Enroll hostel Business Model
1. There is a big opportunity in the hostel market as 95% of it is currently untapped. 2. The company aims to become the largest hostel site in the world within 3 years by offering differentiated products and services across various aspects including payments, facility sharing, and analytics. 3. Future technologies like virtual reality could allow the company to enter new markets like providing virtual hostel views.
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Identifies challenges in finding hostels including lack of data, safety, quality assurance, and convenience.
Describes revenue model charging 10% on transactions and various services like consultancy and software.
Highlights unique selling points for occupants such as savings, online payments, recommendations, and quality audits.
Outlines benefits for owners including financial management, earnings from bidding, and hostel analytics.
Details the potential market size of 150 crore and prospects including college and working populations.
Predicts revenues based on hostel and college bookings, aiming for break-even in under 6 months.
Forecast for revenue growth from 2017 to 2021, highlighting significant increases each year through expansions.
Compares competitors in the hostel market highlighting unique features and market coverage.
Outlines monthly costs and expected revenues for hostel and student marketing, detailing salaries and other expenses.
Details seed funding needed for marketing and operational costs with expected revenue projections.
Compares anticipated expenses against income for the first year and details growth in hostels and colleges.
Shows a month-by-month financial projection specific to Pune with increasing hostels and college engagements.
Describes the current state of the platform, integrated systems implemented, and marketing efforts in place.
Envisions significant growth in hostel services, integrating AI and VR technologies for enhanced user experience.
Highlights risks faced in the business including market coverage, technology, and customer relationship, with mitigation plans.
Summarizes the massive potential in the untapped hostel market and emphasizes differentiated offerings.
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Enroll hostel Business Model
- 1. Find Good Hostelin Any Cities
- 2. Problem Statement 1. SEARCHno easy way + no/stale data + occupancy 2. PRICE, LOYALITY 3. CONVIENCE: Transfers /admissions 4. safe PAYMENT 5. SHARING ECONOMY: facility , procurements. 6. No assured QUALITY, stats, history, facilities 7. No integrated software to manage hostel. 8. Non-AUDITED Facility Discovery, history 9. Lack of Hostel DATA (95%) and analytics.
- 3. Business Model :Part 1 0.22 crore 500 110 crore We charge 10% of student transaction first time. Or Rs 500 17% Prospects = 0.22 crore PROSPECTS CHARGE REVENUE
- 4. Business Model: Part2 Earn On 1 • Brokerage/Bid/Facility 2 • Consultancy/Analytics 3 • Hostel Software/Devices
- 5. USP Hostel Occupants 1.SAVE Money on Searches . (T/M/C) 2. SAVE Money on Brokerage 3. CONVIENCE Online Payment and EH Card. 4. Recommendation system for hostel suggestions 5. (T/M/C) Real time seat occupancy . 6. (T/M/C): Virtual Hostel on EH Card. 7. SHARE Hostel Ancillary Facilities EHCard. 8. QUALITY audit for rankings, quality of service. 9. Hostel analytics :CAT exam ,CA, company office etc.
- 6. USP Hostel Owners 1.MANAGE Money HM Software /App. on Cloud. 2. SAVE Online Payment and EH Card. 3. EARN: Bid seats high rent for high rank 4. MANAGE :Audit, Rank (own+Student) reviews 5. SHARE: Co-sourcing Grocery online grocers . 6. SHARE: Co sourcing hostel automation products 7. EARN: par with international dorms. 8. SHARE Facilities for deficient hostels on EH Card. 9. Hostel DATA analytics (where to build next hostel)
- 7. Market Size: 150crore 1. Calculations: Rent brokerage market 1500 crore. 2. 850 universities, 40,000 colleges. 3. 10% college seats = 4/40 lakh hostel seats. 4. School hostel 3/30 lakh. 5. School + College prospects = 7/70 lakh. 6. Working population hostel prospects = 15/40 lakh. 7. Total prospects = 22 lakh. 8. Market size @ Rs. 500 per student = 110 crore.
