1. Business Model for a
Sustainable Hostel
JonathanVehlow
Philadelphia University MSSD
Source:envesterealestate

2. Impact of
Tourism on the
Environment
Accommodation
accounts for
25% of tourisms
emissions
Since 2009 the
Tourism
Industry on
average grows
4% each year
Tourism
accounts for 5%
of all CO2
emissions
Source:envesterealestate
Source: silhouettegraphics
Source: UNWTO
Source: vvignette2

4. Tourism
Expenditure in
theU.S.A.
source:envesterealestate
606.9
653.8
696.6
738
772.5
699.8
747.4
812.7
854.5
886.3
927.9
0. 100. 200. 300. 400. 500. 600. 700. 800. 900. 1,000.
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Billions (USD)
Domestic & InternationalTravel Expenditures in the United States
Source:envesterealestate
Source: US Travel Association
Source: image.com

5. Tourism in
Philadelphia
Source:envesterealestate
Source: visitphilly
Source: static1.squarespace

6. Emerging
MarketStudies
• According to a 2012 study held byTripAdvisor:
• 71% of participants polled would make environmentally
influenced consumer decisions in the next 12 months
• 65% had in the past 6 months
• Mensah & Mensah’s state in their study InternationalTourists’
Environmental AttitudesToward Hotels
• “the majority of consumers are more likely to book with a
hotel that has a responsible environmental attitude”
• A Nielsen study concluded that 3 out of 4 millennials are “willing
to pay extra for sustainable offerings”
Source:envesterealestate
Source: shutterstock
Source: iconfinder
Source: tourismintelligence

7. Why a
Sustainable
Hostel?
Source:envesterealestate
Source: Odua Images
Source: clipartpanda

10. Hawthorne
Hostel
PortlandOregon
Est. 1984
Sustainable Features:
• Recycled Building Materials
• Onsite Composting
• Energy Star Appliances
• Rainwater Harvesting
• Green Roof &Wall
• Native Plant Landscaping
Source:envesterealestate
Source: tripdavisor.com
Source: portlandhostel.org
Source: 3.bp.blogspot.com

11. Hostels in
Philadelphia
Source:envesterealestate
Source: 12i.s3.amazonaws
Source: googlemaps

12. Develop a business model for a
sustainable hostel to reduce the
carbon footprint of tourism and
provide a low budget eco-friendly
accommodation for tourists
Thesis
Statement
Source:envesterealestate
Source: museprintables

13. Source:visitphilly

14. Location
Pennsylvania
asdf
Source:envesterealestate
Source: d30y9cdsu7xlg0.cloudfront
Source: usboundary

15. Location
Philadelphia
Source:envesterealestate
Source: careers.itron
Source: upload.Wikimedia
Source: static1.squarespace

16. Location
Neighborhood
Source:envesterealestate
Source: careers.itron
Source: upload.wikimedia

17. Source:envesterealestate
Source: visitphilly.com
Source: data.inquirer

18. Safety &
Security
8%
3%
8%
81%
Crime Breakdown
Auto Assault Burglary Thefts
Source:envesterealestate
Source: visitphilly.com
Source: data.inquirer
Fishtown Crime History
Philadelphia: Northern Liberties/Fishtown

19. FishtownAge
Demographics
Source:envesterealestate
Source: visitphilly.com
Source: data.inquirer

20. 1775 Frankford
Avenue
Philadelphia,PA19125
Source:envesterealestate
Source: silhouettesfree
Source: realtor

21. Listing Details
Source:envesterealestate
Source: silhouettesfree
Source: matrixweb.trendmls

22. Site
Source:envesterealestate
Source: clipartpanda
Source: googlemaps
Broad
Street
N

23. Site
N
Broad St
Source:envesterealestate
Source: clipartpanda
Source: goolgemaps

24. Transportation
MFL
Bus
Site
Source:envesterealestate
Source: clipartpanda
Source: googlemaps
Broad
Street
N

25. Food
Source:media.cool-cities.com Source:media.philly
Source:s-media-cache-ak0.pinimg Source:media-cdn.tripadvisorSource:press.visitphilly
Source:envesterealestate

