ResortPass CEO Believes There's Massive Untapped Revenue In Hotel Amenities

Key Concepts

• Day Access to Hospitality: Providing access to hotel amenities (pools, spas, fitness centers, rooms) for a fee without requiring an overnight stay.
• Excess Capacity: Utilizing underused hotel amenities to generate additional revenue.
• Ancillary Revenue: Generating revenue beyond room bookings, similar to the airline industry's approach to fees for luggage, food, and internet.
• Vacation Brain: The feeling of going away and experiencing a vacation without actually traveling far.
• Dynamic Pricing: Adjusting prices based on demand, similar to how hotels manage room rates.
• Local Experience: Catering to local residents who want to interact with hotels in their area.
• Incremental Revenue: Revenue generated in addition to existing revenue streams, without cannibalizing core business.
• Marketplace: A platform that connects hotels with customers seeking day access, taking a percentage of each transaction.
• Consumer Education: Informing potential customers about the availability and benefits of day access to hospitality.
• Equilateral Triangle: A model for marketplaces where the supply side (hotels), the demand side (customers), and the platform itself (Resort Pass) receive equal value.
• World's Best Talent: Hiring individuals who are both highly skilled in their respective fields and good human beings.
• Billboard Effect: Exposing potential customers to a hotel property, leading to future overnight stays.

Resort Pass: Overview and Value Proposition

• Resort Pass enables day access to hotel amenities like pools, cabanas, spas, fitness centers, and even rooms, without requiring an overnight stay.
• The underlying premise is that hotels have excess capacity in their amenities that can be monetized.
• CEO Michael Wolf emphasizes that Resort Pass creates a new consumer experience centered around a "day of rest and recharge," distinct from the often-resented ancillary fees in the airline industry.
• Resort Pass aims to create the feeling of a "vacation brain" – going away without actually traveling far.

Pricing and Revenue Generation

• Prices vary widely, ranging from $25 for more accessible hotels to over $200 for luxury hotels.
• Resort Pass provides incremental revenue for hotels, which have largely maximized room prices.
• Hotels are looking to monetize other spaces within their properties, similar to how airlines have monetized every aspect of the flying experience.
• Resort Pass guests tend to spend more on food and beverage at the hotel than overnight guests because their entire purpose is focused on the property.
• The revenue generated by Resort Pass is seen by hotels as incremental gross margin or even bottom-line profit.

Target Audience and Use Cases

• Resort Pass caters to both local residents and travelers.
• Local residents can enjoy hotel amenities without staying overnight, fostering a deeper connection with local properties. 97% of people only stay at a hotel once in their life, Resort Pass allows for a more ongoing relationship.
• Travelers can use Resort Pass for day use after checking out of Airbnbs or hotels, especially when they have late flights. 3 million people check out of Airbnbs every day.
• Specific use cases include "shop and drop" packages for shoppers in Midtown and pre-theater packages for those attending shows.

Hotel Partnerships and Growth

• Resort Pass works with over 2200 hotels, including all major hotel brands.
• The company experiences both inbound and outbound interest from hotels.
• Resort Pass adds approximately 100 hotels per month.
• 95% of the hotels that Resort Pass works with have never offered day access before, making the revenue fully incremental.
• The company is expanding globally, with 90% of its business in the United States and 10% in 30 other countries.

Technology and Dynamic Pricing

• Resort Pass has developed its own technology stack for hotels to manage day access, as existing hotel technology is often antiquated.
• The platform enables dynamic pricing for hotel amenities, similar to how hotels manage room rates.
• Dynamic pricing allows prices to fluctuate based on demand, with higher prices on weekends and lower prices on weekdays.

Profitability and Seasonality

• Resort Pass operates as a marketplace, taking a percentage of each transaction.
• The company is profitable for many months of the year but is currently focused on growth over profitability.
• Summer is the biggest season, but the company is mitigating seasonality by expanding into spa services, rooms for the day, programs, activities, and the southern hemisphere.

Competition and Market Positioning

• Resort Pass differentiates itself from ClassPass by creating a fully incremental revenue stream for hotels, as opposed to disintermediating existing user behavior.
• The company's biggest challenge is educating consumers about the availability of day access to hospitality.
• Resort Pass aims to be the leading platform for day access, creating a new category in the hospitality industry.

AI and Future Outlook

• Resort Pass is infusing AI into various aspects of its business, including code stack, marketing, and sales training.
• The company believes that the need for offline experiences and rest and recharge will become even more important in a world increasingly dominated by AI.
• Resort Pass is developing internal AI tools to leverage its unique data on day access, including market clearing prices for amenities.
• The company's long-term goal is to grow the category of day access and change the way people think about hospitality.

Hiring Philosophy

• CEO Michael Wolf spends a significant amount of time (70% of his day) on hiring, emphasizing the importance of people in building a successful company.
• He seeks to hire the "world's best talent," defined as individuals who are both highly skilled in their respective fields and good human beings.
• He emphasizes "back channeling" - speaking with former colleagues to gain a deeper understanding of candidates.
• He values candidates who have experience in startups, as they are more likely to understand the challenges and rewards of that environment.