Hotel Upgrade Company Competitive Landscape

Part
01
of four
Part
01

Hotel Upgrade Company Competitive Landscape (1)

Tablet Hotels, TripRebel, Mr & Mrs Smith, Nightly Travel, SnapTravel, and Tingo are additional companies that offer hotel upgrades by looking for better room options in the vicinity, offering membership options where members can enjoy free room upgrades, or by having agents directly contact the hotels to score free room upgrades. Complete details are available within the attached spreadsheet.

Tablet Hotels

  • Members who pay $99 per year are entitled to guaranteed room upgrades which are typically valued at around $200 per stay. Aside from room upgrades, members can enjoy free perks such as free cocktail drinks and discounted services.

TripRebel

  • Guests are guaranteed the best service as it automatically books a superior hotel in the neighborhood when in promotion and it matches the original booking price.

Mr & Mrs Smith

  • All hotels in its collection have free room upgrades if the user is a Goldsmith member. Some smaller hotels have only one room category; room upgrades are not possible in these situations.

Nightly Travel

  • This is a hotel switching company where upgrades happen automatically. They take advantage of the fact that not all nights are priced the same so they can simply switch users to cheaper yet more luxurious hotels nearby. The result is guests can enjoy room upgrades while saving money.

SnapTravel

  • SnapTravel has a chat-based booking system where agents can secure free hotel upgrades and it says that 60% of its customers secure a higher floor and 30% can score a true room upgrade. They have 24/7 ninja agents that call the hotels on the day of check-in to try to win a free room upgrade.

Tingo

  • Tingo is a rebooking website where it constantly monitors the room prices of the hotel where a guest made an advance booking. When a better room becomes available at the same price the guest paid, they will automatically upgrade the user and cancel the previous reservation.

Research Strategy:

Please note that the companies included do not technically apply upgrades for lower prices than the user already paid, but they do allow upgrades for lower prices than the upgraded room/hotel would typically cost. The companies selected are those that help guests score free room upgrades, look for better (similarly priced) room options in the vicinity, or offer membership options where guests can enjoy free hotel room upgrades.
Part
02
of four
Part
02

Hotel Upgrade Company Competitive Landscape (2)

TabletHotels has an estimated revenue of $6.4 million and majorly targets audience who have a choice of booking boutique hotels. TripRebel's estimated revenue of $19.1 million, and it targets young professionals aged 24-39 who are avid travelers trying to book stays for their solo trips.

TABLET HOTELS

  • Tablet Hotels' primary customers are individuals who seek boutique hotels.
  • Typically, this particular audience involves members of nearly every generation, including Baby Boomers, Millennials, and Gen X., who are curious and animated travelers.
  • One of Tablet Hotel's competitive advantages is that it offers straightforward online booking at a reasonable costs and supplies live, secure customer service.

TRIPREBEL

  • TripRebel's target audience includes young professionals with a dedication or devotion to traveling.
  • Its target audience is chiefly young business professionals aged 24-39 and mostly prefer to stay alone while at hotels or while on trips.
  • TripRebel observes the market, as well as the shifting rates. It immediately cancels an earlier booking and reserves the new offer.
  • It ensures that travelers are dedicating more of their time towards preparing for their travels as opposed to going through the hassle of booking a stay for the cheapest prices.

Research Strategy:

Regarding the companies' revenues, we examined their respective websites and other company-related documents. After identifying that both were private players, we consulted Crunchbase and obtained the estimated revenues of each company.

For their competitive advantages, we searched for any marketing material published by the companies, where they would point out their special offerings. TabletHotels's company website provided relevant information as it mentioned in the taglines its sole purpose of building the site and unique offerings supplied by the company. Meanwhile, the website for TripRebel did not provide sufficient information as it has been acquired by another company, whose website had no information at all. We then searched for sites that compared TripRebel with its competitors and mentioned the company's unique features. Using this strategy, we located useful information from multiple sites such as Companisto, Crowdfund Insider, etc

To understand the customer group for each company, we ran a search through their respective websites and related company documents. However, after being unable to identify the requested information, we focused on assessing reviews from travelers who have stayed in these hotels from social media sites like Facebook, Instagram, etc. Though we found some reviews, we were unable to determine the characteristics of either company's target audience. Next, we tried to identify the types of hotels TabletHotels books. After discovering that the site only focuses on travelers who love to booking boutique hotels, we conducted a thorough search to understand the detailed profiles of such an audience. Similarly, for TripRebel, we scanned through various review sites and found that the company primarily caters to the rebellious young professionals and thus, we concentrated on this segment of consumers.
Part
03
of four
Part
03

