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Turning Travelers into Benefactors

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  1. 1. US: David Andreone, 310.951.8713 or Alex Carlton, 310.717.4195 UK: Benjamin
  2. 2. General Introduction When technology and social dynamics align perfectly, there are huge growth opportunities with new and emerging audiences Global Market Social Good Millennial Travelers _________________ _________________ _________________• In 2011, there were over 983 million • The notion that for profit enterprises international tourist arrivals worldwide, up • Travel spending by Millennials rose 20% could be anything besides for profit is an in 2010, making them the fastest growing 4.6% from 2010 exciting new reality on the American age segment for travel.• The global leisure travel market was corporate landscape, with such success worth $2 trillion in 2012 stories as TOMS, Warby Parker and • Millennials control $400 billion a year and Charity:Water are poised to become the most powerful• In 2009, American online travel revenues spending group in history were $116 billion; by 2012 revenues • While doing good can clearly build brand exceed $160 billion loyalty, doing good is, more importantly, a • 60% of Millennials travel for leisure, as moral imperative in the coming years opposed to 40% of older generations• There are 3,000,000 rooms booked per night in the US alone
  3. 3. Introducing Rooomr Rooomr is a hotel booking site targeting Millennial travelers, set against a robust one-for-one philanthropic model Hotel Curation Social Good Millennial Target _________________ _________________ _________________ • Rooomr features 2,500+ hotels around • Book A Room Give A Room, our • Rooomr’s primary target are urban- the world, searchable by destination, philanthropic initiative, means that for dwelling Millennials in their 20s and 30s. hotel name or cultural event every room booked, Rooomr makes a This audience is addicted to travel, corresponding one-for-one donation music, culture, and has an almost innate • Rooomr turns typical curation upside toward at-risk and homeless youth sense to respond to the world’s most down, looking at such atypical criteria as vexing social problems neighborhood vibe (Williamsburg, • Rooomr has an exclusive partnership Downtown Los Angeles, Shoreditch, with Virgin Unite who steward donations • Rooomr’s secondary target are socially etc.), design aesthetic, tech offerings to their initiative targeting homeless conscious travelers, regardless of age (free wifi, Apple TV, etc.), clientele profile, youth, The RE*Generation proximity to restaurants and boutiques, and the best hotels to frequent during events like Coachella, Art Basel and New York Fashion Week
  4. 4. The Problem There are only two categories of hotel booking sites, neither of which provide significant appeal to Millennials Sites for the Masses Sites for the Rich___________________________ ______________________________• Sites for the masses like Orbitz and Travelocity, apply a generic ‘one • Sites for high net worth individuals (Tablet, Gilt, Jetsetter) are out of size fits all’ approach to their users, an approach that most Millennials reach for most Millennials, making them aspirational at best find unattractive • Like the large OTAs, many of these high end sites also target chains --• The large online travel agencies (OTAs) are discount driven, and Peninsula, Four Seasons, Ritz-Carlton -- brands that typically lack largely dominated by chains -- Hilton, Marriott, Intercontinental significant appeal from Millennials• The large OTAs are grossly ineffective in attracting and driving the very • The majority of properties represented on these sites fail to truly embody guests that non-chain hoteliers want to attract most: brand-loyal the culture and flavor of their often exotic locales. Millennials seek out Millennials authentic experiences, and would generally not consider staying at the majority of hotels on these sites
  5. 5. The Solution Rooomr will own the Millennial travel space by offering curated hotels, tailored lifestyle editorial and a business model that drives true social change Online Travel Profit & Purpose Millennial Travelers _________________ _________________ _________________• The global leisure travel market was • By 83%, Millennials overwhelmingly • While our market is global, the initial prefer brands that have robust social focus is on the USA, which alone has 95 worth $2 trillion in 2012 good initiatives over those that don’t million Millennials aged 19-35• USA has experienced growth in online travel: 2009 revenues were $116 billion, • In the travel space, Rooomr is first to • Of those 95 million US-based millennials, market with a model that is driven largely Rooomr will hyper-target our initial by 2012 revenues exceed $160 billion by