Thursday, December 22, 2016

Urban hotel see 2017 growth pulled by national tourism

São Paulo – the online travel agency Hotel bet in the Urban national tourism and provides for growth in 2017, after the resumption of the profits in 2016, said the founder and Chief Executive of the brazilian company, João Ricardo Mendes.
In October this year, the company, founded in 2011 reached financial stability, the so-called "breakeven", and obtained a profit in November.
The result was obtained after a change in the orientation of the company, which before was focused on growth, said Mendes.
Until 2015, the company relied on investments of funds as Insight Ventures Partners, Tiger Global Management Group and Priceline, Booking.com rival driver. Currently, this City Hotel is controlled by the founders and 16 new members, who are former employees and directors of the company.
"The buyback we had a good cohesive discipline to make the operation profitable," said Mendes, referring to the resumption of control of the company by the founders in this year.
During the 24 hours of Black Friday, the date that has been considered one of the most important for online retail calendar, the company quadrupled the average daily rates of hotels sold to 18000, compared to 4500 sold per day daily in October.
The company obtained in 2015 gross revenues of 560 million reais. The forecast for 2016 is retraction on the crisis in the country and an appreciation of the dollar on the real before previous years, which affected directly the trips abroad. For 2017, the bet of the urban Hotel is in growth of domestic tourism, as well as the increased interest of foreigners in the country.
The competition with major technology companies such as Airbnb, is not seen as a source of concern that demande need specific competition strategies on the part of the Hotel. According to Mendes, the audiences of the two companies are separate.
"Have a differential of public, who want to stay in the hotel and who want to stay in a House. (The Airbnb) surely fight over part of the market share, but another part, "he said.
"In 2017, I don''t see retraction for domestic tourism," said the Executive, adding that events like the World Cup of 2014 and the Olympics this year may have positive effect on tourism in the medium term.
"Who came to the Olympics and the World Cup, despite the infrastructure problems, says he intends to return. The Brazil sells by itself, we look very foreign demand. "
Exame News Item translated automatically
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