Hotel Upgrade Company Competitive Landscape (3)

In columns E & F, rows 4-7, of the attached project spreadsheet, details for two hotel companies have been provided. The companies covered in this request are Mr & Mrs Smith, a global travel club offering handpicked boutique and luxury hotels at best guarantee prices, and Nightly.Travel a company offering hotel switching services to travelers on a single trip.

SUMMARY OF FINDINGS

  • Mr & Mrs Smith offers its members up to 50% off on hotels throughout the year. They also offer "best price guarantee", matching their competitor's offers, as well as free extras to members at their hotels.
  • The company helps travelers save up to 70% in hotel accommodation costs.
  • Nightly.Travels generated an estimated annual revenue of $1.6 million.

RESEARCH STRATEGY

To complete this brief, we commenced our research on the company's website, where we were able to retrieve information on their competitive advantage and target audience. For information on the annual revenue generated by the company's, we made use of third-party sources such as Crunchbase and media reports since the information was not reported on the company's website. In the case of Mr&Mrs Smith, the company's annual revenue for 2018 was reported in British Pounds (£). In this case, we made use of a currency converter to convert the company's revenue to USD. All details have been provided in the spreadsheet.
Part
04
of four
Part
04

Hotel Upgrade Company Competitive Landscape (4)

Overview

SnapTravel acts as a direct conduit between potential hotel guests and hotel brands and has most of its users based in the United States. Tingo targets the more frugal hotel guests by automatically rebooking them if and when a hotel rate drops for reservations already booked. Complete details of these two hotel assistant platforms may be found on the attached spreadsheet.

SnapTravel

  • SnapTravel targets all consumers who want to book hotel rooms through conversational commerce, or direct communication with hotel brands.
  • The company services customers from over 200 countries. The top five countries SnapTravel receives most of its traffic include the United States (73.7%), the United Kingdom (7.0%), Canada (6.0%), Australia (2.5%), and the United Arab Emirates (1.6%).
  • Users access Snaptravel's services through various communication apps including Facebook, WhatsApp, iMessage, Slack, Viber, and Messenger.
  • SnapTravel's competitive advantage is being present where consumers "spend most of their time." Instead of having their own app, the company works through social network and messaging platforms to connect consumers directly to hotel brands. As a result, people can book their hotel rooms quickly and easily.
  • Moreover, the use of social network and messaging platforms allows SnapTravel to expand their international market. For example, WhatsApp is the top messaging app in over 100 countries and has 1.5 billion users every month.
  • The company's annual revenue is estimated to be $1 million.

Tingo

  • Tingo is for travelers who want to make sure they are getting the lowest price for their room.
  • Since hotel rates fluctuate, a person may end up paying more for their room than if they had booked later. Tingo is a service that automatically rebooks a customer's reservation if the price drops and refunds the customer the cost difference.
  • Tingo's advantage is that it is the only hotel booking company that has an automatic rebooking service, which saves the consumer money by finding cheaper rates.
  • The hotel rates offered by Tingo are competitive, so even if the price never drops, customers still get a good deal.
  • The company's annual revenue is estimated to be $3.2 million.

Research Strategy

To find the information requested, the research team reviewed the company websites, news articles, and platforms for business information. Both SnapTravel and Tingo are private companies, therefore the annual revenues are estimations. Four out of five of the percentage statistics were rounded to the nearest tenth.


