在曼谷設計規劃一間成功的青年旅館

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Global MBA College of Management

National Taiwan University Master Thesis

在曼谷設計規劃一間成功的青年旅館

Opening up a Successful Hostel in Bangkok Thailand

崔培然

Piranpas Traitilanun

指導教授: 黃俊堯, 博士 Advisor: Chun-Yao Huang, Ph.D.

中華民國106年6月 June, 2017

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Abstract

The business plan, Opening up a Successful Hostel in Bangkok Thailand” will study on the opportunity and feasibility for establishing a total of 200 square meters hostel in Bangkok Thailand.

Our strategy is to build an impressive hostel that is not just only a place to stay but also the place where people meet new friends and experience the local Thai atmosphere.

The marketing of the Cloud Nine Bangkok hostel will be built around the core value that we will offer to customers. Although there is more and more hostel in Bangkok, we will use our competitive advantage to build and expand our customer base.

Our business model is based on the booking over the website. As those sites are also intended to increase brand awareness, we require giving all the services information

including what we offer more than competitors’ to make them feel that they’re getting some added value.

Moreover, our mainstream of income will come from online sales. Thus, we aim to be best review hostel in Bangkok, and that will become key to future sales. However, the quality of services in this industry have always been better, with our strategies of

advancement, we are ready to grow with the market.

Finally, from the operations and financial plan, we could estimate the profit made in running the hostel and possibility of future business opportunities.

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List of figures

Figure 1 Foreign Tourist Satisfaction 4

Figure 2 Number of Hotel and Guesthouse 5

Figure 3 Number of Hotel and Guesthouse’s room 5

Figure 4 Number of Hotel and Guesthouse’s Guests 6

Figure 5 Mass Rapid Transit Master Plan in Bangkok Metropolitan Region 10

Figure 6 Thailand Visa Policy Map 11

Figure 7 Porter’s Five Forces 14

Figure 8 Customer Segment 16

Figure 9 Value Proposition 17

Figure 10 Business Model Canvas 18

Figure 11 Location of Cloud Nine Bangkok and competitors 20

Figure 12 Cloud nine Bangkok’s organization structure 33

Figure 13 Cloud nine Bangkok’s 2^ndFloor Layout 41

Figure 15 Cloud nine Bangkok’s decoration references 42

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List of Table

Table 1 Competitors’ Room Price 21

Table 2 Competitors’ Facilities

21 Table 3 Top 10 tourists in Thailand during 2014-2015 and their average expenditure

of accommodations 25

Table 4 Information of tourists in Bangkok during 2014-2015 26 Table 5 Average expenditure of tourists in Bangkok during 2014-1015 26

Table 6 Tows Matrix 27

Table 7 Employee compensation 34

Table 8 Room pricing 35

Table 9 Room plan 41

Table 10 Tax rule 46

Table 11 Room Revenue per Year 48

Table 12 Sales Forecast for Year 1 to Year 10 48

Table 13 Pro Forma Income Statement 50

Table 14 Tax Calculations 52

Table 15 Fixed costs and Variable costs 53

Table 16 Break-Even Analysis 54

Table 17 Financial Decision Analysis 55

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1.Introduction

1.1 Executive Summary

Thailand is well known for its tourism industry. Even though, there are on going expansion in other sectors but tourism still remains as a major industry. Thailand’s tourism has been drawing tourists from around the world. In addition, the government and private sector have been pro-active in marketing tourism sector as well. As a result, the travel and tourism sector has become one of the country’s most productive and sustainable industries.

Along with the increased number of the tourists, demand of unique and stylish accommodation in the center of Bangkok gradually increases as well. Our hostel’s services and facilities will be well fit with the target customer, which are youth and student. The operation and construction of our hostel will be done following the details from industry, customer, competitors, and SWOT analysis.

Our strength to compete with existing and incoming competitors is the location. Our hostel will be locates in Ratchatewee area which offers customer alternative transportation to avoid wasting time on Bangkok congested traffic which include BTS sky train, airport rail link and city boat. Moreover, we will provide more free value added services such as breakfast and travelling leaflet. The high quality of facilities that design to response to customer’s need is critical for customer satisfaction as well. Lastly, our hostel will have great indoor and outdoor common area that could motivate customer to spend more time outside the room, which will create friendly atmosphere and enable customers to socialize.

For the marketing strategy, as we have limited budget, we will leverage the power of social media to share customer experience and aiming for high customer rating on our

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partner online travel agent website. Moreover, we will work with Thailand travelling blogger to get them to promote our business.

Our hostel will be a sustainable family business with continually gaining income, which has pay back period of 3.94 years. Moreover, our future expansion plan will be developed to capture future opportunities and maintain our sustainable competitive advantages.

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1.2 Background

Hotel industry is one of the parts of tourism industry. During last 5 years, tourism industry has been taken the significant part for Thailand’s economic growth. In 2015, Thailand was ranked at fifth place for revenue generated by inbound tourists. Moreover, the number of foreign tourists in Thailand has doubled from 15.9 million in 2010 to 29.9 million in 2015¹.

According to Thailand Tourism Council, the number of foreign tourists in Thailand are expected to increased by 13.55% to 33.93 million and earn 1.74 billion baht. The first 3 ranks of foreign tourists that came to visit Thailand are China, Malaysia and Japan².

Moreover, the survey conducted by Thailand Tourism Council³ shows that 77% of them travel to foreign country more than once a year, 64% of them are repeated visitor.

Most of the foreign visitors visited Thailand for pleasure (42%) and new experience (23%). Majority activities they did in Thailand were sightseeing (43%) and visiting cultural places (43%). Source of travelling information they used were internet (27%) and

guidebook (24%). The policies that they thought could help Thailand tourism industry are safety (38%) quality control of services (36%) and improvement of tourism database (32%)

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1http://tourism2.tourism.go.th/home/details/11/221/25516

2http://www.thansettakij.com/2016/01/08/25115

3http://www.thailandtourismcouncil.org/imgadmins/confidence_file/TCT_confidence_file_

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Figure 1 Foreign Tourist Satisfaction

Source: Thailand Tourism Council Sep. 2016

Figure 1 shows foreign tourist satisfaction on each aspect. 74% of foreign tourists highly satisfied with the trip to Thailand, which is 4.07 out of 5 from survey⁴. The aspects they unsatisfied with were quality of transportation services and facilities.

While the number of tourist in Thailand has been increasing from time to time, accommodation business also has been expanding. Thailand national statistical office ministry of information and communication technology biannually has been conducting survey for hotel and guesthouse industry in Thailand. The summaries of survey’s statistical data⁵ are below;

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th_2016-09-27_08-10-17.pdf

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 overall

Attracttions Foods Spa and Massage Accommodations Weather Hospitality Shopping centers Services Transportation services Tranportation facilities

Foreign Tourist Satisfaction

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Figure 2 Number of Hotel and Guesthouse

Source: Thailand National Statistical Office Ministry of Information and Communication Technology Jul. 2015

Figure 3 Number of Hotel and Guesthouse’s room

Source: Thailand National Statistical Office Ministry of Information and Communication

Technology Unit: Room

704

2532

1854 1215

3713

Number of Hotel and Guesthouse in Thailand

Bangkok central northern north-eastern southern

87,626

112,757

61,483 39,422

155,741

Number of Hotel and Guesthouse's room in Thailand

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5. Operations 39

5.1 Operation plan 39

5.2 Plan for excellence service 43

6. Financial Plan 46

6.1 Important assumption 46

6.2 Sales Forecast 48

6.3 Pro Forma Income Statement 50

6.4 Break-even Analysis 53

6.5 Financial decision 55

6.6 Future Plans 56

6. References 57

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List of figures

Figure 1 Foreign Tourist Satisfaction 4

Figure 2 Number of Hotel and Guesthouse 5

Figure 3 Number of Hotel and Guesthouse’s room 5

Figure 4 Number of Hotel and Guesthouse’s Guests 6

Figure 5 Mass Rapid Transit Master Plan in Bangkok Metropolitan Region 10

Figure 6 Thailand Visa Policy Map 11

Figure 7 Porter’s Five Forces 14

Figure 8 Customer Segment 16

Figure 9 Value Proposition 17

Figure 10 Business Model Canvas 18

Figure 11 Location of Cloud Nine Bangkok and competitors 20

Figure 12 Cloud nine Bangkok’s organization structure 33

Figure 15 Cloud nine Bangkok’s decoration references 42

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List of Table

Table 1 Competitors’ Room Price 21

Table 2 Competitors’ Facilities

21 Table 3 Top 10 tourists in Thailand during 2014-2015 and their average expenditure

of accommodations 25

Table 4 Information of tourists in Bangkok during 2014-2015 26 Table 5 Average expenditure of tourists in Bangkok during 2014-1015 26

Table 6 Tows Matrix 27

Table 7 Employee compensation 34

Table 8 Room pricing 35

Table 9 Room plan 41

Table 10 Tax rule 46

Table 11 Room Revenue per Year 48

Table 12 Sales Forecast for Year 1 to Year 10 48

Table 13 Pro Forma Income Statement 50

Table 14 Tax Calculations 52

Table 15 Fixed costs and Variable costs 53

Table 16 Break-Even Analysis 54

Table 17 Financial Decision Analysis 55

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1.Introduction

1.1 Executive Summary

Thailand is well known for its tourism industry. Even though, there are on going expansion in other sectors but tourism still remains as a major industry. Thailand’s tourism has been drawing tourists from around the world. In addition, the government and private sector have been pro-active in marketing tourism sector as well. As a result, the travel and tourism sector has become one of the country’s most productive and sustainable industries.

Along with the increased number of the tourists, demand of unique and stylish accommodation in the center of Bangkok gradually increases as well. Our hostel’s services and facilities will be well fit with the target customer, which are youth and student. The operation and construction of our hostel will be done following the details from industry, customer, competitors, and SWOT analysis.

Our strength to compete with existing and incoming competitors is the location. Our hostel will be locates in Ratchatewee area which offers customer alternative transportation to avoid wasting time on Bangkok congested traffic which include BTS sky train, airport rail link and city boat. Moreover, we will provide more free value added services such as breakfast and travelling leaflet. The high quality of facilities that design to response to customer’s need is critical for customer satisfaction as well. Lastly, our hostel will have great indoor and outdoor common area that could motivate customer to spend more time outside the room, which will create friendly atmosphere and enable customers to socialize.

For the marketing strategy, as we have limited budget, we will leverage the power of social media to share customer experience and aiming for high customer rating on our

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partner online travel agent website. Moreover, we will work with Thailand travelling blogger to get them to promote our business.

Our hostel will be a sustainable family business with continually gaining income, which has pay back period of 3.94 years. Moreover, our future expansion plan will be developed to capture future opportunities and maintain our sustainable competitive advantages.

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1.2 Background

Hotel industry is one of the parts of tourism industry. During last 5 years, tourism industry has been taken the significant part for Thailand’s economic growth. In 2015, Thailand was ranked at fifth place for revenue generated by inbound tourists. Moreover, the number of foreign tourists in Thailand has doubled from 15.9 million in 2010 to 29.9 million in 2015¹.

According to Thailand Tourism Council, the number of foreign tourists in Thailand are expected to increased by 13.55% to 33.93 million and earn 1.74 billion baht. The first 3 ranks of foreign tourists that came to visit Thailand are China, Malaysia and Japan².

Moreover, the survey conducted by Thailand Tourism Council³ shows that 77% of them travel to foreign country more than once a year, 64% of them are repeated visitor.

Most of the foreign visitors visited Thailand for pleasure (42%) and new experience (23%). Majority activities they did in Thailand were sightseeing (43%) and visiting cultural places (43%). Source of travelling information they used were internet (27%) and

guidebook (24%). The policies that they thought could help Thailand tourism industry are safety (38%) quality control of services (36%) and improvement of tourism database (32%)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

1http://tourism2.tourism.go.th/home/details/11/221/25516

th_2016-09-27_08-10-17.pdf

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Figure 1 Foreign Tourist Satisfaction

Source: Thailand Tourism Council Sep. 2016

Figure 1 shows foreign tourist satisfaction on each aspect. 74% of foreign tourists highly satisfied with the trip to Thailand, which is 4.07 out of 5 from survey⁴. The aspects they unsatisfied with were quality of transportation services and facilities.

