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Cottage Business created for Gem Fest

Cottages in Anaklia has recently launched close to Music Festival Gem Fest territory. Founder Mikheil Kvirtia says to Marketer that idea came up based on existing requirements. The service is mostly for young people who need comfortable living space during the event.

 

Mikheil Kvirtia: Me and my friends visited Anaklia last year for the first time. We attended Gem Fest 2016 without having certain plans. We liked the festival but we were constantly hungry, thirsty, needed coffee and comfortable space to relax. I’ve been analyzing all of it after the summer, requirements what attendees need during the event. Me and my uncle, Tengiz Arkania made cottages.

What is the segment and conditions?

We own 7 two-room cottages. Each cottage has two rooms and is being rent separately. One room is for 2 persons, although extra bed can be added. Daily price is 200 GEL, while we can offer discount upon duration of stay. The main segment is the people who love to have fun but comfort is also important. Cottages are fully equipped by every useful item, wi-fi, bath, hot and cold water, air conditioning system, washing and drying machines. Breakfast is also included in the package. We have our own cafe-bar, offering Georgian-European cuisine.

 

Do young people who attend music festival pay that amount of money? 

Cottages opened on 14th of July and despite the fact that we barely spend money on promotion, interest rate is pretty high.

It’s early to discuss about business success, but do you predict it will be lucrative business based on existing customers?

Existing customers amount and interest gives us opportunity to predict, we will start to earn profit in next summer. In addition, there is an information that a port will be constructed in Anaklia, which will change seasonal status of cottages and it will be required constantly.

Will you be renting out cottages after music festival ends? 

It will be renting out for several months after the end of Gem Fest. Basically, it will serve families who want to relax by the sea.

What are your plans for future?

We plan to expand the territory, add other comfort elements and new services. We actively discuss about launching our cottage network in other regions too. We think of Racha and Svaneti for the beginning.

There are some festivals on other locations too where people overnight for several days. Would you consider building the same cottages for other festivals too? 

Unlike Gem Fest other festivals durations are quite short. So, we don’t plan to focus on that.