Sleeping In A Capsule
Sleeping In A Capsule
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uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
On the ever growing list of diversification ideas I have been looking at capsule hotels which do well overseas. The sort popular in Japan which cost about £15 a night and have wifi, bluetooth, a decent TV to stream, etc. Ideal for short stays, back packers, no frill type travel.

The reason its attractive is I have access to a building which is in the centre of the city next to a number of very expensive hotels (cheapest is around £70 a night). Its currently not a lot of use for much due to parking but is single level and big enough for 200 of these pods.

Aimed at the millennials generation, simple app booking and on demand style pricing i.e book in advance for £15 a night + on boarding fee around £5 to cover cleaning .

Thoughts, would it work..

Simpo Two

92,982 posts

295 months

Saturday 31st December 2016
quotequote all
I was about to say 'Uber for hotels' then saw your name!

Yep, why not? They like sleeping in tents in muddy fields with loud music playing, a small dry box has to be better.

Orchid1

906 posts

138 months

Saturday 31st December 2016
quotequote all
Seems a good idea although can pissed up hen and stag doo's be trusted not to trash them every weekend?

Jag_NE

3,343 posts

130 months

Saturday 31st December 2016
quotequote all
you will need scale to make money as anyone can copy you. if you are looking at this as a stop gap for this plot only I would say no as new entrants will probably kill you but if you want to invest in a brand and expand it MIGHT be worth doing. The UK isn't Japan and there definitely isn't the need for this type of product to the same extent however.

anonymous-user

84 months

Saturday 31st December 2016
quotequote all
it works in japan because space is at a massive premium.

You think millenniums are the market, but they have so much choice, the market might be saturated.
Hostels, Air bnb are all your competition.

I don't think it would work. You have a high in infrastructure cost.

TheInternet

5,269 posts

193 months

Saturday 31st December 2016
quotequote all
Jag_NE said:
you will need scale to make money as anyone can copy you...
You are the st dragon AICMFP.


uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
The Spruce goose said:
it works in japan because space is at a massive premium.

You think millenniums are the market, but they have so much choice, the market might be saturated.
Hostels, Air bnb are all your competition.

I don't think it would work. You have a high in infrastructure cost.
Hostels have been around for a million years and I have had lots of dealings with AirBnB from the start and although a great alternative to hotels its still not for everyone.

Cost of entry is not as huge as you might think and is far less than a more conventional hotel setup.

uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
Orchid1 said:
Seems a good idea although can pissed up hen and stag doo's be trusted not to trash them every weekend?
The way they are set up its not easy for them to huddle together like they would in a hotel as its one per pod

Jag_NE

3,343 posts

130 months

Saturday 31st December 2016
quotequote all
uber said:
The Spruce goose said:
it works in japan because space is at a massive premium.

You think millenniums are the market, but they have so much choice, the market might be saturated.
Hostels, Air bnb are all your competition.

I don't think it would work. You have a high in infrastructure cost.
Hostels have been around for a million years and I have had lots of dealings with AirBnB from the start and although a great alternative to hotels its still not for everyone.

Cost of entry is not as huge as you might think and is far less than a more conventional hotel setup.
if you are convinced that millenials are the target market, also note that pods are massively antisocial versus a hostel.

when you say the hotels are 70 quid a night I presume you aren't anywhere near London?

uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
Jag_NE said:
if you are convinced that millenials are the target market, also note that pods are massively antisocial versus a hostel.

when you say the hotels are 70 quid a night I presume you aren't anywhere near London?
Glasgow, you can get a cheap hotel for about £70 on a deal site but something like a Hilton, Marriot etc will be £175 + per night.

These capsule concepts often have a meeting area , imagine friendly lobby / creator space (some desks and mega fast net)

Jag_NE

3,343 posts

130 months

Saturday 31st December 2016
quotequote all
uber said:
Jag_NE said:
if you are convinced that millenials are the target market, also note that pods are massively antisocial versus a hostel.

when you say the hotels are 70 quid a night I presume you aren't anywhere near London?
Glasgow, you can get a cheap hotel for about £70 on a deal site but something like a Hilton, Marriot etc will be £175 + per night.