- 8. Projection Revenue in1 year 5 hostel/day X 4 = 20 per day = 20X250=5000 per year. (1,00,000 hostel in India) Largest site in country 5 colleges/dayX4= 20 per day= 5000 colleges covered. Largest in country presence in Hostel industry. Very conservative 1% student conversation: Each college 12/1200 student booked = 60,000 booking. 0.6 Lakh X 500= 3 crore earning. Break Even in under 6 months
- 9. Revenue Forecasting: inCrore 2017 • 3 (5000) 2018 • 15 (25000) 2019 • 50 (50000) 2020 2021 • 100 ( 1 Lakh) • 200 Crore Nepal, Mynamar, Thialand, Increase Avg Rev Per Hostel Increase Avg Rev Per Occupant Increase Hostel Funding #2(15 cr) 3L customer, 25000 hos/ Market Research Funding #1(0.7 cr) Hostel Marketing Team/BPO addition 1 mill cust./Sensor Devices/Consultancy/Dorms Increase deficient Facility Occupant/AR/Card World Largest Hostel Site, add ASEAN/Euro
- 10. Competition Competitors Repo sitory Occu pany Au dit facili ty No stale listing Onlin e payme nt % coverage HostelDunia YESNO NO Y/N NO NO 1% hostelnpg YES NO NO Y/N NO YES 1.5% nobroker Y/N NO NO NO NO NO 0.5% EnrollHostel YES YES YES YES YES YES No.1 in India JustDial YES NO NO Y/N NO NO 0.5% olx Y/N NO NO Y/N NO NO 0.1%
- 11. Investment: Cost/monthly Nos Salary Lakh Total Lakh Hostels/ Offices Expected Revenue Hostel Marketing 4 0.66 2.64 400 Student Marketing 4 0.66 2.64 400 x 10 4000X 500 =20 Lakh Salary Dev 4 0.75 3.00 Digital Marketing 1 0.35 1 Rent 1 0.50 0.50 Posters/BPO 2 0.50 0.50 Total 10.28 2-20Lakh
- 12. Seed Funding Requirement NosSalary Lakh Total Lakh monthly Hostels / Offices Expected Revenue Hostel Marketing 4 0.15 0.60 400 hostel per month Office Marketing 4 0.15 0.60 400 = 4000 Offices/colleges 2800X 500 =14 Lakh Salary Dev 2 0.50 1.0 Digital Marketing 1 0.25 0.50 Rent 1 0.25 0.20 Posters/BPO 2 0.10 0.10 Total 3.00 12-14 Lakh
- 13. Expense/Income Expenses Income 75 Lakh(6 months) 1.5 crore (6 months) First Six months 2,500 hostels+ 2500Colleges Double Marketing Team 6-12 month Re-invest in Business 1.5 crore Next Six months 5,000 hostel + 5,000 colleges Largest Site for hostel in 1 year 7,500 Hostel + 7,500 colleges 1 year = 0.75+ 1.5 = 2.25 crore 1 year = 1.5 crore + 3 crore= 4.5 crore
- 14. Expense/Income (Pune) Expenses Income firstmonth = 3.00 Lakh 400X500=2 Lakh Total in 2 months = 9 Lakh 800X500= 4 Lakh+2 Lakh Total in 3 months = 14 Lakh 1600X500=8 Lakh+6=14 Lakh 3 Months 1600 hostels 1600 hostel + 1600 colleges One of Top Indian Hostel site Top Search in pune/mumbai 30-50,000 followers
- 15. Current State: As-is Website/App is complete Ready with web software. 20 Lakh rupees of effort gone into it. Integrated CRM, HR, Expense management Exists. Tied up with Many hostels nearby with own marketing Analysis data, blogs, social marketing Etc all setup. Facebook, linkedin, google map integrated.
- 16. Future State: LargestSite in world in 3 years for Hostel. EH Hostel Data Analytics ( where to plan next hostel) EH Card Services/ facility Services AI based searches for required hostels. Machine learning Recommendations for Users. Virtual Hostel views to book seat. (Virtual Reality) Hostel Security devices,Light kitchen devices. IoT EH Hostel combined grocery sourcing.
