube.com/watch?v=BJ0LRtBvKXA

https://www.youtube.com/watch?v=BJ0LRtBvKXA

http://www.newindianexpress.com/education/edex/Stu-preneurs-open-budget-hostels/2013/11/18/article1892895.ece

http://www.newindianexpress.com/education/edex/Stu-preneurs-open-budget-hostels/2013/11/18/article1892895.ece

http://www.livemint.com/Leisure/nMBw0ya0cmndw6qw61p3UO/Zostel-Passion-for-travel.html

http://www.livemint.com/Leisure/nMBw0ya0cmndw6qw61p3UO/Zostel-Passion-for-travel.html

http://www.hindustantimes.com/india-news/jaipur/iim-calcutta-students-set-up-backpackers-hostels-in-rajasthan/article1-1183892.aspx

http://www.hindustantimes.com/india-news/jaipur/iim-calcutta-students-set-up-backpackers-hostels-in-rajasthan/article1-1183892.aspx

http://www.dnaindia.com/topic/zostel

http://www.dnaindia.com/topic/zostel

http://www.thehindubusinessline.com/on-campus/iim-iit-students-set-up-zostel-for-backpackers/article5670685.ece

http://www.thehindubusinessline.com/on-campus/iim-iit-students-set-up-zostel-for-backpackers/article5670685.ece

http://www.travelnewsdigest.in/?p=23281

http://www.travelnewsdigest.in/?p=23281

Zostel

Market Overview






Case Studies


Appendix


Milestones Achieved

Brand Reach

Team

ZostelThe Team

Dharamveer

(IIM Calcutta)

Tarun

(IIM Calcutta)

Akhil

(IIM Calcutta)

Abhishek

(IIT-BHU)

Chetan

(IIT-BHU)

Paavan

(IIM Calcutta)

Siddharth

(MDI, DCE)

Technical Head,

Recruitment

and Marketing

Content &

Digital

Marketing,

Operations

Business

Development,

Operations

Operations &

Property

Management

Operations &

Property

Management

Investor

Relations and

Sales

Recruitment,

Sales and

Finance

Other team

members

• Graphic Designer from NIFTs and Technical Team from IITs

• Core Team from IIMs, IITs and other best Management and technical Institutes; Experience of

working in biggest MNCs of the world

• Interns from best colleges across country (IITs, DU, NIFTs, etc)

Zostel team is winner of 14/14 Business Plan competitions globally including Wharton India Economic Forum, Richard

Ivey Canada, IIT-Bombay Eureka, Launchpad IIM-Calcutta etc.

Zostel

Market Overview






Case Studies


Appendix

Zostel Jaipur

Zostel Udaipur

Zostel Varanasi

Zostel Goa

Zostel JaipurCase Study


Zostel Jaipur – Overview

Property

Description

Zostel Jaipur was launched on 20th Oct 2013 in Civil Lines Jaipur in an empty 4 BHK floor taken on 3 year lease

Jaipur property was Zostel’s 2nd pilot property bootstrapped by founders with an initial budget of INR 12.5 lakhs

The premises has one 8-bed mixed dorm, one 6-bed mixed dorm, one 8 bed female only dorm and one 3-bed private room – a total of 27 beds along with 5 showers and 5 western toilets

Zostel Jaipur has one huge common room cum reception and two open hangout areas along with a terrace; the property also houses a community kitchen

Ac, ,Fridge, & Washing Machine Beds, Mattresses & LinenPainting and Repairing Common RoomKitchen set-up Front Desk

Capex – Breakup(INR lakh, %)

Since the property was empty for a long time, painting and general repair came out to be the biggest expense head at INR 4 lakh

This also included construction of 2 showers and 2 WCs at around 2.5 lakhs

The cost of a bed, mattress & corresponding linen is generally around INR 12 thousand per bed

This translates into INR 3.3 lakhs for 27 beds

At one AC per dorm and one refrigerator for community kitchen, it was our 3rd biggest cost head

4 L

(33%)

3.3 L

(27%)

1.3 L

(11%)2 L

(16%)