Sources
Sources

From Part 01
Quotes
  • "SnapTravel founder Hussein Fazal told me recently how to get a hotel upgrade on his site: Simply use it. The chat-based hotel booking service utilizes agents to follow up on your reservation for possible upgrades. SnapTravel says it can usually secure customers a higher floor (60 percent of the time) and can often score you a true room upgrade (30 percent of the time)."
  • "Aside from being able to save you money by sending private deals directly to your inbox, the service gives you a 90 percent chance of improving your hotel stay in some way. That’s worth a shot."
Quotes
  • "Rebook through sites such as Tingo, DreamCheaper, TripRebel and others that monitor the reservation you made. If a better room becomes available at that price, you automatically get upgraded. They cancel your previous reservation and rebook you at the same price into the upgraded room. It doesn’t get any easier than that."
Quotes
  • "Websites such as triprebel.com and yapta.com will automatically upgrade your room should one become available for the same price you paid when booking, or give you the money back should the price drop. It’s an awesome idea, and works especially well when booked in advance."
Quotes
  • "For $99 a year, you can also become a Tablet Plus member, which gives you access to room upgrades (valued at around $200 per stay), exclusive discounts, and VIP events such as art exhibitions, architecture tours, bespoke dinners, and more."
Quotes
  • "If your goal is to save some bucks while staying in a better category room, there are ways to make sure you get the best price by using a rebooking site such as Tingo, DreamCheaper or TripRebel. These type of online services monitor your hotel booking. If a better room becomes available at the price you paid, they will automatically upgrade you. The service cancels your previous reservation and rebooks you at the same rate into the upgraded room. "
Quotes
  • "All you have to do is log into the site and let it do all of the work for you; no making lists of prices, no comparing dates and no mindless searching or constant headaches. With Nightly.travel you can enjoy hotel upgrades whilst saving money by switching. In addition, the memorable experiences created by your trip will be multiplied as you’ll have the wonderful experience of staying in two different hotels and in different locations."
Quotes
  • "Better Hotels - Upgrade with just one click when a superior hotel in the neighborhood is on promotion."
Quotes
  • "All hotels in the Mr & Mrs Smith collection offer free room upgrades to GoldSmith members, subject to availability. (Please note that some smaller hotels have only one room category and are therefore unable to offer upgrades.)"
Quotes
  • "The SnapTravel – Hotel Deals affiliate program lets you book hotels across the globe over Facebook Messenger or SMS at rates only a travel agent could get you! Travellers booking with SnapTravel also get access to their 24/7 ninja agents over messaging for any questions or requests. They will even call the hotel to try to get you a free room upgrade on the day of check-in! This program offers a 30-day cookie duration."
Quotes
  • "A first-of-its-kind software solution, MyRoom enables hotels to market rooms more effectively and curate features using dynamic content and analytics, while empowering guests to self-select their room, upgrade or choose features that best suit their preferences. Koridor will debut the MyRoom technology while attending HITEC Houston, the world’s largest and oldest hospitality technology exposition and conference (June 18-21)."
  • "The MyRoom platform invites guests to view and select available rooms and upgrade options based on desired attributes and personal preferences. It presents floor plans, room-specific imagery, room features, available upgrades and window views through a combination of augmented reality, 3D imagery and virtual tours, engaging the guest in an immersive experience while transforming room self-selection and personalization into an integral part of the guest journey."
Quotes
  • "The Mews Commander property management system (PMS) integrates with Oaky to put the guest in control of taking in-house services and room upgrades at the click of a button, and its Open API delivers any changes within milliseconds to make sure that the customer data is updated."
  • "With a high conversion, Oaky put guests in control of completely designing their upcoming stay with upgrades, offers and services. Using the online dashboard, hoteliers add new guest-facing deals in just one minute. Real-time revenue reports help Revenue Managers maximise profit. "
Quotes
  • "“Working with you is always very smooth and easy. Short communication lines, emails answered within the hour.” Gaby Commercial Director, Radisson Blu"
  • "“Oaky delivers amazing digital experiences to our guests.” Jos Director of Operations, TGH Group"
From Part 02
Quotes
  • "Tablet Inc. has $6.4M in estimated revenue annually."
Quotes
  • "Tablet is everything you need for unforgettable travel experiences: all the hotels that matter, effortless online booking at the lowest available prices, and live, dependable customer service — you bring a hunger for experience and a taste for the unusual, and we'll take care of the rest."
  • "Our users trust our taste — we do the hard work of selecting only the world's most extraordinary hotels, and we make booking them as painless as it can be. Tablet's purpose is to put the ease, the romance, the glamour back in travel, from inspiration to confirmation."