While the number of tourist in Thailand has been increasing from time to time, accommodation business also has been expanding. Thailand national statistical office ministry of information and communication technology biannually has been conducting survey for hotel and guesthouse industry in Thailand. The summaries of survey’s statistical data⁵ are below;

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

th_2016-09-27_08-10-17.pdf

5http://service.nso.go.th/nso/nsopublish/themes/files/questFullReport57.pdf

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 overall

Attracttions Foods Spa and Massage Accommodations Weather Hospitality Shopping centers Services Transportation services Tranportation facilities

Foreign Tourist Satisfaction

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Figure 2 Number of Hotel and Guesthouse

Source: Thailand National Statistical Office Ministry of Information and Communication Technology Jul. 2015

Figure 3 Number of Hotel and Guesthouse’s room

Technology Unit: Room

704

2532

1854 1215

3713

Number of Hotel and Guesthouse in Thailand

87,626

112,757

61,483 39,422

155,741

Number of Hotel and Guesthouse's room in Thailand

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Figure 4 Number of Hotel and Guesthouse’s Guests

Technology Unit: Million people

Accommodations fall into many categories and vary widely in size, style, services, and characteristics such as Transit Hotel, Hotel, Inn, Lodges, Motel, Resort, Service Apartment and Hostel.

From the above information, I saw the opportunities for hostel business, as demand has been increasing by rising number of tourists. Moreover, the tourism authority of Thailand has been regularly promoting and establishing activities to support the investment in tourism industry.

110.9!

22.7! 28.6!

13.4!

8.8!

37.4!

49.4!

6.9!

16.4!

8.3! 7.8! 10!

61.5

15.8

12.2

5.1 1

27.4

0!

20!

40!

60!

80!

100!

120!

Whole country

Number of Hotel and Guesthouse's Guests

Total Thai Foreigner

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2. Market Analysis

2.1 PESTLE Analysis

Political

In the past five years, Thailand had been facing problems in political and poor management of government, which result in lower confidence from investors. Unstable politic condition also affected Thailand tourism image and confidence of tourists, which resulted in shifting of tourism destination to other countries. This situation not only had direct effect tourism industry but also affected other relevant businesses and country’s GDP.

To reform the economic, Thailand government has developed Tourism strategic plan with the target of 6% increasing in average spending per tourist per year from 4,900 Baht (2016). According to Thailand tourism strategic plan (2021 growth roadmap), Thai government has built 3 strategies for tourism development⁶, which are;

1. Advancing the quality of tourism attractions, products and services to support the rising number of tourists.

2. Advancing fundamental facilities to support the rising number of tourists.

3. Human resource development to increase involvement for Thai people The Tourism Authority of Thailand (TAT) introduced customized marketing campaigns to target particular groups. TAT paid particular attention to rapidly growing inbound countries such as China, Russia and India. TAT tailor-made marketing to match

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the character of each target market; for instance, celebrity marketing to target Chinese tourists, luxury and medical tourism to capture Russian tourists, and honeymoon and scuba diving packages to target Indian travellers.

Economic

Average growth of Thailand economic was 3.5% during 2005-2015. Comparing with 10 years ago, Thai citizen are having greater welfare such as health insurance and more years of education. Poverty rate has decreased from 67% in 1986 to 11% in 2014

Thailand GDP grew by 2 percent a year in 2014 and 2015. According to the forecast of World Bank, GDP will grow at 2.9 to 3.3% for 2016-2018.

The capital Bangkok has become the center of economic activity and the most prosperous part of the country, accounts for about 60% of national GDP. Thanks to Bangkok’s competitive infrastructure, the city is competing with Singapore to become a regional hub for air travel within Southeast Asia.

Thailand government’s recent 20-year strategic plan addresses economic stability, human capital, equal economic opportunities, environmental sustainability,

competitiveness, and effective government bureaucracies. These include the

implementation of large public infrastructure projects, setting up of a state enterprise policy committee to improve state-owned enterprise governance. Thailand also continues to reform in additional areas such as education, public infrastructure management. The World Bank is supportive of the reform agenda.

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Social

Thailand has strong cultural tourism image, especially Thai hospitality that helps create great experience for tourists. However, Thailand is facing problem of changing in population structure, which makes the country become aging society with the decreasing size of young people and workforce. Moreover, Thai society has confronted a crisis of greater cultural diversity in society and declining ethical and moral values, as well as a widespread use of drugs and gambling, particularly by young and adolescent groups. At the same time, Thai people are increasingly active in politics and pay more attention to social responsibility and governance.

The rapid spread of AIDS in Thailand has had impact on the tourism industry as the country's reputation for having a high incidence of AIDs discourages tourists from visiting.

Technology

Thailand's capital is known for being congested cities in Southeast Asia. According to a study by INRIX, Bangkok drivers spent an average 64.1 hours stuck in congested traffic in 2016⁷.

Bangkok is currently served by three rapid transit systems: the elevated BTS Sky train, the underground MRT and the Airport Rail Link. The BTS and MRT have had several route extensions since their openings. As of 2016, several additional transit lines and extensions are also under construction. The entire Mass Rapid Transit Master Plan in Bangkok Metropolitan Region consists of eight main lines totaling 508 kilometers. It was planed to complete by 2029.

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7http://inrix.com/resources/inrix-2016-global-traffic-scorecard/

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Figure 5 Mass Rapid Transit Master Plan in Bangkok Metropolitan Region

Source: Bangkok Mass Transit System Public Company Limited

Thailand has about 53 JCI-accredited hospitals in Bangkok, Pattaya, Phuket and Chiang Mai. The accreditation, given by the Joint Commission International of the United States, is a standardization marker for healthcare service providers around the world.

According to the data from TAT, 53 percent of tourists in 2015, or about 16 million, came for medical and wellness treatments. Tourists who specifically sought medical

treatments came in at 857,086, a 25 percent increase over the previous year. The rest are

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those who came for wellness tourism, which is 38 percent increase over 2014. By the end of 2018, Thailand expects to receive about 1 million medical tourists⁸.

Legal

Thailand currently offers visa-free travel to nationals of 57 countries. Nationals of 21 countries can obtain a visa on arrival.

Figure 6 Thailand Visa Policy Map

Source: https://en.wikipedia.org/wiki/Visa_policy_of_Thailand

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8http://www.thenational.ae/business/travel-tourism/healthy-outlook-for-thai-medical- tourism-demand

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Thai government has issued new Ministerial Regulation to support hostel business in Thailand. The Other Types of Building Used for a Hotel Business Operation B.E. 2559 (2016) under the Building Control Act B.E. 2522 (1979) came into effect on August 19, 2016⁹. This Ministerial Regulation allows for certain types of building to be used as a hotel after they comply with specific safety requirements or measurements.

