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How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon

How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon

Hugo Miguel de Brito Silva Moreira Faísca, Leandro Pereira
Copyright: © 2015 |Volume: 5 |Issue: 4 |Pages: 18
ISSN: 2155-6393|EISSN: 2155-6407|EISBN13: 9781466679207|DOI: 10.4018/IJKBO.2015100104
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MLA

Faísca, Hugo Miguel de Brito Silva Moreira, and Leandro Pereira. "How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon." IJKBO vol.5, no.4 2015: pp.62-79. http://doi.org/10.4018/IJKBO.2015100104

APA

Faísca, H. M. & Pereira, L. (2015). How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon. International Journal of Knowledge-Based Organizations (IJKBO), 5(4), 62-79. http://doi.org/10.4018/IJKBO.2015100104

Chicago

Faísca, Hugo Miguel de Brito Silva Moreira, and Leandro Pereira. "How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon," International Journal of Knowledge-Based Organizations (IJKBO) 5, no.4: 62-79. http://doi.org/10.4018/IJKBO.2015100104

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Abstract

The present business plan intents to analyze the financial attractiveness of creating a Hostel within Lisbon and targeting a service proportionate to guests' needs. That is, a service design based in the importance customers attribute to each offer. As observed, the market at Lisbon reflects a very competitive field where Hostels provide high quality services for low prices. During the low season (October-April), money is lost due to low occupancy rates. Nevertheless, profit resulting from the high season (May-September) is enough to null the negative results of the low season and still present a positive result at the end of the year. Financially, the evaluation outputs a NPV of 42 726€, IRR of 25.64% and Payback period of three years and four months. With vital indicators pointing towards a profitable business, the conclusion is that, based on the analysis performed, such a Hostel is financially viable.

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