What is the commission rate for using aroom?
At aroom, we offer an incredibly low transaction fee of just 3%.
In contrast, platforms like Booking.com and Expedia typically charge around 15% commission, plus additional Genius member or Flight bundle package discounts that can easily impact the bottom line by another 10%.
For most small and medium operators, our 3% fee is not only competitive but often lower than the cost per booking of their own direct booking engines, not to mention the extra marketing costs associated with driving direct bookings.
Are there conditions applied for such a low transaction fee?
Yes, but they are simple and reasonable. To benefit from our low transaction fee, operators must support our direct marketing campaign. This includes placing aroom’s high-quality, free Travel & Tech magazine in their hotel/motel rooms and offering their best direct rates and benefits. Ideally, the direct offer should be more competitive than their listing rate on other major OTAs.
With such a low transaction fee and significant marketing efforts, is aroom a financially sustainable business?
Yes, aroom’s financial model is designed to be sustainable. Marketing expenditure is typically the largest cost for an OTA. Our extensive marketing efforts are supported by our investors, sponsors, and, importantly, the commitment from operators to our direct marketing initiatives, including placing aroom’s Travel & Tech magazine. Financial projections indicate that achieving more than a 3% market share will ensure long-term sustainability, a target we are confident in reaching.
When will aroom launch?
aroom is set to launch in June 2025. We are in the final stages of preparation and testing to ensure a seamless and efficient service upon launch.
Who are the founders and supporters of aroom?
Backed by more than three years of preparation and consultation with over 250 industry stakeholders, aroom was founded by a diverse group of industry professionals. This includes accommodation operators, associations, real estate agents, private equity and venture capital professionals, IT experts, and legal advisors. Our core management team brings together over 20 years of marketing and strategy management experience in Fortune Top 50 companies, more than 45 years in the Australian accommodation industry, and 30 years in global leading IT companies. This blend of expertise ensures a robust operational strategy and drives aroom’s success.
The total investment value in aroom is approximately $5 million, covering capital, human resources, IT solutions, marketing expenditures and production costs. This significant investment highlights the strong support from key industry stakeholders and associations, positioning aroom to revolutionise the online accommodation booking landscape.
Booking.com and Expedia dominate online advertising. How will Aroom promote its brand and services?
While Booking.com and Expedia have a strong online presence, aroom will utilize unique offline marketing channels. aroom has invested over half a million dollars in our Travel & Tech magazine, the largest publication of its kind in Australia. This magazine will reach over 360,000 travellers daily and more than 7 million readers annually, as it will be placed in 220,000 hotel and motel rooms nationwide. We will also launch Australia’s largest accommodation promotion, offering 2,000 free rooms through regional TV networks. Additionally, Aroom will maintain a robust presence on social media platforms to ensure comprehensive brand visibility and engagement.
How does aroom differentiate itself from Booking.com and Expedia? What are the benefits for travellers using aroom?
aroom is an aggregated direct-booking platform. When travellers book through aroom, it is considered a direct reservation recognised by the hoteliers. aroom promotes all direct benefits that operators offer, often resulting in lower rates and enhanced direct booking benefits. Travellers also enjoy better services with direct communication between them and the operators. Additionally, aroom represents local interests, keeping accommodation revenue within Australia’s local economy.
As an operator, why should I encourage travellers to book through aroom, instead of promoting my own website for direct booking?
The ceiling for driving direct bookings through your own website is limited. Research clearly shows that over 90% of travellers prefer one-stop-shop booking platforms instead of visiting and comparing different hotel websites. Moreover, promoting direct bookings on your own site can be costly due to the significant marketing power of giant OTAs. Most operators spend 5% to 10% of the booking value on direct booking efforts, which often include additional discounts, IT costs (such as rate comparison tools and booking engines), and additional marketing expenses.
An aggregated direct booking platform like aroom is the clear choice, as it aligns with traveller preferences and reduces the financial burden on operators. By using aroom, operators can leverage a broader reach without incurring the high costs associated with maintaining a competitive direct booking presence independently.
How does aroom ensure pricing transparency?
aroom is committed to providing total pricing transparency to both operators and travelers. Our platform not only displays the direct rate but also compares it with rates on other OTAs, ensuring that the rates shown are the best available, with no hidden fees or inflated commissions. Importantly, aroom does not manipulate hoteliers’ listing rates or offer additional discounts or rebate programs to users.
Does aroom intend to drive lower rates, using a price war against giant OTAs?
No, aroom does not encourage operators to engage in a price war. Instead, we advocate upselling direct booking benefits and avoid price competition with OTAs. Direct benefits could include early check-in, late check-out, free parking, free EV charging, free breakfast, or free upgrades. We understand many operators who currently offer lower rates to attract direct bookings, but our long-term goal is to eliminate price wars and promote direct bookings through added benefits rather than discounted rates.
How is aroom governed to avoid becoming another wotif?
aroom is governed by industry stakeholders and associations to ensure it remains locally owned and operated. This governance structure helps prevent foreign acquisitions and ensures that the platform continues to serve the best interests of Australian accommodation operators and Australian travellers.
How can I stay updated on aroom’s progress and launch?
You can stay updated on aroom’s progress and launch by subscribing to our newsletter on our website. Additionally, you can follow us on our social media channels for the latest news and updates.
I would like to become a partner of aroom. Who should I contact?
aroom welcomes and relies on partner support. If you are interested in becoming a partner of aroom, please contact us through our [contact page](link to contact page) or email us at partnership@aroom.com.au. We look forward to collaborating with you!