RE:RE:Transaction processing fees of 3% on 3,000,000 hotelsOK, thanks for the clarificaiton. I am new to this company. Only just saw it today due to volume and took a quick peek at the news. I thought perhaps someone who has been around for a while could take a stab at some sort of estimate on potential revenues. Let me throw some numbers around and tell me if I'm on the right track or off base.
Not really sure how much a transaction fee would be but let's just say it is $2. So if they capture 4% of the $2, that would be 8 cents per transaction.
Let's estimate there are on average 100 rooms per hotel. If Expedia and Bookings capture 5% of the hotel's bookings that would be 5 rooms. Let's also estimate the average stay is for 1 week. So 8 cents per transaction x 5 rooms x 52 weeks in a year would equate to $20.80 per year per hotel. With 3 million hotels that would be
$62,400,000 per year for this deal alone.
If anyone can provide further clarification regarding fees or estimates please do?
If I am remotely close to the potential numbers, then it is safe to say current company valuation of 17 million is a steal. And you say there are better deals to come?
Hmmm?
Jaytee123 wrote: It’s 4-5 percent I believe, as per NR (cheaper than what a Airbnb person is paying now, plus having to wait 30-60 days for their money) as for revenue potential... lots.
Expedia and Priceline, if you read the article on Steve’s LinkedIn, are planning on expanding too in this up and coming segment.