Saar Fabrikant is careful in describing B4Checkin Ltd.’s revenue growth, but he makes it clear that the picture is rosy.
Fabrikant is the president and chief executive officer of the Halifax company, which has developed a suite of cloud-based software solutions that allow hotels and hotel chains to carry out online reservations, check-ins, feedback and other functions.
The company earns money from customizing and installing the software for its clients — most of whom have been independent hotels or small chains — and in the monthly payments hotels make for using the software.
The company will only discuss the growth of the monthly payments, and that is growing nicely — tripling in 2012 after doubling in 2011.
And that growth isn’t tapering off, because the company is selling more products and attracting larger hotel groups as it gains more credibility within the hospitality industry.
“We now have 100-plus hotels (as clients), but that number changes practically daily,” Fabrikant said over lunch Friday at Halifax’s Atlantica Hotel, which is one of those clients.
“We have a few proposals out now for groups of 50.”
B4Checkin began in 2006 when Fabrikant and chief financial officer Martin MacKinnon teamed up to produce a reservation system for hotels that were overlooked by larger providers. They have since developed a suite of 12 products and have been increasing revenues in part by cross-selling these new products to clients that initially bought just one. The company now receives as much as $2,500 per month from each client, whereas a year and a half ago the figure was $700 to $800.
Its most popular products are its online reservation, feedback and check-in systems, the last of which was awarded the 2012 Editors’ Choice Award for Best New Technology at the International Hotel, Motel + Restaurant Show in New York in November. Fabrikant said the award increased the company’s credibility in the hospitality industry and led to higher sales.
“We took an airline check-in system and we brought it to hotels,” said Fabrikant, explaining that it saves time for the hotels and helps them arrange staffing shifts.
“People are so used to using it for airlines that it’s a no-brainer to do it for hotels.”
B4Checkin employs 12 people and has another on contract outside Nova Scotia. It is looking to expand its sales team this year and is looking for people with experience in the hospitality trade.
They financed the company first with their own money, then with contributions from the Atlantic Canada Opportunities Agency, and then with a group of angel investors.
Since December 2010, these investors, which include the co-founders, former Imasco chairman Purdy Crawford, former Emera CEO David Mann and others, have sunk about $1.7 million into the company.
Fabrikant said that money is now supplementing revenues. He would not comment on whether the company is close to being cash-flow positive, which would mean it could finance its operations at the current level purely through revenues. But he did say the company has no immediate plans to raise more money.