Pure Hospitality Solutions (OTC:PNOW) is developing efficient tools to enable travelers to book lodging accommodations in affordable high end luxury units at relatively low cost. To execute this mission, the company primarily focuses on the development and acquisition of condominium apartments in hot-spot tourist destinations like Costa Rica. Pure’s overarching mission is to compete alongside travel industry behemoths like Expedia, Inc. (NASDAQ:EXPE), Orbitz Worldwide, Inc. (NYSE:OWW) and Priceline Group, Inc. (PCLN).
In most cases, Pure uses its Friendly Reservations Online (FROL) booking engine to ensure higher occupancy rates in its affiliate condos and that of the individual owners. FROL is currently undergoing a pre-launch overhaul, in which the tool will be branded as an online travel agency (OTA) called Oveedia, which will focus on the Central American-Caribbean region.
Oveedia will be accessible on al devices, and will ultimately incorporate new mobile apps, offer travelers the newest electronic payment options, provide hotel operators and condominium owners with back-end technology services, and operate as a standalone online hospitality search and reservation booking system.
Bigger industry players like Expedia and Orbitz generally charge about 25% of the total reservation amount, according to Pure. These OTAs are essentially third-party travel sites offering virtual billboards to hotels and condominiums looking to market their properties to online travel shoppers. Because these OTAs have amassed high-volume traffic, they are in a position to command higher commission rates.
Pure’s plan is to leverage this OTA billboard model and maintain a competitive edge by offering its hospitality reservation services, utilizing its booking engine, at 8% of the reservation amount. While charging lower commission rates, the company will drive revenues through four key strategies:
1. Initial membership fees charged to each new hotel and condominium properties joining the “by PURE” lodging brand;
2. Monthly royalties from “by PURE” brand locations of no more than 8% of the total Internet reservation sales revenue;
3. Revenue generated from corporate-owned properties;
4. E-marketing revenue.
The company has already signed up a number of properties during past product beta test, and said it believes that through the post-merger/acquisition of various projects located in Costa Rica, it can attract, secure and successfully provide services to approximately 300 participating hotel and condominium owners within the next 12 months.
Ultimately, Pure intends to become a top-tier hotel brand operator and Internet booking and marketing service provider. The company also intends to establish an international footprint with its online booking engine technology and marketing offerings, making that segment of its business a prime acquisition target for major OTAs.
For more information visit www.purenow.solutions
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