I returned from a night out around 2 am, and was informed that there was a midnight curfew on the doors. I wasn't informed about it beforehand. A hostel with a curfew isn't very appealing.
Great times, good atmosphere, great ideas on food and drink! Put a sign up in pinyin and you'll attract a lot more foreigners. Put a small door in the security shutter for late-night arrivals. Upgrade the bathrooms and stock the bar with more alcohol, and you'll have a top tier hostel!
Good prices on the tour packages, but if you want to be even MORE competitive, keep in mind a lot of people who stay at hostels are staying there for the economy of it, so prices that reflect that would be an advantage. Additional information on local attractions, and not just standard tourist trap sights would be a plus. People will grab those up just as quick as the other standard sightseeing packages.