EL MISTI HOSTELS & POUSADAS - BRAZIL
The Franchise

        

  • Business Model

    Our Business Model is targeted for a young audience looking for low-cost accommodation. What makes the hostel franchise model successful is keeping high occupancy percentages in shared bedrooms. This way, the cost per bed is low but the potential total cost of the room is higher than that of private rooms. Therefore, a shared bedroom with a high level of occupancy is more profitable than a private room.
    El Misti Hostels has a commercialization model that guarantees high occupancy percentages.


    Franchise Model

    El Misti Hostels and Pousadas is a chain operating in Brazil for the last 10 years.
    The modern hotel concept is based on a business model that, aiming at maximizing earnings, reducing costs and learning curves, and attaining a higher level of professionalism, delegates functions, such as commercialization, marketing, software developments, etc. to third parties, i.e. external companies with expertise in those areas, as taking on such an investment on their own would be too costly, consume too much time, and require too many specialized staff. El Misti, however, has its own development team covering all those tasks that would be carried on by outside companies, keeping the entire development inside the company. That is the reason why the franchise model offered by El Misti is highly productive in terms of the cost-benefit ratio, learning curves and capital recovery.
    The KNOW-HOW accumulated over the last 10 years, together with El Misti work team make your investment a guaranteed success.
    Some of the key benefits of our franchise are the wide range of work tools provided to the franchisee, together with 24/7 support and ongoing updates.
  • The Benefits of our Franchise

    1. Reducing costs by entrusting our team with your sales, commercialization, marketing, advertisement, promotion and technical support areas. The key to the success of El Misti franchise lies in its development team, a group of highly qualified professionals in hotel administration, marketing, promotion, advertisement, internet technologies and tourism in general.

    2. Keeping a high occupancy percentage and breaking with seasonality. Our marketing and commercialization team creates ongoing promotion and advertisement campaigns using far-reaching communication tools, in addition to forming bonds with the most popular travel agencies in the market, thus increasing low-season occupancy percentages. In hotel management, maintaining high occupancy percentages in low seasons is key.

    3. Operation manuals: El Misti offers operation manuals, which must be complied with by every hostel in the chain, creating a level of quality and standardized work that facilitate the guest’s satisfaction as well as excellent administration and management of each hostel.

    4.Quality control: each hostel in the chain must live up to the service quality standards pre-established by the franchise.

    5. Standing out from the competition, differentiating ourselves from the rest thanks to a strong brand image.

    6. Generating income by selling alternative products and services. El Misti hostels commercializes not only accommodation, but a wide range of services. When you join the franchise, you expand your commercial vision to a more extensive realm. Our online sales platform provides you with technology tools that help you sell, through your website and our travel agency www.elmistitravel.com , not only accommodation for travelers, but also trips, tourist packages, tickets to shows and much more.

    7.The captive customer flow: your hostel will receive captive travelers, sent from other nodes in the chain.

    8. Having at your disposal high-tech tools and systems for managing and commercializing your hostel.

    9. Increasing your capital income immediately, as you will prevent extensive learning curves and preparation by entrusting our development team with many of the tasks that are key to the success of your hostel.
  • Our Online Model

    Our online commercialization model is a key factor, as most hotel bookings today are made on the internet, one of El Misti Hostels’ specialties.
    Immediately after you decide to take part in the chain, a .com domain is generated to host your website in our own servers.

    DESIGN. Your website will receive tailored design, with specific graphic elements that have been studied and analyzed by our team of specialists, creating a usability flow that results in guaranteed bookings from the commercial-graphic viewpoint.

    CONTENT MANAGEMENT. Your website has a content editing system that has been selected by our programming team to provide you with the versatility and adaptability of one of the leading content editing systems, recognized worldwide for its user-friendliness, enabling you to add contents to your website in a very simple way.

    SEO. Search Engine Optimization. Thanks to our special programming, your domain will be positioned among the first search results in search engines like Google, Yahoo and Bing.

    SEM ADVERTISING. Our SEO team will be in charge of creating and updating the online advertisement of your website. This way, the cost per click will be minimum and you will have maximum visibility. The campaigns are made in Google AdWords, Yahoo Adds and Bing. There are also e-mail marketing campaigns, with promotions and advertisements being sent to our database, including more than 50,000 registered users that have at one point stayed in one of our hostels.

