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The business model is to license the software to hotels. More specifically, whoever has the final say within the hotels varies wildly between properties. In so

by erydo 15y ago

The business model is to license the software to hotels. More specifically, whoever has the final say within the hotels varies wildly between properties. In some places, it's the Front Desk Manager; others, marketing; some places defer all of these decisions to their IT Director; and others it's the GM. Some of the franchises require approval from their regional headquarters while others have a lot of autonomy. At any given hotel, approval may in the worst case have to come from up to three companies: the ownership, the management company, and the franchise corporate. We're now speaking with hotel management companies (more than individual hotels) as a way to hopefully expedite that decision-making process.

tstegart 15y ago
Here's how I see the problem and how I would solve it: I think you're trying to make money from the wrong people. I think you need to make money from the local businesses. See, the concierge isn't making any money off your app, at least not in a measurable way. The person using the app thinks the app is helpful, not the concierge. If a tourist tips the concierge, the concierge thinks its him doing a great job, not your app. The hotel isn't making money either, at least not in a measurable way, because the connection between someone having a great time at a restaurant and re-booking a room is very weak. The tourist may attribute the great time they had to:(pick one) the restaurant; the city; the occasion; the person with them; the concierge; and finally, maybe, the hotel. In fact, I'd wager the hotel gets little benefit, the concierge will get the tips. So your software is really just a drag on a hotel's expenses. Something they don't need. You're barking up the wrong tree when you ask for money from them. How would I solve this? Well, I would give it to free to the hotels. If it helps them save money and time with their staff, they'll use it. I would also involve the concierge immediately. In fact, I would give them incentives to use your software. You probably can't afford to pay them, but you can afford to put in a tip reminder. In fact, maybe the hotel staff puts in the date of the traveler's stay and at the end, it automatically send them a text message asking them to tip the staff. You'd get waaaayyy more traction doing this with staff. In fact, I'd wager staff would love you if you really worked on this feature. It would be instant traction. Edit: I would also work out ways to approach staff without needing the involvement of hotel management. Maybe the staff can add their names to the app and the customer can pick them out a list (and hopefully tip them). Staff could then use a website to do everything they need. Staff would do this without consulting management or getting permission, or might only need permission from their front desk manager. I would cut out upper management entirely if you can see a way to do it. Let local management and staff see all the benefits. I'd then go out and sell ad space to the businesses. Or get a commission on each booking coming from you app. Local businesses are the ones who will pay to get a hold of tourists walking around. I'd go after restaurants, tour guides, trip operators, fishing guides, you name it. They can offer coupons, all sorts of things through your app. I know this is a major expansion of time and resources to put this into action, but I don't see asking hotels for money as a viable revenue source. If you did get traction, someone will eventually come along and offer it for free using the method I outline above and take over your market. I would suggest concentrating on all the hotels and local businesses in one city first rather than worldwide or country wide. Get it working and get revenue coming in. Then go from there..

by erydo 15y ago

tstegart 15y ago

Here's how I see the problem and how I would solve it: I think you're trying to make money from the wrong people. I think you need to make money from the local businesses. See, the concierge isn't making any money off your app, at least not in a measurable way. The person using the app thinks the app is helpful, not the concierge. If a tourist tips the concierge, the concierge thinks its him doing a great job, not your app. The hotel isn't making money either, at least not in a measurable way, because the connection between someone having a great time at a restaurant and re-booking a room is very weak. The tourist may attribute the great time they had to:(pick one) the restaurant; the city; the occasion; the person with them; the concierge; and finally, maybe, the hotel. In fact, I'd wager the hotel gets little benefit, the concierge will get the tips. So your software is really just a drag on a hotel's expenses. Something they don't need. You're barking up the wrong tree when you ask for money from them. How would I solve this? Well, I would give it to free to the hotels. If it helps them save money and time with their staff, they'll use it. I would also involve the concierge immediately. In fact, I would give them incentives to use your software. You probably can't afford to pay them, but you can afford to put in a tip reminder. In fact, maybe the hotel staff puts in the date of the traveler's stay and at the end, it automatically send them a text message asking them to tip the staff. You'd get waaaayyy more traction doing this with staff. In fact, I'd wager staff would love you if you really worked on this feature. It would be instant traction. Edit: I would also work out ways to approach staff without needing the involvement of hotel management. Maybe the staff can add their names to the app and the customer can pick them out a list (and hopefully tip them). Staff could then use a website to do everything they need. Staff would do this without consulting management or getting permission, or might only need permission from their front desk manager. I would cut out upper management entirely if you can see a way to do it. Let local management and staff see all the benefits. I'd then go out and sell ad space to the businesses. Or get a commission on each booking coming from you app. Local businesses are the ones who will pay to get a hold of tourists walking around. I'd go after restaurants, tour guides, trip operators, fishing guides, you name it. They can offer coupons, all sorts of things through your app. I know this is a major expansion of time and resources to put this into action, but I don't see asking hotels for money as a viable revenue source. If you did get traction, someone will eventually come along and offer it for free using the method I outline above and take over your market. I would suggest concentrating on all the hotels and local businesses in one city first rather than worldwide or country wide. Get it working and get revenue coming in. Then go from there..