Hotels are losing approx $4.2 B in revenue due to unsold room inventory. Room inventory is perishable and the revenue lost as a result of a room not being sold for a night cannot be recovered back by the hotel. The unsold inventory also leads to lower revenue to other sales channels like Food & Beverage (F&B). The value of lost revenue on F&B is estimated to be $750 million.
Ramu has been running a travel agency for over 8 years which has been selling budget holidays for a long time. As part of the budget holidays, they were selling hotel rooms on an opaque model and saw that travelers were open to the idea. This lead to the development and launch of the online version of TravelSpice.
TravelSpice has built a technology disruption into the hospitality market, by providing a platform where the customer books a hotel room (only 3/4/5+ star) purely based on rate they are willing to pay, location and star category. The name of the hotel will be disclosed to the customer after a hotel matching the customer’s criteria picks up the booking.
On this platform, end customers get discounts up to 70% on hotel stays including breakfast across 102+ cities. Customers get to stay in 3/4 /5 star branded category hotels at a great deal. Users can compare area, star rating and hotel prices on Google or Tripadvisor, decide the discount they want, and quote their own deal price on “Quote Your Deal” platform.
“We expect our market to be $2B, as the hotel booking market in India is over $ 20B and the opaque booking market will be 10% of this market. Targeting the online hotel booking market. Currently, 15% of all hotel bookings are done online and this is expected to grow to 40-50% in 3 years. As per google survey, 8M users booked hotels online in 2015,” says Ramu Kallepalli, CEO, TravelSpice.
Founded by Ramu Kallepalli, Prashant Mitta, Ankit Manglik and Vijay Mohan, the startup is located in Bengaluru due to easy availability of technical resources in the Silicon Valley city.
Ramu Kallepalli (CEO – Co-Founder) has over 20 years of experience in technology and travel industry. He did his MS engineering from Montana State University, Bozeman, MT and MBA (Marketing and Finance) from University of Chicago Booth School of Business (formerly Chicago GSB). He has worked as Manager in Oracle Corporation managing their Oracle ERP performance architecture group in Chicago in the past.
Prashant Mitta (COO – Co-Founder) comes with over 16 years of Leadership, Business Strategy & Execution, Operational & Project Delivery experience in the Information Technology & E-commerce space driving revenue and margin growth, launching new services and products. He is a Bachelor of Commerce from the University Of Mumbai and a Microsoft Certified Professional.
Ankit Manglik (CFO) has over 16 years of experience in consulting and risk management. He is a Chartered Accountant and has completed Executive General Management Program from Indian Institute of Management, Bangalore. Previously he has worked with PWC, HP, ANZ Bank, Homeward and BNY Mellon.
Vijay MohanCo-Founder – CTO has 10 years of experience in executing multiple projects across various geographies while meeting business needs in a fast-paced, dynamic and globally expanding Startup and MNC.
Previously he served as Co-founder & Managing Director of Confession9.com – an apparel Manufacturing and online retail company and effectively managed 50+ employees, raised $0.5 million from the market. He also worked for McAfee(Intel Security) and HCL Technologies.
“Currently customers have bought close to 3000 room nights from us and we have over 70000 travelers who have shown interest in the model. In the short term. We will launch Semi-Opaque Hotel Deal platform where our customer decides particular area and star rating, sees a single price on our platform, pays upfront and gets confirmed in one of the listed hotels INSTANTLY. As always, she will be assured of value by our Double Low Price Guarantee forever,” says Prashant Mitta.