There are three problems in the hospitality industry. 1. Hotels have 25%-36% vacancy every day. 2. Hotels pay 15% -30% booking fees. 3. Though every night over 1.5 million hotel rooms remains vacant, customers still don’t receive rates within their budget.
Customers stay at their price while hotels pay a reduced booking fee of 7% and fill their rooms without parity issue. They can also post their specials on the platform.
How this idea came about
Inder Sharma has been associated with AAHOA (American Asian Hotel owners associations) since 1993 and was a member of the founding team. AAHOA members own almost 50% hotels in the USA. Inder witnessed firsthand the real pain of hoteliers (30% vacancy and 30% booking fees) and decided to do something about it. As the former owner of Hotel.com, Mr. Sharma possessed the hands-on experience to take on this challenging project. Hotelbids.com is funded and supported by the hoteliers.
What were some of the key action points?
Inder approached 100 hoteliers, from 2-star to 5-star property owners and everyone was in support of the solution to high booking fees and low vacancies. Hoteliers began to invest in the venture and Hotelbids.com was born in 2015.
This is a battle of David vs. Goliath. Big players like Priceline, Hotel.com, Expedia, and Trivago are multi-billion dollar companies and currently, have strategic leverage in online travel reservations.
How will we meet these challenges?
Faith, perseverance, innovative ideas, expert management teams, AAHOA and industry support are just some of the key ingredients for success.