Any hotel worth its salt knows the back of house operations make or break the experience for guests. At the end of the day, all of the gimmicks and customer service tactics in the world can’t make up for a dirty room with broken appliances.
RoomChecking equips hotel operations staff with a mobile application that increases productivity and communication in order to help staff work better, not harder. Their tool helps teams coordinate staff in real-time, view the status of the entire hotel instantly, and set recurring daily tasks.
How much is RoomChecking doing in MRR?
RoomChecking charges hotels on a per room basis each month. The company currently sells directly to hotels, one by one, and charges $2.50 per room monthly. The average hotel partnered with RoomChecking pays $250 per month, according to CEO Jonathan Weizman.
The company has scaled to 240 total customers today and is at $45k in MRR right now. While the company was founded in 2014, they spent the first two years developing a product that integrated seamlessly with existing hotel systems and hit their stride in 2016. RoomChecking has grown rapidly in the last 12 months and is up from just $10k in MRR in June of 2017.
What is RoomChecking’s churn?
Churn has not been an issue for RoomChecking thus far. Due in large part to their contract length – hotels typically opt to enjoy a 20% discount when signing a 2-year contract – the company has only churned 2 total customers in the last year.
Overall, RoomChecking is spending roughly $15k in salaries for customer acquisition efforts at this point in time and netting approximately 10 net new customers each month. Their CAC is around $1k with a payback received in 4 months. While still in the early stages, Weizman assumes a minimum LTV of $6k over 24 months for each hotel.
How much has RoomChecking raised?
RoomChecking was originally bootstrapped however, after an error in product integration, they raised $500k in 2016 to fund additional development. Going forward, they are looking to raise $3-5M on a $10M pre-money valuation by the end of the year.
Their team of 10 full-time employees in Paris will look to use this capital to bolster their sales, marketing, and support efforts in order to drive more growth.