Stage of Innovation: MVP (You have a product ready to go to the market)

Problem: By 2030, consumer spending on tourism, hospitality, and recreation in Africa is projected to reach about $261.77 billion, with the Hotel revenue growing at a compound annual rate of 12% according to PWC. The average booking value for a hotel room is $100 per night, with 50% of Africans not having access to hotels or similar accommodation sources, we clearly could estimate the total non-consumption market in Africa to be $52Bn which is our Total Addressable Market. Despite the travel and hospitality industry contributing $16Bn to Nigeria's GDP, with over half of the revenue coming from within the country, a significant portion of the population remains excluded from the market due to poverty and lack of access to affordable housing. Our research shows that 6 out of every 10 Nigerians live in poverty, with the average monthly minimum wage being only $60, making it difficult for them to afford the average hotel booking value of $100. This presents a significant opportunity for non-consumption in the hospitality industry, and we believe that by providing access to affordable housing for the mass market, especially young people, we can not only increase the size of the entire industry but also empower our users by building their wealth.

Unique Selling Point: In 2016, I got admitted into the University and traveled 479km for registrations, then got stranded when realizing I had no place to stay for the few days I’d spent. It was a humbling experience that opened my eyes to the struggles faced by countless students like me. Fast-forward to 2020 after the pandemic/ASUU-strike combined delay, I got back to school and met my room locked up as apparently, my rent had expired, and this got me thinking. It was then that I realized there was a real need for a solution to help students get the best value from their rooms, even when they are away. This is why I embarked on a mission to connect hostels with travelers who are looking for affordable and convenient places to stay. Currently, these young people especially undergraduate students like me use expensive, sometimes unsafe hotels for their short-stay needs, that is, if they do not have a friend or family member willing to accommodate them during that period. While for long-stay periods, their sponsors usually have difficulties renewing their hostel rents when due because they lack liquidity when it is needed. Hostel.ng in itself is a market-creating innovation, It uses the existing hostel infrastructure across Nigeria to provide access to affordable housing for millions of young people, while directly building wealth for students who sublease their spaces.