The world’s first website dedicated to hotel switching has launched a crowdfunding campaign to raise £250,000. The company’s previous investors, Worth Capital, will be leading the round with follow-on investment of £70,000.
Nightly.travel takes the best value nights from one hotel and combines them with the best value nights of a second hotel to help travellers save up to 70% on their city stays, a practice Nightly.travel calls hotel switching. The company is inviting customers and outside investors to become shareholders through the crowdfunding platform Seedrs.
The company will use the investment to increase its hotel supply from 75,000 hotels today to over 290,000 hotels, agree new commercial partnerships to drive traffic, and trial hotel-to-hotel transportation transfers for customers as part of a hotel switching package.
Hotel switching is the process of changing hotels during a trip to take advantage of fluctuations in nightly room rates.
For example, a customer choosing a five-night stay in New York that costs £1,500 might think each night costs £300, but the hotel could actually be charging £225 per night for the first two nights and £350 per night for the last three nights because of local demand. So by finding a second hotel with a rate lower than the £350 per night for the last three nights, Nightly.travel helps users make big savings.
Research by Nightly.travel has found that travellers are willing to switch hotels if it means they’ll save money, with over 70% of 1,100 travellers surveyed agreeing.
The company is initially targeting the value seeker sector, which Nightly.travel estimates accounts for 17% of all travellers based on research from TripAdvisor.
David Ferreira, CEO and co-founder of Nightly.travel, said: “Hotels are expensive so travellers are finding better value alternatives for their stays, which is one reason for the growth in companies such as Airbnb.
“By finding a way to significantly cut the price of hotel stays, we think hotel switching can keep travellers coming back to hotels instead of seeking alternative accommodations and allow them to experience the full service and amenities we all love from a hotel stay.”