Bidroom, the online hotel booking platform from The Hague, announced a 1 million euro investment from informal investors. The startup is competing with industry giants like Booking.com, Expedia and Hotels.com, offering discounts on the lowest rates by letting hotels directly bid on guests.
According to a press release, the funding will be used for mainly two things. First, Bidroom wants to grow its salesforce in European cities like Berlin, Barcelona and Athens. Next, the startup wants to further develop their online booking technology.
The startup made no secret of their strategy. From their start in 2014 on, it has been perfectly clear they're aiming to chip away market share from the big online booking platforms. So far Bidroom is doing so by offering at least 5 percent off the lowest competitor rate. The company claims it has the lowest commission rates for hotels in the sector: 2 percent.
From this week on the startup is also offering bed and breakfasts, apartments and holiday rentals. According to co-founder Michael Ros this is done because of the demand of its users, who more and more seek to find alternatives to hotels. According to Ros, the number of users grows 23 percent each month. Right now the company is active in 21 European countries. It expects to go global by the end of the year.
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