Quotes
  • "THE BEST CURATED BOUTIQUE & LUXURY HOTELS"
  • "THE ORIGINAL BOUTIQUE HOTEL CURATOR"
  • "You don't just sleep in a hotel, you live there, for a night or two, at least. And while you're there you're not just getting used to a different pillow, but trying on a whole different life — inhabiting a new space, eating in a new restaurant, drinking in a new bar, checking out your traveling companion (or yourself) in different lighting, against a new interior-design backdrop. If you care like we do, and take boutique hotels & luxury hotels seriously, then Tablet is for you."
Quotes
  • "According to Jason Moskal, global vice president of the Hotel Indigo and EVEN Hotels brands for InterContinental Hotels Group, the term "boutique" was first coined in the 1980s when a stay at the now-closed Morgans Hotel in New York City was compared to visiting a boutique retail shop. "True to its name, hotels with a bit of style, design and personality began gaining popularity," he says."
  • "Today's brand of boutique hotel is largely characterized by its smaller size, personalized service and local personality, which can vary dramatically depending on where the property is located. "Boutique hotels always cater to the individual, providing very personalized, intimate service," says Moskal, explaining that these properties are designed to blend into the community and reflect the neighborhoods and cultures around them."
  • "Boutique properties are ideal for "those who want to close the curtains of the hotel room and know exactly where they are in the world," he says."
  • "Travelers who enjoy staying at boutique hotels are not defined as much by an age demographic as they are by an attitude, according to Moskal. What's more, he says IHG believes these guests are curious, upbeat vacationers, noting that they see everyone from millennials to Gen Xers to baby boomers bedding down at these kinds of properties."
  • "Mark Nogal, global head of the Curio Collection by Hilton, agrees, saying that their boutique hotel properties appeal to "curious travelers seeking unexpected and authentic experiences." A survey commissioned by the Curio Collection found that 91 percent of people would describe themselves as curious, with more than 70 percent saying travel was their top outlet for expressing that curiosity. The brand breaks curious travelers down even further into five "Curiosity Types" – Pathfinder, Epicurean, Culturalist, Spiritualist and Challenger – with specific accommodation recommendations for each."
Quotes
  • "TripRebel has $19.1M in estimated revenue annually"
Quotes
  • "We do not take bookings ourselves and currently do not watch hotel price drops over time. We instead make sure that you get a great hotel deal upfront and do not have to worry about your booking any more."
  • "We are looking forward building a community for travel rebels! This is beyond finding great hotels on a reasonable price. It's about getting prepared for your trip overall helping you in finding your travel destination and getting prepared for your next trips."
Quotes
  • "Portals like Trivago have been unable to solve this problem. Indeed, they show only the best price available at the time of the search. TripRebel, on the other hand, monitors the market and the changing rates. If the room rate decreases after booking, TripRebel automatically cancels the previous booking and books the new offer. As a result, TripRebel provides users with ten times the saving of conventional price comparison portals."
  • "TripRebel has not only received awards, but also seen a remarkable business development. In fact, revenue from booking has increased by 147 % per quarter since our official launch in Q4 2014. The number of monthly visitors increased even more sharply in the same period and has now reached 10,000"
  • "But German travelers are not the only ones interested in TripRebel. Since our website's launch, foreign visitors – especially those from the U.S. – have accounted for 53 % of all website traffic."
Quotes
  • "The unconventional infomercial and the unique look of the spot were chosen deliberately to separate the startup from traditional travel service portals and to be accessible to a young target group."
Quotes
  • "TripRebel is paid a commission of between 5 and 10% by the respective hotel provider. The most important target group are “young professionals” who frequently go on city trips."
Quotes
  • "This finding is part of new research released by Hilton focused on what influences and shapes young professionals’ experience on the road, including their preferences in dining, workspaces and how they blend personal interests with professional requirements."
  • "The research from the hotel company found that 84 percent of young business travelers cherish their alone time during business trips, and nearly three-fourths (73 percent) report they have a better experience when they spend downtime on their own."
  • "—Eating at local restaurants (69 percent) —Exploring the city and/or neighborhood (59 percent) —Sleeping or relaxing (56 percent) —Working out (35 percent) —Attending a Happy Hour (38 percent) or unwinding at the lobby/hotel bar (32 percent)"
Quotes
  • "Everyone on our trips is ages 24-39 and 80% sign up alone, meaning you're guaranteed to be exploring with a crew around your age."
  • "We spend more time in fewer places to really get a feel for the culture and make sure your tourism dollars benefit the local economy."