social good message to Los Angeles, San Francisco• Second largest category of online travel and New York purchases is hotel bookings • Rooomr is the only online travel agent (OTA) with a robust social good • 60% of North American Millennials travel• USA has 4.8 million hotel rooms, and an component central to their core. for leisure, as opposed to 40% of older annual occupancy rate of 62% per generations annum. This translates to 3,000,000 • By partnering with Richard Branson’s Virgin Unite, Rooomr is aligned with a • 93% of Millennials are avid Internet users rooms booked per night highly influential global brand, as well as (compared to 88% of adults aged 36-54) a transparent and progressive player in the non-profit space
  6. 6. Our Team In addition to having proven entrepreneurial experience with deep social enterprise knowledge, we have a track record of creating viable brands of interest to global youth culture. This is an essential competitive edge David Andreone _________________ Alex Carlton _________________ Benjamin Hay _________________ Co-Founder & CEO Co-Founder & CMO Managing Director (UK)• Nearly 15 years experience creating • Founder of Funkin, the 100% natural • A barrister with 8 years litigation content for, and marketing to, youth global a brand leader, found in more than experience and a background in strategy markets, via running Artist & Repertoire twenty countries globally consulting (A&R) departments at Warner/Chappell Music, Columbia Records and MySpace • Funkin has achieved on average 30% • An On Purpose Associate, a leadership annual growth, and was a major program for social enterprise leaders• Diverse artist signings resulting in sales contributor to the explosion of cocktail exceeding 25 millions units worldwide culture across Europe and the UK • Deep knowledge of the social enterprise market developed by a secondment at• Deep relationships across the music • Alex’s strengths lie in his relationships Big Society Capital space, particularly with artists, promoters, across North America and Europe, as agents and managers well as in brand development, sales • A native of London, graduate of channel management, marketing and Cambridge University and favorite far• A native of San Diego, based in Los innovation flung destinations include the Atacama Angeles, graduate of Pepperdine Desert and the peak of Kilimanjaro University and favorite cities include New • A native of London, based in Los York and Havana A n g e l e s , a c l a s s i c e n t r e p r e n e u r, his favorite destinations include the Alps, Cape Town and Ibiza
  7. 7. Business Model A simple model that generates revenues with each booking, and a sustainable model that ensures both viability and longterm social good For Profit For Purpose ______________________________ ______________________________• The Rooomr business model is simple: with each booking, we derive a • Our exclusive partnership with Virgin brings seemingly unlimited commission of approximately 10%. Bookings average $500 each, opportunities for promotional tie-ins with their various entities, including making our gross revenue per booking approximately $45-50 dollars Virgin Mobile, Virgin America and Virgin Hotels• For the short run, transactions are powered by white-labeled integration • Rooomr takes the typical “double bottom line” model a step further, with Expedia’s API, providing competitive price parity, scalability, and donating 5% of its gross revenues derived from hotel commissions to avoiding exorbitant ‘start-up’ tech investment Virgin Unite’s The RE*Generation. By donating from gross revenue rather than net profit, Rooomr ensures a ‘one for one’ model - every• Other sources of revenue will include festival and event ticket booking made results in a donation commissions, brand sponsorship and advertising • Rooomr guarantees lowest price, and never passes the expense of the donation on to our customers
  8. 8. Scaling The Model Three Year Projection
  9. 9. Marketing Approach When values are shared (travel, arts/music, social good), Millennials are intensely brand loyal Digital Traditional Partnerships & ___________ Channels ___________ Channels ___________ Referrals • Social, social social! Fully engage our • Public relations targeting travel, music, • Virgin Tie-Ins: take full advantage of audience on Twitter and Facebook (as arts and culture and sustainability promotional opportunities that potentially well as Pinterest and Instagram) communities exist with Virgin brands (including high profile exposure via FreeFest, their social • Presence on relevant sites like Dwell, • Experiential marketing at art, music and networks, etc.) Vice, Filter, Wallpaper, Nylon, KCRW, lifestyle events including events like Origin Magazine, SpyOnVegas, etc. Coachella, Art Basel and SXSW • Music Festivals: Placement of Rooomr links on music festival promoter sites • Aggressive SEO and SEM • Highly selective traditional alignments (“Click here for available hotels near this with the likes of KCRW, Filter Magazine festival”). Ex: Insomniac, Lollapalooza, and Origin Magazine LiveNation, etc. • Hotel Groups: position Rooomr alongside appropriate hotel groups (Morgans, Ace, Kimpton, etc.) -- brands that Millennials already gravitate toward
