The Air Hotel Auckland - Luxury of first class, at rock-bottom prices
Jun 7, 2010, 8:34 am
#31
Join Date: Mar 2005
Posts: 1,762
Hmm, this is an interesting concept and something I could see working in places like Manhattan or Tokyo where space is a premium. However, for it to work I would guess the ‘pods’ would need to be a bit larger and thus you could charge a bit more, say $79. You might be able to attract business travel that would otherwise just go for a day or stay in a less central area.
Just having a trawl through a few search engines the YHA in New York (near Central Park, so central but not truly downtown is between US$26 and US$49 for a dorm. Hostel private rooms seem as rare as hen's teeth. Getting a 'hotel' private room seems not to start at less than US$100 and at that price seems to be in such seedy and sketchy establishments that even the merits of a prvate room wouldn't tempt you through the door.. getting somewhere decent in Manhatten seems to be costing at least US$150 and up. Staying in Manhatten is expensive! So I could see quite a market for something like these pods covering the huge gap in the middle that exists in Manhatten - priced at US$80 a night the premium over a hostel would keep the backpackers out who would be otherwise be drawn by the central location, and the lack of backpackers in turn would help attract the highly cost conscious 1 night traveller (I suspect it would be popular with relative locals) who wants something in a central location.
Moving to Auckland you can stay in a hostel dorm within 100m of the business end of Queen Street for NZ$25-30, and real privacy in a private room starts at around NZ$50 in hostels and around NZ$80 in a central hotel. There simply isn't that gap in the middle in the Auckland market - I just can't see the dorm dwelling backpackers liking the product (even less being willing to pay a premium for it), and neither the hostel private room or the hotel dwelling folks wil give up the privacy of a private room (and in the hotels) a private bathroom to save NZ$20-50 which in international terms is very little. And being on Pitt Street is, as I've already noted, the wrong place.
As I've said already it's an interesting concept. I'll even go as far as to say a cool concept. But not one that I can see working in Auckland.
Jun 7, 2010, 10:28 pm
#32
Join Date: Jun 2010
Posts: 34
Thanks so much philipas for your long post and for being so honest. Yes have to agree with you here, i wish I own buildings in Tokyo or new York. It's certainly is a good product for places where spaces is a premium. Auckland is such a hard place for new hotel developments because the hotel room rates are so low compare to other countries which make building new hotel unfeasible. A four five star hotel will cost $200,000 to $300,000 per room, with a room rate of about $150 per night that's not a good return on the investment. That's why you don't see many new hotels being built in Auckland or in New Zealand in general in the last two years or in the next two years. The only so call hotels that was built in the last two years are basically serviced apartments where mum and dad investors are conned into buying promising a high phony return with rental guarantee, but as most of those mum and dad investors now found out after the rental guarantee expires their return drops significantly. I initially planned a four star boutique hotel on the site but the number just don't stack up because the room rate in Auckland is too cheap. On the other hand hostel is still feasible because you get about the same rate as a hotel on a per-square-metre basis but is much cheaper to build on a $/m2 basis.
I know what you mean about Pitt street, but I guess it may appeal to people wanting to be close to upper queen St, k road and ponsonby area, there must be a market as there are YMCA and YWCA practically next door to us, what do you think? but i guess we will have to find a balance in the "room" rate to make it attractive.
I know what you mean about Pitt street, but I guess it may appeal to people wanting to be close to upper queen St, k road and ponsonby area, there must be a market as there are YMCA and YWCA practically next door to us, what do you think? but i guess we will have to find a balance in the "room" rate to make it attractive.
Last edited by tallboyjockey; Jun 8, 2010 at 12:59 am
Jun 7, 2010, 11:05 pm
#33
Join Date: Jul 2005
Posts: 3,072
I don't know anything about the Auckland hotel market, or Auckland in general for that matter.
Maybe you'll find a market in people who are a bit to old for the WMCA, but still looking to save money. With the current state of the global economy, the segment may be a growing one. The increased privacy and general quite nature could be a draw.
If I were visiting a city, on my own dime for a job/client interview, I could see staying in a place like this.
I view hostels as more of a party/social atmosphere, however your accommodation option looks to provide a hotel 'like' experience.
Maybe you'll find a market in people who are a bit to old for the WMCA, but still looking to save money. With the current state of the global economy, the segment may be a growing one. The increased privacy and general quite nature could be a draw.
If I were visiting a city, on my own dime for a job/client interview, I could see staying in a place like this.
I view hostels as more of a party/social atmosphere, however your accommodation option looks to provide a hotel 'like' experience.
