Phunware (NASDAQ:PHUN) is repositioning its business around an AI-powered “Guest Intelligence Platform” designed to help hospitality operators personalize guest interactions, increase on-property engagement and generate ancillary revenue, Chief Executive Officer Dmitry Kroshka said during a company presentation.
Kroshka described the effort as “Phunware 2.0,” a transition from the company’s historical focus on building mobile applications with features such as wayfinding and content messaging. The revised approach offers modular platform components under a subscription model, with artificial intelligence at the center.
The platform is intended to combine booking information, property catalogs, guest preferences, loyalty-program data, point-of-sale activity, campaign feedback, third-party booking information and external data such as weather forecasts. Phunware aims to use those inputs to create guest profiles and offer recommendations, itinerary planning and real-time assistance through its AI Concierge product.
Focus on Guest Experience and Property Revenue
Kroshka said the company’s approach differs from hospitality AI products focused primarily on transactions, such as ordering room service or requesting an item. Instead, Phunware is seeking to use AI to understand a guest’s broader journey at a property and anticipate needs before a transaction occurs.
For example, the platform could identify that a guest has not made lunch or dinner plans and recommend a reservation as restaurant availability changes. It could also respond to disruptions such as rainy weather by helping guests identify alternative activities.
“The more that a guest activates on property, goes to the pool, goes to the spa, uses the gym, plays golf, the more that a guest activates on that property, the greater the share of wallet that that property will retain,” Kroshka said.
The company’s platform can operate through Phunware’s app, a customer’s app or a website, according to Kroshka. It also supports notifications, custom content, recommendation capabilities, integrations with digital signage, customer relationship management systems and business intelligence platforms, he said.
Phunware’s existing wayfinding technology remains a component of the strategy. The company has historically used internet-of-things beacons to support indoor navigation and understand how people move through a physical space. Kroshka said this location-based data can help the platform determine when a guest is on-site and potentially receptive to a recommendation.
Adoption, Retention and Customer Economics
Kroshka said Phunware commercially deployed AI Concierge at its largest property, which he described as having nearly 4,000 rooms, 30 restaurants and 11 pools. He said 70% of guests used the app and interacted with AI Concierge, while engagement was 40% above the company’s expectations.
He also cited a large property in Wailea where the company has seen 70% app adoption for guest navigation and said Phunware plans to roll out AI Concierge there.
The CEO said Phunware’s customer retention rate is “running around 95%.” In response to a question about returns for customers, Kroshka said the company has observed returns on investment ranging from approximately 7% to more than 20% among its customer base.
He said hotel operators are increasingly focused on total revenue per available room, or TRevPAR, rather than only average daily rates, as fees from online travel agencies and brands can reduce net revenue. Phunware’s integrations with booking systems and property-management systems are intended to help customers track incremental revenue in near real time, he said.
Expansion to Multi-Property Brands and New Verticals
Phunware is shifting its commercial strategy toward hotel flags and multi-property groups rather than focusing solely on individual properties. Kroshka said sales conversations with larger groups can provide an opportunity to deploy across 20, 30 or more properties.
The company is in discussions with four multi-property hospitality flags, Kroshka said, though he did not identify them. He added that the smallest group under discussion has 20 properties and that Phunware hopes to announce at least one agreement soon.
Kroshka said annual pricing benchmarks for comparable technologies range from roughly $40,000 to $80,000 per property, while noting that Phunware is now pursuing multi-property agreements. He also said the company has raised rates on some renewals as it adds capabilities.
When asked about revenue timing, Kroshka declined to provide projections, citing a blackout period. He said, however, that Phunware planned to begin demonstrating the full platform and its tracking capabilities to prospects the following week. According to Kroshka, the number of prospects that have expressed interest is three to four times the company’s current installed base, and lead volume since June has been at least 10 times the volume generated during the prior year.
Beyond hospitality, Phunware is targeting healthcare, senior living and assisted living. Kroshka said the company already operates in several healthcare systems and is beginning pilot discussions with those customers. He said the incremental development required for healthcare is limited because the platform was designed to be modular.
Kroshka also said Phunware has no debt, does not anticipate a dilutive event and believes it has sufficient resources to self-fund its strategy for multiple years.
About Phunware (NASDAQ:PHUN)
Phunware, Inc is a software company that develops mobile and digital technology for businesses and other organizations. Its platform is designed to help customers create, manage and operate branded mobile applications while supporting digital engagement with users.
The company’s offerings have included mobile application development tools, content management, location-based services, indoor mapping, analytics, messaging and audience-engagement capabilities. These technologies can be used to deliver information, navigation, communications and other digital experiences through mobile devices.
Phunware has historically served organizations in industries including health care, hospitality, retail, sports, real estate and government.
