Nustay is a Danish booking brand challenging Booking Holdings and Expedia Group, which control 95% of the booking market. Started in 2014 Nustay is by no mean a new player, but recently raised more funding to grow their market share in what seem to be one of the most competitive markets on earth.
Nustay is valued at a little over $16 million after the funding round, where they raised $3 million from 1300 investors, and raised 34% more than they expected.. They already have over 1 million users, based on a business model where people become members and get cheaper travel as part of a community.
With over 1.5 million hotels they are offering potentially the biggest collection of hotels in the world, and they also claim to offer lower prices than the more well-known booking brands.
What is interesting with Nustay is that their business model is not that different from the booking brand backed by ASPIRING. We will also offer a member-based service for the lowest prices. But contrary to Nustay we will use word of mount, sharing, to build our brand, which is much more effective. But their successful funding round show that the market is ready for newcomers to challenge the established brands.