hoteltonight germany switzerland
547 days ago
 

HotelTonight continues European invasion, targets Germany and Switzerland for late-hotel bookings

After establishing its first base outside of North America in London in June last year, HotelTonight is turning its attention to the expanding across mainland Europe.

The same-day hotel booking service for mobile launched operations in Switzerland and Germany today, the latter being one of the most important online travel marketplaces on the continent.

Four cities have been included initially (Berlin and Munich in Germany, Zurich and Geneva for Swiss travellers), with Hanburg expected to be added shortly in early-February.

The addition of Germany and Switzerland brings HotelTonight’s European footprint up to seven countries after the first launch in the UK followed by Ireland, France, Holland.

The move follows it large $23 million investment round seven months ago from US Venture Partners.

As well as zeroing in on the large German market, further expansion in European puts HotelTonight in direct competition with Blink Booking after its roll-out in key European cities over the course of the past 18 months.

HotelTonight will also face a formidable foe in the shape of Booking.com, which launched its own same-day hotel booking service for mobile users in April last year.

HotelTonight claims to have now passed the four million download mark for its apps since launching in January 2011.

Meanwhile, coincidentally on the same day HotelTonight announces its expansion in new markets, JustBook says it is the “European leader in spontaneous hotel bookings”.

Around 400,000 downloads under its belt and featuring 1,000 hotels in 46 European cities, are a few of its own key milestones, as well as a partnership with frequent flyer programme Miles & More.

 
 
Kevin May

About the Writer :: Kevin May

Kevin May is editor and a co-founder of Tnooz. He was previously editor of UK-based magazine Travolution for nearly four years and web editor of Media Week UK from 2003 to 2005.

He has also worked in regional newspapers (Essex Enquirer) and started his career in journalism at the Police Gazette at New Scotland Yard in London. He has a degree in criminology and a postgraduate diploma in magazine journalism.

 

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  1. Trevor Guilday

    Great post Kevin!

    I just finished writing a blogpost about Hotel Tonight’s mobile app when I stumbled across your post. I think that the concept behind Hotel Tonight is absolutely genius.. Hotel tonight allows hotel managers to generate extra revenue through rooms that would have otherwise gone unsold, while simultaneously creating value for the guests who book through the Hotel Tonight mobile app. I honestly did not know about JustBook or Blink Booking before I read your post, however as I mentioned in my post, I believe Hotel Tonight will dominate the same day booking market because of it’s ease of use and it’s beautiful user interface.

    If you get a chance, check out my blogpost “Hotel Technology: Hotel Tonight Mobile App” at purplecloudtech.com and leave a comment!

     
  2. Joe Haslam

    Any chance of some Tnooz luvvvvvve and affection for Hot Hotels?

    After launching last March, we now offer same day hotel smartphone booking in 23 Countries and 166 cities including locations in Europe, Middle East, Africa and Latin America.

    I just looked at the App Store and today in Spain our home country, we´re at #5, beating Booking.com #7 and Blink #10. Over Christmas in Ireland, Hot was at #33 and Hotel Tonight at #36 and in France Hotel Tonight was at #55 but Hot four places higher at #51

    Not bad considering we are bootstrapping, spending only our own money on what is absolutely necessary.

    Even though its 3 hours long, the fireside chat with Airbnb’s Brian Chesky is well worth a watch.
    http://pandodaily.com/2013/01/11/watch-our-pandomonthly-interview-with-airbnbs-brian-chesky/

    Among the points he makes is that travel is a 2 trillion market, that´s half the size of oil which he estimates at 4 trillion. The size of the market is not well known as it is so fragmented. That´s a lot to play for.

    Good comments by Oz Har Adir on looking beyond VC raised/downloads. That is why the Israel is The Startup Nation. Brutal honesty and not afraid of a debate.

     
  3. Oz Har Adir

    Thanks for the comment, Jared. Its good to meet some sort of intangible number.
    Although it would require much speculation to translate that number to actual bookings, I’ll try:

    - If an average global OTA would generate 5 bookings on average per booked hotel per year
    - And if an OTA average booking is 2.5 nights
    - A ‘tonight only’ app would generate 50 bookings on average per booked hotel (highly optimistic figure outside the large US cities, and is likely exaggerated as it calculates straight ratio for every hotel during the year, while many were added in recent months)
    - With an average booking length of 1.5 nights
    - I’ll also estimate $100 avg night rate and 15% sales commission

    This calculation yields a 105.000 nights booked -> which translates to $1.57M in revenues -> and that’s for the leader in the niche.

    Anyone has a better guess?

     
  4. Jared Simon

    Hi Oz – Jared from HotelTonight here. As you guessed and as Kevin notes above, one of the key advantages of being a private company is that we get to keep our numbers private, since even though the data continues to be extremely good, there isn’t much advantage to our sharing it. Despite this, we can share the fact that we sent bookings to almost 1,400 hotels in 2012, and our booking volume in 2012 was 400% ahead of 2011. The fact that every major OTA has released some form of same day mobile solution since we launched should also indicate that things are going pretty well for us!

     
  5. Oz Har Adir

    Kevin, Tnooz is covering this niche for quite a while now, and Hotelstonight alone have been mentioned in 36 articles on the site. However, the only two figures we constantly hear are downloads and funds raised.

    Funds are raised because there is hope/hype, and downloads are an outcome of the funds raised and the hype.

    However, actual revenues/profits/booking figures are an entirely different matrix, which I have never heard from anyone in the niche, while these are common figures in the industry. Isn’t it time for Tnooz to add that perspective to the analysis as well? Or, are we to assume that these figures are not released by any player in the niche for a good reason?

     
    • Kevin May

      Kevin May

      @oz – hey, thx for contributing.

      All very valid points, of course. You wouldn’t be too stunned to learn that most startups (HT included) have a tendency to shy away from sharing such heady items as revenue and profits, etc.

      However, I have asked HT to come back and hopefully contribute to the discussion here.

       
 
 

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