Remark Media Launches Roomlia App

August 27, 2014 at 3:09 pm Leave a comment

Remark Media has released the Roomlia app developed by its recently acquired Hotelmobi division.  This is a departure from the company’s media/advertising core and it’s historical modus operandi of acquiring domains whose organic traffic allow a business model to be constructed around it.  Hotelmobi is obviously a different approach altogether, as it was essentially just an idea evolved to a development stage app that was being constructed under the direction of several seasoned executives from the buildout of Expedia’s wholesale hotel operations.  We will watch with great interest as Remark builds out this new model.  

Anyone familiar with the drivers of value in the online travel space knows that the juggernauts (Expedia, Priceline, Travelocity) in the space EXIST due to their successful development of wholesale lodging operations.  While the space is increasingly competitive, the margins can be huge for players who figure out a customer acquisition approach (like an app perceived as a better mousetrap offering attractive deals) that does not resort to pay per click arbitrage to gain one-off transactional customers.  With proper execution, we believe this business could evolve to be the x factor (besides Sharecare of course) for Remark Media holders.

While it is obviously still too early to determine if this business will evolve be substantial for Remark, I think this development bears watching.  A quick review of the Roomlia App impressed me with its intuitive flow, ease of use and most importantly, the inventory/deals they launched with.  I believe it will be well received and will be interested to see how it will be marketed.  Here are a couple of screenshots:

 

RoomliaScreenshots 003                            RoomliaScreenshots 004

I think this is a pretty slick offering.  If they can keep the flow of promotional deals they are showing currently and grow the footprint, this business has the potential to be a very significant contributor to the top and bottom lines for Remark Media.

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