1 L

(8%)

0.6 L

(5%)

100% = INR 12.2 lakhs

Note: The financials mentioned are approximate


Salary, Utilities (electricity and Internet bill) and property rent are the biggest monthly operating expense (opex) for Zostel Jaipur

Zostel Jaipur opex is 1.5-1.7 lakhs/ month

The property employs 1 property manager, 1 front desk staff, 1 full time house keeping staff & a security guard

The property operationally breaks-even at an occupancy of 34% at an avg. revenue/ customer of INR 600/bed night – accomplished within 2 months of launch date

Miscell.,

24k, (15%) Salary

47k, (28%)

Utilities

30k, (18%)Rent

27k, (16%)

F&B

30k, (18%)

Maintenance

8k (5%)

Note: Based on Oct 2014 to Feb 2015 Data

100% = INR 1.66 lakhs

Monthly Op-Ex – Breakup(INR, %)

Zostel Jaipur is one of the most profitable property under Zostel brand umbrella

The property invariably earns a revenue between INR 3-4 lakhs with an operating margin of about 40-50%

Average occupancy of Zostel Jaipur remains at around 75% – fluctuating between 50% in off-season to over 100% in peak season

Pay-back period for the property was 7 months

2.8 2.7

3.8

3.02.5

1.6 1.7 1.9 1.6 1.4

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

Revenue Op. Expenses Op. Margin

41%36%

49% 47% 43%

Financial Snapshot(INR Lakhs)

Operational and Financial Snapshot

Note: The financials mentioned are averaged out numbers and may vary slightly

Zostel Jaipur gets over 40% bookings directly through its website underlining the brand strength of Zostel in backpacking accommodation market

Over 80% tourists comprise foreign backpackers – UK, USA and Australia being the biggest contributors; most of the tourists are in 18-35 year age bracket

Zostel Website

41%

Other Sources

59%


India18%

UK18%

USA12%

Australia11%

Germany4%

Others37%


• Rank 1 out of 228 properties on TripAdvisor within 2 months of launch till date

• 163 reviews out of which 134 excellent and 28 very good with just 1 average till date

• Awarded HOSCAR 2015 for ‘BEST HOSTEL’ in INDIA

• 185 reviews with an overall rating above 90%

Awards and

Customer

Reviews

Customer Demographics & Booking Source

Customer – By Booking Portal Customer – By Country of Origin

Note: The numbers mentioned are averaged out over the period of operation of the property

Zostel

Market Overview






Case Studies


Appendix

Zostel Jaipur

Zostel Udaipur

Zostel Varanasi

Zostel Goa

Zostel UdaipurCase Study


Property

Description

Zostel Udaipur was launched on 27th June 2014 at Nav Ghat – located right over lake Pichola and sharing one wall with Udaipur City Palace

Udaipur property was Zostel’s 3rd property (1st post funding) started out at an investment of INR 22.5 lakhs

The premises has one 8-bed mixed dorm , four 6-bed mixed dorms, one 6-bed female only dorm and five 2-bed private room with total capacity of 48 beds

Zostel Udaipur has a huge rooftop restaurant cum common room and a terrace area with arguably the best lake view possible in Udaipur



The property, although new, had some major issues with plumbing and electrical work, hence, painting and general repair came out to be the biggest expense head at INR 8 lakh

Property already had restaurant furniture and most of the equipment needed for running a restaurant

The cost of a bed, mattress & corresponding linen is generally around INR 12-14 thousand per bed


Restaurant Kitchen and common room were the other biggest cost heads

8 L

(36%)

7.3 L

(33%)

0.5 L

(2%)

2 L

(9%)

3.7 L

(16%)

1 L,

(4%)

Zostel Udaipur – Overview

100% = INR 22.5 lakhs




Salary, F&B (because of restaurant) and property rent are the biggest monthly operating expense (opex) for ZostelUdaipur

Property’s opex is INR 4.3 lakhs/ month

Property employs 1 property manager, 1 front desk staff, 3 house keeping staff, 4 restaurant staff & a security guard

The property operationally breaks-even at an occupancy of 38% at avg. revenue/ customer of INR 850/bed night (due to more private rooms and full fledged rooftop restaurant) – accomplished within 1 month of launch date

Miscell.,

15k, (4%)Salary

77k, (18%)

Utilities

30k, (7%)

Rent

150k, (35%)

F&B

135k, (32%)

Maint.

