Brian Reeves, a seasoned entrepreneur, is committed to creating a level playing field for hotels and consumers in the rapidly evolving world of travel and hospitality technology. As the founder and CEO of Roomangel, he is leading a movement to bring transparency, fairness, and trust back to hotel booking. In this exclusive interview, Reeves shares insights into his vision, the breakthroughs behind Roomangel and the future of hotel distribution.
WT: Brian, you have a lot of experience in hospitality and travel technology. What inspired you to launch Roomangel?
Brian Reeves: My background was originally as an engineer, but I've been deeply involved in hotel technology for the past 25 years. My first company, Avio, focused on online booking systems, digital marketing and web design for hotels. A large part of my work was to help hotels compete more effectively with online travel agencies (OTAs).
Roomangel is the next evolution of this mission. The hotel booking landscape is not a level playing field - there are significant regulatory gaps that put hotels and consumers at a disadvantage. Roomangel's breakthrough was the development of an algorithm that allows hotels to compete on their own websites and provides consumers with a fairer alternative to OTAs. It is about creating a transparent and reliable environment for hotel bookings.
PT: In a nutshell, what is Roomangel from a consumer perspective?
Brian Reeves: Roomangel is fundamentally about trust. Currently, consumers have no way of knowing whether the hotel rate they see is a good deal or not. The lack of pricing transparency leads to low conversion rates on hotel websites. OTAs have developed methods of persuasion - from subliminal inducements to outright deceptive practices - that encourage consumers to book through them.
In addition, hotel search results on OTAs are heavily influenced by the commission structure rather than the actual relevance to the traveler. Roomangel solves this problem by shifting the focus from commission-driven results to true value for money. Our platform helps hotels demonstrate fair pricing and ensures that consumers make informed decisions based on true market value, not OTA incentives.
PT: What was the main breakthrough that led to the development of Roomangel?
Brian Reeves: The main breakthrough is our algorithm, which allows us to compare the price of a hotel with the expected price. Let's say you're looking for a hotel in London. Just because the city is booked at 80% doesn't mean that all hotels are charging premium rates - some have 95% occupancy with high rates, while others with 65% occupancy may be offering great deals to attract guests.
Our data shows that hotels offer good prices in about 85% cases, but consumers rarely see it. Roomangel provides transparency by showing whether the price is fair, slightly above market, or a bargain. This is based on a huge dataset of historical pricing, future predictions, and correlation models that we have refined over the years.
PT: Is Roomangel designed to compete directly with OTAs, or does it integrate with existing hotel systems?
Brian Reeves: First, we integrate with hotel systems. Our goal is to help hotels improve their direct booking experience by offering two key solutions:
1. Trust verification: we solve the problem of fraudulent websites that masquerade as official hotel booking sites. We provide hotels with a "Roomangel Verified" stamp that allows customers to confirm that they are booking directly with the hotel.
2. Value transparency: During the booking process, we show value for money signals. Consumers will see clear indicators of whether they are getting a good deal based on market conditions, giving them the confidence to book directly with the hotel.
These tools will help hotels increase their conversion rates and reduce their dependence on OTAs, where 93% consumers currently cancel their bookings due to price uncertainty.
PT: OTAs spend billions on advertising every year. How do you plan to compete with their dominance in consumer search?
Brian Reeves: This is a key challenge, but it's also a sign that something is fundamentally broken. After 25 years, OTAs are still spending billions on Google to attract customers, which proves that there is no simple and effective hotel search solution yet.
Roomangel competes on several fronts:
- Better consumer experience: Our search results prioritize relevance and real value over dictated commission structures.
- Rich hotel content: we allow hotels to showcase their unique brand stories, which they cannot do effectively on OTAs.
- Direct relationships: consumers book rooms directly with hotels, eliminating intermediaries and providing better service.
- Innovative rewards program: we commercialize unsold rooms as a reward for loyal users, offering a new revenue stream for hotels.
We are also capitalizing on strong regulatory tailwinds. Regulators have been going after OTAs for years for anti-competitive practices, but we're taking a proactive approach by making Roomangel fully transparent and compliant from day one.
PT: What is the incentive for hotels to join Roomangel and how does it reduce their dependence on OTAs?
Brian Reeves: Roomangel is not an either/or choice for hotels, it's a way to diversify their accommodation while significantly reducing costs. Our commission rate is only 6%, which is a fraction of what OTAs charge.
Hotels also receive free tools that improve website conversion rates and marketing effectiveness. More importantly, we re-establish direct connections with guests. When bookings are made through OTAs, hotels miss out on key opportunities to build loyalty and sell products. Roomangel returns the ownership of the guest relationship to the hotel, while also providing them with valuable industry-wide data - something that OTAs have monopolized for years.
PT: You structured Roomangel as a foundation rather than a traditional business. What is the reason for this?
Brian Reeves: We wanted to make sure that Roomangel would remain a long-term sustainable solution for hotels. Over the past 25 years, OTA contracts for hotels have steadily deteriorated - higher fees, restrictive rate parity clauses and the reintroduction of the merchant model.
By structuring Roomangel as the backbone, we transfer collective ownership to hotels. When a hotel joins, it becomes an equal participant, meaning 6% commissions remain unchanged after 25 years. This structure prevents the platform from changing against the hotels' interests in the future.
PT: At what stage is Roomangel now and what will happen next?
Brian Reeves: We are now integrating with the major booking systems to provide a seamless connection for hotels. The platform itself is built and we have demonstrated it to our partners.
Next, we are rolling out our free conversion tools to hotels. This will be a crucial step in changing the dynamics of the industry - once consumers realize that they can get better deals by booking directly, OTAs will lose some of their power to convince on price. Over time, this will force OTAs to compete more fairly.
We are also building consumer trust in Roomangel as a brand. By the time we launch our full booking platform, travelers will already associate Roomangel with transparency and fairness.
PT: Looking ahead, how do you see artificial intelligence and emerging technologies impacting hotel distribution?
Brian Reeves: Artificial intelligence is the next big disruption. OTAs are currently in the best position to take advantage of AI-powered travel planning and personalized recommendations. However, Roomangel is changing that by creating a direct booking ecosystem that AI agents can interact with.
Hotels will now have the opportunity to connect to AI-powered personalization without relying on OTAs. We ensure that when AI changes the distribution of hotels, hotels have a seat at the table.
PT: Brian, this has been a fascinating conversation. Roomangel's mission is ambitious, but it seems poised to create a fairer and more transparent hotel booking landscape. Best of luck on the journey ahead!
Brian Reeves: We are excited about the challenges ahead and believe this is a much-needed change for both consumers and hotels.
For more information about Roomangel, please visit the website: www.roomangel.org