Jun 8, 2010, 12:19 am
#34
Join Date: Nov 2002
Location: New York City
Posts: 4,002
Here's how I see it. I know I'm reiterating some points others have made.
If someone is traveling to Auckland, in my experience, one of the following applies:
* They are young and want hostels for the experience
* They are traveling with someone else, in which case hotel rooms would be just as cheap
* They are staying with family in NZ
* They have rented an RV
* They are traveling on business and are staying at a nice hotel
Keep in mind that my knowledge of this is limited mostly to people traveling from Vancouver.
Thus, your customer would be in the market, which I think is small, of people who don't want to pay for a hotel room, are traveling alone, and don't want to stay in a hostel dorm. Having said that, I often think that an upscale hostel is far preferable to a dingy, scary hotel, if one is forced to choose, but that's more a concern I would have in say Mexico vs. Auckland.
As for the partitions, I'd prefer to be private even if claustrophobic, so I vote for them going up to the ceiling. Maybe you could have a sort of openable internal window at each entrance, assuming all rooms face on a corridor, if people really did feel claustrophobic and wanted to open it for "air".
If someone is traveling to Auckland, in my experience, one of the following applies:
* They are young and want hostels for the experience
* They are traveling with someone else, in which case hotel rooms would be just as cheap
* They are staying with family in NZ
* They have rented an RV
* They are traveling on business and are staying at a nice hotel
Keep in mind that my knowledge of this is limited mostly to people traveling from Vancouver.
Thus, your customer would be in the market, which I think is small, of people who don't want to pay for a hotel room, are traveling alone, and don't want to stay in a hostel dorm. Having said that, I often think that an upscale hostel is far preferable to a dingy, scary hotel, if one is forced to choose, but that's more a concern I would have in say Mexico vs. Auckland.
As for the partitions, I'd prefer to be private even if claustrophobic, so I vote for them going up to the ceiling. Maybe you could have a sort of openable internal window at each entrance, assuming all rooms face on a corridor, if people really did feel claustrophobic and wanted to open it for "air".
Jun 8, 2010, 4:03 am
#35
Join Date: Jun 2010
Posts: 34
hi climbguy and wiltravel, thank you very much for your comments, you have identified the segment of the market well, now we just got to find out whether such market is big enough in auckland.
and thanks willtravel for the open window idea, would be a bit like the singapore airline first class suite with the open window:
and thanks willtravel for the open window idea, would be a bit like the singapore airline first class suite with the open window:
Last edited by tallboyjockey; Jun 8, 2010 at 4:21 am
Jun 8, 2010, 11:33 am
#36
Join Date: Jul 2005
Posts: 3,072
I think this category is the big question. In this economy, would a business traveler stay in a place like this to cut cost?
I think the answer is maybe, if it's a small business or a consultant I think the answer might be yes.
I think the answer is maybe, if it's a small business or a consultant I think the answer might be yes.
Jun 21, 2010, 5:44 am
#38
Join Date: Jun 2010
Posts: 34
1. higher partition wall (1.8m), top of the wall is curved to provide extra privacy
2. bigger cabin size, room for packing/unpacking
3. full size single bed 1900mm x 900mm
4. two chairs (one for guest/visitor)
5. tray table can be use either at front of the chairs or over the bed
please comment
Last edited by tallboyjockey; Jun 21, 2010 at 7:58 pm
Jun 21, 2010, 9:06 am
#39
Join Date: Mar 2005
Posts: 1,762
Looking at your web-site you've just put the price up from $29 to $39 - I think.
It certainly looks a far better proposition that what was being offered previously - but that killer issue still stands in that it's not private and there's just no getting away from that.
You're not actually that far from the Yotel concept (www.yotel.com) - but then look at their locations (in terminal at LHR, LGW and AMS... and soon to open at Times Square). Yotel's offering supports previous comments about the relative value of real estate.
Given that fit out costs for what you are proposing are going to be fairly high (lots of custom design stuff), and given the very valid comments you make about the lack of economics in terms of hotel building costs... have you not thought of heading to that place where everyone gets a bargain and buying a load of bunk beds so as to open a bog standard backpackers?
As I've said before it's interesting, indeed it's cool. It's certainly fascinating to study and think about. But in terms of it turning into a profitable business I'm just not seeing it.
It certainly looks a far better proposition that what was being offered previously - but that killer issue still stands in that it's not private and there's just no getting away from that.
You're not actually that far from the Yotel concept (www.yotel.com) - but then look at their locations (in terminal at LHR, LGW and AMS... and soon to open at Times Square). Yotel's offering supports previous comments about the relative value of real estate.
