BUSINESS PLAN

BISTER.COM

TEAM MEMBERS:
AMMAR CHAUDHARY 15023031-015
WASEEM HAIDER 15023031-013
RUGHAINA KANWAL 15023031-001
BISTER.COM
PROBLEM STATEMENT
• One of the major problem faced by hostel
owner is vacancy. Even if running at full
capacity any hostel will have some vacancy
which needs to be filled.
• Another problem faced by the consumer
is that the don’t have a platform to easily
book and avail dorms of their choice.
SOLUTION
• Providing a companion platform to for
hostel owners to cover-up their vacancy
faster and easier than traditional methods.
• Providing ease of access and choice to
customize their rooms as they require.
EXECUTIVE SUMMARY

• A platform to unite hostilities to the hostel owners. Focused on providing best in class services
and customization of rooms as per needs.
• Our targeted customers are students and other persons in need of accommodation as well as
hostel owners.
• It is an Intuitive easy to use app based platform.
INDUSTRY ANALYSIS
• The word ‘hostel’ brings to mind dorm style, small and budget accommodation for people who
want to adjust themselves in a cheap stay.
• Hostels now-a-days include private rooms and all hotel-like amenities.
Hostel Marketplace: Benefits:
• Basic need for privacy, hostels have also started providing private rooms with attached
washroom facility, free Wi-Fi, food and beverages, daily cleaning facilities.
• Hostel facilities are most likely to be availed by the youth.
• Majority of youngsters book their hotels online, and this is the precise reason that hostels are
now digitally capable like any other plush hotel
INDUSTRY ANALYSIS

Hostel Marketplace: Drivers and Restraints:

• Online channels are the main driving factor for the growth of hostel marketplaces. More than
70% of bookings are made through online which is increasing the growth of the hostel
marketplace sector.
• Not only youth but now travelers above 50 years of age are also turning up to stay in hostels.
• Solo travelers mostly prefer pocket friendly places to stay, which is further boosting the hostel
marketplace sector.
INDUSTRY ANALYSIS

Hostel Marketplace: Outlook

• Most hostel owners have realized that visual appeal is important considering the growth of the
hostel marketplace sector.
• Most of the hostels are now using an online marketing strategy that can create a promising
future for the hostel marketplace sector.
• Use of social media and a leverage on local search optimization will further create a positive
impact on the hostel marketplace sector.
COMPANY DESCRIPTION

Mission statement:
“To unite hostilities to the hostel owners with ease of access and customization as per
needs.”
Products and services:
Following are the products and services of the business:
• An app based platform
• Room customization as per needs
• QnA forum
• Real estate advertisement
MARKET ANALYSIS

Market segmentation and target market selection:

The market to our business plan is divided among:
• Students
• Bachelors
 Our key buyers are the students who come to new cities for studies and want a home like
place to live and stay.
 Our model is not only limited students as well the hostel owners who can put up their
vacancy on our platform through our application
MARKET ANALYSIS

Buyer behavior:
• Hostel is now the second most expensive purchase in students lives.
• Students now seek out all of the increasingly available information about their decisions and
even try to negotiate for a better deal.
• This upsurge has been matched on hostels by administrations which now seek to meet every
student need in order to drive customer satisfaction scores.
MARKET ANALYSIS
Competitor analysis:
 Threat of new entries:
• On the hostel industry the entry barriers are very low, making then the threat of new entries
being very high.
• low barriers to entry are the fact that it is required a small amount of investment to build the
infrastructures.
 Bargain power of suppliers:
• There are a large number of suppliers, their bargaining power is very low. No single supplier
dominates the lodging market.
• As service providers, hostels should take into consideration the importance of good
employees.
MARKET ANALYSIS

Competitor analysis:
 Bargain power of buyers:
Buyers’ bargain power is very high. Nowadays, with just a click, it is possible to be well informed
about prices and services provided by the accommodation companies.
 Threat of substitutes:
• There is a high threat of substitute.
• The competitive intensity is very high.
• Right now we can see a big number of operating units offering services for both segments.
MARKET ANALYSIS

Estimate of annual sales:

• The estimated annual sale depends upon the number of hostels being available and vacant at a
certain time in the target area.
• But forecasted and are planning to achieve at least 1000 sales
• Going to achieve even more buyers in the coming years.
THE ECONOMICS OF THE BUSSINESS

Revenue drivers and profit margins:

• Sales commission of 5% on each sale from both ends.
• Profits on customization and extras
• Advertisements
Fixed and variable cost:
• App development and maintenance.
• Commute cost.
• Paper works.
• Infrastructure and database costs
THE ECONOMICS OF THE BUSSINESS

Startup costs:
The startup cost of the business plan is very low we will require minimum 1 million for the
startup which includes the:
• Data base cost.
• App development cost.
• Traveling costs.
MARKETING PLAN

Overall marketing strategy

Our marketing strategy includes:
• Advertisement on internet and social media.
• Printing flex.
• Advertisement on the commute vehicles as these are the cheapest ways to advertise.
Prices and promotion:
• We will charge 5% of the total room cost from both the ends.
• And we will provide different promotion packages on the customization.
• Providing loyalty cards for the consumers.
CHALLENGES AND RISKS:

The Sharing Economy

Continuously Changing Consumer Demands
Shortage of Experienced Personnel
Consumer Perception of Risk
Guest-Focused Technology
New Regulations by the law
BUSSINESS FACILITIES AND
LOCATION EQUIPMENT
Our main headquarter will be located in Following facilities will be required for the
the center of Lahore as it will be business:
convenient for us to capture all the • Infrastructure
hostels form there.
• Electricity 24/7
• Internet connection 24/7
Equipment required:
• Database storage
• Computers
• Commute vehicles
MANAGEMENT TEAM

Ambassador
Computer operator
Telephone operators
It manager
Data handlers
Industrial engineers
COMPANY STRUCTURE
SOURCES AND USES OF FUNDS
SUMMARY

 Statistically from the industry analysis the lodging service industry is going online globally and
there is a grave opportunity in Pakistan as well.
 Consumers wants ease of access.
 Through market analysis the competition is high and there is a great chance of new substitutes.
Which can be covered if we provide or close to provide the facilities as follows:
• Intuitive app base platform for ease of access.
• Providing companion app for hostel owners.
• “Choice to customize”