So you think you are getting the best Hotel deal by using a popular online booking site – right? Wrong. At least according to Bidroom. Prices on these sites have been jacked up to by at as much as 25% – but Bidroom has the solution to your dilemma by using a commission free model. Now they have a great idea and they are in need of capital to grow so they are equity crowdfunding to raise €320,000 to continue their “crusade to bring fairness to the online hotel booking industry”. The startup is using the Symbid platform and during the next 60 days Bidroom will be campaigning to gather the funds necessary to build a brand new version of its website and develop a mobile app. Pre-money valuation is $4.35 million and they are offering a 10% stake in the company to crowdfunding investors.
It’s true too. If you really want the best rate call the hotel directly and work it out with them – but who has the time for that? Launched just five months ago in response to the enormous discontent in the hotel booking industry about the abusive commissions that have to be paid to the middleman – Priceline (booking.com), Expedia Inc (expedia.com and hotels.com) and many others. Since Bidroom’s launch, hotels have placed more than 12,000 bids for over 5000 travelers.
“This campaign will allow us to continue revolutionizing the way hotel booking is done and expose the unfair commissions and conditions offered by the major booking websites to a wider audience”, says Mark Bradshaw, Bidroom co-founder.
To achieve this, Bidroom will also use the funds to intensify marketing efforts and bring new talent to the company.
For as little as 20 euros anyone can buy shares in the company and make a difference. “We have chosen to use this type of crowdfunding because it will enable us to remain independent whilst still allowing anyone who supports the concept to become involved”, says Michael Ros, co-founder of Bidroom.
Bidroom, currently active in 59 cities around the world, is a hotel booking platform that connects travellers directly to hotels at no cost so both sides get a better deal. The platform serves as a medium that gives the user all the benefits of contacting a hotel directly, without having to spend the time and effort in doing so. Instead of traditional booking websites, which ask users to input their dates and destinations in order to generate a database of fixed-rate rooms, Bidroom has changed the rules and asks hotels to make offers directly to potential guests. Bidroom will be using a subscription based model charging hotels an €80 month fee to use their premium service. Hotels will make more money and the consumer will save.
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