Given that fit out costs for what you are proposing are going to be fairly high (lots of custom design stuff), and given the very valid comments you make about the lack of economics in terms of hotel building costs... have you not thought of heading to that place where everyone gets a bargain and buying a load of bunk beds so as to open a bog standard backpackers?
As I've said before it's interesting, indeed it's cool. It's certainly fascinating to study and think about. But in terms of it turning into a profitable business I'm just not seeing it.
Jun 21, 2010, 11:51 am
#40
Join Date: Jul 2005
Posts: 3,072
I think the real question here is the future of the global economy. If what we are going through is "the new normal." Employers will be able to demand more from their employees for less.
I think tallboyjockey's hotel might just be that.
The Yotel concept is good, however I think they have made a mistake with their Times Square hotel. Per this story rooms will be $200-$250 range with rooms 2x the size of other Yotels. http://www.hotelchatter.com/story/20...quare_in_2011_
Simply put, that is too expensive.
I think tallboyjockey's hotel might just be that.
The Yotel concept is good, however I think they have made a mistake with their Times Square hotel. Per this story rooms will be $200-$250 range with rooms 2x the size of other Yotels. http://www.hotelchatter.com/story/20...quare_in_2011_
Simply put, that is too expensive.
Looking at your web-site you've just put the price up from $29 to $39 - I think.
It certainly looks a far better proposition that what was being offered previously - but that killer issue still stands in that it's not private and there's just no getting away from that.
You're not actually that far from the Yotel concept (www.yotel.com) - but then look at their locations (in terminal at LHR, LGW and AMS... and soon to open at Times Square). Yotel's offering supports previous comments about the relative value of real estate.
Given that fit out costs for what you are proposing are going to be fairly high (lots of custom design stuff), and given the very valid comments you make about the lack of economics in terms of hotel building costs... have you not thought of heading to that place where everyone gets a bargain and buying a load of bunk beds so as to open a bog standard backpackers?
As I've said before it's interesting, indeed it's cool. It's certainly fascinating to study and think about. But in terms of it turning into a profitable business I'm just not seeing it.
It certainly looks a far better proposition that what was being offered previously - but that killer issue still stands in that it's not private and there's just no getting away from that.
You're not actually that far from the Yotel concept (www.yotel.com) - but then look at their locations (in terminal at LHR, LGW and AMS... and soon to open at Times Square). Yotel's offering supports previous comments about the relative value of real estate.
Given that fit out costs for what you are proposing are going to be fairly high (lots of custom design stuff), and given the very valid comments you make about the lack of economics in terms of hotel building costs... have you not thought of heading to that place where everyone gets a bargain and buying a load of bunk beds so as to open a bog standard backpackers?
As I've said before it's interesting, indeed it's cool. It's certainly fascinating to study and think about. But in terms of it turning into a profitable business I'm just not seeing it.
Jun 22, 2010, 3:42 am
#41
Join Date: Jan 2009
Posts: 20
here are some images of our new design, improvements made include:
1. higher partition wall (1.8m), top of the wall is curved to provide extra privacy
2. bigger cabin size, room for packing/unpacking
3. full size single bed 1900mm x 900mm
4. two chairs (one for guest/visitor)
5. tray table can be use either at front of the chairs or over the bed
please comment
1. higher partition wall (1.8m), top of the wall is curved to provide extra privacy
2. bigger cabin size, room for packing/unpacking
3. full size single bed 1900mm x 900mm
4. two chairs (one for guest/visitor)
5. tray table can be use either at front of the chairs or over the bed
please comment
Jul 2, 2010, 6:08 am
#43
Join Date: Jun 2010
Posts: 34
the bed is now a standard single mattress 1900mm x 900mm (see the new design above) so you should be able to sleep on it without crouching
Jul 3, 2010, 3:39 pm
#45
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,856
I don't see a huge difference between this and a Japanese capsule hotel, of which there are many. I guess this is intended to be a step up by offering just a bit more room than a capsule and a locker. In Japan, the next step up from a capsule hotel is an "economy business hotel" and all the rooms in those have their own bathroom. I bet at the proposed price, it won't work without that.
Incidentally, I expect anything called "The Air Hotel" would be at the airport, not in some isolated area 'close' to the CBD.
Hotel prices in Auckland aren't that expensive, as I recall, that may be another problem.
Might attract a certain demographic if you rented by the hour, however.
Incidentally, I expect anything called "The Air Hotel" would be at the airport, not in some isolated area 'close' to the CBD.
Hotel prices in Auckland aren't that expensive, as I recall, that may be another problem.
Might attract a certain demographic if you rented by the hour, however.