The use of information technology has changed the hotel industry completely over the last few years. Today, hotels use modern systems that constantly optimize room rates, occupancy, and profitability. Analyses have shown that 8 out of 10 hotels change their room rates multiple times within the last 30 days before a guest arrives. Consequently, it is becoming increasingly difficult for travelers to choose a suitable hotel for a good price.
As the search for hotel rooms has become more difficult, travelers have changed their behavior accordingly. According to a study by GfK in collaboration with Google, travelers in Germany spend an average 24 days online before they make their final decision on a specific hotel offer. Nonetheless, approx. 80 % of travelers ultimately pay too much for their hotel room.
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.
This innovation has helped TripRebel raise awareness around the globe. TripRebel has been selected as the “start-up of the week” by The Wall Street Journal, and The New York Times called the beta version of TripRebel one of the “hottest travel saving tips” in 2014. In mid-2015, we received our most important award when the European Commission named us the “Best Start-up of 2015.” In addition, TripRebel has already attracted strategic partners such as ProSiebenSat.1 Accelerator and experienced angel investors.
Still, 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.
We will keep boosting this growth in 2016. TripRebel has been selected from more than 300 start-ups that applied for the ProSiebenSat.1 Accelerator program. In other words, TripRebel has not only attracted a powerful strategic partner, but also has a media budget of €500,000 at its disposal now. Consequently, TripRebel will reach millions of people in Germany through its first TV campaign in Q1 2016.
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. This proves that TripRebel possesses a globally scalable product.
Hotels may also benefit from our platform in the future. By scaling up our business, we are also helping hotels handle demand more efficiently. When hotels have free rooms, they may offer these rooms to our customers in the form of upgrades. Only select customers may see the reduced room rate then. In this way, hotels can avoid a negative impact on the market price.
TripRebel is collaborating with one of the world’s largest hotel providers. At the moment, as many as 200,000 hotels worldwide are available through our portal. Through the integration of these hotels, we can offer customers a very good selection of hotels at competitive rates. We plan to integrate additional providers in mid-2016, thus increasing our inventory to 500,000 hotels.
Whenever a traveler books a hotel room through TripRebel, we simultaneously make a reservation that may be canceled free of charge.
At that point, optimization begins. Until the day the traveler arrives at the hotel, our search algorithm checks the current room rates on a daily basis. In case the algorithm discovers better offers on the market, it first checks whether there is any advantage in canceling the initial booking. If that is the case, the system first books the better rate, then cancels the previous booking. This process ensures that travelers have a valid booking in our system at all times.
We pay out the total price difference to the traveler or email this person about additional hotel upgrades. Travelers may also choose to donate part of the price difference to Welthungerhilfe (a German charity fighting hunger and poverty worldwide) for reconstruction after the 2015 Nepal earthquake.
Moreover, our customers may save several suitable hotels in a list of favorites based on their individual needs and budget. If they book one of these hotels, TripRebel will use all similar hotels as additional options for the customer.
As soon as one of the similar hotels lowers its rates, TripRebel emails the traveler. If the traveler likes the new offer, he or she may book it with a single click. This confirmation process is necessary only if the traveler wishes to switch to another hotel.
When users create lists of their favorite hotels, they increase their chance of getting a lower rate. In fact, if users select one hotel, they have a 31 % chance of getting a rate that is 16 % lower on average. If, however, users select as many as five hotels, this chance increases to over 86 %, and the rate will be approx. 20 % lower than the initial rate.