New Sponsor For Krabi Forum

[KrabiHostel]

Just a short message to announce my sponsorship of the Krabi forum.

I'm posting this using my sponsor 'nick', but my 'usual' ThaiVisa nick is Simon43.

How did I end up opening a hostel in Ao Nang? As many will know, I've owned/managed a small hotel/resort in Phuket for many years. Although there have been some notable ups and downs in my personal life, the business itself has been very sound. The recent sale by my 'ex' of her half-share in this business meant that I was in a position not only to expand my Phuket hotel, but also to open a new guesthouse.

My existing hotel experience and success is in the 'niche' area of transit hotels, and those that cater for short-stay guests, (not short-time guests!). Ao Nang is a popular 'jumping off' point for ferries to/from Phi-Phi, Phuket and Lanta, as well as a base for exploring Phang Nga Bay.

And so the idea of Krabi Hostel was created. During Xmas 2010, we signed the building lease and moved in all fixtures and fittings. The web-site was put together and booking agents contacted.

We opened for business in mid-January, with a selction of private and shared rooms, some with air-con and some with fans - at room/bed rates to suit all budgets. The hostel currently has beds for a total of 24 pax, with breakfast, soft drinks and beers available.

As I write today, Krabi Hostel is fully booked

My other hotel in Phuket is also fully booked

If these 2 small businesses continue to be successful in the coming year, we will look to open a third 'travellers hotel' in another suitable location.

So if anyone in or visitng Ao Nang needs a clean bed for the night (or nights), please drop a PM (preferably to my simon43 nick), or click on my sponsorship logo in this forum. Our hostel is located on Ao Nang main street (Moo 2), about 200 meters from the post office.

Simon

[gougouluxembourg]

I wish you all the best with your new Hostel. Like your Webside.

Gougouluxembourg - Ao Nang

[FarangSerbia]

Good luck with your bussines Simon (not that you need any) ! I will surely visit your place next time I find myself in Krabi area.

[mkawish]

You really miss your mark here.

Why not seize the op to ad your pricing as well.

If we know what the rents are, you probably get even more customers....

so as to hasten your fourth hostels becoming a reality in no time....

And remember, there are also many Farang on board here who are also agents....

so what is the comm rate....? Or even comp rate, if any?

Edited February 12, 2011 by mkawish

[simon43]

(posting from my simon43 nick)

Mkawish - the room rates are only 1 click away - easy to find in a few seconds if you need accommodation.

Also, just like my other hotel, I do not use booking agents in Thailand. I do not need to use them when I can fill my rooms 100% using direct marketing strategies and use of international booking agents.

The best way to fill the rooms is the method with the lowest premium to pay (ie commission). That would be via on-line bookings on my web-site

Simon

[grumpyoldman]

Hi Simon,

I'm in Krabi fairly regularly for business and I stay at J-Hotel for these reasons:

I'm not but 300 meters from the Ao-Nang beach wall where I like to sit and take in a sunset beer (simple walking distance).

They give me an ocean view room with a big bed and massive bathroom.

Room has a deck to enjoy ocean view.

Low season 500 a night high season 800 (on availability).

How do your rates and amenities compare?

Thanks GOM

[gougouluxembourg]

Hi Simon,

I'm in Krabi fairly regularly for business and I stay at J-Hotel for these reasons:

I'm not but 300 meters from the Ao-Nang beach wall where I like to sit and take in a sunset beer (simple walking distance).

They give me an ocean view room with a big bed and massive bathroom.

Room has a deck to enjoy ocean view.

Low season 500 a night high season 800 (on availability).

How do your rates and amenities compare?

Thanks GOM

prices and booking www.krabihostel.net

Have a good Sunday

[simon43]

Grumpyoldman - rates start from 350 baht a bed a night, but you may have to share the room with 3 Swedish female students...

I get the vast majority of my bookings from online, international booking agents, where the customer prepays for the room before their visit to Ao Nang.

They may well be able to get a cheaper room (by a few tens of baht) if they arrive in town without a booking and 'shop around'. Best of luck to them in this respect. Both my hotel businesses are not based upon walk-in customers seeking the cheapest room rate. They are based upon fully prepaid on-line bookings, and provision of good service to the customer during their stay.

This is why I do not use local booking agents to fill my rooms. It is 'ineffcient' for me to do so because I have to spend too much time dealing with agents who (by experience), will only generate a few guest bookings.

I'll digress for a moment and talk about my strategy which can be applied to all types of business, not just hotels.

