Product: Efectio Sleep
Category: Startup Company
Founded Year: 2017
HQ: Riga, Latvia
Principal(s): Arturs Bernovskis, Founder & CEO
Funding: Angel investment from Japan.
Product Description: Efectio Sleep offers deep-sleep smart room technology that includes modern sleep tracking devices and specially adapted room settings to provide the client the most qualitative night's sleep and relaxation they deserve. No more sleep deprivation or jet lag in hotel rooms. Any hotel can provide the same sleep quality to its guests and be the best place for sleep.
Business Model: Installation fee: Deep sleep room with smart devices, special supplements – 2000 EUR and monthly subscription 100 EUR per room. Sleep sensor plan: Installation fee and monthly subscription per room - 30 EUR.
Competitors: We don’t have direct competitors, but services like https://www.revfine.com/ , who offer smart hotel rooms are similar.
Competitive Edge: Efectio Sleep offers a new level for hotel rooms and loyalty programs. As with airlines, you're collecting loyalty points depending on how many miles you've flown. Efectio Sleep helps to improve sleep quality for guests. Hotels loyalty program will give customer points depending on your sleep quality.
Market Opportunity: Twenty of the biggest hotel chains have 85K+ hotels with 9M rooms. In 2021, hotel market size will be US$702B. The smart hospitality market is expected to grow from $5.74B in 2016 to $18.11B in 2021. 65% of marketers use a customer loyalty program for retention and sales and it costs an average of 5-10 times more to acquire a new customer than to keep an existing one. 85% of millennials (mostly active travelers) think existing loyalty programs are boring.
Early Customers: AccorHotels, Pullman, Ibis, Orbis hotels in Latvia, Poland. Have new negotiation with Radisson hotels.