These capsule concepts often have a meeting area , imagine friendly lobby / creator space (some desks and mega fast net)
You need to ask yourself (with this being an old/established concept), if nobody else has decided to bring to it to the UK, they will have done so for good reasons. What can you do/offer that is special?

dxg

10,802 posts

290 months

Saturday 31st December 2016
quotequote all
You'll also need showers and storage lockers.

And, presumably, someone there in person to keep an eye on things.

13m

28,176 posts

252 months

Saturday 31st December 2016
quotequote all
uber said:
The way they are set up its not easy for them to huddle together like they would in a hotel as its one per pod
Are you sure there isn't a law preventing what you plan to do? For example a minumum room size. There often seems to be a law preventing suppliers supplying what the market demands.



williaa68

1,540 posts

196 months

Saturday 31st December 2016
quotequote all
Yotel at Gatwick is essentially a capsule hotel - i think it does ok. I stayed in one once in Tokyo - it wasnt bad at all but the key is price differential versus the competition - i think you need to be about half price. I suspect in Glasgow a travelodge can be had for <£70 most nights so why would someone stay in a capsule when they could stay there instead?

uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
13m said:
Are you sure there isn't a law preventing what you plan to do? For example a minumum room size. There often seems to be a law preventing suppliers supplying what the market demands.
We were going to use this site before for a gym which we built somewhere else and I had said to the architect at the time about the idea of using it for something like this and he thought it was totally possible because of the size/style of building

13m

28,176 posts

252 months

Saturday 31st December 2016
quotequote all
uber said:
13m said:
Are you sure there isn't a law preventing what you plan to do? For example a minumum room size. There often seems to be a law preventing suppliers supplying what the market demands.
We were going to use this site before for a gym which we built somewhere else and I had said to the architect at the time about the idea of using it for something like this and he thought it was totally possible because of the size/style of building
I am thinking more of a public health type objection.

uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
13m said:
I am thinking more of a public health type objection.
As long as it passes building regulations it should be all good.

Trabi601

4,865 posts

125 months

Saturday 31st December 2016
quotequote all
Just picked a random weekend in January - which is when you're most likely to attract a pod type customer. (most people during the week will be on expenses - and many companies have minimum H&S requirements which a pod hotel wouldn't meet).

£34 for the Ibis Budget.
£35 for Easy Hotel.

There are other options in the same price bracket.

Hostels are £12-£17 a night.

Given a choice between a £15 pod with shared bog and shower and an Ibis Budget with more space and en-suite, I'd spend the extra cash. You'd have to be a loner on an incredibly tight budget to want to sleep in a pod.

uber

Original Poster:

860 posts

200 months

Saturday 31st December 2016
quotequote all
Trabi601 said:
Just picked a random weekend in January - which is when you're most likely to attract a pod type customer. (most people during the week will be on expenses - and many companies have minimum H&S requirements which a pod hotel wouldn't meet).

£34 for the Ibis Budget.
£35 for Easy Hotel.

There are other options in the same price bracket.

Hostels are £12-£17 a night.

Given a choice between a £15 pod with shared bog and shower and an Ibis Budget with more space and en-suite, I'd spend the extra cash. You'd have to be a loner on an incredibly tight budget to want to sleep in a pod.
I dont really think this would be attractive to the corporate market or business people in general. The benefits would be 2 min walk to the main shopping street / clubs in Glasgow, easy in and out, place to meet/work.

There are lots of cheap hotels in Glasgow but they are often a bit further out i.e that Ibis and the hostels are always full of alcoholics!

Newstuart

75 posts

140 months

Saturday 31st December 2016
quotequote all
Being self employed so its my money id certainly consider one but would need to be cheaper than a standard cheap hotel to make it work as Id usually stay up doing paperwork etc when working away which would be difficult in a pod