I was formally trained in 'LEAN Management', which is basically the minimisation or elimination of all types of 'wastage' in a business. By wastage, I refer to all items/processes in a business which waste time, effort, cost etc - and where the business would be improved if that wastage was improved.

For example, my hostel employs just 1 member of staff, (a cleaner).

I do not work in this business - my WP is for my other hotel - my wife owns this hostel business via her 'buk khon tamada' sole trader company.

We do not need any other staff. The cleaner keeps the place clean and my wife looks after the reception desk. Guest bookings are generated automatically from our on-line marketing and these details automatically received into our 'PMS' room management software. Prepayments are automatically received into our bank account from the on-line agents.

Since it is a hostel, guests are welcome to (and also want to!) cook their own breakfasts and make their own tea/coffee. They even offer to change their bed-linen and to help our cleaner.

So we have minimised 'wastage' (salaries and time), due to excess staff and un-necessary booking admin work

To ensure that my wife doesn't waste time travelling to/from Macro/the laundry, we have them come to us, delivering food/drink as required and collecting/dropping off laundry.

This means that we all have time to relax and chat with customers, and they feel that they are staying in a friendly, family-run hostel.

If someone wants to walk in and haggle the price of a room, then that's fine, so long as the time we take to haggle with them is worth the final discounted room-rate that we might offer.

By eliminating excess staff, un-necessary expenses and un-neccessary admin time/effort, we also reduce our business 'risk' due to unforseen factors.

Of course, my business is only a small, family business. But I think it is very important to apply these types of business strategy to a small business, where 'wastage' may lead to business failure

Simon

[mkawish]

Grumpyoldman - rates start from 350 baht a bed a night, but you may have to share the room with 3 Swedish female students...

I get the vast majority of my bookings from online, international booking agents, where the customer prepays for the room before their visit to Ao Nang.

They may well be able to get a cheaper room (by a few tens of baht) if they arrive in town without a booking and 'shop around'. Best of luck to them in this respect. Both my hotel businesses are not based upon walk-in customers seeking the cheapest room rate. They are based upon fully prepaid on-line bookings, and provision of good service to the customer during their stay.

This is why I do not use local booking agents to fill my rooms. It is 'ineffcient' for me to do so because I have to spend too much time dealing with agents who (by experience), will only generate a few guest bookings.

I'll digress for a moment and talk about my strategy which can be applied to all types of business, not just hotels.

I was formally trained in 'LEAN Management', which is basically the minimisation or elimination of all types of 'wastage' in a business. By wastage, I refer to all items/processes in a business which waste time, effort, cost etc - and where the business would be improved if that wastage was improved.

For example, my hostel employs just 1 member of staff, (a cleaner).

I do not work in this business - my WP is for my other hotel - my wife owns this hostel business via her 'buk khon tamada' sole trader company.

We do not need any other staff. The cleaner keeps the place clean and my wife looks after the reception desk. Guest bookings are generated automatically from our on-line marketing and these details automatically received into our 'PMS' room management software. Prepayments are automatically received into our bank account from the on-line agents.

Since it is a hostel, guests are welcome to (and also want to!) cook their own breakfasts and make their own tea/coffee. They even offer to change their bed-linen and to help our cleaner.

So we have minimised 'wastage' (salaries and time), due to excess staff and un-necessary booking admin work

To ensure that my wife doesn't waste time travelling to/from Macro/the laundry, we have them come to us, delivering food/drink as required and collecting/dropping off laundry.

This means that we all have time to relax and chat with customers, and they feel that they are staying in a friendly, family-run hostel.

If someone wants to walk in and haggle the price of a room, then that's fine, so long as the time we take to haggle with them is worth the final discounted room-rate that we might offer.

By eliminating excess staff, un-necessary expenses and un-neccessary admin time/effort, we also reduce our business 'risk' due to unforseen factors.

Of course, my business is only a small, family business. But I think it is very important to apply these types of business strategy to a small business, where 'wastage' may lead to business failure

Simon

I am on the opposite end of what you described, even though I agree with most of your practices as very practical....

There is another school of thought which is to offer what others do not.... as a means to attract former and new customers....

such as, offering FREE water, juice, Japanese candies, Chocolate bar and fruit plates when (Durian!) in season and available....

They are doing very well as well....

Where do you think most customers of comparable intends would choose to spend their money....?

Remember, I agree with most of your practices.... so this is not to challenge your hostel, nor your ideas, nor your practices.... OK?

And I'll check out your place when I am in the neighborhood too....