    BOOKINGS. Your hostel will receive bookings from: 1. Your website. Your website will receive visits from the search engines, thanks to organic search results as well as sponsored links. Also, tourist portal advertisements will be linked to your website or our portal, which features a section for your website.
    Your site will also include a real-time online booking form accepting credit card payments.

    2. Online travel agencies. Your hostel will have contracts with the most popular travel agencies in the market, such as STA, expedia.com, travelocity.com, decolar.com, etc.

    3. Internet distribution systems. Your hostel will have contracts with the most popular and audience-focused booking portals, such as: EasyToBook.com, hostelworld.com, hostelbookers.com, Hoteladvisor.com, HIHostels.com, etc.

    4. Chain and partner hostels. Your hostel will receive bookings from the other members of El Misti chain, as well as from other hostels that are not in the franchise but have partnership agreements with us.

    5. Our call center. You will receive bookings from our call center, servicing over 15 countries with local telephone numbers using VoIP technology and low-cost communication systems such as Skype and msn.

    PRESENCE. , El Misti Hostel puts great focus on its internet presence, not only by means of organic search positioning, but also by advertising using the tools provided by Google AdWords, Yahoo and Bing. In addition to its search engine presence, accounts are created in all tourist information portals, in the most popular virtual travel agencies, and above all, in social networks, where our customers spend a great deal of their online time.

    Ranking among the top 4 or 5 results in search engines is the product of a significant economic investment that only hostels with high levels of capital investment can make.

    All these factors will bring you a high occupancy percentage that will help you take care of discounts, promotions, advertisement and franchise expenses, as well as increase your gross income.

    The El Misti brand image not only has presence on the Internet, but is advertised through a myriad of media, ranging from e-mail campaigns with databases of over 100,000 registered users qualified as our target audience, to print ads in traveler journals and books such as Lonely Planet, Footprint Travel Guides, and others.

  • Our Distribution System

    sistema-es

    Our distribution system consists of the following sales and management channels:
    Hotel Management System. This system is set up in your hostel computer to manage bookings and the hostel in general.

    The hotel management system is INTEGRATED into our Distribution Channels Integration System, known as Channel Manager. Channel Manager takes care of automatically updating the hostel availability and prices in all the booking systems, whether they are our own or third party. This way, if a booking is made in the hostel website booking engine, this will automatically be reflected in the Global Distribution Systems used by travel agencies for reservations, such as Sabre, Amadeus, Galileo, etc; in the Virtual Travel Agencies like expedia.com, travelocity.com despegar.com, decolar.com, etc; in the Internet Distribution Systems such as hostelworld.com, hostelbookers.com, bookings.com, etc; in the Mobile Web version of our website; and in all the Social Networks booking forms. In the case of telephone bookings or walk-ins, all you will need to do is update a control panel that will apply the changes to all systems. In turn, our Call Center and the other Hostels in El Misti Chain have access to said system.

    Given the dynamic nature of the current hotel market, automating processes is key to saving time and generating more income. Our distribution system coupled with our Revenue Manager system help us attain high yields.
  • The Chain Portal

    www.elmistihostels.com

    The Chain Portal is a marketing, promotion and advertisement tool integrated with the booking system and our call center for telephone or chat bookings.

    As a franchisee, you will be allocated a section in our portal and receive bookings from portal users by means of its booking engine and our call center reps.

    The enterprise focuses greatly on positioning, so that our portal is ranked among the top results in search engines, in addition to paid advertisement such as Google AdWords and Yahoo. The Portal is maintained and updated daily by our development team.

    Furthermore, the Portal employs a myriad of social networks such as Facebook, Orkurt and Twitter to inform our clients about new offers and promotions, which eventually result in bookings for the chain hostels.

  • What the Franchise Includes

    El Misti Hostels Franchise is a consultancy service supplemented by management, marketing and advertisement tools that will underpin your hostel administration and management, leading your undertaking to high yields.
    Our business analysis team will conduct market research to assess the investment feasibility, make estimations and project benefits.

    Once the franchise contract is signed, our architect specialized in space optimization will visit the venue to make a constructive analysis and outline a project to optimize the area, in order to adapt it to El Misti Hostels model.

    In turn, our management and marketing development team will get to work on every IT aspect: the .com domain registration; the website creation and design, including its tablet and mobile versions; the creation of profiles and pages in every social network; the configuration of our booking engines; the creation and configuration of over 400 external booking systems; the integration with the portal, which has sections for every hostel in the chain; the website positioning in search engines; the creation of advertisement campaigns in search engines; the print advertisement design; and the publicity distribution around every hostel in the chain.

