HOSTEL EXPENSES

1

A PROJECT REPORT ON

HOSTEL EXPENSES

In the partial fulfillment of the

Requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF

M.G. UNIVERSITY, KOTTAYAM

Submitted by

JITHIN SOMAN

ROLL NO: 22

Under the supervision and guidance of Mrs. Lekha

DEPARTMENT OF BUSINESS ADMINISTRATION

2010-2012

ADI SHANKARA INSTITUTE OF ENGINEERING &

TECHNOLOGY

KALADY - 683574

HOSTEL EXPENSES

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ACKNOWLEDGEMENT

Firstly I thank Almighty God for showering his choicest blessings upon

me throughout the process of research. Heartfelt thanks to my parents for their

support and prayer.

The project has been completed under the expert guidance and

supervision of Mrs. LEKHA MBA Department,AdiShankara Institute Of

Science And Technology.

I express my deep sense of gratitude and indebtedness to her for her

esteemed guidance, keen interest, sustained patience, and critical comments

constant availability, and continuous inspiration, right from the planning phase

till the completion of the study. Her patient listening, encouraging words and

deep understanding indeed have been pillars of strength for us.

I take this opportunity to express my sincere thanks to all those who have

been involved directly and indirectly in the successful completion of this project

work.

JITHIN SOMAN

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DECLARATION

I JITHIN SOMAN, hereby declare that the project titled “HOSTEL

EXPENSES” submitted to MBA Department of “ADI SANKAR A

INSTITUTE OF SCIENCE AND TECHNOLOGY”is record of bonafide work

done by me under the supervision of Mrs. LEKHA Department of MBA during

the academic year 2010.

JITHIN SOMAN

Place :

Date :

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CONTENTS

CHAPTER No

TITLE Page No.

1 INTRODUCTION 5

2 OBJECTIVE 10

3 LIMITATIONS 2

4 RESEARCH METHODOLOGY 14

5 DATA ANALYSIS & INTERPRETATION 17

6 FINDINGS 33

7 SUGGESTION 35

8 CONCLUSION 37

9 BIBLIOGRAPHY 39

10 ANNEXURE

QUESTIONNAIRE 41

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CHAPTER-1

INTRODUCTION

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INTRODUCTION

Hostel

Hostels provide budget oriented, sociable accommodation where guests can rent a

bed, sometimes a bunk bed, in a dormitory and share a bathroom, lounge and

sometimes a kitchen. Rooms can be mixed or single-sex, although private rooms

may also be available. Hostels are generally cheaper for both the operator and the

occupants; many hostels have long-term residents whom they employ as desk

clerks or housekeeping staff in exchange for free accommodation.

In a few countries, such as the UK, Ireland, the Netherlands, India, and Australia,

the word hostel sometimes also refers to establishments providing longer-term

accommodation (often to specific classes of clientèle such as nurses, students, drug

addicts, court defendants on bail) where the hostels are sometimes run by Housing

Associations and charities. In the rest of the world, the word hostel refers only to

properties offering accommodation to travellers or backpackers.

Within the 'traveller' category, another distinction can be drawn between hostels

which are members of Hostelling International (HI), a UK-based, non-profit

organization encouraging outdoor activities and cultural exchange for the young

(formerly the IYHA), and independently operated hostels. Hostels for travellers are

sometimes called backpackers' hostels, particularly in Australia and New Zealand

(often abbreviated to just "backpackers").

History

In 1912, in AltenaCastle in Germany, Richard Schirrmann created the first

permanent Jugendherberge or "Youth Hostel". These first Youth Hostels were an

exponent of the ideology of the German Youth Movement to let poor city

youngsters breathe fresh air outdoors. The youths were supposed to manage the

hostel themselves as much as possible, doing chores to keep the costs down and

build character as well as being physically active outdoors. Because of this, many

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Youth Hostels closed during the middle part of the day. Very few hostels still

require chores or have a "lockout".

Differences from hotels

There are several differences between hostels and hotels, including:

1. Hostels tend to be budget-oriented; rates are considerably lower, and many

hostels have programs to share books, DVDs and other items.

2. For those who prefer an informal environment, hostels do not usually have

the same level of formality as hotels.

3. For those who prefer to socialize with their fellow guests, hostels usually

have more common areas and opportunities to socialize. The dormitory

aspect of hostels also increases the social factor

Communal accommodation

There is less privacy in a hostel than in a hotel. Sharing sleeping accommodation in

a dormitory is very different from staying in a private room in a hotel or bed and

breakfast, and might not be comfortable for those requiring more privacy. The

lessened privacy is also an advantage in some ways, because it encourages more

social interaction between guests.

Theft can be a problem, since guests may share a common living space, but this

can be avoided by securing guests' belongings. Most hostels offer some sort of

system for safely storing valuables, and an increasing number of hostels offer

private lockers.