[simon43]

Yes, I agree with you. There are different niche market opportunities and I've chosen to target independent travelers, (which seems to be a sector that TAT does not encourage, since they are after high-spending, 'quality' tourists)

It's always a good move to offer free extras. My ex at my airport hotel insists on levying a 100 baht airport taxi fee. I tell her to offer the service for free and increase the room rates for all customers by about 10 baht, but she doesn't see the logic in doing this

Durian in a confined space??????

Simon

[grumpyoldman]

Hi Simon,

I'm in Krabi fairly regularly for business and I stay at J-Hotel for these reasons:

I'm not but 300 meters from the Ao-Nang beach wall where I like to sit and take in a sunset beer (simple walking distance).

They give me an ocean view room with a big bed and massive bathroom.

Room has a deck to enjoy ocean view.

Low season 500 a night high season 800 (on availability).

How do your rates and amenities compare?

Thanks GOM

prices and booking www.krabihostel.net

Have a good Sunday

Hi gougouluxembourg,

I had checked the site already, didn't give me all the info I needed. You have a nice day too.

Simon - I'm still trying to figure out where your hostel is, as I am not familiar with where the post office is. Are you on the side with the MacDonalds mall, or the Krabi Resort side? Can you give me another sort of big marker, resort or restaurant? Thanks, GOM

[KrabiHostel]

Hi GOM, it's further back than McDonalds, on the other side of the road, near to Luna house and Tittl Guest House.

What details are missing from the web-site? I've just done a new design, so it's possible that I've omitted something. The online availability/booking engine seems to be working OK.

Simon

[CharlieHarper]

Grumpyoldman - rates start from 350 baht a bed a night, but you may have to share the room with 3 Swedish female students...

I get the vast majority of my bookings from online, international booking agents, where the customer prepays for the room before their visit to Ao Nang.

They may well be able to get a cheaper room (by a few tens of baht) if they arrive in town without a booking and 'shop around'. Best of luck to them in this respect. Both my hotel businesses are not based upon walk-in customers seeking the cheapest room rate. They are based upon fully prepaid on-line bookings, and provision of good service to the customer during their stay.

This is why I do not use local booking agents to fill my rooms. It is 'ineffcient' for me to do so because I have to spend too much time dealing with agents who (by experience), will only generate a few guest bookings.

I'll digress for a moment and talk about my strategy which can be applied to all types of business, not just hotels.

I was formally trained in 'LEAN Management', which is basically the minimisation or elimination of all types of 'wastage' in a business. By wastage, I refer to all items/processes in a business which waste time, effort, cost etc - and where the business would be improved if that wastage was improved.

For example, my hostel employs just 1 member of staff, (a cleaner).

I do not work in this business - my WP is for my other hotel - my wife owns this hostel business via her 'buk khon tamada' sole trader company.

We do not need any other staff. The cleaner keeps the place clean and my wife looks after the reception desk. Guest bookings are generated automatically from our on-line marketing and these details automatically received into our 'PMS' room management software. Prepayments are automatically received into our bank account from the on-line agents.

Since it is a hostel, guests are welcome to (and also want to!) cook their own breakfasts and make their own tea/coffee. They even offer to change their bed-linen and to help our cleaner.

So we have minimised 'wastage' (salaries and time), due to excess staff and un-necessary booking admin work

To ensure that my wife doesn't waste time travelling to/from Macro/the laundry, we have them come to us, delivering food/drink as required and collecting/dropping off laundry.

This means that we all have time to relax and chat with customers, and they feel that they are staying in a friendly, family-run hostel.

If someone wants to walk in and haggle the price of a room, then that's fine, so long as the time we take to haggle with them is worth the final discounted room-rate that we might offer.

By eliminating excess staff, un-necessary expenses and un-neccessary admin time/effort, we also reduce our business 'risk' due to unforseen factors.

Of course, my business is only a small, family business. But I think it is very important to apply these types of business strategy to a small business, where 'wastage' may lead to business failure

Simon

Hi Simon

Good luck with your new venture, although it seems you don't need it !!

It was interesting to read your post about your business model and staff employment.

I was just wondering what you do about night-time security and how guests get back into the hotel late at night?

[KrabiHostel]

Hi CharlieHarper, the answer is CCTV cameras/recordings with remote internet access and keycard access. Ao Nang seems a fairly peaceful area and we have never had any problems so far, (and never in Phuket either since 5 years).

Simon

[grumpyoldman]

Hi GOM, it's further back than McDonalds, on the other side of the road, near to Luna house and Tittl Guest House.

What details are missing from the web-site? I've just done a new design, so it's possible that I've omitted something. The online availability/booking engine seems to be working OK.

Simon

Gotcha, thanks Simon.

