Accommodation start-up helps small businesses

Amelia Gain struggled to find suitable accommodation management software for her Queenstown hotel - so she decided to design her own.

At just 28, Gain has already been a hotel owner, acquiring Queenstown's The Spire Hotel in 2010 with her 26-year-old sister Lucy Gain.

The sisters sold the hotel to an Australian buyer in June. Since then, Gain has been focused on her tech start-up Preno, which is designed to help small accommodation providers better manage their business.

SMOOTH OPERATOR: Preno co-founder Amelia Gain

Gain said that as a hotel owner and operator, she struggled to find software which helped with administration and the daily running of her hotel.

Existing software designed for larger providers was too expensive and complicated, while software for smaller providers was too basic, she said.

"They've all got shortcomings in terms of running a smaller property efficiently."

So she teamed up with software developer and polytech friend Max Podolian, 23, to create Preno online reservation software for hotels, motels, serviced apartments, lodges, bed and breakfasts, resorts and charter yachts.

While still in its development stage, the company has just been named one of nine start-ups to take part in Auckland's first Lightning Lab programme, being run in partnership with incubation hub The Icehouse.

Founded by Wellington incubator Creative HQ, Lightning Lab mentors digital start-ups over 12 weeks, providing them with the skills and support required to launch their businesses.

Lightning Lab gives selected start-ups $18,000 equity in exchange for an 8 per cent stake in the business.

At the end of incubation, businesses pitch to investors in the hope of gaining funding.

Preno would seek investment to hire a second developer and to help with marketing and sales, Gain said.

"We want investment but we really went in for expertise, advice and sharing of resources."

The man in charge of delivering the Auckland Lightning Lab programme, Mark MacLeod-Smith, said candidates were selected based on market, product and, most importantly, team.

"Essentially, we're investing in the people so we're backing the jockey rather than the horse."

Preno had a talented developer in Podolian and an experienced hotel manager in Gain, he said.

"She's been in the industry and has a deep level of understanding of how the industry works and how a specific hotel works."

Gain was building a product originally designed for herself, and as a former hotel operator this gave her a unique insight into her market and its behaviour, he said.

Gain said the name Preno was an abbreviation of a word that very loosely translated as book or reserve in Italian.

"It's not a direct translation, so it doesn't really mean anything. It just stuck with us."

The software was intended to help accommodation providers with fewer than 50 rooms manage bookings, databases, invoices and day-to-day operations, she said.

"It's developed by a small operator for small operators."

Preno would be available for customers to trial for free this month, and would eventually be available on mobile devices, she said.

After a trial month, the software would be available on a monthly subscription basis, with pricing yet to be determined. Early adopters would get a special rate.

Gain said that when she managed The Spire Hotel, every morning she had the time-consuming task of reconciling payments.

Preno, which was integrated with Xero accounting software, automatically identified where different revenue streams came from, whether it was laundry, minibar, guest activities or room service, she said. This made it easier to bring together accounts in Xero.

"I really tried to make it for people who don't have a background in hotels."

It also made split payments easier for large group bookings, and automatically deducted a commission and forwarded it to an outside party if the booking was made through an agent, she said.

"It's much more efficient for both parties, and it's accurate."

Gain estimated there were about 2000 accommodation providers in New Zealand with fewer than 50 rooms.

Xero had been an inspiration for her, because when she bought The Spire Hotel, Xero's accounting system allowed her to run the business despite having minimal accounting experience, she said.

Source : STUFF   John Anthony   March 8th 2015