Noise can make sleeping difficult on occasions, whether from snoring, sexual

activity, someone either returning late or leaving early or the proximity of so many

people. This can be solved by carrying earplugs.

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Types of hostels

The traditional hostel format involved dormitory style accommodation. Some

newer hostels also include en-suite accommodation with single, double or quad

occupancy rooms, though to be considered a hostel they must also provide

dormitory accommodation. In recent years, the numbers of independent and

backpackers' hostels have increased greatly to cater for the greater numbers of

overland, multi-destination travellers (such as gap-year travellers, and rail-

trippers).

The quality of such places has also improved dramatically. While a few hostels do

still insist on a curfew, daytime lockouts, and/or require occupants to do chores,

this is becoming a rare exception rather than the rule, as hostels adapt to meet the

changing expectations of guests

Hostelling International (HI)

Richard Schirrmann's idea of hostels rapidly spread overseas and eventually

resulted in Hostelling International, an organization composed of more than 90

different Youth Hostel associations representing over 4500 Youth Hostels in over

80 countries.

Some HI Youth Hostels cater more to school-aged children (sometimes through

school trips) and parents with their children, whereas others are more for travellers

intent on learning new cultures. However, while the exploration of different

cultures and places is emphasized in many hostels, particularly in cities or popular

tourist destinations, there are still many hostels providing accommodation for

outdoor pursuits such as hillwalking, climbing and bicycle touring; these are often

small friendly hostels retaining much of the original vision and often provide

valuable access to more remote regions.

Despite their name, in most countries membership is not limited to youth.

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Independent hostels

Independent hostels are not necessarily affiliated with one of the national bodies of

Hostelling International, Youth Hostel Association or any other licensing body.

Often, the word independent is used to refer to non-HI hostels even when the

hostels do belong to another hostelling organization.

The term "youth" is less often used with these properties. These non-HI hostels are

often called "backpackers' hostels". Unlike a hotel chain where everything is

standardized, these hostels can be very diverse, typically not requiring a

membership card.

As the hostel industry evolves, independent hostels and HI hostels are becoming

more similar, with the word "backpackers" also now applying to many Hostelling

International hostels.

Boutique hostels

The general backpacking community is no longer exclusively typified by gap year

student travelers and extreme shoe string budgets. In response to demand, as well

as increasing competition between the rapidly growing number of hostels, the

overall quality of hostels has improved across the industry. In addition to the

increase in quality, new styles of hostels have developed that have a focus on a

more trendy, design interior.

The phrase "boutique hostel" is an often-arbitrary marketing term typically used to

describe intimate, luxurious or quirky hostel environments. The term has started to

lose meaning because the facilities of many "boutique hostels" are often no

different from hostels that aren't referred to with that label. Also, marketers and

online booking websites sometimes include boutique hotels in lists of "boutique

hostels," further diluting any specific meaning of the phrase.

Industry growth

The independent hostel industry is growing rapidly in many cities around the

world, such as New York, Rome, Buenos Aires and Miami. This is reflected in the

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development and expansion of dozens of hostel chains worldwide. The recent

eruption in independent hostels has been called "probably the single biggest news

in the world of low-cost travel".

The development of independent backpackers hostels is a strong business model,

with some cities reporting a higher average income per room for hostels than

hotels. For example, in the city of Honolulu, Hawaii, upscale hotels are reportedly

making $141 to $173 per room, while hostel rooms in the same city can bring in as

much as $200 per night. Even during the 2008 economic crisis, many hostels are

reporting increased occupancy numbers in a time when hotel bookings are down.

Even as the city’s hotel occupancy rate has fallen to 66 percent in February, from

81 percent in the same month last year, despite steep discounts, many youth hostels

are reporting banner business.

—New York Times

Though in the past, hostels have been seen as low-quality accommodation for less

wealthy travellers, at least one Australian study has shown that backpackers (who

typically stay at hostels) spend more than non-backpackers, due to their longer

stays.Backpackers make up as much as 10% of international visitors in Australia.

In New Zealand, backpackers hostels had a 13.5% share of accommodation

guest/nights in 2007

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CHAPTER-2

OBJECTIVE

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OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To find out the general expenses paid by hostellers of ASIET KALADY.

SECONDARY OBJECTIVE

To find out the expenses of hostellers spend for educational purpose.

To find out the expenses of hostellers spend on entertainment.

To know the avoidable and unavoidable expenses of hostellers.

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CHAPTER-3

LIMITATIONS

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LIMITATIONS OF THE STUDY

a) The sample is insufficient to generalize the findings.

b) The study is limited to boys and girls hostel of ASIET KALADY.

c) Non -co-operation of people is another major limitation of the study.

d) The risk of respondents who may give false answers could not be avoided.