26. Source:googlemaps
N

27. Night Life
Source:spiritnews Source:philly.thedrinknation
Source:photos.visitphilly Source:farm4.staticflickrSource:press: uwishunu
Source:envesterealestate

28. Source:googlemaps
N

29. CultureSource:envesterealestate
Source:spiritnews Source:fishtownbeerrunners
Source:unwisunu Source:kineticfestivalSource:visitphilly

30. Source:googlemaps
N

31. Experience
Source: Jeff FuscoSource:flyingkitemedia
Source: visitphilly Source:philly Source:s-media-cashe-ak0.pinimg
Source:envesterealestate Source:openclipart

32. Source:googlemaps
N

33. SWOTAnalysis
Strengths
• Innovative Culture
• Alternative
Neighborhood
• Affordable
Weaknesses
• High Maintenance
• New Business
• Competitive
Market
Opportunities
• Emerging Market
• Niche
Accommodation
• Local Experience
Threats
• Bad Economy
• Poor Online
Ratings
• High StaffTurnover
Source:envesterealestate
Source: cdn1.iconfinder

34. Business
Canvas
Cost Structure Revenue Streams
Your Body text
Key Partners Key Activities
Key Resources
Value Proposition Customer Relationship
Channels
Customer Segments
Hostel Jawn 04/15/2016
Source:envesterealestate
Source: cdn1.iconfinder

35. Value
Proposition
 Provide a comfortable, healthy, budget friendly sustainable
accommodation option in Philadelphia.
 Located in the burgeoning Northeast neighborhood of Fishtown
 Open Market: No sustainable accommodations currently exist in the
area
 Decreased operational costs
 Improved guest satisfaction
Source:envesterealestate
Source: visitphilly.com
Source: impages.clippanda

36. Customer
Segments
 Target market would be International and Domestic tourists between
the ages of 18 – 32 looking for a safe, low priced accommodation that
is environmentally friendly.
Source:envesterealestate
Source: silhouettesfree
Source: grmworks

37. Millennials
 Represent 20% (200,000,000) of international travelers
 Spent $217 billion of the 1.088 trillion dollars worldwide
 Are more likely to pay more for sustainably minded options
 Make up 6,980,000 of the tourist market in Philadelphia
Source:envesterealestate
Source: silhouettesfree
Source: visitphilly.com

38. Millennials
 Seek “authentic” experiences
 Do not see themselves as typical tourists
 Live like a local
 Create their own travel narrative
 Wary of being marketed to
Source:envesterealestate
Source: silhouettesfree
Source: lexballadon.files

39. Key Partners
Source:envesterealestate
Source: fishtown.org
Source: fishtownbusiness
Source: muralarts
Spurce: sbnphiladelphia
Source: mymilkcrate

40. Key Partners
Source:envesterealestate
Source: images.clipartpanda
Source: realtor

41. Key Resources
Happy Guests
&
Happy NeighborsSource:envesterealestate
Source: clipart.altervista
Source: kavaadainsurance

42. Channels
• Create a strong online presence through SEO and social media
• Gain credibility through “word of mouth” social media interaction
• Facebook, Snapchat,Twitter
• Garner positive reviews though online booking sites
• TripAdvisor, HostelWorld, HostelBookers
Source:envesterealestate
Source: silhouettesfree
Source: hoosierfamily

43. What the
PeopleWant!
 Free Internet
 Location/Proximity to Public
Transport
 Safety & Security
 Cleanliness
 Free Breakfast
 Provided Activities/Maps
 Alcohol
 Reading Book Exchange
 SocialAtmosphere
Source:envesterealestate
Source: silhouettesfree
Source: data.inquirer
Source: hostelworld
Source: hostelbookers.com
Source: hostels.com

