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Group dealtravel oep1312-finalversioncandidate-8 Group dealtravel oep1312-finalversioncandidate-8 Presentation Transcript

  • Group Deal Travel Holidays with your friends made easy. Social planning process, trip sharing, cheaper group rates and exclusive dealsOpportunity Execution Project Assignment for:Technology Entrepreneurship Course, fall 2012Professor Chuck Eesley, Stanford University
  • ● The Problem● The Team● The Product – Demo● The Business Model ■ Market ■ Costs and Revenues ■ Risks ■ Funding Agenda
  • We joined the course just three days before the first big assignment (Identify the market opportunity). During the first meeting, when introducing ourselves to each other, we found out we all travelled a lot, and we all experienced the hassle in getting friends on a plane to go holidays together. We needed to pick up an idea and that was the deal: find a solution helping two big passions to get together: travel and friends. Annabelle (marketing/partnerships) Ferran (sales/distribution)Gianfranco (product/CEO) The Team
  • Organising a holidays with your friends can be a nightmare. Sms, emails, phone calls, pub nights,facebook groups...a lot of information and impossible to track who wants what and when. And wait...no offers for groups? Our survey shows that 92% of respondents use emails to plan their group holidays and 67% organize face to face meetings Are people satisfied with these planning options? “No, it is very difficult to plan over email - we usually end up making huge spreadsheets and complicated documents to track all of our traveling logistics!”Booking travel online is Deals: no easy access Price: no easy way toan individual process, to deal offers save money when innot ideal for group of contextuals to grouppeople travellers needs The Problem
  • A mix of Hotel Targeted Advertisementrooms, apartments & Group Deals. Dealsand Special group can be added to theoffers wishlist and discussed with friends as an option(e.g. package all inclusive) Hotels can be booked (onsite) or added to the wishlist The Solution
  • Platform is heavily integrated with social networks (Initially 100% facebook)Facebook friends canbe added andautomatically invitedthrough facebook APIs Advertisement The Solution
  • Friends can be polled todecide date, destinationof the trip Friends they can like or dislike other friends proposal A list of things to do is inserted and can be updated by any of the friends (connected to Trip Advisor DB) The Solution
  • The Business Model
  • The Market Size
  • The online tourism industry will experience some major trends in the coming years: ■ Mobile sales: By 2015, IDC is forecasting that mobile use will surpass traditional desktop use within the next few years. Expedia reports that 65% of hotel bookings within this last 24-hour window are via mobile. The smart devices shipments are expected to pass from 1000M to 1900M in 2016, ■ Social networks: PhocusWright found that social media use among travellers is growing far faster than the travel industry itself. Facebook users who are referred to travel booking sites are far more likely to book travel than those who are referred via search engines like Google("wisdom of friends”). OUR RESEARCH Group travelling is a segment that has been so far neglected. Group trips are a common form of travelling but require complicated logistics, for which there is a growing demand. Once thought of as a market for senior customers, new trends are emerging like girlfriend or sports-focused getaways. The social media trends are making it easier to create groups with common interests looking for custom trips rather than the usual mass-market offers. Growing Market
  • ● Search engines ○ Google Ad Words . We initial focus on google Adwords. ○ SEO. We will invest heavily on SEO since Q1.● Channel Partnerships ○ Offer advanced integration functionalities to external websites in exchange of revenue share, customer retention, traffic. We classified the potential channel partners according to potential benefit/ feasibility. We focus startup partners which might be interested on a partnership with GDT (Q3-Q8)● Social recommendations ○ Customer acquisition cost is reduced drastically when one user invites his friend to the trip planner. Product quality->Happy travellers->lower customer acq. costs.● Mobile ○ Taking advantage of the growth of mobile travel bookings ○ Taking the lead on travel applications for Windows phone Marketing Strategy
  • USER ACQUISITION COST. - Initial cost based on Google Adwords ($x10) USER ACQUISITION COST REDUCTION - friends invited to trips by one acquired customer (one happy user => 3+ friends) - Adwords optimisation(Q2) - better SEO positioning (Q3) - channel partnerships on place (Q3) - Social widgets launch (Q5)Group deal travel - Initial target user* Men/Women* 18-40 years old*** No children* Students or young professionals* Living in US, Western and Northern Europe*** Spending on average USD 350 per year on holiday** City breaks - sports/ski trips - Sun holidays.* Online travel bookers*Source: GroupDealTravel online survey** Source: Facebook campaign demographics Users
  • We did 3 online campaigns on ad words with a budget of €5 per day: Campaigns where redirecting to Landing page. 3 hypothesis were done: H1: Targeting special events and groups. (1K impressions, medium CTR) H2: Group Deals (3K impressions, high CTR) H3: Travel Planner(9K impressions, low CTR) The campaigns have underlined a particular interest on trip planning by users, but the “deals“ concept has been reinforced by its occurrence as keyword and in Landing page usage and in the domain name (groupdealtravel.com) and the application name. CPC (cost per click) has revelled to be in the average of the publicitary compaigns in google. CPC1 (1.06), CPC2(1.03), CPC3(0.82) Group Planner orTesting 18-30 years segment for Trips Deals emphasysspecific activities Adwords campaign results
  • Demographics information from 2nd Facebook campaign: Belgium, France and Ireland represent 83% of the clickers (top regions correspond to the capitals of these countries) Domination of the 18-24 years old category (mostly university students or young professionals) Facebook Campaign
  • What can we do more?● Simplification of the booking process● Customized search options● Easier integration and Social App Support● Smart devices support● Target particular events (University trips, stag/ hen trips...)● Partnership with existing best dealers● Offer group discounts● Post booking integration Competitors
  • Partners -> Online travel agencies -> Tour Operator -> Online travel aggregators -> Services (car rental, insurance, etc) -> Local Activities Providers -> Deal Aggregators/Providers -> Tour Operator (groups)Commissions/Fees- Initial estimated average commissions expectedis 3%FEE INCREMENT- From Q2 to Q8 our commission share is going toincrease gradually until 5% (e.g. with more trafficwe can negotiate better deals. We will also startselling exclusive deals with higher commissions) Revenues
  • Profitability Q3-2014Costs and Revenues
  • ● Team Risk ● Not being able to negotiate partnerships deals and exclusive deals (mitigate with travel expert advisors on the board)● Market Risk ● Big Player on Travel Market doing the same as GDT proposition (mitigated by quicker adaptation to market) ● No interest and low attraction from end users (mitigated by creation of social widgets/tools/product quality) ● Low barriers of entry (mitigated by brand building) Risks
  • * Venture Capital/Angel investmentsFor bootstrap we are looking for an investment 50K US$ (in Q1-Q2) assuming-> 1st Year Salary for founders only living expenses + savings (to be paid end of year)-> Initial product outsourced+equity-> First employees from Q2 partially paid with equity* Second roundFor running the business in Q3-Q4 we need further300K (sales wages, mobile development, heavymarketing campaigns) Funding
  • Thank You