The Ministerial Regulation states that the use of other types of building which existed before August 19 can be changed to be as follows: (1) hotels providing only accommodation; and (2) hotels providing accommodation and a restaurant, or a place for serving food or cooking food. The application to change the use of a building must be filed within five years from the effective date of the Ministerial Regulation.

Based on new Ministerial Regulation, temporary accommodation businesses, which are using other non-qualifying types of buildings for their hotel businesses could avoid heavy penalties by altering their buildings to comply with the new rules and regulations.

Environment

Thailand offers a great variety of attractions. These include diving sites, beaches, hundreds of tropical islands, archaeological sites, museums, hill tribes, flora and bird life, palaces, night-life, Buddhist temples and several World Heritage sites.

Although there were serious natural disasters in Thailand and other countries, we continued to see the strong growth of number of arrivals. Other than Thailand’s culture and attractive historic sites, it is value for money destination for shopping, dining and

accommodation as well.

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9www.bangkokpost.com/print/1110257

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2.2 Porter’s five forces

Competitive Rivalry- Moderate

According to Hostels.com, there are currently 325 hostels located in varied part of Bangkok. Prices depend on room type, location and facilities, which range from 125 Baht to 2,560 Baht. The average rating for Hostels in Bangkok is 83%. Only 10 Hostels got rating more than 90%. We would like to compete in this high rating market, which based on atmosphere, security, location, facilities, staff, cleanliness and value for money. Also, the switching cost for hostel business is low due to customers’ affordability of hostels price.

Treat of new entrants – Moderate

Hostel business is the smaller scale of hotel, so it has lower capital cost and

proportion of fixed cost to total costs. Thus, it’s easier to gain the optimum revenue. These facts make the business being attractive among investors.

However, the growth of hostels is limited by the availability of suitable locations, as it is one of the competitive advantages in this market.

Treat of new substitutes – Moderate

Hostel business competes on a low cost market, which could potentially be replaced by Airbnb as homeowners can offer their house with low price and more private

environment. However, there is a group of customers that looking for new friends from hostel when traveling abroad. This also could be replaced by Couchsurfing service, where members can stay at other members’ home for free.

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Bargaining power of suppliers - Low

Hostels are not significantly subjected to bargaining power of their suppliers due to they generate revenue from their fix asset.

Bargaining power of buyer - High

Hostels’ customers tend to be price sensitive and they are open to any choices of any hostels in the market. High bargaining power of buyer makes stronger competition on excellence customer services and satisfaction.

Figure 7 Porter’s Five Forces

Treat of New Entrants- Moderate - Lower cost to set up than hotel - Limited of suitable locations

Competitive Rivalry- Moderate - Over 325 hostels in Bangkok - Competitive prices

- The average rating for Hostels in Bangkok is 83%.

Suppliers Power- Low - Revenue flow mainly

generates from fixed asset.

Buyers Power- High - Hostel customers tend

to be price sensitive and open to any choice in the market

- Convenience to compare price online.

Treat of new substitutes- Moderate - Hotel

- Airbnb - Couch surfing

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2.3 Customer Analysis Target market

In 2016, the survey by staywyse showed that 23% of international arrival is youth and student travel group. Thus, in order to capture this opportunity, we would like to target this foreigner youth and student group as they like to travel and open to new experience. Moreover, they expect social experience and better service at the same time. We would encourage people to spend more time outside the room to where they could get some drink to spend more money on site and meet new people from all over the world for cultural exchange.

Moreover, it is common for them to travel with devices that connect them with their social life. We will implement strategy to create peers for advice and recommendations by creating talking points and experiences to stimulate guest’s social media.

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Customer segment

Our customers base would like to get comfortable accommodation with the reasonable cost and making new friends while staying in the hostel. They also give more value to some free added services such as food and information providing.

Moreover, this customer group would like to immerse in local culture by exploring local lifestyle. However, the current situation is that there are few hostels in

Bangkok that offer these integrated services. Poor location of existing hostels make tourists spend more time on Bangkok congested traffic.

Figure 8 Customer Segment

!

Customer Jobs

• Accommodation with reasonable cost

• Meet friends Gains

• Immerse in local culture

• Access to travelling information

• Impressive experience

• Free added services

Pains

• Inconvenience of Bangkok transportation.

• Uncomfortable accommodation

• Lacking of local information providing service

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Value proposition

The value proposition for our hostel is our great location that offer customers alternative transportation including BTS sky train, airport rail link and city boat. Moreover, we will provide more services and better quality of facilities to customers with reasonable price. Lastly, our hostel will have great common area that could motivate customers to spend more time outside the room which will create friendly atmosphere that enable customers to socialize.

Figure 9 Value Proposition

Products and services

• Hostel services with reasonable price

• Friendly atmosphere that

encourage guests to socialize Pain relievers

• Convenience location with variety of alternative transportation

• High quality of facilities

• Information providing services

Gain creators

• Information providing services

• Great hostel decorations

• Offering more free services comparing to customer

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Business model canvas

Our key partners would include existing online travel company, blogger fotr marketing and restaurant for breakfast service. The key resources we need is human resources, such as front staff and housekeeping. Our cost structure will include HR cost, facilities and equipment maintenance, advertising, insurance and cost of food and beverage.

Our revenue streams will mainly come from room revenue which come through online travel agents and some other revenues such as facilities rental, food and snack revenue.

Figure 10 Business Model Canvas

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2.4 Competitors Analysis

The Yard

We consider The Yard as a competitor because they have the similar atmosphere to our hostel as they also provide outdoor garden where all the guests can enjoy their own time or meet with new people. The strengths of The Yard are that they have great atmosphere, staff and cleanliness.

The weaknesses of The Yard are that they are a bit far from the city center and main tourist attractions. As well as the sound proofing problem, The Yard use 2 containers stacked together to make the rooms, so the sound proofing quality is not good.

BED Station Hostel

BED Station Hostel is our direct competitor as it locates near our hostel and has lively and comfortable common area, which could encourage guests to socialize. The strengths of BED Station Hostel are that they have great location, staff and cleanliness.

Moreover, they are large size hostel, so it is easier for them to create the social atmosphere from higher amount of guests.

According to reviews from their guests, we found some weakness of BED Station Hostel, which is soundproofing problem, as some guests want to take some rest while other guests were still socializing in common area.

As BED Station offers 24 hours check-in, there are some guests complained about no one at reception when they arrived at late night and they were charged for late check in.

