The best business model in the world:
Unlocking free $$$.
This startup raised $26M to help hotels & resorts generate free revenue – without them doing any extra work.
It's a hack Uber, Airbnb, & Postmates have all unlocked.
How does it work? Let's break it down.
What do all these companies have in common?
They connect underutilized resources with people who need them - without owning those resources themselves.
ie, Airbnb connects a traveler to a person with an empty home. But Airbnb doesn't own the home.
This business model is genius because it means companies (like Airbnb) 'borrow' resources for free to provide a certain customer experience.
They're great for the economy too because they unlock $$$ from resources that weren't previously being used by anyone.
So how did this $26M startup find a space within this "marketplace" biz model?
They looked at hotels & resorts.
To begin with:
• Most hotel gyms, pools, and spas are heavily underutilized by guests
• But lots of people would love to use a hotel's amenities without shelling out for an overnight stay
Enter: ResortPass.
ResortPass built a platform for hotels & resorts to sell day passes for their facilities.
They work with the hotel to determine an appropriate price – then take a cut of each booking.
With these day passes, users can access amenities like pools, spas & fitness centers for 1 day.
So, say you live in Miami in a building with no pool access and have friends in town. You can grab a day pool pass at a premium hotel for $30/each, or even rent out your own cabana.
Meanwhile, the hotel's getting basically free $$$ for minimal extra work.
Clever, right?
It's a recession-friendly biz model too:
• Hotels get extra $ in slow seasons
• Users get a budget-friendly, local luxury experience
But ResortPass isn't just a marketplace - it's also building the very software for hotels to manage day guests...
Which reveals the brilliant biz model:
They earn revenue BOTH by taking a % fee from each visitor AND from the hotels that subscribe to its booking software.
Some quick stats & facts:
• They've got 900 hotels & resorts on the platform (including Ritz Carlton, Four Seasons, and Hyatt)
• 1.6M users have booked day passes
• They raised $26M late last year from investors including Jessica Alba & Gwyneth Paltrow
I love businesses like this because they're win-win-wins:
• Users get access to new things
• Companies get an extra revenue stream
• The platform makes money from connecting the two (without investing in the facilities themselves)
It's why Uber, Airbnb & Postmates are giants. I think we'll see ResortPass's name next to these giants soon.
Makes me wonder what other opportunities like these we've been overlooking...