August 2026 Hostel Update
A few business updates to start, including some new ways we’re trying to generate additional revenue.
A few business updates to start, including some new ways we’re trying to generate additional revenue.
- We’ve started piloting one of our parking spots for car camping. Guests pay a lower price to sleep in their vehicle while still getting access to breakfast, common areas, showers, and the rest of the hostel’s amenities. I’m not listing it on our main booking engine—I don’t want someone who would otherwise book a bunk to book this instead and have us steal revenue from ourselves. But we do have a separate car-camping landing page that will hopefully pick up some traffic through SEO.
- We’ve listed a few beds on Expedia, our fourth online travel agency (OTA), to get in front of more travelers. I’m approaching it with some hesitation for a few reasons. Expedia pushes our inventory out to a lot of different sites, where we start to lose control over how the hostel is presented, and most of those sites cater to people looking for hotels. The risk is attracting guests who truly don’t want to stay at a hostel; the upside is introducing hostels to people who may not know we exist. We’ve had a total of one (1) booking so far, so results TBD.
I spent more time than usual on staffing in August. One employee is winding down her time with us after landing the full-time job she was looking for. It’s tough to lose her during summer, but I’m excited for her because she’s leaving for a good reason—and not just because she hated her boss.
We also brought on a new hire at the end of the month, and it’s been great to start training someone promising before the October rush. We also had three work trades in August—the first time we’ve had three at once—which gave us some additional flexibility. That included training one of our work trades on front-desk duties for the first time.
I wouldn’t say people management is a core strength of mine, but every person we bring in is another opportunity to improve our systems and training—and for me to get better at giving up control.
A few other quick things from around the internet
- Hatch Innovation Hub interviewed me for its monthly feature. They’re one of several great local organizations supporting entrepreneurship, and we partnered with them to provide discounted stays to people participating in HatchThis, their weekend-long small-business hackathon. I always appreciate the opportunity to tell my story to new people.
- Mountain Xpress recently wrote an article about the Woodfin Business Association, of which I’m a proud member, and its work to put our area on the map ahead of Taylor’s Wave. I was glad to get a small mention there!
- Lastly, I worked with two other hostel colleagues (The NotSo Hostel in Charleston and The Crash Pad in Chattanooga) to put together an Instagram reel about hostel road trips, and I’m currently running a paid promotion to get more people to watch it. The hope, even if it doesn’t drive immediate bookings, is to continue showing people that hostels are a thing—and that they’re probably much nicer than they imagine.
If you have a minute, I’d love a click, like, comment, or share on any of those links!
August stats
On the numbers side, it was a great month! By revenue, it was our second-best month ever. September is already tracking ahead of last year, and I expect another big October. The growth is happening.
It’s never as fast as I want it to be. But this summer has been really encouraging because the business hasn’t been propped up by whole-house rentals. It’s been driven by people wanting to stay at a hostel—and by us delivering an experience that exceeds their expectations.
August stats
- Occupancy rate: 35.2% (+37.5% MoM, +26.4% YoY)
- Total Guests: 93 (+25.7% MoM, +19.2% YoY)
- Total Guest Nights: 216 (+33.3% MoM, +17.4% YoY)
- Revenue: $12,584 (+33.3% MoM, +31.3% YoY)
Guest Snapshot
- Youngest Guest: 18
- Oldest Guest: 72
- Median Age: 27
- Hosted guests from 7 countries: Greece, Germany, Italy, Belgium, Sweden, the UK, and the US
- Average Stay Length: 2.4 nights
- Median Booking Lead Time: 4 days
August Marketing Overview
That makes two straight months where our main Google Ads campaign hasn’t paid for itself. I’m not pulling the plug yet, but I’m watching it closely. The Whole House Rental campaign was more encouraging: it brought in two promising leads this month. We’ll see whether they close, but I still like keeping that campaign running.
I am pulling the plug on OpenAI ads. They haven’t converted, and there isn’t much of a discount for testing such a new ad product. We already appear in standard AI search results, and with our reviews as strong as they are, I expect that organic visibility to continue without paying for it.
Google Ads — Hostel Keywords
- Monthly Spend: $608
- Conversion Value: $418 (not ideal!)
- Clickthrough Rate: 15.5%
- Cost Per Click: $3.21
Google Ads — Whole House Rental Search Terms
- Clickthrough Rate: 3.76%
- Cost Per Click: $0.84
- Daily Spend: $4.42
OpenAI Ads
- Clickthrough Rate: 1.16%
- Cost Per Click: $3.01
- Conversions: 0
- Monthly Spend: $427
Want to help me spread the word? Help me raise awareness? Tell one travel buddy about us. If you get em here, we’ll be sure they have a great time.