Could it be possible for a hostel to operate without turning a profit?
Open House Barra, a hostel in Salvador, Brazil, has been doing just that. They have been operating as a non-profit for seven years now. They intertwine social initiatives into their day-to-day operations, making this concept one that is definitely worth sharing. Essentially, Open House Barra is not only a hostel but also the headquarters of a cultural association, Arte Brasileira (ArteBra.org). ArteBra, as it is better known, is an NGO run by the hostel owners, where they introduce various cultural and art projects for their guests and wider audiences to enjoy and even participate in. The whole hostel-NGO hybrid venture has no governmental funding, making it 100% independent, and secures its funding by:
The guests themselves, paying for accommodation;
University students, paying for courses and receiving free accommodation;
Volunteering and work collaboration in exchange for free accommodation;
Individual donations, often redistributed with original artwork pieces.
It became clear after a simple interview with the owners (of the Open House Barra and ArteBra) that no matter how attractive this model looks, it still takes much dedication and hard work to pull it off. Their largest challenge is finding and convincing the right universities to partner with them. Therefore, thinking over your marketing and communication strategy is an extremely important aspect not to be disregarded. On one hand, there may not be that many institutions with their own housing options to accept exchange students, so your niche could be relatively untapped. On the other hand, persuading universities (which already have their established housing options, like homestays or student dorms) to consider your hostel requires strong arguments (and quality facilities for sure!). Open House Barra embraces the idea of a hostel as a social institution and provides others with an example of blending the hospitality industry with promoting social change in the community. However, its owners kindly warn anyone interested: this is not a business. Unless you manage to secure significant funding from a government or some foundations, it can get tough financially. To quote one of the owners of this hostel, “The profit is the time spent doing what you like without worrying about income or returns.”
Finally, the last crucial aspect to make it happen is the set of skills anyone considering a similar hostel model should have. The owners of Open House Barra have 15 years of experience in a wide range of activities: from film production and scriptwriting to web applications and project management, in addition to artistic capabilities. They have the academic background normally needed to conduct quality social research as well as to provide academic courses. So, we can turn the title upside down: