{"id":80604,"date":"2022-11-02T17:44:58","date_gmt":"2022-11-02T14:44:58","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=80604"},"modified":"2022-11-03T15:32:09","modified_gmt":"2022-11-03T12:32:09","slug":"from-starting-kenyas-first-airbnb-to-building-digital-revenue-platform-for-hotels","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2022\/11\/from-starting-kenyas-first-airbnb-to-building-digital-revenue-platform-for-hotels\/","title":{"rendered":"From starting Kenya\u2019s first Airbnb to building digital revenue platform for hotels"},"content":{"rendered":"<p><strong>NAIROBI, Kenya, Nov 2 &#8211; While working in Lagos, Nigeria, H\u00e5var Bauck often visited his friend Endre Opdal in Kenya to discuss business ideas and opportunities.<\/strong><\/p>\n<p>Every time they spoke, they agreed on one thing; that Kenya had immense potential.<\/p>\n<p>The duo in 2013, leased and furnished 5 apartments for accommodation in Syokimau, Machakos County.<\/p>\n<p>\u201cWe put them on Booking.com, Expedia and other booking sites as an airport apartment hotel, targeting passengers who were connecting, or stopping over briefly in Nairobi,\u201d Bauck tells Capital Business.<\/p>\n<p>\u201cWe were the first in Nairobi to do this, and it was an instant success.\u00a0 Only the big international 5-star hotels in Nairobi were online at the time, so we had a whole market segment to ourselves,\u201d the Master\u2019s degree holder from BI Norwegian Business School says.<\/p>\n<p>When the facility became the most-booked hotel in Nairobi on Booking.com in 2014, they realized online marketing was a competitive advantage in an immature market, and so they decided to sell the knowledge.<\/p>\n<p>In 2014, they incorporated a company called Savanna Sunrise (a metaphor for \u201cAfrica Rising\u201d) in Dubai as a vehicle for their then increasingly ambitious project.\u00a0 They later rebranded to HotelOnline in 2017.<\/p>\n<p>The firm comprises a holding company based in Singapore with subsidiaries in Kenya and Norway, covering Africa and the Nordic countries respectively.<\/p>\n<p>\u201cHotelOnline is a digital revenue partner for hotels.\u00a0 We offer a turnkey bundle of technology and services to help hotels streamline their operations, and significantly increase their revenue by boosting their digital distribution,\u201d the former<\/p>\n<p>\u201cWe work with hotels across Africa, with our main markets in East Africa,\u201d the 45-years tells.<\/p>\n<p>One of their main services is revenue management that helps hotels and accommodation providers increase their revenue from all online sources, including Booking.com.<\/p>\n<p>Others are Expedia, Google Hotel Ads, and also from their own hotel websites.<\/p>\n<p>\u201cTo enable hotels to fully tap into this potential, we also provide a technology suite that helps hotels manage their bookings, check-ins, departures and housekeeping, streamlining the guest experience, and operations in general.\u201d<\/p>\n<p>The two partners invested Sh3 million ($25,000) into the platform initially from their own savings.<\/p>\n<p>\u201cWhen the business started growing, we never took out any dividends, instead reinvesting everything to keep accelerating.\u201d<\/p>\n<p>They have also received an investment from Yanolja, a global South Korea-based traveltech SaaS company in April.<\/p>\n<p>They are working with more than 5,000 hotels in 27 African countries. They have processed more than 500,000 bookings so far.<\/p>\n<p>\u201cCharges depends on the solutions used. Clients who use technology only, pay a fixed monthly fee,\u201d he says.<\/p>\n<p>\u201cThose on revenue management, pay a percentage of the booking amounts. How much they pay, depends on the agreement, and on the total booking volumes.\u201d adds Bauck.<\/p>\n<p>Popular destinations in Kenya include Nairobi and Mombasa.<\/p>\n<p>\u201cInternational travel is recovering from Covid now, so the number of international visitors is rising,\u201d Bauck who first came to Kenya as an intern in the tail end of former President Daniel Moi narrates.<\/p>\n<p>\u201cEurope and the Middle East are the main source markets.\u00a0 Domestic tourism in Kenya is however also a strong trend.\u201d<\/p>\n<p>However, he says building a startup is all about endurance, dedication and sacrifice.<\/p>\n<p>\u201cIt\u2019s about staying on course, controlling the costs, and building the business step by step, never giving up, despite all the seemingly endless setbacks,\u201d the former Norwegian tech company Africa Sales Director says.<\/p>\n<p>Lessons learnt: \u201cFirst and foremost, a business is all about people. You achieve success through the people you build, and your company will only get as great as the talent you nurture.\u201d He adds.<\/p>\n<p>Recently, the company acquired HotelPlus that was built by Eric Muliro.<\/p>\n<p>\u201cHotelPlus is an established, well recognized brand in the travel and hospitality industry.\u201d<\/p>\n<p>\u201cGetting him on board as our Chief Technology Officer, along with his high-performance team, is an obvious win-win. The teams are already working together as one.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Nov 2 &#8211; While working in Lagos, Nigeria, H\u00e5var Bauck often visited his friend Endre Opdal in Kenya to discuss business ideas and opportunities. Every time they spoke, they agreed on one thing; that Kenya had immense potential. The duo in 2013, leased and furnished 5 apartments for accommodation in Syokimau, Machakos County. [&hellip;]<\/p>\n","protected":false},"author":14381,"featured_media":80631,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,1,687],"tags":[5064,7157,934,5029,2388,944,2111],"coauthors":[6664],"class_list":["post-80604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-enterprise","category-kenya","category-top-stories","tag-airbnb","tag-booking","tag-featured","tag-hotels","tag-lagos","tag-nigeria","tag-revenue"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>From starting Kenya\u2019s first Airbnb to building digital revenue platform for hotels - Capital Business<\/title>\n<meta name=\"description\" content=\"NAIROBI, Kenya, Nov 2 - While working in Lagos, Nigeria, H\u00e5var Bauck often visited his friend Endre Opdal in Kenya to discuss 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