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CHAPTER-4

RESEARCH AND METHODOLOGY

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RESEARCH METHODOLOGY

Title of the Study

HOSTEL EXPENSES

Universe of the Study

The geographical universe is the boys and girls hostel of ASIET KALADY.

Population of the Study

The population of the study is the total population of the boys and girls

hostel of ASIET KALADY

Nature of the Study

The present study is descriptive in nature, as it is trying to describe and

analyze the hostel expenses of hostellers.

Sampling

The sample is a small portion of population selected for observation and

analysis of data. In this study sample size is decided to be twenty, which

constitutes about 6% of the total population of boys and girls hostel of ASIET

KALADY.

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Method of Study

The investigator adopted convenience sampling for the study. Convenience

Sampling was a adopted to collect data due to select a part of the whole a rate

population which all the characteristics of the population and truly representative

in character

Data Collection Method

a) Primary Data

The method of primary data collection employed by the investigator in the

study is with the help of questionnaire, a set of questions were prepared and

distributed to the hostellers.

b) Secondary Data

Secondary data is collected from information available on internet.

TOOLS OF DATA COLLECTION

The questionnaire was a tool of data collection. questionnaire were prepared

which includes all necessary questions regarding hostel expenses.

METHOD OF DATA COLLECTION

Investigator collected the data directly from the hostels.

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CHAPTER-5

DATA ANALYSIS

AND

INTERPRETATION

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From how long you are staying in hostel ?

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

1 YEAR 18 90

2 YEARS 1 5

3 YEARS 0 0

MORE THAN 3

YEARS

1 5

90 % of the respondents are staying in hostel from 1 years while 5 % are staying

from 2 years and other 5 % are staying in hostel from more than 3 years.

1 year

2 years

3 years

>3years

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MONTHLY ROOM RENT

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 500 0 0

500-1000 8 40

1000-1500 9 45

1500-2000 3 15

40% of the respondent pays room rent in between 500-1000, 45% pays in between

1000-1500 and 15% pays in between 1500 and 2000.

LESS THAN 500

500-1000

1000-1500

1500-2000

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MONTHLY WATER BILL

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 100 4 20

100-200 10 50

200-300 2 10

300-400 4 20

20% of the respondent have monthly water bill less than 100, 50% have in between

100-200 , 10% have in between 200-300 and 20% have expenses in between 300-

400.

LESS THAN 100

100-200

200-300

300-400

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MONTHLY ELECTRICITY BILL

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 10 50

200-400 5 25

400-600 3 15

MORE THAN 600 2 10

50% of the respondent spend less than 200 for paying electricity bill, 25% spend

in between 200-400, 15% spend in between 400-600 and 10% spend more than

600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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EXPENSE ON COSMETIC ITEMS

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 300 17 85

300-600 3 15

600-900 0 0

900-1200 0 0

85% of the respondent spend less than 300 for cosmetic items and while 15%

spend in between 900-1200 for cosmetic items.

LESS THAN 300

300-600

600-900

900-1200

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HOW OFTEN YOU VISIT HOME ?

755 of the respondent visit home weekly while rest of the respondents visit home

monthly.

WEEKLY

MONTHLY

QUARTERLY

HALF YEARLY

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

WEEKLY 15 75

MONTHLY 5 25

QUARTERLY 0 0

HALF YEARLY 0 0

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MONTHLY TRAVELLING EXPENSE

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 14 70

200-400 3 15

400-600 2 10

MORE THAN 600 1 5

70% of the respondent spend less than 200 for travelling, 15% spend in between

200-400, 10% spend in between 400-600 and 5% spend more than 600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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EXPENSE FOR MEDICAL TREATMENT

95% of the respondent spend less than 300 for medical treatment and while 5%

spend in between 900-1200 for medical treatment.

LESS THAN 300

300-600

600-900

900-1200

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 300 19 95

300-600 1 0

600-900 0 0

900-1200 0 5

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EXPENSE FOR LAUNDRY

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 19 95

200-400 1 5

400-600 0 0

MORE THAN 600 0 0

95% of the respondent spend less than 200 for laundry and only 5% spend more

than 600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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MONTHLY STATIONERY EXPENSES

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 100 5 25

100-200 11 55

200-300 3 15

300-400 1 5

25% of the respondent have monthly stationaryexpenses less than 100, 55% have

in between 100-200 , 15% have in between 200-300 and 5% have expenses in

between 300-400.