I think just a litle .jpeg map might be a good adition to the contact us page. Just a suggestion, otherwise the site is helpful.

Cheers, GOM

[CharlieHarper]

Hi CharlieHarper, the answer is CCTV cameras/recordings with remote internet access and keycard access. Ao Nang seems a fairly peaceful area and we have never had any problems so far, (and never in Phuket either since 5 years).

Simon

Thanks for your reply Simon. That makes sense.

I would just add that Ao nang is not quite as peaceful as some might think.

[george]

Good luck with the Hostel, Simon!

[BusyBee123]

Hi GOM, it's further back than McDonalds, on the other side of the road, near to Luna house and Tittl Guest House.

What details are missing from the web-site? I've just done a new design, so it's possible that I've omitted something. The online availability/booking engine seems to be working OK.

Simon

How come you say you are open 24/7 365 and then on the other hand say night time security is a surveillance cam, it's pretty attractive to me to come to a place that has night time security and i'd hope that meant a physical person. Other than that all looks good and i'll give it a try on my return.

[KrabiHostel]

Hi BusyBee123, there are CCTV cameras AND a physical staff presence in the reception area 24/7. So if someone arrives at 3am and needs a room, the staff member can check them in

Simon

[mancub]

Hi BusyBee123, there are CCTV cameras AND a physical staff presence in the reception area 24/7. So if someone arrives at 3am and needs a room, the staff member can check them in

Simon

Err ,sorry chaps ..but I,m slightly bemused ! Am I missing something here ,or are all the housekeeping duties and the 24hr physical presence / reception manning being performed heroically around the clock by one cleaning lady and your wife?

[KrabiHostel]

Yes Mancub - it's a good example of how I run my hotels so that I do not have to pay lazy staff who have little to do and pick their noses all day.

My Ao Nang hostel requires one cleaner to clean rooms every day. Bed-linen/towel and customer cleaning is outsourced to the local laundry who collect the dirties in the morning and return these cleaned the same evening. My wife cooks the breakfasts and looks after reception. All guest bookings are received and processed automatically by the software that I previously wrote.

Why would I want more staff? At most, I might add one more person, but this is a family business with the emphasis on 'business', not holiday

Simon

[taninthai]

I must admit I'm with mancub on this how can you have 1 person manning reception 24 hours 7 days a week when does she sleep you must have a very hard working and understanding wife

[KrabiHostel]

Actually, it's my wife who insists on this! It's a family business, but essentially her business. She sees no point in employing excess staff right now. The business is relatively new and one must expect to work very hard and long hours in a new venture.

Running a small hotel is actually not such a tiring task, because although one is 'on duty' in the reception area, when customers are not present, one can watch TV, read a book, browse the internet etc.

At night, either her or I sleep in the reception area, (just like our neighbouring hotels). If a customer arrives in the wee small hours, then they can be greeted and checked in. But for most of the time, one can zzzzzzzzzzzzzzzz

Tonight, we can sleep without interruption because all rooms are fully booked ==> no new check-ins

Simon

[mancub]

Actually, it's my wife who insists on this! It's a family business, but essentially her business. She sees no point in employing excess staff right now. The business is relatively new and one must expect to work very hard and long hours in a new venture.

Running a small hotel is actually not such a tiring task, because although one is 'on duty' in the reception area, when customers are not present, one can watch TV, read a book, browse the internet etc.

At night, either her or I sleep in the reception area, (just like our neighbouring hotels). If a customer arrives in the wee small hours, then they can be greeted and checked in. But for most of the time, one can zzzzzzzzzzzzzzzz

Tonight, we can sleep without interruption because all rooms are fully booked ==> no new check-ins

Simon

[mancub]

Ah ,now I see..

The cleaner never needs a day off and you don't get to spend any time in the evening / night with you wife, unless you bed down in reception !

Hope you have a work permit .....it has been known for Farang businessmen here to be "shopped" by their competition if they are perceived to be doing well !! ( seriously..it has happened to personal friends of mine with a small restaurant venture in Ao Nang ).

Confused by your earlier post asking for help finding staff ( more than one I believe ) ......

Pleased that you have made the effort to introduce yourselves , but surely it's an unnecessary "waste of resources" given that you are fully booked for the "foresee-able" and therefore don't require the goodwill / recommendations of our local contingent !

[grumpyoldman]

Ah ,now I see..

The cleaner never needs a day off and you don't get to spend any time in the evening / night with you wife, unless you bed down in reception !