    Travel agencies located in strategic points will also commercialize your hostel, helping you increase your number of bookings.

    You will also receive training in the use and maintenance of all the IT tools for management and administration.

    The promotions are created by our marketing team and must be respected, from El Misti Passport -granting discounts to guests who have previously stayed at another chain hostel- to online promotions published in our travel portal, elmistitravel.com.
    Delivery of operation manuals and staff training.

  • Point by Point

     

    • Right to use the El Misti Hostels & Pousadas brand.
    • Architect consultancy, including the project developed by our Architect, Marcelo Marzullo.
      *does not include construction materials or labor.
    • Market study and financial analysis for the project. ROI projection.
    • Own website for the hostel with an administration panel for updates and dynamic modifications.
    • Website hosting during the contract validity period (4 years).
    • .com domain registration for the contract validity period.
    • Technical support and operation assistance for the booking system.
    • Technical support and operation assistance for the hotel management system.
    • A section in our Portal, www.elmistihostels.com
    • Website SEO, positioning campaigns in search engines (Google, Yahoo, Bing, etc).
    • e-mail marketing campaign with a user database.
    • Hostel’s own automated booking system.
    • Integrated hotel management system.
    • Configuration of external booking engines (hostelworld, hostelbookers, etc).
    • Commercialization channels in our sales portal, www.elmistitravel.com
    • Visibility in virtual travel agencies, such as Despegar.com, as well as actual travel agencies, like STA.
    • Technical consultancy in the operation of all the technology tools.
    • Consultancy in the hostel general management.
    • Installation and configuration of the software required for the cybercafé and the reception computers.
    • Graphic design and print advertisement, including flyers, posters and personal cards.
      50 posters (distributed around all the network hostels).
      10,000 flyers.
      Manager’s personal cards.
    • Creation and configuration of campaigns in Google AdWords, Yahoo Ads and Bing.
    • Creation and configuration of campaigns in social networks: Facebook, Orkurt, Twitter, etc.
    • Digital Graphics (banners –website – logos)
    • Graphic design and printing of administrative stationery.
    • Staff training.
    • Operation manuals (managerial – administrative – accounting – staff).
    • Consultancy in material and equipment purchases.
    • Staff uniforms.
    • Hostel t-shirts for guests (half-yearly distribution).
    • International call center with local numbers in Argentina, Australia, Chile, Denmark, Brazil (São Paulo), Sweden, England, USA, etc.
    • Consultancy in the opening and operation of the restaurant and bar.

    *every initial service includes monthly maintenance.

     

    Requirements

    The following are services that your hostel is required to provide in order to join the franchise:
    • Full, buffet-type breakfast served from 8 to 10 am.
    • Snacks (coffee or tea and cakes or cookies).
    • Optional buffet dinner, with charge, featuring a different menu each day of the week.
    • 24-hour reception with trilingual staff, and tour and trip sales.
    • Bar open from 6 pm to 12 am.
    • Non-alcoholic beverage sales 24/7.
    • Free Wi-Fi.
    • Common leisure areas.
    • Video-monitored security.
    • Pre-established standards of cleanliness and hygiene.
    • Music.
  • The following are infrastructure requirements that your hostel must fulfill in order to join the franchise:


    • Over 70 beds in shared rooms and over 2 private rooms.
    • A minimum area of 350mts2
    • Fully equipped kitchen.
    • More than 2 computers with internet connection for guests.
    • 1 bathroom per 7 guests.
    • Bar and restaurant.
    • 24-hour reception.
    • Luggage storage.
    • Individual lockers.
    • Common leisure areas.
    • Video-monitored security.
    • Pre-established standards of cleanliness and hygiene.
    • Music player.

    *there are some infrastructure exceptions based on the reality of each venue.



    Figures

    Initial investment From R$244,000
    Franchise fee R$65,000
    Working capital R$50,000
    Royalties 5% of the total turnover
    Royalties w. administration *optional 16% of the total turnover
    Advertisement fee 4%
    Gross turnover From R$360,000
    Net profit 28%
    Time-to-revenue From 24 months


    Our legal team will draw up the contract, which has a 4-year validity and is renewable.*

    The franchise is only available in brazil.

    * The contract renewal is free of charge and will be carried out provided that both parties consent to it.




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For further information, please write to:
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Or contact us via Skype: fedefin1

Atentamente Federico Finkielsztejn - Gerente de Franquicias.

El Misti Hostels & Pousadas - Brazil.

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