Photo - Bid2Bed LLC
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Bid2Bed LLC

We develop and scale up a new bidding platform for hosting

USA, Florida
Market: Logging
Stage of the project: Idea or something is already done

Date of last change: 11.10.2020
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Idea

Leveraging our founders' 10 years of combined operating experience in the industry, we will develop and scale up a new bidding platform that addresses the major shortcomings of other vacation rental marketplaces.

Current Status

We have fully tested the platform with 25 properties in London. We are operational and ready to launch in New York. Bid2Bed platform consists of online web & Mobile apps (iOS & Android). We have plans to launch our state of the art algorithm to find best deals to customers in the near future.

Market

Guests on Bid2Bed [Customers]:
• Singles, Students, Young Couples who like gamified electronic booking to negotiate room rent.
• Business travelers who are normally required travel at short notice & they are cash constrained.
• Tech savvy customers who wish to explore new way of booking.
* Families whos are looking to travel and find affordable accommodation other then traditional hotel room.

Problem or Opportunity

Hosts are unable to dynamically match or lower their listing prices in real time to meet demand in off-peak periods to fill vacancies.
Guests are unable to easily split their stay in multiple locations to save money.
Hosts pay 3% in addition to guest fees of 8 to 12%.
Hosts cannot receive any additional funds on their base rate.
Post Covid situation:
Travel and tourism industry has come to stand still. All players in the
market are struggling to survive.
Customer choice has permanently changed. Tourism industry needs
covid compliant offerings. Which means, less of human interactions &
more electronic, clean, safe and secure propositions

Solution (product or service)

Hosts can dynamically set pricing based on real-time demand and fill unused inventory, while guests can book apartments that would otherwise be more expensive.
Hosts might be charged 1% processing fee
Guests can split their stay in multiple nearby locations to save money.
Hosts can earn extra profits on each booking through the platform.

Competitors

All the players in the market use “OPAQUE ” business model where customer and property owners never interact with each other directly.
Airbnb, Homeaway, Booking.com etc.

We offer: TRANSPARENT business model. Customers & Owners meet virtually & mutually agree on a price.

Advantages or differentiators

It is basically the bid mechanism and the business model which bring more revenue to host versus them paying now service fee and better rates to the guests.

Finance

Sales would be $7.9m after the 1st year of fully operation (w/o COVID) and after 5 years we might reach over $50m. The price it based of 9% commission from the transaction plus the revenue from the bidding war.

Business model

Customers can negotiate room rent directly with property owners & get unbelievable deals.
bid2bed can find unbelievable deals at unbeatable prices to customers matching their affordability and keeping property owners minimum acceptable rent in consideration.
Core #1 – 1st Stage:
We take 9% commission (plus CC’s fees) on each transaction.
Core #2 – 2nd Stage:
Bridging the gap between the supply & demand by Bidding War Platform
Core #3 – 3rd Stage: Advertising Model by Premium Platform Business Model.

Money will be spent on

Finishing the app development with building iOS & Android apps and the web site.
Sales and marketing program to go live.
Legal, regulatory & HR
Full forecast including resource, team, volume, cost, revenue, profit & rate of return

Team or Management

Risks

Like any other business there is always a risk, in our case it's about educating a market to a new segment. we believe that our product and plans are good enough and will be successful factor in the hospitality market

Incubation/Acceleration programs accomplishment

NO

Won the competition and other awards

NO

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video