Live data from Hacker News

Airbnb to Acquire HotelTonight

press.airbnb.com

31–40 of 385 posts

Re: Airbnb to Acquire HotelTonight

#31
Those who have used HotelTonight, can you comment on your experience?

For me, there have been several rare occasions when I needed a room at last minute, but HotelTonight was never actually cheaper than any other aggregators or booking directly with the hotel. All being equal I vastly prefer booking direct so I get my points and elite benefits. I guess they have a fancy interface, and that's... it? Maybe it's market dependent (I only tried it in NYC and SF)?

Re: Airbnb to Acquire HotelTonight

#32
post #16

Earlier quoted context omitted.

Hm not sure if it’s much cause for celebration for the HT team...they raised $130m and probably sold at max their last valuation. Employees aren’t going to make out with much and unclear if anyone is getting let go. Every OTA does last minute bookings now...reality is what they offer has been largely commoditized.

Got any data to back that up? My anecdotal understanding was that HotelTonight was doing hundreds of millions of dollars in revenue. Some component of that $130m may have been secondary stock sale. I don't think we have enough data to determine what the price might have been, or how well employees will do.

Pass through revenue isn't a great metric to value off of. It's a fancy and deceptive way to pass off a broker like a software company. If you pass through 70%-80% of your revenue, your revenue is more accurately stated as a net revenue. It's more akin to how we value traditional retailers in brick and mortar businesses, with low margin - think Best Buy.

Re: Airbnb to Acquire HotelTonight

#33

Those who have used HotelTonight, can you comment on your experience? For me, there have been several rare occasions when I needed a room at last minute, but HotelTonight was never actually cheaper than any other aggregators or booking directly with the hotel. All being equal I vastly prefer booking direct so I get my points and elite benefits. I guess they have a fancy interface, and that's... it? Maybe it's market…

Same, tried a few times, gave up since it was always more expensive than booking/hotels.com/expedia.

Re: Airbnb to Acquire HotelTonight

#34
post #6

Earlier quoted context omitted.

To be fair, I have used HotelTonight for day of booking and it had a better deal than I could get through any other location online for a very nice hotel.

By how much? I suspect they simply were operating at a loss to build up their brand. Jet.com did the same thing.

HotelTonight's model is to find and offer up rooms for last-minute demand that would otherwise go empty. Hotels are happy to offer discounts for these. It's really just automating the same deals you could get if you called.

Re: Airbnb to Acquire HotelTonight

#35
post #16

Earlier quoted context omitted.

Hm not sure if it’s much cause for celebration for the HT team...they raised $130m and probably sold at max their last valuation. Employees aren’t going to make out with much and unclear if anyone is getting let go. Every OTA does last minute bookings now...reality is what they offer has been largely commoditized.

Got any data to back that up? My anecdotal understanding was that HotelTonight was doing hundreds of millions of dollars in revenue. Some component of that $130m may have been secondary stock sale. I don't think we have enough data to determine what the price might have been, or how well employees will do.

I’m referring to their last valuation of $400m in 2017. The company hasn’t hockeysticked since then, by any measure (e.g. App Store rank), so I think we can deduce the sale price was likely well below $1b, maybe 500m at very best but guessing lower. Factoring liquidation preferences for VCs and you get a small pie for most people involved.

Re: Airbnb to Acquire HotelTonight

#36
post #30

Fuck hotel tonight, they're not even a real business and they're just scamming people out of money. They hide their mandatory "resort fees" underneath the Pay button so that it's not visible on screen, and those fees aren't included in any of the prices that are either shown initially or are visible on payment screen (room rate, taxes & fees, or total). You can see how this works in this video I made here: https://ww…

In prison? That's exactly how all hotel bookings work. I agree resort fees are a scam, but that's how it works and it's always charged directly by the property.

> that's how it works and it's always charged directly by the property.

If the hotel wants to charge their own fee separate from the app then that's not a problem at all. The problem is the Hotel Tonight lying about what the prices are.

Re: Airbnb to Acquire HotelTonight

#37

Those who have used HotelTonight, can you comment on your experience? For me, there have been several rare occasions when I needed a room at last minute, but HotelTonight was never actually cheaper than any other aggregators or booking directly with the hotel. All being equal I vastly prefer booking direct so I get my points and elite benefits. I guess they have a fancy interface, and that's... it? Maybe it's market…

> HotelTonight was never actually cheaper than any other aggregators or booking directly with the hotel

I think every major hotel chain guarantees that their direct price is the lowest, and why wouldn't it be when there is no middleman, so why go anywhere else when you've found the hotel you want?

Re: Airbnb to Acquire HotelTonight

#38

Those who have used HotelTonight, can you comment on your experience? For me, there have been several rare occasions when I needed a room at last minute, but HotelTonight was never actually cheaper than any other aggregators or booking directly with the hotel. All being equal I vastly prefer booking direct so I get my points and elite benefits. I guess they have a fancy interface, and that's... it? Maybe it's market…

I've used it several times to good effect. Got to stay in a decent room in Vegas when I was just passing through for 15 bucks. They offered it to me for a second night for 25.

Ive also used it in LA, SF, bumfuck Arizona, etc. Each time I got better deals. But I used it to find hotels day of.

Re: Airbnb to Acquire HotelTonight

#39

This makes a lot of sense. I travel a lot for work (100+ nights per year). Sometimes I stay for 2+ nights, often it's just a 1-night stop over. For 2+ nights, I almost always go with an AirBnB - more space to cook/work/think etc. For 1 night though, AirBnBs are too much hassle. I don't want to have to choose a great location from a long list which includes some terrible options. I just want a clean bed, bathroom and…

> I'm not sure how AirBnB locations can/will be built into HotelTonight - after all HotelTonight is all about ease of use, low friction and flexibility. The very things AirBnBs are bad at (coordinating check in times etc).

I expect them to just show hotel tonight data in the airbnb interface. From the press release:

> We are making it easier for people who use Airbnb to find last-minute places to stay when Home hosts are often already booked. The availability of boutique hotels—in addition to private rooms and entire homes that are instantly bookable—helps ensure authentic, high-quality stays are available on-demand, especially at the last minute.

I think about it this way all the time: AirBnB bought the product for X price, because they think it will help them make Y more money. They don't even need to "merge" as long as the product is profitable but if they can get even 1% more with a cross over, then AirBnB (the parent co) is making even more money (with more risk ofc)

Re: Airbnb to Acquire HotelTonight

#40
I hope they truly remain independent. It's a great platform. A few years ago I was in Paris. It was a last minute thing and I used a similar website to HotelTonight that was the "hot" product in the last minute industry for big EU cities. Basically I got to stay at a really exclusive hotel for an extremely interesting rate. Something like 60% of its original value. I guess hotels don't care anymore at a certain point as long as they get their minimum back. Especially this was when Airbnb was the new cool kid in town. It is kinda interesting how Airbnb is just now moving into this market slowly eating the hotel industry one piece at a time
Post reply on HN