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LUB D Siam Bangkok

LUB D is a big hostel chain, which operates in Thailand. We consider LUB D Siam as our competitor due to the location. They locate in perfect location where the guests could walk to many shopping centers in Bangkok. Moreover, as they are big hostel chain, they have experience in training their staff and they know well on how hostel facilities should be.

For the weaknesses, LUB D takes core part of hostel for granted which is creating socializing atmosphere. Many guests complained in customer review that the hotel lack of atmosphere as they were expecting a hostel vibe, which encourage people to socialize

Figure 11 Location of Cloud Nine Bangkok and competitors

The Yard

LUB!D!Siam!

Bed!Station!Hostel!

Cloud!Nine!Bangkok!

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Table 1 Competitors’ Room Price Source: www.hostelworld.com

Unit: THB Room Type

The Yard Hostel Bangkok

BED STATION

Hostel Lub d Bangkok Siam Price

Standard Twin Private n/a n/a 933

Standard Double Bed Private 1,500 n/a 1,266

Basic 4 Bed Private 2,500 n/a 2,640

Basic 6 Bed Private n/a n/a 2,640

Basic 8 Bed Private n/a n/a 2,640

Basic 4 Bed Female Dorm 650 n/a n/a

Basic 4 Bed Mixed Dorm 650 600 n/a

Basic 6 Bed Female Dorm n/a 550 n/a

Basic 6 Bed Mixed Dorm 550 550 n/a

Basic 8 Bed Female Dorm n/a n/a 366

Basic 8 Bed Mixed Dorm 450 450 366

Table 2 Competitors’ Facilities Source: www.hostelworld.com

The Yard Hostel Bangkok

BED STATION

Hostel

Lub d Bangkok

Siam

Facilities

24 Hour Reception ✖ ✔ ✔

24 Hour Security ✖ ✔ ✔

Air Conditioning ✖ ✔ ✔

Bar ✔ ✔ ✔

Free Breakfast ✔ ✔ ✖

Free Internet Access ✖ ✔ ✔

Free Parking ✔ ✖ ✖

Free WiFi ✔ ✔ ✔

Self-Catering Facilities ✖ ✖ ✖

Luggage Storage ✔ ✔ ✔

Parking ✖ ✖ ✖

Swimming Pool ✖ ✖ ✖

Airport Transfers ✖ ✖ ✖

Bicycle Parking ✔ ✖ ✔

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The Yard Hostel Bangkok

BED STATION

Hostel

Lub d Bangkok

Siam

Facilities

Cable TV ✖ ✔ ✔

Ceiling Fan ✖ ✔ ✖

Child Friendly ✖ ✖ ✖

Common Room ✖ ✔ ✔

Cooker ✖ ✖ ✖

Fridge/Freezer ✖ ✖ ✖

Fitness Centre ✖ ✖ ✖

Housekeeping ✖ ✔ ✔

Internet Access ✖ ✔ ✔

Key Card Access ✔ ✔ ✔

Laundry Facilities ✖ ✔ ✔

Linen Included ✖ ✔ ✔

Security Lockers ✖ ✔ ✔

Meals Available ✖ ✖ ✖

Minibar ✖ ✖ ✖

Nightclub ✖ ✖ ✖

No Curfew ✖ ✔ ✔

Non Smoking ✖ ✖ ✖

Pet Friendly ✖ ✖ ✖

Restaurant ✖ ✖ ✖

Safe Deposit Box ✖ ✔ ✖

Shuttle Bus ✖ ✖ ✖

Towels for hire ✔ ✔ ✔

Towels Included ✖ ✖ ✖

Washing Machine ✔ ✔ ✔

Wheelchair Friendly ✖ ✖ ✖

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2.5 SWOT Analysis

Strengths

Hostel type

• Unique rooftop garden with small outdoor cinema for guests.

Location

• Closed to Ratchatewee BTS station, which is close to Siam station (center area of Bangkok).

• Close to tourist attractions ¹⁰

o Siam Square (8-minute walk)

o Jim Thompson House (9-minute walk) o MBK Center (9-minute walk)

o Suan Pakkard Palace (9-minute walk) o Pratunam Market (12-minute walk) Personnel

• Great Interacting skills to provide information in response to customers’ inquiries, concerns and requests about our services

• Basic multiple languages skill to response customers from different countries.

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10Based on https://maps.google.com/

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Weakness

As we are newcomer in the market, we might need to work hard on penetrating the existing competitors through online media such as social network, and join with the existing big player in travel business such as TripAdvisor, Agoda and well-known guidebook.

Opportunity

• The growing of traveling market in Thailand.

• Opportunities to expand to relating business such as coffee shop, restaurant and city tour services.

Treats

• Treats of new entrants.

• World unstable economic situation.

• Political unrest in Thailand

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2.6 Market Opportunities

The rising of foreign tourists in Thailand makes the accommodations business expands as well. As we can see that there are many new accommodation services around popular tourist attractions. The new entries need to compete with the existing one by creating competitive advantages.

Number of tourists in Bangkok has increased from 13.8 million in 2011 to 19.6 million in 2015¹¹. While the top activities tourists suggested by tripadvisor.com are Temple visiting, gift and specialty shop, sigh seeing tour and cooking classes.

Table 3 Top 10 tourists in Thailand during 2014-2015 and their average expenditure of accommodations

Source: The Tourism Authority of Thailand The Tourism Authority of Thailand

Nationality

2014 2015

Number of Tourists

Accommodation Amount (THB)

Number of Tourists

Accommodation Amount (THB)

China 4,636,298 2,843.51 7,934,791 2,761.92

Malaysia 2,613,418 1,602.85 3,423,397 2,144.76

Japan 1,267,886 777.61 1,381,690 865.63

Korea 1,122,566 688.49 1,372,995 860.18

Laos 1,053,983 646.42 1,233,138 772.56

India 932,603 571.98 1,069,149 669.82

United Kingdom 907,877 556.81 946,919 593.24

Singapore 844,133 517.72 937,311 587.22

Russia 1,606,430 985.25 884,085 553.88

USA 763,520 468.28 867,520 543.50

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Table 4 Information of tourists in Bangkok during 2014-2015

Source: The Tourism Authority of Thailand The Tourism Authority of Thailand

2014 2015

Number of tourists 17,031,723 19,586,811

Average length of stay (Days) 4.86 4.46

Average expenditure (Baht/Person/Day) 4,578.93 4,830.25

Table 5 Average expenditure of tourists in Bangkok during 2014-1015 Source: The Tourism Authority of Thailand The Tourism Authority of Thailand