  10. 10. What’s Next Mobile and Millennials go hand-in-hand, especially when it comes to travel. This, and enhancing social integration, are imperative product iterations Consumer Experience Transaction Engine Going Global ____________ ____________ ____________• Optimizing on mobile and tablets, • Leaving the Expedia API for a direct • Having established Rooomr in the USA, including development of an app handshake relationship with our hotel expand into foreign markets to include partners. This will result in significantly• Enhancing social interaction among UK, EU, Brazil, Asia and Middle East greater commissions, as well as users is crucial, to include check-in and increased pricing flexibility • Significant opportunities for growth exist “charitable brag”, as well in Europe and Asia-Pacific • Direct transactions will allow enhanced• Peer Property Reviews: Millennials want c u s t o m e r o ff e r i n g s i n c l u d i n g t h e • Asia-Pacific is the fastest growing travel to read hotel reviews by their peers, not packaging of trips (and ticket bundles) market, predicted to exceed $350 million agenda-laden reviews by strangers with arts, music and cultural festivals in 2013, with online bookings comprising• Certified Rooomr Sustainable, a around the world 25% of the market certification Rooomr rewards to those hotels that meet truly sustainable business operating standards
  11. 11. Our Advisors Strategically selected advisors from the hotel and leisure industry, branding and marketing, music and entertainment, and social enterpriseNichol Carlson Tracy GrayNichol hails from the music business. As VP of Marketing and Artist Tracy is the Senior Advisor for International Business and Marketing forDevelopment at Sony Music, she was able to marry her knack for Los Angeles mayor, Antonio Villaraigosa. Prior, Tracy was Managingproducing with managing talent and working with brands. Nichol Director at Collaborative Equity Partners, a venture catalyst consultingcurrently consults Supajam, a UK based youth-centric network, and firm focused on increasing access to capital for women and minoritycharitybuzz, a company that aligns nonprofits with international brands entrepreneurs. Tracy is on various boards of directors and advisoryand celebrity icons to raise millions for causes around the world. boards, and holds dual MBAs from Columbia University and University of California, Berkeley, specializing in venture capital, internationalScott Crane business and corporate social responsibility.Scott is the CEO of Up In Arms, where he orchestrates high-levelstrategic partnerships pairing global brands, major media outlets, and Chris McCluremarquis talent (Stoli, vitaminwater, John Varvatos, Jaguar, Reebok, GQ, Chris began his career developing artists for labels and publishers, thenSXSW, Coachella, Art Basel, Winter Music Conference, Sundance Film as a manager for Irving Azoffs Front Line Management. At Front Line,Festival, NY Fashion Week, etc.). Chris worked alongside a roster of 250+ artists through album cycles, touring cycles, and corporate sponsorship campaigns, with a strongSusan Cronin focus on leveraging social media to galvanize audiences for a direct-to-A native of Marin County, Susan spent nearly twenty years in hospitality fan/consumer experience. Currently, Chris is founder of Transmediaoperations, having held executive positions in iconic brand families such Creatives, and has worked with such brands as Variety, Microsoft,as Kempinski Hotels + Resorts, Ritz Carlton, RTR, Future Bars SF and Samsung and Virgin Mobile.Dominus Estate/ets/JP Moueix. Educated at both UC Berkeley and TheFrench Culinary Institute, Susan is a certified Sommelier. Greg Peck Greg has been a successful real estate and hotel entrepreneur for manyChris Douridas years. He is the owner of Crescent Hotel Group, based in Beverly Hills.Chris is a popular DJ and musical tastemaker at the influential Santa Greg was also an owner and developer of the Cooper Union Square, aMonica-based radio station, KCRW. He is also a music supervisor, luxury independent hotel in Downtown Manhattan (which hefilmmaker, actor, television presenter, and a three time Grammy- subsequently sold to Andre Balazs to be the new Lower East Sidenominated producer of soundtracks and music videos. Chris also Standard Hotel). Greg earned his degree in Mathematics andworked at Dreamworks Records, Apple and AOL. Economics from Columbia University, New York.