ZoomAway Travel Inc (CVE:ZMA) has told investors it is in the development stage of issuing operating licences for its proprietary hospitality-based software to qualified individuals and businesses in selected markets.
Management said it is in discussions with several interested entrepreneurs in “larger markets” such as Las Vegas, Vancouver and Florida.
By licensing out the software, ZoomAway expects to generate recurring revenues which provide good forward earnings visibility, while it will also reduce the company’s overhead costs.
Work has already begun on upgrading the bundling software and registration management system which should enhance the licensing to a wide variety of future users.
From hotels to resorts, travel agencies or entrepreneurs in a new market, the system changes will allow virtually anyone to bundle rooms and activities for individual travellers or for large groups, ZoomAway said.
The licensing model will allow the company's new partners to capture their own revenues and create their own relationships in their markets of choice.
Various pricing models and tiers will be available and ZoomAway expects first-quarter earnings from the licensing agreements.
"The company's future lays in its technology and the creation of new recurring revenue streams,” said chief executive Sean Schaeffer.
“Our time and labour are better spent delivering new tech and less on operating like a traditional travel company. We have the ability to provide virtually anyone the tools they need to handle their own business in their own backyard.
“While we can and will continue to provide outsource services to select clientele, we believe that rapid growth and expansion can be achieved via this model.
“Plain and simple, we have tools that no one else does under one roof and people are asking to use them.”
ZoomAway shares are up 9.1% to C$0.06 early on Thursday.