LESS THAN 100

100-200

200-300

300-400

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EXPENSE FOR CELEBRATING SOME SPECIAL OCCASSIONS

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 12 60

200-400 6 30

400-600 1 5

MORE THAN 600 1 5

60% of the respondent spend less than 200 for celebrating some special occassion,

30% spend in between 200-400, 5% spend in between 400-600 and 5% spend

more than 600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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MONTHLY ENTERTAINMENT EXPENSE

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 12 60

200-400 7 35

400-600 0 0

MORE THAN 600 1 5

60% of the respondent have monthly entertainmentexpenses less than 200, 35%

have in between 200-400 and 5% have expenses more than 600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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MONTHLY EXPENSE ON MOBILE

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 200 13 65

200-400 4 20

400-600 2 10

MORE THAN 600 1 5

65% of the respondent have monthly mobile texpenses less than 200, 20% have in

between 200-400, 10% have in between 400-600 and 5% have expenses more than

600.

LESS THAN 200

200-400

400-600

MORE THAN 600

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MONTHLY OUTING EXPENSE

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

LESS THAN 100 4 20

100-200 12 60

200-300 3 15

300-400 1 5

20% of the respondent have monthly outing expenses less than 100, 60% have in

between 100-200, 15% have in between 200-300 and 5% have expenses in

between 300-400.

LESS THAN 100

100-200

200-300

300-400

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MISCLLENEOUS EXPENSES

PARTICULAR NO. OF

RESPONDENTS

PERCENTAGE

YES 4 20

NO 16 80

20% of the respondent have other misc. expenses while 80% do not have other

misc. expenses.

YES

NO

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CHAPTER-6

FINDINGS

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FINDINGS

Most of the respondents are staying in hostel from 1 year.

Monthly rent of most of the respondents is in the range of 1000-1500.

Monthly water bill of most of the respondents is in between 100-200.

The electricity bill of most of the respondents is less than 200.

Cent percent of the respondents spend less than 300 for cosmetic

items.

Most of the respondents visit home weekly.

Travelling expenses of most of the respondents is below 200.

Cent percent of respondents spend below 300 for medical treatment.

Most of the respondents spend below 200 for laundry.

Stationary expenses of most of the respondent are in between 200 and

300.

Most of the respondents spend below 200 for celebrating special

occasions.

The entertainment expenses of most of the respondents are below

200.

Most of the respondents spend below 200 monthly on mobiles.

Monthly expenses of most of the respondent for outing is in between

100 and 200

Most of the respondents don’t have any other misc. expenses.

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CHAPTER-7

SUGGESTON

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SUGESSTIONS

Hostellers can reduce their general expenses by spending amount

economically.

Hostellers should try to reduce their travelling expenses.

Should take care of their health to reduce medical expenses.

Should make efforts to reduce the expenses spend on entertainment.

Should reduce their outing in order to reduce their outing expenses.

Should not use electricity unnecessarily in order to reduce electricity bill.

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CHAPTER-8

CONCLUSION

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CONCLUSION

The study was on the HOSTEL EXPENSES of people staying at boys and girls

hostel of ASIET KALADY. The study is done to find out the general expenses of

people living in hostel. The general expenses of hostellers are very high. It was

found that except some fixed amount most of the expenses are controllable.

Hostellers can control their day to day expenses by spending economically and

avoiding unnecessary expenses. All the respondents are students so they are

dependent on their parents for their hostel expenses. So, reducing the expenses will

reduce the financial burden of their parents to some extent.

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CHAPTER-9

BIBLIOGRAPHY

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BIBLIOGRAPHY

Internet: www.google.com

: Wikipedia, the free encyclopedia.mht

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CHAPTER-10

ANNEXTURE

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QUESTIONNAIRE

1. Name :

2. Age :

3. Sex :Male Female

4. Marital Status : Single Married

5. Educational Qualification :

SSLC PDC/+2 Graduate Post Graduate

6. From how long you are staying in hostel?

1 year 2 years 3 years more than 3 years

7. How much is your monthly room rent?

Less than 500 500-1000 1000-1500 1500-2000

8. How much is your monthly water bill?

Less than 100 100-200 200-300 300-400

9. How much is your monthly electricity bill?

Less than 200 200-400 400-600 more than 600

10. How much do you spend o/n cosmetic items?

Less than 300 300-600 600-900 900-1200

11. How often you visit home?

Weekly monthly quarterly yearly

12. How much is your travelling expenses?

0-200 200-400 400-600 600-800

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13. How much is your expenses for medical treatment?

0-300 300-600 600-900 900-1200

14. How much is your monthly expenses for laundry?

0-200 200-400 400-600 600-800

15. How much is your monthly stationery expenses?

0-100 100-200 200-300 300-400

16. How much do you spend for celebrating some special occasions in hostel?

0-200 200-400 400-600 600-800

17. How much is your monthly entertainment expenses?

0-200 200-400 400-600 600-800

18. How much is your monthly expense on mobile?

0-200 200-400 400-600 600-800

19. How much is your monthly outing expenses?

0-100 100-200 200-300 300-400

20. Do you have any other expenses?

Yes No

If yes than how much is your monthly expense for that?

-----------------------------------

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