20k, (5%)

Note: Based on Sept. 2014 to Feb 2015 Data

100% = INR 4.3 lakhs

Monthly Op-Ex – Breakup(INR , %)

Zostel Udaipur was the first bigger Zostel after Jodhpur and Jaipur pilot projects

The property generally earns a revenue between INR 5-11 lakhs depending on the season with an operating margin of about 40-50%

Average occupancy of Zostel Udaipur remains at around 60% – fluctuating between 50% in off-season to over 100% in peak season

The pay-back period for the property was 7-8 months

3.4 8.2 5.610.8 8.0

7.1

3.7 4.4 4.5 4.7 4.4 3.9

Sep/14 Oct/14 Nov/14 Dec/14 Jan/15 Feb/15


-14%

48%55%

45%

48%

20%


Note: The financials mentioned are averaged out numbers and may vary slightly

Zostel Udaipur gets around 50% bookings directly through Zostel website followed by other portals

About 65% guests are foreign backpackers – UK, Australia and USA being the biggest contributors; Zostel Udaipur hosts highest percentage of Indian backpackers among all Zostels

Zostel Website

48%

Other Sources

52%


India36%

UK16%Australia

9%

USA6%

Germany4%

Others29%


• Broke to #1 within 2 months of launch; Currently ranked 4 out of 95 properties on TripAdvisor

• 110 reviews out of which 97 are excellent or very good

• 100% rating on Hostelbookers

• 78 reviews with an overall rating of 88% on HostelWorld

Awards and

Customer

Reviews




Zostel

Market Overview






Case Studies


Appendix

Zostel Jaipur

Zostel Udaipur

Zostel Varanasi

Zostel Goa

Zostel VaranasiCase Study


Property

Description

Zostel Varanasi was launched on 15th Oct 2014 at Luxa Road in Varanasi – 10 minutes walk away from Dashwamedh Ghat – the main ghat of Varanasi

Varanasi property was Zostel’s 6th hostel – started out at an investment of around INR 25 lakhs and a set-up period of 2 months

The premises has three 8-bed mixed dorms , four 4-bed mixed dorms, one 4-bed female only dorm and four 2-bed private room with total capacity of 52 beds

Zostel Varanasi has the biggest common room among all Zostels and a huge covered rooftop hangout area with a kitchen



The property, was an old running hotel and hence had to be majorly worked upon including adding an additional floor and altering some construction

As part of the deal, most of the civil work was done by the owner before handing over the property on lease (9 year)



Common room (because of construction involved) was the other biggest cost heads for Zostel

8 L

(33%)

7.5 L

(31%)

0.4 L

(2%)

6 L

(24%)

2 L

(8%)

0.6 L,

(2%)

Zostel Varanasi – Overview

100% = INR 24.5 lakhs



Again Salary & Rent constitute nearly two-thirds of the total operating expenditure

Property’s opex is INR 2.8 lakhs/ month

Property employs 1 property manager, 2 front desk staff, 3 house keeping staff & a security guard

The property operationally breaks-even at an occupancy of 30% at an avg. bed price of INR 600/bed (averaged out for private rooms) – accomplished within 2 month of launch date

Miscell.,

21k, (7%)

Salary

92k, (33%)

Utilities

23k, (8%)Rent

90k, (32%)

F&B

36k, (13%)

Maint.

