One month into the new year and seeing some great progress. The hostel is still slow, as is town in general, but that's to be expected. Still hard to dissect how much is seasonal vs. storm-related, but as some data is trickling in, I think the forecast is better than some I've seen. For example, Asheville vacation rental occupancy in November (purposely excluding hotels as they had FEMA vouchers) was at 49% vs. 60% in Nov 2023. Asheville being down 20% YoY isn't good, but also not near as bad as some estimates have projected. And by comparison, my November occupancy was quite a bit higher than November 2023. Startup revenue growth can still happen in a tough macro environment, and I hope that trend continues. Still just trying to focus on what I can control.
I closed for 8 days mid-month to take my annual planning retreat. Last year I spent it on the Pacific coast of Mexico, but this year I scaled back all the way to the sunny coast of Florida (thank you in advance for your pity). It was part productive and part fun, as friends and family joined me towards the back half of the week. I could always look back and say I should've spent more time doing x,y, or z, but between the trip and a staff meeting before I left, we have some great ideas for the year and have the wheels in motion on a few.
For example, I've switched our room configuration around a little bit. One of the 8-bed coed dorms is now our female dorm, and the old 4-bed female dorm is now a coed (and slightly more expensive). Our female dorm occupancy was higher than coed and I wanted to open up more slots for ladies that wanted to book that room. Plus, now we can have a slight premium option for those that would prefer to have fewer roommates. This feels like a small but positive change.
We're revisiting our marketing strategy (or lack of one) too. It's not something that comes naturally to me, but several books have suggested to me that marketing is in fact important as a business owner. I'll take their word for it for the moment. We've sent out our first marketing email, targeting all past guests. The idea is to share events in the upcoming month, feature a new business, and in general, remind our past guests of the fun they can have in Asheville. Stats on the first email newsletter: 54% open rate, .7% unsubscribe rate, and 0 new bookings using the newsletter discount code. Got some good feedback generally on the newsletter but I hope that bookings number turns positive. One of the things that annoys me about marketing is not everything is attributable or measurable. I'm accepting it (for now).
As mentioned in that newsletter, we've launched part 1 of our rewards program. It's been an idea since I started, but I finally got around to setting up the technical plumbing to track it. We may change the parameters, rewards, etc., but it's good to have the data flowing automatically.
And lastly, we got our front yard monument sign installed (pic below!) This should help a lot with brand awareness; we've transitioned from a weird green house on the side of the road, to a weird house with a cool mural on the side of the road, to now a cool muraled house with a proper sign that will allow people to Google us as they're sitting in traffic. We have seen an increase in Google search traffic since the sign was installed, and that certainly can't hurt.
In general, I'm excited about the ability to move faster. The end of my other job helps that. AI helps that. Growing the team will help that. Excited to share just as many updates from February too. Thanks for reading!
January stats
- Occupancy rate: 12.5% (+18% MoM, +507% YoY)
- Total Guests: 31 (-14% MoM, +210% YoY)
- Total Guest Nights: 65 (-7% MoM, +333% YoY)
- Revenue: $4,886 (+39% MoM, +368% YoY)
Getting some more green on the board! Nice too, considering we were closed for 8 nights of the month. The crazy high YoY changes are mostly due to just how slow Jan 2024 was. That month, I had 10 guests and 2 of them were related to me.
Either way, this does show good growth. Back a year ago, people barely knew we existed. A lot of our January 2025 revenue was from local partner referrals and/or repeat guests. That's always a good sign, and something that should always help keep us afloat during Asheville's slow months.
Would love any feedback. Until next time!
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