44. Competition
Apple Hostels Philadelphia House
Old City Philly House
Neighborhood: Old City
Rates: 32.90 - 95$ per night
Pros:
Location
Clean
Nightly Entertainment
Free Drinks
Cons:
Noisy
Cramped rooms
Over priced
Neighborhood: Old City
Rates: 32-36$ per night
Pros:
Location
GoodValue
Helpful Staff
Clean Bathrooms
Cons:
Lack ofVentilation
Slow Check In
Narrow Staircases
Neighborhood: Old City
Rates: 30-52$ per night
Pros:
Location
Proximity to Night Life
Friendly Staff
Free Beer
Cons:
Room Layout
Room Security
No Breakfast
Source:envesterealestate
Source: tripdavisor.com
Source: res.cloudinary
Source: u.hwstatic
Source: s3.amazonaws
Source: icons.iconarchive

45. Hostel Reviews
Location
15%
Staff
20%
Cleanliness
15%
Wifi
2%
Alcohol
8%
Security
11%
Activities
9%
Atmosphere
15%
Breakfast
5%
Source:envesterealestate
Source: silhouettesfree
Topics Most Brought Up

46. CostStructure
Property
 Loan: $800,000
 Property:
$659,000
 Construction Costs:
$100,000
 Startup:
$41,000
 Safety Net:
$65,000
Loan
• Amalgamated Bank
• 30Year Jumbo Mortgage
• 20% Down Payment
• $160,000
• Interest Rate
• 3.516% APR
• Monthly Repayment:
• $3,592/month
Source:envesterealestate
Source: visitphilly.com
Source: data.inquirer

47. Pro Forma
Source:envesterealestate
Source: visitphilly.com
Source: data.inquirer

48. Pro FormaSource:envesterealestate

49. Pro FormaSource:envesterealestate

50. Pro FormaSource:envesterealestate

51. ServicesSource:envesterealestate
Source:reeflodge
Source: media-cdn.tripadvisor Source: ryanbennett555.wordpress
Source:c0468751.cdnSource:soulkitchenhostel

52. ServicesSource:envesterealestate
Source: Jaipur-wikipedia Source: upload.wikimedia Source: wallacearthousesoctland
Source: travel-hostelSource: dropzonedeltal

53. Appreciation of
Sustainable
Practices
37.3
36.8
36.1
35.7
32
25.4
24.9
23.1
0. 5. 10. 15. 20. 25. 30. 35. 40.
Green cleaning products
Recycling
Green design and construction
Waste reduction
Pollution prevention or reduction
Conservation of water
Conservation of electricity
Reuse of towels/sheets
Environmentally-friendly hotel practices most appreciated by
travelers worldwide as of March 2014
Source:envesterealestate
Source: Mediaroom.agoda

54. Sustainable
Features
Real-timeWater Dashboard
 Guest DailyAverageWater Usage: 30 gallons
 Strategies have proven to reduce water usage over 50%
RainWater Collection & Low
Flow Fixtures
Source:envesterealestate
Source: megaicons
Source: secosys
Source: img1.sunset.timeinc

55. Sustainable
Features
Energy
LED LightbulbsReal-time Energy Dashboard
Source:envesterealestate
Source: megaicons
Source: secosys
Source: theenergydetective

56. Sustainable
Features
Source:envesterealestate
Source: megaicons
Source: twittercleaningservice
Source: greenbiz
Source: geappliances

57. Sustainable
Features
ReclaimedWood Furniture
Source:envesterealestate
Source: megaicons Source:blog.styleestate
Source:littlepaths.files.wordpress Source:99pallets
Source:littlepaths.files.wordpress
Source:treehugger