20k, (7%)

Note: Based on Nov. 2014 to Feb 2015 Data


Monthly Op-Ex – Breakup(INR , %)

Zostel Varanasi was the first Zostel outside our stronghold of North India & Rajasthan

Being a very competitive market with another hostel already holding the top spot, Zostel took 2 months to capture the market and grab the top spot in Varanasi

Average occupancy of Zostel Varanasi has remained at around 65% in last 3 months

Pay-back period for the property is expected to be 12-15 months

1.4 2.6 5.0 3.72.8 2.8 2.8 2.6

Nov-14 Dec-14 Jan-15 Feb-15


-96%



-9.7%

44%26%

Note: The financials mentioned are averaged out numbers over last 10 months

Zostel Varanasi gets 45% bookings directly through our website followed by HostelWorld and other sources

About 85% guests are foreign backpackers – mostly from UK, USA, Australia & China

Zostel Website

45%

Other Sources

55%


India15%

UK26%

USA17%

Australia9%

China8%

Others25%

Note: Based on Nov 2014 to Feb 2015 Data

• Broke into top 3 within 2 months of launch; currently ranked 1 out of 78 properties on TripAdvisor

• 115 reviews out of which a whopping 101 are ‘Excellent’ and rest being ‘Very Good’

• 98.7% rating on Hostelbookers

• 49 reviews with an exceptional overall rating of 92% on HostelWorld

Awards and

Customer

Reviews




Zostel

Market Overview






Case Studies


Appendix

Zostel Jaipur

Zostel Udaipur

Zostel Varanasi

Zostel Goa

Zostel GoaCase Study


Property

Description

Zostel Goa was launched on 25th Oct 2014 at Candolim Beach – just 2 minutes walk from the beach itself

Goa property was Zostel’s 7th hostel – started out at an investment of around INR 16 lakhs and a had a set-up period of 3 months

The premises has two 8-bed mixed dorms , one 8-bed female only dorm, four 6-bed mixed dorms, one 10 bed non-ac mixed dorm and one 3-bed private room with total capacity of 61 beds

Beds, Mattresses & Linen Painting and Repairing

Common Room Front Desk

Capex – Breakup(INR lakh, %) The property was built in Portugese Villa-style with open

area in front; however, it required addition of a few more bathrooms and WCs

The property was taken on long term lease of 9 years and has scope for adding one more floor



Since the property was slightly old, painting and repairing formed the another major chunk of initial Capex

5.8L

(35%)

7.7 L

(47%)

2.5 L

(15%)

0.6 L,

(4%)

Zostel Goa – Overview

100% = INR 16.6 lakhs


3.9

8.0 7.35.7

3.3 3.5 3.5 3.3

Nov/14 Dec/14 Jan/15 Feb/15



Zostel Goa was supposed to be bigger with an extra floor. However, due to some delays, the construction was pushed to June 2015

Hence, the number of beds decreased but the rent didn’t decrease proportionately – making rent a whopping 44% of Op-Ex

Property employs 1 property manager, 1 front desk staff, 2 house keeping staff & a security guard

Zostel Goa operationally breaks-even at an occupancy of 31% at an avg. bed price of INR 600/bed– accomplished within 1st month of launch

Miscell.,

10k, (3%) Salary

97k, (29%)

Utilities

36k, (11%)Rent

150k, (44%)

F&B

18k, (5%)

Maint.

28k, (8%)

Note: Based on Nov. 2014 to Feb 2015 Data


Monthly Op-Ex – Breakup

(INR thousand, %)

Goa, being the party capital of India was an obvious choice to start Zostel and to carry on expansion further South

Goa already had a few standalone hostels making it a very tough market to get into

We started Zostel in Goa after great demand from our loyal Zosteler community

Hence, within a month, we were profitable

Expected pay-back period for the property is 10-12 months


Operational & Financial Snapshot

53%

41%

57%

15%

Note: The financials mentioned are averaged out numbers

Zostel Goa is a unique Zostel being the only one where Indian backpacker influx in more than foreigners

Another major highlight is the fact that more than 50% of the bookings for Zostel Goa are done directly through our website –reducing dependency on other OTAs

Zostel Website

56%

Other Sources

44%


India62%

UK10%

USA6%

Australia3%

Others19%

Note: Based on Nov 2014 to Feb 2015 Data

• Currently ranked 2 out of 142 properties despite presence of various well established Hostels in the same area

• 52 reviews out of which a whopping 48 are ‘Excellent’ and rest 4 being ‘Very Good’