Unit: THB

Average Expenditure Amount

Jan-Dec 2014 2015

1. Accommodation 1,169.62 1,169.62

2. Food and beverage 893.40 955.77

3. Shopping 1,015.77 1,102.22

4. Entertainment 642.10 683.24

5. Sight seeing 307.89 331.72

6. Local transport 445.05 464.21

7. Miscellaneous 105.10 123.47

Total (Baht/person/day) 4,578.93 4,830.25

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2.7 Tows Matrix

Table 6 Tows Matrix

Internal Factor

External Factor

Strength

1. High quality facilities

2. Fair and reasonable price

3. Our hostel locates in the convenient location.

Weakness

1. New entrants in the market

2. Limited

advertisements due to cost controlling

Opportunities

1. Bangkok, the center of Thailand with various types of tourists.

2. The growing of traveling market in Thailand.

3. Opportunities to expand to relating business such as coffee shop, restaurant and city tour services.

SO strategies for advancement

1. Using the advantages of Reasonable price, new, clean and closed to BTS station to promote the business.

2. Intermittently asking feedback from guests to improve the services and expand customer base.

3. Adding new services in the future such as dinner, airport transportation service.

WO strategies for overcome weakness

1. Encouraging guests to enjoy all of our facilities and services and share their experiences on their social medias.

2. Joining existing accommodation booking website in order to expand revenue through these channels.

Treats

1. New entries

ST strategies to avoid treats

1. Creating competitive differentiations and seeking for improvement and advancement.

WT strategies to avoid and overcome

1. Launching marketing promotion to

promote the business.

2. Using peer advice and recommendation to gain more

customers.

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We use TOWS Matrix to define the strategies for business as followings;

2.7.1 Strategies for advancement (SO Strategies)

1. Using the advantages of Reasonable price, new, clean and closed to BTS station to promote the business.

We also would like to keep our copy for advertisement short, as it performs better on our business model, which is low perceived risk, low cost, and low commitment.

2. Exploring the need of target customer to improve and add more services, which will result in higher revenue.

2.7.2 Strategies to avoid treats (ST Strategies)

In order to response to our target customer’s needs and create competitive differentiations, we would maintain quality services and seek for improvement and advancement.

2.7.3 Strategies for overcome weakness (WO Strategies)

1. Accelerating the awareness and getting to aimed business position by promoting our competitive differentiations through our selling channels and social medias. Moreover, we would like to leverage the power of social media by

encouraging guest to share their experience on their social media.

2. Join accommodation booking website to expand revenue through these channels.

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2.7.4 Strategies to avoid overcome (WT Strategies)

1. Launching bundle sales marketing to increase revenue and reach the break-even point as fast as possible.

2. The study shows that 72% of consumers say positive reviews make them trust a local business more¹². Thus, we would asking permission from the individual reviewer and use those customer reviews as part of our own publicity material.

In the first year of business, we plan to use strategies for overcome weakness, as we want to become well known player in the business as fast as possible. Moreover, we would join existing accommodation booking website in order to rapidly expand our business. Furthermore, we will implement strategies to avoid treats since we would like to maintain quality services and seek for

improvement and advancement.

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3. Management and Operation Plan

3.1 Company description

Name: Cloud Nine Bangkok Business: Hostel Accommodation

Location: Petchburi Road Ratchatewee Bangkok Thailand

Size: 3.5-Storey Shop house with total area of 200 square meters, where each floor is 52 square meters and a mezzanine is 19 square meters.

3.2 Company Vision

To be one of the best hostel in Thailand and being trusted by target customers.

3.3 Company Target

Short-term target

1. Create brand awareness to expand target customer’s recognition and acceptance for our quality service and high value for money.

2. Average occupancy rate of 70%-80%.

Long-term target

1. Being the travellers’ first choice when coming to visit Bangkok.

2. High loyalty from customers.

3. Expand the customer base to difference categories with the increasing selling rate of 10%-20% per year

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3.4 Company Mission

We aim to be one of the best hostel in Thailand which gives experience and satisfaction to customers by providing better service everyday.

3.5 Business strategy

From the market analysis, we would like to use differentiation strategy, which combine the business and Thai hospitality to make our customer experience modern

facilities in Thai atmosphere. Moreover, we will emphasize on security, convenient and our common area, which can be used for movies and other activities. These will differentiate us from the nearby hostels as they focus on pricing strategy.

To make our hostel operates under our planned strategies, we need to build up following competitive advantages;

Quality Facilities

Learning from the big chain hostel in Thailand, in-room facilities are an important factor to build customer satisfaction as well. Thus, other than fundamental facilities, we will provides below in-room facilities

1. Full backpack size locker

2. Small in-bed locker to store guest’s wallet, phone and passport 3. Individual bed-side towel rack

Moreover, on interior design stage, we will focus on soundproofing and air ventilation system.

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Furthermore, we want to create the unique selling point on common area.

We will provide 2 mains common areas, which are

1. Indoor area for public desktop computers and books.

2. Outdoor area for foods and drinks, movies.

Quality services

Our hostel focuses on quality services. We will recruit and train our employees to be able to give the best services to customers, and having problem solving skill in order to increase customer satisfaction. Besides, our front staff will be available for 24hours.

Most of hostels hire housekeeper to do daily cleaning and changing bed sheet as a part-time employee to maintain lower cost. However, we consider cleanliness as one of core value of our hostel, so we will hire full-time housekeeper to monitor and maintain high conditions for both in-room and common area

especially during peak hours.

To offer better services than competitors, we will also provide free Thai breakfast for all guests and give away Bangkok shopping guidebook which updated monthly by our hostel team.

Location

Location of our hostel has competitive advantages on transportation and closed to many tourist attractions.

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3.6 Organization Structure

Figure 12 Cloud nine Bangkok’s organization structure

!

3.7 Human Resource Plan

Human resource is crucial part for hostel business as it involves in every processes of hotel operation. Hence, we need to focus on human resource process since the beginning of the business

However, in the first stage of business, we will start with small amount of employees and will recruit more in the future to support with the expansion plan. The followings are our plan for recruitment;

1. Recruitment announcement 2. Interview

3. Background checking 4. Health checking

5. Signing employee contract

General Manager

Accounting / Human Resource/

Management

Reservation

House keeping/ Guard

Marketing

PR/ Promotion

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In the employee contract, we will indicate probation period of 3 months before becoming regular employee.

