Flippa
FOR SALE
Business Name

Roomsy Inc

Business Model
SaaS
Industry
Travel

$750,000

Asking Price
Multiple 21.2x
With ARR of $165,000 we are a hotel property management system (PMS) with an avg. $7k monthly net profit.
This business owner has manually entered their financials

Facts and Figures

Location
Canada
Date of Founding
2012
Full-Time Staff
1 to 10
Annual Revenue
$164,448
Annual Expenses
$129,108
Annual Net Profit
$35,340
Profit and Loss
Evidence of Revenue
Note: Where the business is less than 12 months old the annualized data represents total sales for the period of operation.

Business Description

Roomsy is a property management system. This is a core product a hotel and bed & breakfast needs to manage its operations. Beyond direct bookings the platform also enables direct integration and distribution to channels like Expedia.

Our customer base includes hotels, motels and BnB's. As a PMS we provide mission-critical software.

How does your business make money?

This is a recurring subscription. We have over 200 recurring paying hotel and B&B clients all over the world.

65% of the base is North American with a growing global footprint with customers across South East Asia and Europe.

Why should someone buy this business?

Roomsy is a stable and it's a growing business though both partners are pursuing other passion projects.

We want someone with passion for the space to take over to ensure our customers are in good hands.

Churn is low (near zero) and the addressable market is significant. There's great potential to scale up. With increased direct-sales efforts and paid marketing this business can scale.

The business has long-term reliable contractors and low customer support requirements (manageable from anywhere).

Finally, the founding-management team is available to transition the business.

How can the future owner improve this business?

Roomsy suits hoteliers and those in the accomodation sector who want to graduate from using Excel to manage their property. This entry level application represents an enormous market. Excel is highly inefficient for managing hotelier work-flows. And, the market is not restricted to a certain location in the world. We already support customers in over 43 countries and there's so much opportunity.

There are a few opportunities for the new owner:
1. Expand in different geographies;
2. Sign up more resellers;
3. Spend on lead acquisition;
4. Add additional language support. Roomsy can support any language;
5. Expand into vacation rentals;
6. Cater to the bigger hotel segment, those greater than 60-70 rooms.

Business Strengths

  • Brand and Community Loyalty
  • Customer Service
  • High Barrier of Entry to Market
  • Length of Operation in Niche
  • The Business Is Currently Growing

Opportunities for a new owner

  • Start Selling into New Markets
  • Improve Current Marketing Efforts
  • Introduce Further Revenue Streams

Key day-to-day operations

  • Customer Support / Service

Marketing

  • Facebook Advertising
  • Google Adwords
  • SEO

Seller Notes

FAQ's

1. Why are you selling this business?

Roomsy is a stable and overall growing business but both partners found that we wanted to work
on some other ideas. We want to make sure our customers are in good hands and don't get
neglected because our priorities have changed. As this is a mission critical product for them and
some of these customers have been around for a couple of years now. So we both decided that in
order to concentrate on one we will have to let go of the other one.

2. How would say Roomsy stands against the competition?

It is a competitive market overall and there are some well funded products in the market. We
compare quite well in feature set for our ideal customer which is small independent hotel that has
up to 50 rooms. We continue to get leads and grow organically as we have been in the market for a
few years. Of course, you can accelerate the lead flow by going after paid acquisitions. We will
give you access to Google Adwords, Capterra and FB accounts as part of the sale.

3. What language is Roomsy written in?

PHP (Codeigniter framework), MySQL, HTML, CSS & Javascript.

4. Where are you hosted?

Hosted on Microsoft Azure.

5. If your customer base is stable, how come your revenue's fluctuate per month?

We have annual and monthly paying subscribers which causes the fluctuation and whenever we
close a big customer then it causes a bigger spike.

6. Do you do the programming and development or is it contracted out? Or Both?

The founding partner built the initial version of the product. Now we have been working with
outsourced developers. The lead developer has been with the company for over 2 years and has
done multiple product iterations. He will continue working with Roomsy once it is acquired.

7. What are the software expenses for?

Software expenses in financials is for tools we use to manage the business.

8. Does the monthly profit include the partners salary?

The monthly profit numbers are after the partners salary are taken out. The salary is clubbed in
Salary & Contractor expenses.

9. What languages do you support? Is your software able to handle new languages?

The software has been architected to support any language. Once just has to enter the translations
for the language you want to add. English & French is fully translated. We also have Spanish,
Korean & Vietnamese but it is partially translated.

11. Churn % = Annual churn rate 16%

12. Client location: Most of the clients are based in the US & Canada and we also have a small
presence in SE Asia.

13. Which softwares are you integrated with?

We are currently integrated with Expedia, Booking.com, Agoda, SiteMinder and MyAllocator.

14. How is product support managed?

We have Intercom integrated in the app and most of the customers contact us through it.
Customers can also contact us via email and phone (Grasshopper number). We also have a
knowledgebase of articles for support that customers can access easily.

15. How does a customer sign up for your product?

Anyone can create a trial account via the website. During the sign up process they are shown a
quick 2 minute overview video and then they have full access to the product. We also have
targeted messages delivered through Intercom (In-App chat tool) and they are delivered based
on predetermined rules (modifiable) to guide the customer through with the sign process.
Any new trial is offered a 14 day free trial. When there are 5 days left the customers are
prompted in the app with a message about the upcoming end of trial. If clicked it guides the user
to the payment page where they can enter their credit card details to sign up for Monthly or
Annual subscriptions.

16. Do you conduct product demos to potential customers?

Yes, if the customer asks for it or if we determine there is a high potential of converting them
because of the demo.

17. Can someone easily migrate from another product to yours?

Yes, we have an import tool for it. We can import their past and future reservations into Roomsy
as long as they provide them in a CSV file. We have a template for it that we provide the hotels
for it.

Attachments

Assets

  • Brand assets
  • Contracts (written or verbal) with customers and suppliers
  • Custom technology
  • Customer databases
  • Domains
  • Marketing materials and collateral
  • Registered trademarks
  • Website files, source code and content

Social Media

Facebook
330 followers
Instagram
5 followers

Post sale support

This is support provided by the seller when transitioning the business to a buyer.

Included

About the Seller

Rajesh Rajan

Canada

My background has been in the technology and hospitality industry. I have been involved in a couple of software startups. My main area of focus has been running the business, sales, customer onboarding, product management and hiring.

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