IDEAS home Printed from https://ideas.repec.org/a/igg/jkbo00/v5y2015i4p62-79.html
   My bibliography  Save this article

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

Author

Listed:
  • Hugo Miguel de Brito Silva Moreira Faísca

    (ISCTE-IUL, Lisbon, Portugal)

  • Leandro Pereira

    (Department of Marketing, Operations and Geral Management, ISCTE-IUL, Lisbon, Portugal)

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.

Suggested Citation

  • Hugo Miguel de Brito Silva Moreira Faísca & Leandro Pereira, 2015. "How to Shape a Business Service to Its Customers' Exact Needs: A Hostel in Lisbon," International Journal of Knowledge-Based Organizations (IJKBO), IGI Global, vol. 5(4), pages 62-79, October.
    • Handle: RePEc:igg:jkbo00:v:5:y:2015:i:4:p:62-79
    as

    Download full text from publisher

    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJKBO.2015100104
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:igg:jkbo00:v:5:y:2015:i:4:p:62-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Editor (email available below). General contact details of provider: https://www.igi-global.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.