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» Business Plan Urban Backpacker

Business Plan Urban Backpacker

Business Plan



Business Plan


2 .1 Name of the company

Urban Backpacker

The name is associating two terms "urban" and "backpacker" in attempting to bring to our attention the urban areas, the cities culture and the travelers all around the world.

By adopting this name we are trying to suggest the target customers, "backpackers" and to establish a following trend, a modern, informed, backpacker, guided easily through the urban areas.

2.2 Location:

Ljubljana, Slovenija

Dealing with the e-tourism industry the location will first consist of the personal apartment located in the center of Ljubljana, Slovenija . The premises are sufficient for the startup of the new venture allowing us to develop, design and to administrate the web site.

2.3 Mission:

Our mission is to facilitate the planning and traveling process of the backpackers all around the world.

2.4 Vision:

To become one of the most known and appreciated e-tourism company.

2.5 Services:

We are offering our services to tourists all around the world, and to the owners of hostels and low budget pensions.

The tourists willing to create a free account on our web site will benefit of our online search engine, online route planner and urban guide. Besides this three tools meant to facilitate any kind of trip we are offering also a forum where tourists can share and exchange opinions about possible destinations and about their experiences regarding accommodation.

The search engine will provide to the user a list of possible hostels and pensions and all the details about accommodation prices and services.

The route planner is meant to support the users to plan the desired trip, offering a variety of routes, transportation methods, timetable for buses, trains and planes.

The urban guide is taking our customers around the city, offering tips ( where to go out, when to go out, where to find the best food, for what prices. ) about the less touristy aspects of the cities and surrounding areas.

Urban backpacker is an online service meant to serve as a helpful financial, administrational, and selling tool for the small and medium seized hostels and pensions all around the world.

2.6 Characteristics of Urban Backpacker

For the beginning we will start with the development of a web site which would offer a new online booking system for the hostellers but in the same time a practical guide for the world wide tourists.

The business idea is based on a free membership in order to gather as many users as possible ( on both parties Guests & Hostels )

Next stage would be to consolidate the idea with building a significant database of useful information.

The guide it is developed after sharing impressions with many inhabitants of all major European cities, and with an already settled database of customers composed by students from different organizations. They are sharing on a forum impressions about the city, places of maximum interest, fun, culture, traveling, tips, to do things, to avoid things.

We will generate profit by charging 5 per cent from the total amount that the tourist will owe to the hostel from the bookings made via our web site.

The design of the web page will be modern and the structure simple, trying to avoid the excess of information and to facilitate the fast surfing of our visitors.

2.7 Branch description

We are dealing with the tourism industry, especially with the budget accommodation such as hostelling. Tourism has become a popular global leisure activity. In 2007, there were over 903 million international tourist arrivals, with a growth of 6.6% as compared to 2006.

2.7.1 Characteristics of the market niche:

Dealing with both parties made things more clear for me. We needed something that would take the backpackers around the city, pointing the main important things, offering a big diversity of activities, keeping the customers satisfied generating and consolidating profits for the hostels.

This has been done before, but we would like to create first a database of tourists, an online community which would travel and share and exchange opinions about the less touristy faces of all the destinations.

The idea came to my mind studying the tourists impressions, needs and advices, and noticing the market niche - there is no one offering all of this together in a modern and user-friendly manner - In the last years tourism grew in Europe, and this would be an easy entrance to a global market.

2.7.2 Clients:

Our target customers are divided in two categories: backpackers and hostels.

The average backpacker is aged between 18 to 30 years old and characterized by the wish to travel for lower price, often seeking to meet new people and have fun while visiting different destinations.

The hostels and small pensions are offering cheaper accommodation than the hotels making them to be the perfect target for our first customers -backpackers-

2.7.3 Competitors:

Our main competitors are Hostelworld.com, Hostelbookers.com, Hostels.com, Flashbooking.com, Hostels247.com . For the moment they are possessing the biggest market share due to the big offer of hostels all around the world.

2.7.4 Competitive advantages:

We are focusing to our customers needs trying to offer the biggest variety of activities concerning the visited area and surroundings.

We will offer valuable information for our target customers ( concerts, events, how to find the best deals, ratings of bars and clubs, timetable for artistic and cultural events, top shops, available discounts, expensive areas - cheap areas ).

Before arriving to their destination our backpackers will be able to be familiar with every aspect that representing major interest for them.

The information about the underground and alternative cultures of the possible destinations would represent one of the key advantages over our competitors.

Our forum will be thematically structured so the content will be easier to access making our web site even more user-friendly.


Our potential customers are backpackers all around the world and legal entities offering low budget accommodation such as hostels and pensions.

Figure 1. World Inbound Tourism: International Tourist arrivals, 2007










Hostelling industry it is mostly focused on youth. Our average customers age due to the backpacker profile, should range between 18 to 30 years old, but we don t have an age limit, so everybody who is willing to travel easy can use our services.

Students and young people are our major segment of customers, but often visitors of hostels are also families with a bigger number of children.

Dealing with the e tourism, the internet offers us the opportunity to deal with customers all around the world.

LEGAL entities

We are working with hostels and pensions all around the world due to their reduced pricing policy.

In the last couple of years the hostels owners managed to deliver a great value to the end user for lower prices than hotels, which made hostelling became the most popular accommodation among youngsters.


NATURAL entities:

Europe is the main generating destination in the world, but the percentage of the population going on holiday varies greatly from country to country 76,9% of Germans, 31,2% of Portuguese (Eurostat 2006)

According to the UNWTO Vision 2020, Europe is forecasted to reach 717 million arrivals in 2020; this is approximately a doubling of European tourism from 2000-2020

Growth rates will be different within Europe, as both the northern and the eastern parts are expected to have higher growth rates than the traditional destinations.

New tourist destination countries in Asia, for example, India and China, will influence tourism flows to the area and vice versa.

LEGAL entities:

Our services will work hand by hand with Hostelling International, formerly known as International Youth Hostel Federation (IYHF) which includes over 90 national youth hostel associations in more than 80 countries who run over 4,500 youth hostels and youth hotels around the world.

They include the Youth Hostels Association (YHA) in England and Wales, the Scottish Youth Hostels Association (SYHA) in Scotland, and the American Youth Hostels in the United States.

Table no. 1. : COSTUMERS

3.1 Competitors Analysis:






Charlemont Exchange
Charlemont St.


Offering over 17.000 hostels in 168 countries.

10% booking fee

Real time bookings system.

Strong financial tool for hostellers around the globe.

Innovative internal behavior

Offering one of the most expensive services in the industry

2. Hostelbookers.com

Location: Hostelbookers.com Ltd
High Holborn House
52-54 High Holborn
United Kingdom

Offering 2500 hostels, world wide destinations

No booking fees

Quality of services

Internationally oriented

Well travelled and professional staff.

. Hostels.com

Other products available for purchase online include travel insurance, rail passes, adventure tours and activities

Offering 26,302 Hostels

No booking fees

Access to vast information resources on the hostelling and backpacker market.

Biggest offer of hostels and destinations

Other products available for purchase online include travel insurance, rail passes, adventure tours and activities


Uses a secure server, certified SSL provided by Thawte (the global certificate authority).

10% deposit charged for every booking

Free pocket travel guides for top cities

Free pocket travel guides for top cities

No costs to start, manage, update or cancel

Strong security system

10% deposit charged for every booking

Table no. 2. : COMPETITORS


4.1 SWOT Analysis:



Specialized knowledge and know-how in the tourism industry

Useful innovative services

High motivation for entrepreneurial activity

Dedicating special attention to our customers, giving them the right to share their opinions. Our services are based on our customers needs and demands

Lower fees than the competitors

Financial support

Company s Culture

Entering the market and making our web site well known.



Eastern European countries offer a lot from touristy point of view, but the tourism industry it is not so developed

Growing demand

International Market

Collaboration with students on different projects ( helpful for Students in gaining practical experience, Big source of information , Gathering cheep information , Valuing this information , delivering it to the end user and transforming it into profit )

Possibility of expanding and diversifying the services.

The global economic downturn will affect tourism industry.

International tourism is expected to experience less or probably negative growth over the next six to nine months, alongside all major economic sectors.

Table no. 3. : SWOT ANLAYSYS


Short term objectives

Long term objectives

To design and register the web site

To gather as many end users as possible

To establish contact with different tourism organization

To generate profit via advertisements, bookings.

1000 backpackers accounts opened in the first year

To diversify our offer of services developing a private guided tour system for backpackers

100 members among the hostel side in the first year

To keep our information database up to date



We will focus on achieving our long and short term objectives by offering professionalized services and competitive prices. Our strategies are targeting the backpackers and their needs. Focusing on their experiences and demands we are planning to develop a good after sales service, giving them the right to share to others their experiences.

The R&D will represent one of our main interest points in the following years. We will develop projects involving students all around the world in order to keep our databases up to date and to offer practical information structured on different topics related to the customers needs.


Market share:

We will have 10% of market share in the next 3years by developing partnerships with hostelling networks, students organizations as well as tourist agencies and we will offer our services for a lower price than most of our competitors


5.1. How to get customers:


- Web page; www.ubackapacker.com

Collaboration with Hostelling International

Partnerships with travel agencies

International radio stations

International trains , train stations, international busses and buss stations

Advertising banners on related web sites

Marketing policy:

Innovative web site, useful and easy to use features, designed for the modern backpacker and for it's unsatisfied needs.

5. 2 How to keep customers:

-Post-sale activities policy:

The forum is designed to let the backpackers express freely their experiences.

The news letters will inform our users about changes, improvements and hot subjects related to their destinations and accommodation.

-Marketing strategies derived from SWOT analysis

The economic downturn will increase the demand for cheaper accommodation and hostelling industry is constantly growing.

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