58. InConclusion…
Source:envesterealestate

59. Sources
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 http://vignette2.wikia.nocookie.net/community-
sitcom/images/1/17/COMPASS.png/revision/latest?cb=20140523185140
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108110&utm_medium=Affiliate&utm_campaign=Idee+Inc.&utm_source=77643&irgwc=1
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stay-in-eco-friendly-hotels-agoda
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Hostelling_International_Portland_Hawthorne_Hostel-Portland_Oregon.html
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internation/image/upload/t_hostel_carousel/v1396539595/Hostels/img49735-AH-front.jpg
 http://u.hwstatic.com/propertyimages/7/73566/506.jpg
 https://s3.amazonaws.com/worldpackersproduction/location_photos/files/000/008/670/main/image
-26-12-15-16-37-7_695x1050.jpeg
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 http://www.visitphilly.com/resize/587x0/night-market-
fishtown/r/http/photos.visitphilly.com/NightMarketFairmount-084-900vp.jpg
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Kensington-Fishtown-Phila.html
 https://s-media-cache-ak0.pinimg.com/236x/10/26/ed/1026ed4bca902b0a25312b8c17a3aea4.jpg
 https://openclipart.org/image/2400px/svg_to_png/213228/Fish-icon.png
 http://www.realtor.com/realestateandhomes-detail/1775-Frankford-
Ave_Philadelphia_PA_19125_M48428-22568
 https://upload.wikimedia.org/wikipedia/commons/thumb/0/0c/Philadelphia_Neighborhood_Map.sv
g/2000px-Philadelphia_Neighborhood_Map.svg.png
 http://careers.itron.com/_layouts/Images/WorkAtItron/home_personas_foreground_silhouettes.pn
g
 http://www.fishtown.org/
 https://www.fishtownbusiness.org
 http://www.muralarts.org
 http://www.sbnphiladelphia.org/
 http://mymilkcrate.co/
 http://kavadasinsurance.com/wp-content/uploads/2015/09/happy-people21.jpg
 http://clipart.altervista.org/wp-content/uploads/happy-face-clip-art-black-and-white-smiley-face-
clip-art-black-and-whitehappy-face-faces-icon-018721-icons-etc-ku0do71p-320x320.png
Source:envesterealestate

60. Sources
 https://d30y9cdsu7xlg0.cloudfront.net/png/17086-200.png
 http://www.usboundary.com/Downloads/Maps/USOutlines/united_states_mainland_outline_map_
with_states_1584x1123.png
 http://static1.squarespace.com/static/5129572ae4b0df88da709e50/5129572ae4b0df88da709e61/51
396398e4b0052c92daf649/1362715544767/love_park_philadelphia-silo.png
 http://icons.iconarchive.com/icons/custom-icon-design/mono-business-2/512/thumbs-up-icon.png
 www.googlemaps.com
 http://3.bp.blogspot.com/_KJ9zBorp5nw/TFwTettSEcI/AAAAAAAACV8/YFfJQOhizSs/s1600/flowersi
lhouette.png
 http://museprintables.com/images/silhouettes/puzzle-piece-silhouette.png
 http://data.inquirer.com/crime/neighborhood/northern-liberties_fishtown/?start_date=2016-03-
20&end_date=2016-04-19
 http://media.cool-cities.com/fette_sau004_jho_x_mob.jpg?h=530
 http://press.visitphilly.com/uploads/photos/2910_l.jpg
 http://media.philly.com/images/FD1STOCK10620.jpg
 https://s-media-cache-ak0.pinimg.com/736x/aa/22/0a/aa220a91e8fdb8ad4cfb58d0c64d34ee.jpg
 http://media-cdn.tripadvisor.com/media/photo-s/09/d0/8d/1d/front-street-cafe-open.jpg
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89a2b05.jpg
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philadelphia-600.jpg
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 https://upload.wikimedia.org/wikipedia/commons/4/41/Left_side_of_Flying_Pigeon.j
pg
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water-0109/rainwater-storage-tanks-l.jpghttp://www.99pallets.com/wp-
content/uploads/2014/02/pallet-bed-1.jpgjpg
 http://www.treehugger.com/sustainable-product-design/how-to-tell-if-
your-pallet-is-safe-to-reuse-pallet-safety-info.html

61. Questions?
ThankYou
source:envesterealestate
Source:envesterealestate