Singapore-based vacation rentals platform Roomorama, founded in 2009, has ceased operations and is likely to close down.
On its website, the company said, “Dear all, After many years of connecting travellers and hosts, Roomorama.com will be ceasing to accept any new bookings, while we decide our future from here. Increasing competition and regulatory headwinds have made it ever more challenging to operate in this industry, and Roomorama would like to thank all our customers and hosts who have supported us over the years.”
Other enterprises in the networked hospitality space that competed with Roomorama include players such as Airbnb Inc., Flipkey, HomeAway, HouseTrip, HomeExchange.com, and Couchsurfing International as well as various regional players.
Earlier this year, India’s Stayzilla closed down and saw its founder arrested. It is likely that Roomorama shut down for similar financial reasons as Stayzilla; both have not raised funding comparable to their competitors.
According to data compiled by Pitchbook and Crunchbase, Roomorama raised a total of $4.6 million in equity funding, with its last investment being a $2.5 million venture round in September 2012. This was raised during the merger of Lofty with Roomorama.
The platform’s model saw it rely on professionally-managed vacation and short-term accommodations offered at a price point below hotel accommodation. Its closure comes despite the overall growth of the sharing economy worldwide and the corresponding growth in the P2P accommodation market.
Airbnb, the market leader and a major competitor to Roomorama, served more than 25 million guests in 2015 and as of July 2017, reportedly maintained more than 550,000 listings in 192 countries. It established a Singapore office in 2012.
Earlier this year, it closed a $1 billion funding round in March 2017, with a post-money valuation of $31 billion. It is likely to conduct its public listing in the 2018-2020 period.