gloveler
4 months ago
 

Gloveler becomes latest home rental site to face financial difficulties

German private accommodation rental site Gloveler is under preliminary insolvency, meaning that it continues to operate as normal while administrators look at options.

The site, which went live in 2009, claims to be “the oldest provider of private accommodations in Germany”. It launched a channel manager business vacancychannel.com in 2011 which connects property owners to distribution partners including booking.com, HRS and hostelworld.

The deadline for a solution – new investors, a sale or liquidation – is November 1, although the preliminary insolvency period can also be extended.

In an emailed statement, a spokesperson for Gloveler said:

“Yes, unfortunately we are in preliminary insolvency proceedings. They were caused because of disagreements among our (former) shareholders that resulted in blocking important entrepreneurial decisions. So our own capital was exhausted in September.

“If you look at our balance sheets and compare them to our competitors our figures look very good. We need only some thousand Euros more (per year!) to be in the black.

“Unlike our competitors we never saw ourselves as a money burning company that has to raise 130 million each year as they are structurally deficient (see Airbnb).

“Our aim from the very beginning was to grow slowly, but steadily, being highly efficient at the same time. Unfortunately we failed on the finishing straight.”

The site has some 70,000 properties on its books, 80% of which are in Germany.  The spokesperson explained that Gloveler never intended to compete with Airbnb and other global platforms.

In 2015 the site attracted five million unique users and, while acknowledging that this is relatively modest, the spokesperson talked in terms of “quality traffic” and “a high conversion rate compared with our competitors”.

Specifically, it claims a strong SEO ranking for its keywords, having been in the market since 2009.

Related reading from Tnooz:
Vacasol files for bankruptcy (Sept16)
LeisureLink shuts down (Sept16)

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Martin Cowen

About the Writer :: Martin Cowen

Martin Cowen is contributing editor for Tnooz and is based in the UK. Besides reporting and editing, he also oversees our sponsored content initiative and works directly with clients to produce articles and reports.

For the past several years he has worked as a freelance writer, specialising in B2B distribution and technology.

Before freelancing, from 2000-2008, he was launch editor for e-tid.com, the first online-only B2B daily news service for the UK travel sector.

 

Comments

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  1. Steve Sherlock

    I guess that’s the way the cookie crumbles when much bigger market places crowd out 2nd tier sites that don’t have a unique selling proposition.

    Though I’ve got to give them credit at least for building out a business without needing huge influxes of capital, but I guess without continued innovation and the ability to expand to other countries results in an expiry date.

     
  2. JEFFREY MESSUD

    Dear All,

    Sad news within the vacation rental IT industry! For the people looking for a simple channel manager tool please feel free to visit our website: http://www.xotelia.com

    Regards,
    jeffrey

     
  3. Gavin Pereira

    I feel a lot of these companies – such as the above mainly fail due to running out of funding (+ any other fundamental issues). The overriding point here is FUNDING – many businesses today like UBER, Airbnb, One Fine Stay are operating at huge losses but are still giving away free celebrity stays and airmiles which is mainly funded by: you guessed it – FUNDING rounds which will never make any return for their investors. Almost makes you wonder whether the key to success is highly dependent on your fund raising skills more than your business operating skills – as they say “Money” can buy anything – good PR, freebies, foolish expansions which lead no where, etc. A point to think about – investor acquisition and continual endless funding rounds is more important above anything else. Bolstering the finances gives you a good bit of leeway – say 1-10 years to produce something use full to sell on. Just an observation.

     
 
 

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