• 94.3% rating on Hostelbookers

• 39 reviews with an exceptional overall rating of 93% on HostelWorld

Awards and

Customer

Reviews




Zostel

Market Overview







Case Studies

Appendix

Zostel Offerings

Deliverables

Review Policy

Zostel OfferingsBookey of Benefits

Property management software

Channel manager

Direct booking portal on website and mobile app

Virtual Front Desk

Accounting Tools and Support

Upto INR 10 lakhs of direct financial support

The exact quantum will be based on achieving review targets on TripAdvisor, HostelWorld and our mobile app; details to be discussed in advanced stages

Seamless integration on all online and offline Zostelmarketing channels

Listing on over 10 Online Booking Portals

Complete OTA (Online Travel Agents) management by central sales team

Organization level tie-ups with International travel agents and other travel/backpacking focused organizations

Training for Front Desk Staff and property manager

On-site training at existing Zostel properties

On-boarding guidance and supervision

Brand specifications and Zostel vendor list

Financial OperationsTechnology Marketing & Sales

Zostel OfferingsCore Strengths

Market Leaders in Indian Budget Leisure Traveller Market

Dynamic & Young Management Team

Extremely Quick Implementation

Vast Hospitality Knowledge of > 30 years

Robust Marketing & Sales

Entrepreneurial Zeal

1

2

3

4

5

6

Zostel OfferingsSupport to Partners

1

2

3

4

5

6

Market Study & Site Evaluation

Property Setup Assistance

Vendor Sourcing

IT & Financial Audit

Central/Local Sales/Marketing

Hiring/Training 24x7 support

Zostel OfferingsThe Process

1

2

3

4

5

6

Registration through #beyou campaign

Brief Telephonic Conversation with the Prospective Partners

Detailed Telephonic Conversation with Shortlisted Prospects

Face-to-Face meeting in Delhi & Contract signing

Property Selection & On-Boarding

On-Going Governance

Zostel

Market Overview







Case Studies

Appendix

Zostel Offerings

Partner Deliverables

FAQs

Partner DeliverablesTerms and Conditions Overview

Periodic Review System

Zostel is proud to be one of the finest hostel chains – a fact testified by our online reviews and various awards

To maintain the customer trust and high service standards we are associated with, we would be periodically reviewing the customer feedback

Ancillary Service Approval

Zostel was set-up with a vision to change the way India is experienced – making travel an affordable, enjoyable and scam free exercise

To ensure that the ancillary services (such as taxi service, ticketing, city tours etc.) offered are genuine and not overpriced, we would want Zostel’sapproval before rolling out such a service and continuous review thereafter

Zostel Website Booking Fees

Our central team will offer support for all technical, marketing, sales and branding needs

For direct bookings from Zostel website or mobile app, we would charge a 15% commission

However, till the point property operationally breaks-even for first time, the commission is waved off

Lock-in – 3 years

We expect a lock-in period of 3 years in lieu of the knowledge transfer and on-going support on various fronts

Zostel

Market Overview







Case Studies

Appendix

Zostel Offerings

Partner Deliverables

FAQs

ZostelFAQs

Thank YouWhat is the likely pay back period for the capital invested?

Is there any Security Deposit that Zostel will take?

Do you currently have detailed operating manuals?

Where is the staff training provided?

Will someone from Head Office provides assistance to the partner

in opening the property?

Would IT systems that you presently have be included in the

agreement? Do you have a standard agreement?

How long is the partnership term for? And is the term renewable?

Is there any lock-in period?

7- 15 months

No

Yes

At current

Zostels

Yes

Yes

3 years & Yes

Yes , 3 years

1

2

3

4

5

6

7

8

“Twenty years from now you will be more

disappointed by the things that you didn't

do than by the ones you did do. So throw

off the bowlines. Sail away from the safe

harbor. Catch the trade winds in your

sails. Explore. Dream. Discover.”

Interested in getting on-board ? For further details, please contact:

Akhil Malik

[email protected]

PH: 07728897593

mailto:[email protected]