Last week we officially did a very quiet launch of HotelSaver.io. The concept is fairly simple: You submit your existing hotel reservation, we constantly monitor for price drops, if we find one we notify you immediately and you save money. I had the idea for this site a few months ago when I had made reservations in New Orleans for a bachelor party, then noticed the next day the prices dropped and I managed to save over 40% of the reservation by getting it price matched and discounted. At this point I thought “wow, that was incredibly easy, took little time and saved a ton of money”. Shortly thereafter and shooting it around with everyone here, it was decide we’re going to launch a MVP product and see what the reception is.
With this concept it is really easy to quickly blow it up into a massive product with complex algorithms, payment types, etc. however trying to follow our own advice to our clients we launched with the minimal features to make it useful to the end user: simple reservation monitoring and payment processing to get us paid. We knew the first version of the product would be far from finished in terms of design and feature complete, but we wanted to see if others thought the idea had legs. Here are a few things we did to cut down on the time to launch even more:
- The initial design is based on a free template we found which allowed us to spend near no time on design. It works on mobile devices and doesn’t look terrible. None of us are great designers, so we figured this was well worth it for the first release.
- Not over thinking user management. Over time we plan to add accounts to the site so you can see your existing reservations from a dashboard, however for this first version we opted to go with a simple “email” to link together accounts. Users submit their existing hotel reservation with their email which we use later if you need to retrieve it. From there you can retrieve your “active” (reservations that have not yet past) reservations in an email we email to you.
- Payment processing. This one was a no-brainer for us. We wanted to be PCI compliant and also have a good user experience. Stripe we had worked with in the past and knew it was incredibly easy to use. We went with the checkout feature so we never would have any of their credit card information and it never hit our servers, making us PCI compliant.
We also wanted to get feedback from a small group of users. We posted it on HackerNews and immediately started getting great feedback. We knew posting this on the day we were traveling for the Holidays wasn’t optimal as we couldn’t respond to feedback immediately, we wanted to get this launched. We managed to make it to the front page of HackerNews for a while and instantly had 2,500 unique visitors that day, up from zero the day before! The feedback was great the main points were:
- Everyone loved the idea and thought if executed properly it’d be great!
- People didn’t like that we wanted to charge $19.99 regardless of if we could find a lower cost reservation. It was too risky.
- Some of the design could use some love.
- Pricing would be more interesting/better if it was a percentage saved or a money back guarantee.
Today we revamped our pricing strategy after the feedback. We knew the upfront cost was most likely a turn away for many users but didn’t know what percentage would hate it. After reading the feedback on the post and numerous emails, we’ve switched to a 20% of the amount saved. This makes it 100% risk free to the user. We won’t make money unless you save money. If we save you $100 dollars, you get $80 of it. We’ll be next week working on promoting the revised pricing strategy to see what additional feedback we can get as well as addressing the other parts of the feedback.
We’ll be trying to keep everyone updated on our adventures of launching our own product in house. We’re excited to try some techniques we’ve seen over the years and testing them out ourselves as well as trying some new ideas. If you have any feedback let us know!