Steadyfare is a startup that offers travelers locked-in airfares for flexibility and peace of mind. Their algorithm analyzes historical flight data to estimate price trends and offer "steadyfares" - locked-in prices on flights for a range of travel dates. This provides savings when prices rise and flexibility if plans change without penalty. The founders are seeking $600k in seed funding to support steadyfare sales and expand to new markets through online travel agency partnerships over the next year.
5. Dubai -- New York
2000
Lowest Fares
price (USD)
Leaving Aug 18th
Returning Aug 24th
1000
7 1
weeks before departure
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11. Dubai -- New York
2000
price (USD)
locked-in airfare
1000
7 1
weeks before departure
12. • Choose a range of possible
departure dates
• And/or choose a range of
possible return dates
13. International
Economy Leisure
• 1.7% of travelers buy insurance
or pay change fees
Domestic
• 10% cancellations or no-shows Economy Leisure
• $1.2 billion US market
Source: Forrester, USTOA
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19. graph not to scale
$600
(lowest market value)
$500 Brian pays holding price: + $30
(quoted steadyfare)
Brian pays steadyfare: + $500
$450 steadyfare pays ticket price: - $600
(lowest market value)
Brian saves: $70
steadyfare ticket
purchased purchased
20. Benefits:
• Saved money on ticket
• Provided extra time to plan trip
• Peace of mind while planning
21. Los Angeles -- Bali, Indonesia
• Current low price: $950
• Economy ticket range: $950 - $1100
• Offered steadyfare: $1000
• Holding price: $40
22. graph not to scale
$1000
(locked-in airfare)
$975 Jessica pays holding price: + $40
(lowest market value)
Jessica pays steadyfare: + $975
$950 steadyfare pays ticket price: - $975
(lowest market value)
Jessica pays $40
steadyfare ticket
purchased purchased
23. Benefits:
• Provided flexibility to determine
schedule
• Peace of mind even with a demand-
ing work schedule
• Never had to pay change fees!
24. steadyfare purchase
ticket purchased no ticket purchased
cash effect:
price moves price remains
+
above locked fare below locked fare
cash effect: cash effect:
- +
25. steadyfare purchase
ticket purchased no ticket purchased
cash effect:
price moves price remains
+
above locked fare below locked fare
cash effect: cash effect:
- +++
26. steadyfare purchase
ticket purchased no ticket purchased
cash effect:
price moves price remains
++
above locked fare below locked fare
cash effect: cash effect:
-- +++++
27. steadyfare purchase
ticket purchased no ticket purchased
cash effect:
price moves price remains
++
above locked fare below locked fare
cash effect: cash effect:
-- +++++
++
28. steadyfare purchase
ticket purchased no ticket purchased
cash effect:
price moves price remains
+++
above locked fare below locked fare
cash effect: cash effect:
--- +++++
+++++
29. Algorithm analyzes historical data and prices on upcoming
flights to estimate:
• Seasonality trends
• Variability in prices
• Rate at which prices change as the departure date approaches
30. • Estimates the probability that prices will increase above varying
price levels
• Probability (and other factors) influences holding price
31. Dubai -- New York
2000
price (USD)
extended steadyfare
brief steadyfare
1000
7 4 1
weeks before departure
32. • Online travel agencies are the largest seller of airline tickets
in the US market
• Airline tickets are typically a high sales, low margin product
38. SeedStartup Fall 2012 Spring 2013 Fall 2013
-- build prototype -- SF public launch -- pilot test with OTA -- license to multiple
OTAs
-- market potential -- direct and licensed -- market expansion -- new market launch
sales channels analysis
-- product viability -- customer -- launch OTA -- expand industries
preferences channels