3.8 Employee compensation

Table 7 Employee compensation

Unit: THB

Position Type Number of

employees

Monthly

wage/person Total

Manager Full-time 2 32,000 64,000

Receptionist Full-time 2 21,000 42,000

Housekeeper Full-time 2 15,000 30,000

Security guard Full-time 3 15,000 45,000

Total 9 181,000

Total expenses / year 181,000 x 12 2,172,000

3.9 Room pricing

Each room in our hostel has locker, which is placed next to each bed for

convenience. Each bed has a mini lamp and attached Curtains for guest’s privacy. Lockers are in each room next to the beds for convenience. We would like to price higher than the market price as our hostel has higher quality services and facilities.

The price of each room will start from 550 Baht (depends on size and day of stay).

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Table 8 Room pricing

Bed Type Amount (room) Price (THB/night)

2 person private room 2 1,300

Basic 6 Bed Mixed Dorm 7 550 per person

Basic 4 Bed Female Dorm 1 650 per person

Basic 4 Bed Mixed Dorm 3 650 per person

Total 12

3.10 Hotel Hygienic Standard.

For hygienic condition of our business we will consider below factors;

1. Employees’ personal hygiene

All of our employees need to have good personal hygiene habits, as they are highly required in services business.

2. Cleanliness of facilities

To maintain the high standard of our facilities, we need to keep all of the facilities to be clean, ready to use and easy access.

3. Snack and beverage station

All of the tools and supply in this area need to be managed, stored by category and make sure that it doesn't get infested with any kind of pest.

4. Waste management

Our hostel needs proper waste management and drainage of still water in order to eliminate the breeding ground of many pests. Moreover, garbage could provide food and shelter for many pests, as well as an area where still water might be used as a breeding ground by mosquitoes.

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4. Marketing Plan

!

4.1 Overview

Marketing plan is the crucial part of business plan. It is the starting point and reflection of possibility of the business. Thus, we need to make detail plan of services, target customer, strength, weakness, upcoming treats, strategies and how to maximize the resources we have.

4.2 Hostel marketing plan

Hostel market

We would like to present our hostel as temporary accommodation, which is value for money, friendly atmosphere and has high quality facilities and services.

The inside decoration will be modern Thai style which is not in the main stream among same level of competitor.

For marketing, we would focus more on services as the customer satisfaction directly affects the number of customers and income.

High customer satisfaction is the goal of our hostel because it will affect the revisit rate and build indirect marketing by customer online review.

Product strategy

We differentiate ourselves by unique decoration and quality services. Our common area for guests will be one of our unique selling points. We provide rooftop cinema for guest with various kinds of movie. We focus on giving our

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customers the unique and relax experience as we wish to create word of mouth among tourists.

For value added services, we will set the team to create and issue monthly Bangkok shopping guidebook, which provides information of new and interesting places and specific shops for value shopping to every guests.

Price strategy

As we provides more services with better quality of atmosphere, we would like to set the room price a little bit higher than average of other hostel in Thailand which is starting from 550 Bath per person.

However, we need to create the customer awareness of our quality services and products by distribution strategy.

Distribution strategy

As 72% of customers say positive reviews make them trust a local business more¹³. We believe that our quality services and unique experience will create positive online reviews, which is in-direct marketing by customer to customer.

Moreover, to magnify the impact of online review, our marketing team will ask permission from the individual reviewer and share those customer reviews including other positive statistics on our own social media channel and third party sites.

Our own social media channel includes website, Facebook page and instagram. The contents will focus on previous customer experience and recommend activities in Bangkok. In addition, we are not planning to have

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reservation system on our website as we want our customers to book from third- party site and do the customer review after their trips.

After all, we will work with Thailand travelling bloggers and online content creators to get them to promote the value for money aspects of our hostel.

Promotion strategy

We plan to have 10% discount on every room types to stimulate sales amount during low season (May – October). Furthermore, for revisiting guests, we will provide them small souvenir or complimentary drink.

Moreover, we would provide small souvenir for any guest who post photo of our hostel or check-in on their social media, as we would like to leverage the power of social media.

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5. Operations

5.1 Operation plan

Constructing period

We estimate that the construction and renovation of old 3.5-Storey Shop house will take 3 months. However, we need to be aware of the Building Control Act, which consists of¹⁴;

• The width of the walkway in the building must not be less than the width prescribed in the Ministerial Regulation, depending on the type of building;

• The width and length of the ladder must be in accordance with the number prescribed by the Ministerial Regulation;

• The loading weight in any part of the building must be in accordance with the Ministerial Regulation;

• At least one standard fire extinguisher must be installed on each floor;

• For a building which has three floors or more, the building’s pole, beam, joist, floor, ladder, roof, or wall must be made of fireproof material;

• For a building which has four floors or more, the description of the fire escape or ladder must be in accordance with the Ministerial Regulation;

and

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• The building boundary, vertical distance of the building, space between the building and other buildings, set back of the building, and car parking lots must comply with the building control regulations, which are effective at the time of construction or alteration.

Operating period 1. Products

Our modern Thai style hostel, which renovated from old 3.5-Storey Shop house will have total of 12 rooms. Each room will be named after Thai flower names and have different unique decoration.

Moreover, on the first floor will have reception area with public desktop computer, self-Catering facilities and bookshelves. On rooftop will be small outdoor cinema in a sky garden.

2. Room plan

Our hostel accommodates up to 58 guests in 12 rooms. 3.5-Storey Shop house with total area of 200 square meters, where each floor is 52 square meters and a mezzanine is 19 square meters.

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Table 9 Room plan

Figure 13 Cloud nine Bangkok’s 2^ndFloor Layout

Figure 14 Cloud nine Bangkok’s 3^ndFloor Layout

Unit: room Bed Type Amount (room) 2 person private room 2

6 person dorm room 7

4 person dorm room 3

Total 12

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On the first floor will be receptionist and small coffee shop with small common area for guests, which includes rest area, kitchen laundry room and activity room. The 2^nd and 3^rd floor will be the room, shower room and rest room. On the roof top will be small garden outdoor cinema.

Figure 15 Cloud nine Bangkok’s decoration references Lobby and Reception Area Dining Area

Source: Happynest hostel, Chiangrai Thailand Source: Stockhome hostel, Ayutthaya Thailand

Shower Room and Rest Room Rooftop cinema

Source: Pak-up hostel, Krabi Thailand Source: http://thesweetescape.ca/2013/09/events-outdoor- rooftop-movie-night.html

Rooms

Source: Once hostel, Bangkok Thailand

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3. Excellent services

1. Put the priority on security for guests and employees by providing 24/7 security services, which includes security guard, closed-circuit

television and key card entry system for main entrance.

