SAUSALITO, Calif., March 15, 2022 (Newswire.com) - RoomRocket is transforming an entire industry with a much-needed change to a stagnant business model. The global hotel market has over 15.5 million rooms, 750,000+ properties and $330 billion in annual B2B transactions. Millions of rooms are bought and sold monthly within this channel, but these global transactions are expensive and handicapped by currency differences, contracting and credit requirements, and a lack of safe, cost-effective booking settlements.
Currently, 58% of hotel bookings go through intermediaries, travel agents, online travel agencies (OTAs), and tour operators. With the current model, up to 40% of hotel margin is taken when bookings go through wholesalers and middlemen, which equals a loss of up to $132B per year.
RoomRocket provides a single access point to the whole market for a reseller or supplier, by-passing intermediaries by connecting B2B resellers to suppliers, enabling global sales of hotel rooms on a wholesale basis, utilizing their proprietary multi-currency financial settlement service and single simple contract.
"RoomRocket addresses the need for a standard global financial settlement service and open marketplace for the hospitality industry," states RoomRocket CEO Bill Guerin. "We enable B2B buyers and hotel suppliers to bypass intermediaries if they wish and do business together with a low-cost secure global financial service."
RoomRocket completed a successful pilot in the UK, resulting in 1,500 transactions per month, with over 250,000 hotels on their platform. Revenue scaling will be achieved by focusing on the "back-end" opportunity with large hotel resellers and networks, where they make substantial commitments to client capture, brand building, consumer service and competitive differentiation. Their focus on digital clearing and settlement of bookings provides an opportunity for all parties to reduce costs, extend reach and focus on core competencies.
RoomRocket is raising $3.0 million from accredited investors via a Reg D 506c equity fundraise in order to expand the technology platform for full launch in Q4 2022 with contracted customers and distribution technology partners, build out operations and scale revenue.
Their company projections show increased profitability by Q2 2023, with the revenue run rate profitability rapidly increasing exponentially.
- Shareholder value in excess of $150M
- Annual revenue of $50M within 36 months
- The global standard for settlement of B2B hotel sales
- Deliver liquidity opportunity for shareholders
- Contracts with major global travel industry players in place for 250,000 properties
- Successful revenue-producing proof of concept operating system
- Unique proprietary settlement transaction processing and network technology with over $2M invested
- Highly scalable business in virtually unlimited market, with 1st mover advantage
- Network model with repeating, high volume
- 80%+ gross margin on RoomRocket transaction revenue
To learn more about the offering, CLICK HERE.
About RoomRocket, Inc: RoomRocket is a global transaction processing business with their headquarters in the San Francisco Bay area.
To contact via email: GroundControl@RoomRocket.com
Source: RoomRocket, Inc.