Stayful has built a platform that is cheaper for customers, earns hotels 15% more. Each new user costs almost $0 to acquire and they’ve only had 3 of 140,000 drop off in 12 months.
Month / month
for each booking
Stayful launched in late 2014 with zero users and managed to grow 20% month over month by just lowering prices. We can't wait to see what happens when they finally launch their new distribution model and free app for hotels in the next few months.
Strengths vs. Risks
Even the greatest startups have uncertainties and weaknesses. Airbnb started by renting out their own living room, no insurance, no lawyers, no compliance. The future of young companies like Stayful is anything but certain. The best investors weigh both strengths and weaknesses before taking educated risks.
|World class team. Multiple exits, one IPO. Decades in the hotel industry.|
|Team disrupting the industry they built.|
|Secret sauce is their unique distribution model. Give away software to acquire customers, just like Zenefits did for insurance.|
|CAC 10% of the competition.|
|Independent hotels make up 80% of the hotel market.|
|Hotels sign on to make 15% more and get free software they wouldn’t be able to build themselves.|
|Hotels is a crowded industry, there’s a lot of noise.|
|Big players could potentially drop their prices to compete.|
|Executing on product. It will require perfect execution to build software to replace entrenched hotel processes.|
|Sales. The business model hinges on exponential growth over the next 18 months to establish the network.|
|Building a solid team as the bedrock for a great company is always difficult.|