2. Fast services to both online and offline requests.

3. Building positive moment of truth since before service to after service. Moreover, we will do customer relationship management to create awareness among market target.

5.2 Plan for excellence service

As our strategy is excellence service and create customer satisfaction in every step of services. Thus we will provide quality services in these aspects;

1. Security

2. Cleanliness for both common area and room 3. Convenient of location and transportation 4. Hospitality and friendly services

To provide all of these aspects we need to define the service quality assurance and service quality control as follows

Service Quality Assurance

On account of taking high quality service as our strength, we will put our focus on human resource management. Effective quality management starts with the hiring process, which includes strict policies to closely check references and put new hires on probation for a period of time. After all, employees working in our

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hostel must be subjected to continuing training and mentoring. All employees are rated and promoted based on their performance.

To delivering a competitive customer experience, we would encourage our customers to talk to us more freely and provide feedback such that it helps us serve them better. Encouraging complaints from customers is not only help firms get better services, it will also help customers feel better and move past it. In doing so, we will provides physical mailbox on our reception desk and train all of our employees to greet customers and ask them for feedback.

Service Quality Control

For security service, we will provides day-and-night security guards which where set into 2 shifts. In order to ensure that they make his or her appointed rounds at the correct intervals and offer record for legal or insurance reasons, we will install the Guard tour patrol system, which!record the time when the security guards reach certain points on their tour. Moreover, we will set up closed-ci.rcuit television camera at the hallway and common area on every floor

For cleanliness, we will provide cleaning checklists for maids to follow and record their daily tasks, which includes both indoor and outdoor points.

Considering convenient of location and transportation, we will keep

monitoring the conditions of transportation to places in Bangkok, so our employees can provide information of the fastest and most convenience alternatives to reach there.

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Lastly, in order to ensure the high satisfaction of customers and to create appropriate conditions for constant training and development, the manager will regularly control and monitor the use of guidelines and check lists we provide.

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6. Financial Plan

6.1 Important Assumption

1. The occupancy rate is 60% in the first year, 70% in the second year, and 80% so on.

2. The room price will be increased by 6% every two years.

3. The depreciation is 20% per year.

4. We will subsidize the employees’ social security by 5% of their salary, which will be applied to all of our permanent employees.

5. The employees’ salary will be increased by 3% every two year.

5. Property tax is calculated from 12.5% of the income from property renting, room rental.

6. As an Ordinary Partnership, Income Tax is calculated from the revenue after deducting 70% of expense. Tax rule is shown in Table 10¹⁵.

Table 10 Tax rule

Unit: THB Revenue after

deducting 30%

expense (Yearly Net Income)

Amount of net income in

each range

Tax rate (%) Maximum tax in each range

Maximum cumulative tax

of each range

1-150,000 150,000 Exempt - -

150,001-500,000 350,000 10 35,000 35,000

500,001-1,000,000 500,000 20 100,000 135,000

1,000,001-4,000,000 3,000,000 30 900,000 1,035,000

More than 4,000,000 - 37 - -

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7. Fire insurance and disaster insurance will be applied to Cloud Nine Bangkok. The fire and disaster insurance premium is 3,600 THB per year and the bail is 3,000,000 THB¹⁶.

8. Fixed utilities expense of 30,600 Baht which includes - Water expense 4,000 Baht - Electricity expense 25,000 Baht - Internet service 1,200 Baht

- Cable TV 1,400 Baht

9. Estimated renovation cost is 5,000,000 Baht¹⁷.

10. The discount rate is interest rate of TOT Company Savings Co-Operative Limited, Thailand¹⁸

11. To calculate the opportunity cost, I assume that the hostel could be operated under my supervisor without affecting my regular job.

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16http://www.bangkokinsurance.com/insurance/fire_rakbaan2NinsuranceN seller_th.html

!

17Pricing based on 25,000 per square meters which recommended by owner of Oxetel Chiang Mai, Thailand (https://pantip.com/topic/34543273)

18http://www.tot-coop.com/show/No/235!

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6.2 Sales Forecast

Table 11 Room Revenue per Year

Unit: THB

Sales Price Units/day Revenue/year

2 persons private room 1,300 2 949,000

6 persons dorm room 550 42 8,431,500

4 persons dorm room 650 12 2,847,000

Room Rental Revenue per day 12,227,500

*Private room prices are price per room. Shared room prices are prices per person

Table 12 Sales Forecast for Year 1 to Year 10

Unit: THB/year Year 1 Revenue Occupancy rate Total revenue

Sales forecast for room 12,227,500 60% 7,336,500

Sales forecast for other services (5%) 366,825.00

Total revenue per year 7,703,325

Year 2 Revenue Occupancy rate Total revenue

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*The room price will be increased by 6% in year 3,5,7,9

在曼谷設計規劃一間成功的青年旅館

National Taiwan University Master Thesis

Abstract

Table of Contents

List of figures

List of Table

1.Introduction

1.1 Executive Summary

1.2 Background

Foreign Tourist Satisfaction

Number of Hotel and Guesthouse in Thailand

Number of Hotel and Guesthouse's room in Thailand

List of figures

List of Table

1.Introduction

1.1 Executive Summary

1.2 Background

Foreign Tourist Satisfaction

Number of Hotel and Guesthouse in Thailand

Number of Hotel and Guesthouse's room in Thailand

Number of Hotel and Guesthouse's Guests

2. Market Analysis

2.1 PESTLE Analysis

2.2 Porter’s five forces

2.3 Customer Analysis Target market

Customer segment

Value proposition

Business model canvas

2.4 Competitors Analysis

The Yard

BED Station Hostel

LUB D Siam Bangkok

2.5 SWOT Analysis

2.6 Market Opportunities

2.7 Tows Matrix

3. Management and Operation Plan

3.1 Company description

3.2 Company Vision

3.3 Company Target

3.4 Company Mission

3.5 Business strategy

3.6 Organization Structure

3.7 Human Resource Plan

3.8 Employee compensation

3.9 Room pricing

3.10 Hotel Hygienic Standard.

4. Marketing Plan

4.1 Overview

4.2 Hostel marketing plan

5. Operations

5.1 Operation plan

5.2 Plan for excellence service

6. Financial Plan

6.1 Important Assumption

6.2 Sales Forecast