STARTUP STAGE: BedLinker plots distribution for hotels and marketplace for travel agents

BedLinker

Founded in December 2017, there are two parts to the startup: BedLinker, a B2B marketplace for travel agents, and BedAllocator, a distribution management system for leisure hotels. The company wants to make managing hotel bookings more efficient for everyone.

The founders of BedLinker bring experience of managing hotels to the startup. The company is starting out in Vietnam with local hotels and chains but plans to bring its technology to other markets through resellers going forward.

Describe both the business and technology aspects of your startup.

Founded in 2017, BedLinker is Vietnam’s leading technology provider of B2B distribution solutions for hotels and resorts. BedLinker.com is a B2B marketplace platform that connects travel agents with hotel and tour suppliers around the world.

The platform also allows travel agents to book restaurants, transfers or amusement parks directly with suppliers. Our platform helps suppliers and buyers in the travel trade minimize intermediaries such as wholesalers so they can both maximize bookings and revenue for their businesses.

Integrated with BedLinker.com is BedAllocator. This is a B2B distribution management software that helps hotels and resorts manage contract rates and bookings from their B2B accounts effectively and efficiently. With BedAllocator, hotels and resorts can minimize contracting and booking operations while focusing more on account engagement to gain more revenue for their business.

The software also allows hotels and resorts to sell their rooms on BedLinker.com effortlessly so they can maximize market coverage to reach more B2B buyers around the world.

What inspired you to create this company?

Having spent almost 15 years in various managerial positions within the hospitality industry, I felt it was time for me to pursue an entrepreneurial path. I was a revenue director and sales director in five-star hotels and resorts, and I wanted to create something to help hotels gain more direct business instead of relying on third parties.

I saw a clear opportunity with technology in the industry. Vietnam is a hotspot for new travel technology, and the industry here is developing and expanding at a remarkable rate. We set out to give hotels a choice and to help them increase bookings.

Tourism is booming in the country, and with technology gaining more attention from the government and the public, this is the right time to explore this market. That's what inspired us to start BedLinker.

Give us your SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company.

• Strengths: BedLinker was co-founded by a team of veteran professional hoteliers. Each founder has over 10 years’ managerial experience covering a range of divisions in the hospitality industry. Together we have a wealth of experience and knowledge. We understand the challenges our customers face in this industry and we develop the solutions they need.
• Weaknesses: BedLinker is a brand new player so we still need time to build on our reputation. We are already working with big hotel brands in Vietnam as well as other parts of Asia and across the globe so our reputation is rapidly gaining traction. 
• Opportunities: The booming travel and hotel industry, combined with developments in technology, not just in Vietnam but on a global scale, provide huge opportunities for BedLinker. We aim to capitalize on this and explore new markets with our technology. 
• Threats: Vietnam will soon catch the attention of big international brands so the market will become more competitive in the near future. 

What are the travel pain points you are trying to alleviate from both the customer and the industry perspective?

In Vietnam and other Asian countries, almost 80% of hotel bookings are generated through B2B channels such as travel agencies. Yet, the contracting and booking processes are carried out by most hotels using a manual procedure, which is both time-consuming and ineffective. Hotel staff spend a large amount of time handling paper contracts or dealing with incoming calls and faxes for booking requests. They should be spending more time engaging with their B2B accounts to generate more business.

These issues are also true with travel agencies. This is the reason why travel agencies are now booking with OTAs and other travel platforms instead of booking directly with hotels.

So, with our integrated solutions, we solve the daily challenges for hotels and travel agencies. Travel agencies now can access inventory and best rate offers direct from the hotels. While BedAllocator is an effective tool for hotels and resorts to manage their B2B accounts, BedLinker.com creates the seamless B2B marketplace platform for travel agents to be connected with hotels around the world.

With these solutions, hotels and travel agents will be relieved of the painful contracting and booking processes, while focusing on gaining more revenue for their businesses.

So you've got the product, now how will you get lots of customers?

In Vietnam, we have a team of business development managers and marketing managers who approach and expand our customer network. We also appoint authorized resellers in key regions such as Southeast Asia, China, Africa and North America to build our customer base in these markets. 

Tell us what process you've gone through to establish a genuine need for your company and the size of the addressable market.

We understand it takes time for the market to adopt any new technology, so we have organized seminars and workshops for hotels and travel agencies across Vietnam. These seminars aim to generate an initial understanding of the market and our solutions, before our business development danagers and account managers approach the customers on a direct selling basis.

How and when will you make money?

For BedAllocator: We charge hotels a monthly subscription fee.

For BedLinker.com: We charge a transaction fee of 5 to 10% per successful transaction.

What are the backgrounds and previous achievements of the founding team, and why do you have what it takes to succeed with this business?

CEO Thuan Dao is a recognized hotelier in Vietnam with 15 years’ experience in revenue management and business entrepreneurship. He was in management and directorship positions at international and local hotel chains including Sheraton and Vinpearl.

Prior to founding BedLinker, he also founded RevMax, a leading revenue consultancy company in Vietnam whose clients include top hotel chains in the country. With his experience and vision, Thuan understands the challenges we need to solve for our customers, as well as the challenges we face as we develop BedLinker and its services. Thuan Dao is an hotelier who is developing solutions to solve hoteliers’ problems.

What's been the most difficult part of founding the business so far?

Developing the solutions has been our most difficult challenge since founding. Transforming our understanding of current issues into a software solution requires our team to possess both the technical capability and industry knowledge. Another challenge is to educate the market about the convenience and benefits that our solutions provide.

Generally, travel startups face a fairly tough time making an impact - so why are you going to be one of lucky ones?

We have a unique model that comprises business and great technology, underpinned by a knowledgeable and experienced founding team. Our solution is solving problems in the biggest segment of the hotel business. Our industry knowledge is a key strength for BedLinker. We resolve our customers’ issues directly and in the most effective and efficient way. It’s what makes us different and is fundamental to our success.