- 17. Risk/Mitigation(Porter Forces): 95%hostel not covered by sites competitor Risk is very less. Differentiated (7P) to cover commoditizing risks. Differentiated offering for owners cover Growth risks. Technology Risk: IT diff with AI/MR/VR/Analytic. Focus ARPH/ARPO cover Revenue Risks. Differentiated products offering: Risk of substitute or Risk of buyers Customer Relationship/Quality risk: Hostel attended Trained on EH software,Techniques recruited for hostels (Full Time/Part Time/ Consultation basis
- 18. Summary 1. BIG OPPURTUNITY:95% market untapped. 2. Differentiated Product on all offering 7P, 7C. 3. Future VR can enter Reality market. 4. Sharing Economy and Co own opportunity. 5. World biggest Hostel Market. 6. Most South Asian Hostel deficient in automated swiping machine(s/w)/Solar heating/HM s/w, motion sensor lighting, Hostel ratings expanding young population colleges and company sparsely located
Editor's Notes
- #3 Hard to SEARCH STALE DATA and OCCUPANY: No single database of 1,00,000 hostels in India. Other site just covers 1% of total exists with gaps mentioned above hostels sparse located, outside city even more difficult (cost 5K on travel & search) Search site (hosteldunia,hostel&pg) does not provide data hostel is full or not. PRICE CONVIENCE: Transfers /admissions school/colleges. online PAYMENT Transfer from 1 hostel to another city place or work location not easy with busy working hours. Online payment: parents for distance children, no money carrying risk at new place payonline. Sharing Economy.[share playground, sports hub, drycleaner, kitchen, combined bulk grocery, bulk gym] No integrated software to manage hostel. Expense, Payroll, Accounts on Cloud, E-Grocery Old advertisement result comes expired advertisement at quickr So call 100 number then 10 actually have vacancy no filled. Non-audited hostel have no data so live there then discover its not good or as per requirement with advance paid u r in trap. Transfer from 1 hostel to another city place or work location not easy with busy working hours. No single database of 1,00,000 hostels in India. Other site just covers 1% of total exists with gaps mentioned above. Lack of Hostel data and analytics to draw broad picture/problems 7. Combined Grocery of 50 hostel
- #4 As introductory we charge only 500 rupees brokrage charge For Each student only for his first transaction 25/140 = 17% it can go to 25%-30%
- #5 Hostel devices like Swipe in cards, Solar panels, providing manpower to Hostels for maintenance. Auto switching off lights motion sensors, other IoT devices
- #6 Save T/M/C = Time/Money/ Convinence. AI based searches for hostel on route college/office. PRICE Online Payment and EH Branded Card. Recommendation system for hostel suggestions Real time seat occupancy status on search/App. Virtual Hostel on EH Card. Virtual Hostel Ancillary Facilities on EH Card. Branded card sports facility, swimming pool, lawn tennis, tie-ups for CAT, GMAT, IIT-JEE, etc. Special meets like promotional events, parties, sports. Real time students data to parents. (on request) Hostel audit for rankings, quality of service. Hostel analytics for students like which hostel good for CAT exam, CA, based on market survey.
- #7 Expense, Payroll, Accounts on Cloud, E-Grocery 7. Combined Grocery of 50 hostel
- #8 Calculations: Rent brokerage market 22*2500=550, considering 20% market=1100 crore, 30%=1650 crore. Details: 850 universities, 40,000 colleges. Assumptions: 10% colleges deficient in hostel facilities = 4/40 lakh hostel seats. Migrated students Sr. Sec. School hostel 3/30 lakh. 3 lakh student appeared in mahrastra board exam which is 10% of india total india 30 Lakh School + College prospects = 7/70 lakh. Working population hostel prospects = 15/40 lakh. 15 Lakh programmers in India similarly real estate, marketing, pharma, banking, bpo etc..sectors..25=15+25=40 Total prospects = 22 lakh. Market size @ Rs. 500 per student = 110 crore.
- #11 Hosteldunia.com just a repository , no real time status , hostel only in AP, 1K properties 1% of total market, No hostel audited ranking, no facilities.
- #12 400 X 10/1000
- #13 400 X 10/1000