Booking BooSTR

https://www.bookingboostr.com

Executive Summary: Booking BooSTR is a short-term rental platform that offers solutions to STR owners to fill vacancies at a discount to last-minute travelers on high-end, unique, and destination properties. Our unique selling proposition is to offer a 40% to 50% discount on bookings for properties with vacancies within 30 days. We will market these properties through social media and split the discount between the property owner, the traveler, and Booking BooSTR.

Market Analysis: The short-term rental market has exploded over the past decade, but owners are starting to see a slowdown in bookings in 2023. With travelers seeking flexible and affordable accommodation options, Booking BooSTR's target market is budget-conscious travelers seeking high-end rental properties and property owners who are looking to fill vacant rooms. By offering last-minute discounts, we aim to bridge the gap between travelers seeking affordable stays and property owners looking to fill vacancies. The outlined financial projections below are derived from the pre-marketing interest we have received from social media marketing as well as our sales team gaining a lot of interest from discounted shoppers on our first few properties we are marketing. The sales goals mentioned below should be obtainable based on receiving 25 days of bookings within 48 hours on three properties we tested at a 40-50% discount. The US short-term rental market is worth around USD 32 billion as of 2020. This figure is expected to grow to around USD 38 billion by 2025, reflecting the continued growth of the market. The average occupancy rate is anywhere from 50-65%. This would conclude potentially an opportunity of 20-32 billion in vacancies STR owners are looking to fill.

Marketing and Sales Strategy: Our marketing strategy will leverage social media platforms to reach potential customers. Our sales team will be responsible for finding renters and offering them our unique properties at the 40-50% discount. To incentivize our sales team, we will offer commission-based incentives for successful bookings and for attracting new properties to our platform. We will offer a full-service option as well as a limited service option. Owners that we classify as not being in a desirable area or unique property will be pushed to the limited service platform. The full-service platform will be for properties that are highly marketable, and the sales team will be able to help fill the requested vacant days. Utilization of marketing templates, videos, landing pages, click funnels, AI, Chat GPT, dense social media groups within Facebook, Instagram, and TikTok are all part of our strategy, which the founder will be responsible to teach to the sales team.

Revenue Model: Booking BooSTR will generate revenue by taking 15% of the booking costs. The sales team will receive anywhere from 12-15%, and 2-3% will go to the company. We will also charge an initial start-up fee and an annual fee of $49.99 to owners and a $9.99 monthly fee to owners to access our templates, blogs, and marketing strategies. There is no sign-up fee for renters. This model is sales representative-friendly while also building the company's gross revenue at a conservative pace with expected year-over-year growth.

Operations: Booking BooSTR will operate as a website and eventually an app, requiring a small team to manage operations, marketing, and sales. A secure payment system will be necessary to manage transactions. The easy-to-use app will be designed for owners to request specific last-minute dates to be fulfilled by our unique service at a discount. The website will be integrated into our CRM software to give capabilities to reach out to owners looking to rent out their STR and to renters over social media. The website will have the capabilities to integrate the API keys from VRBO and Airbnb to pull data over to confirm the 40%-50% discount is being given and to confirm there is no double bookings from multiple sites per the calendar integration. 

Financial Projections: Our financial projections assume that we will secure an average of 250 daily bookings per month, with an average daily rate (ADR) of $500. Based on this, we estimate a monthly revenue of $18,750 once fully operational. Fiscal year projections of $225,000 in gross revenue from rental sales commission. This is based on two salespeople that will be leading the company and eventually growing their territory. The goal is to have ten salespeople within 24 months averaging 125 daily bookings a month at an average of $500 a night. Year two  ending  projections are 1,250 daily bookings a month at $500 a night for the ten sales representatives. This will produce a yearly gross revenue of $1,125,000 of which  2-3 % to company= $33,750. Our goal is to gain 500 STR owners in the first 12 months @ 49.99 = $24,995. 500 after 12 months @ $9.99 a month = $4,995. Year two we will look to double from 500 to 1000. The commission plan for the sale team is targeted to attract quality sales representatives but also a starting point to get the company off the ground at offering 100% commission with an aggressive split. 

Conclusion: Booking BooSTR has the potential to disrupt the short-term rental market by connecting owners with renters looking for last-minute discounts on high-end properties. By leveraging social media for marketing and a strong sales team, we believe we can secure a significant market share and generate substantial revenue in the short-term rental industry.