Hope you have a work permit .....it has been known for Farang businessmen here to be "shopped" by their competition if they are perceived to be doing well !! ( seriously..it has happened to personal friends of mine with a small restaurant venture in Ao Nang ).

Confused by your earlier post asking for help finding staff ( more than one I believe ) ......

Pleased that you have made the effort to introduce yourselves , but surely it's an unnecessary "waste of resources" given that you are fully booked for the "foresee-able" and therefore don't require the goodwill / recommendations of our local contingent !

Mancub, I'm not sure what "tree you are barking up" (American expression when your hound has a coon in a tree), but you can rest easily as Simon has been doing business here in Thailand for awhile, I'm sure has work permit matters under control and is probably aware of any necessary local matters covered.

Your small restaurant friend (?), sure, some dummy gets off a plane everyday and is convinced by his teerat to open a restaurant, then is fleeced. Amazing thailand!

[mancub]

Mancub, I'm not sure what "tree you are barking up" (American expression when your hound has a coon in a tree), but you can rest easily as Simon has been doing business here in Thailand for awhile, I'm sure has work permit matters under control and is probably aware of any necessary local matters covered.

Your small restaurant friend (?), sure, some dummy gets off a plane everyday and is convinced by his teerat to open a restaurant, then is fleeced. Amazing thailand!

Appreciate your comments GOM...

Well,.I,m not" barking up any trees ", nor do I have any particular "axes to grind " (English expression when you have an issue with something !) Just contributing something to enliven this Sleepy Forum . I wish Simon all the best for this venture and will recommend his business as I would with any other deserving enterprise .

Not too sure why you assume that everyone is a 'dummy straight off the plane who has/will be fleeced by a teerat - or teerak maybe? " Perhaps speaking from personal experience ?

[KrabiHostel]

Well, the cleaner had her weekly day off yesterday She is of course, signed up for social security/tax etc.

This business is a 'buk khon tamada' (sole Thai trader) in my wife's name. I do not work in this business. My work permit and work takes place at my other hotel in Phuket. (So strictly speaking, I should not refer to Krabi Hostel as 'my' business - it is my wife's business). I'm aware that competitors can inform immigration etc, but I remain at all times on the right side (ie customer side), of the reception desk My wife runs this business and I run the Phuket business.

We do need to recruit a couple of extra staff because I have to return to Phuket since a new shareholder is coming on board and I have got to do some major upgrade work during the low season.

We are also looking to open 2 more guest-houses/hostels, and so I am running around trying to research suitable locations for these.

BTW, advertising/sponsorship on ThaiVisa is not just about finding new customers. As one of the earliest TV members (under my personal nick), I feel that I should make some effort to support the forum through my 'donations' - I worry that George has insufficient funds for a hot meal

I see my sponsorship as a way to increase awareness of my hostel. Whilst the hostel is full right now, that is down to good marketing, and so it's important that I continue promotion of the hostel. I also have paid adverts on sites such as Hostelworld.

I note that the hotel adjacent to Krabi Hostel is also regularly fully booked. So I'm certainly not unique in Ao Nang.

Simon

[grumpyoldman]

Mancub, I'm not sure what "tree you are barking up" (American expression when your hound has a coon in a tree), but you can rest easily as Simon has been doing business here in Thailand for awhile, I'm sure has work permit matters under control and is probably aware of any necessary local matters covered.

Your small restaurant friend (?), sure, some dummy gets off a plane everyday and is convinced by his teerat to open a restaurant, then is fleeced. Amazing thailand!

Not too sure why you assume that everyone is a 'dummy straight off the plane who has/will be fleeced by a teerat - or teerak maybe? " Perhaps speaking from personal experience ?

Not even close, but I do run an insurance business for these guys. Instead of giving 100% to teerat, teelak, or teerak, however you want to romanize that, for the "family restaurant" they give her 50%, they give me 50% for the insurance, when they get back on the plane to go home with their tail between their legs, I give them 40% back.

[taninthai]

Hi Simon

my girlfriend has a similar bussiness and I agree what you say about wastage I find Thais like to do things the hard way when running a bussiness and do not look for solutions to make the bussiness run easier and smoother,this having to sit in reception all night sounds like a real pain , generally you don't get people checking in after 8.30 pm around the ao mang area I would look at fitting some locking door to the entrance that would get locked at a certain time and then existing customers can simply let themselves in coupled with your CCTV this would be a good solution.

Anyway the real test is coming up in the next few months ao nang really does quiten down in low season you can get rooms in nice hotels for 1000 bht or guesthouses for 300 bht my girlfriend closes her place may to October as you are not really making anything once you pay your overhead costs.