Breaking Property News 27/01/25
Daily bite-sized proptech and property news in partnership with Proptech-X.
The best businesses are born when founders set out to solve a problem they faced themselves – Owen Redman
In the past eight years I have talked to over 1,300 founders and critiqued over 600 decks, and Roome who we fully endorse have that hard to put your finger on it quality that has so often turned a young company into a large company, on a recent call with Co-Founder Owen Redman I asked him just why he spent every day in the trenches building his company, instead of getting a ‘proper’ job.
Owen Redman, ‘‘During university, we struggled with housing: mismatched flatmates, rushed decisions, and the stress of finding a decent place on a student budget. These experiences led us to create Roome, a platform that simplifies the housing journey for students everywhere. But we’re not alone in this approach.’
‘Businesses became a success because the founders truly understood the pain points of their users. At Roome, our mission is to make the student experience better, starting with housing. We believe when students find the right place and the right people, everything else gets easier.’
‘Many companies focus on growth and revenue, which of course are key, but Roome focuses on the UX for the students, this is the core, if the service has a sticky usefulness then a business will scale.’
‘We realised that ‘the traditional business model of higher education is evolving. Institutions can no longer rely solely on rising tuition among traditional students as the primary revenue source’ – Deloitte. This shift was Roome’s genesis – to enhance student engagement and support, which in turn meant fewer students dropping out from their courses, increasing University revenue and heightening the academic experience.’
‘Though Roome is a comprehensive student engagement tool tailored specifically for universities. It also functions as a housing platform that connects students with suitable accommodation options and at the same time unlocks value for universities by using the Roome bespoke tools to enhance student engagement and streamline housing processes.’
‘Roome may not be the Behemoth that Airbnb is, but again it grew out of two founders and their duvets and a problem that faced them head on, and how they went on to solve it.’
‘Remember Airbnb does not own any real estate or properties. Instead, it serves as a platform that facilitates transactions between property owners (hosts) and travellers (guests). The platform offers features such as advanced search filters, booking management tools, secure payment processing, a comprehensive review system, and 24/7 customer support.’
‘The company generates revenue through various streams. Service fees are a major contributor, with Airbnb charging hosts a standard fee of around 3% per booking to cover operational expenses like payment processing. Guests are charged a service fee ranging from 14% to 20% of the booking total, which supports Airbnb’s services.’
‘In addition, Airbnb offers users the opportunity to book local tours, activities, and unique experiences through its Experiences feature, earning a commission on these bookings. Premium offerings such as Airbnb Plus and Luxe provide high-end accommodations and luxury stays, contributing further to its revenue. Hosts can also pay for increased visibility on the platform through advertising options.’
‘To ensure smooth operations, Airbnb engages in several key activities. The company continuously maintains and upgrades its platform to enhance the user experience. This is exactly the area that Roome doubles down in. Key to our success is knowing the student experience because of course I am James were those same undergraduates, looking for accommodation and a group that we fitted with.’
‘Airbnb’s value proposition is compelling for both guests and hosts. Guests gain access to affordable, diverse, and unique accommodations worldwide, often with a local and authentic feel. Hosts, on the other hand, benefit from a platform that allows them to monetize unused space and earn extra income with minimal upfront investment.’
‘One of Airbnb’s strongest advantages is its highly scalable business model. Because it does not own properties, Airbnb operates as an asset-light company, enabling global expansion with relatively low operational costs.’
Like Roome, Airbnb’s business model is sticky, Airbnb is connecting supply (hosts) with demand (guests) in a mutually beneficial way. By leveraging its scalable platform, diverse revenue streams, and innovative features, Airbnb has cemented its place as a leader in the travel and hospitality industry. Just as one day at a time Roome looks to generate extra revenue for Universities and make the lives of students better at the same time locking the two interests together.’
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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