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- 2. HELL O OLA GROE T مرحبا CIAO HOLA BUNA ZIWA 您好 Гавайи Content Page: A)- InvestorPresentation B)- Appendix
- 3. A)- Investor Presentation Whatis TravelSheikh.com?From the centre of the globe to the heart of the world, TravelSheikh is the first Arabic online travel engine in the middle east. An online one-stop-shop catering for all travel services targeting the MENA region, whilst providing international content using multiple selling channels providing over 1100 travel agent and around 4000 individual customer across 13 countries in the Initiated and established by (5) employees and later-on composed of (30)+ highly qualified and competent team of travel and IT professionals.
- 4. The market Market opportunity •Scope for being a genuine first mover with a majority of online sales by suppliers. • B2C focused OTAs only Online Travel in the ME is a rapidly growing market with positive fundamentals. $0bn $20bn $40bn $60bn $80bn 2010 2011 2012 2014 Middle East Outbound Travel stands over USD 70 bn+ per annum Online share of USD 15.6 bn+ per annum Growing at 26.4% per annum
- 5. Mariam Shukri Graphic Designer & Project Hani Dahlan CEO Murad Ramahi COO TheTeam • Proven management team with a track record. The company is lead by the region’s leading OTA management team having achieved USD21mn+ in gross sales in 2013.
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- 7. More than 65%of travel agents do not have the ability to book and purchase different related travel deals directly through the providers, TravelSheikh web site will give this ability to travel agents allowing them to gain access to all the content and inventory of the travel services & make instant reservations. TravelSheikh works on prepayment by depositing money into the agencies accounts. The Channels (B2B & B2C) Business-to-Business (B2C) The credit card online transaction is not popular within the region for many issues, nevertheless provides the ability for consumers to purchase directly through the website. However, its main cash flow comes from the B2B approach. Once the B2C approach B2BB2B B2CB2C
- 8. SAMSUNGSAMSUNG BONUS+BONUS+ TravelSheikh will be a one-stop- shopthat matches Expedia as a model exceeding it with our B2B capabilities catering for un-attacked markets of small travel agents TravelSheikh will benefit from a contract of $1.6mn as a bonus over the next 5 years TravelSheikh will benefit from an agreement with SAMSUNG- Africa to be the sole built-in app in all their devices sold in The advantages
- 9. MarketsTravelSheikh Already existed in severalMarkets and will expand into much more potential ones in 5 YearsTravelSheikh are looking to grow our active agents to 5k, and growing their spending to $15k per agent per month; meaning over $900mn of gross sales. Business Plan - nutshell :) SSRSSR GCCGCC AfricaAfrica 50005000 AgentAgent $15k$15k spending/mospending/mo nth/agentnth/agent GS ofGS of $900mn$900mn LevantLevant N.AfricaN.Africa EastEast EuropeEurope SEASEA
- 10. Required Investment TravelSheikh isseeking seed funding of 2.5M us$, to restart the business model out of Dubai Expansio n 25% Operation EXP 50% 15% Advertising & PR 10% Reserve §§ $ 2,500,000
- 11. Travel Industry The TravelSheikh ModelUnderstanding B)- Appendix
- 12. Airline's Sales –Current Model of Distribution and Business Direct IATA - BSP IATA - BSP Airline Offices Air Airline Website GDS - SabreGDS - Sabre Country C Market Fares Country C Market Fares GDS - GALELIO GDS - GALELIO GDS - AMADUES GDS - AMADUES Travel Agents Consolidat ors OTA’s Passenger Country A Market Fares Country A Market Fares Country B Market Fares Country B Market Fares Travel Agents Consolidat ors OTA’s Passenger Travel Agents Consolidat ors OTA’s Passenger
- 13. Airline's Sales –Travelsheikh.com Business Model Direct IATA - BSP IATA - BSP Airline Website GDS - SabreGDS - Sabre Country B Market Fares Country C Market Fares Country C Market FaresCountry A Market Fares Country A Market Fares GDS - GALELIO GDS - GALELIO GDS - AMADUES GDS - AMADUES Travel Agents B2B Consolidators OTA’s XML Passenger B2C Consolidators Consolidators Travelsheikh.com
- 14. Why It Works? OneStop Shop for all Airline Content and Pricing One Supplier One Payment Conciliation Cross Market Fares Wider Airline Availability Alternative for none Existence of IATA & GDS in many regions
- 15. How It willWork? B2B Travel Agents are too limited to outsource airline content from outside their geographic region (financial – exposure – education) B2B Travel Agents are forced by airlines (usually national carriers) to keep their share high with them (issuing from their own GDS will lower the share) IATA/BSP Countries are limited in content with the participating airlines in the country Competition is very hard and with the same Market fares available/per country – Agents are not making money, yet can’t stop the main service of their business and count on cross ancillary products -
- 16. Who Can Makeit? Travelsheikh.com created the model in the region and managed to serve a network of 1200 travel agents in 9 different countries with much competitive rates than what is available in those markets. Travelsheikh.com with all the Ancillary services (Hotels, Car Rentals, Insurance, Packages, Excursions, Transfers…etc.), opted as the best solution that offered all from one portal without the Purdon of heavy financial commitments (no minimum access) * Travelsheikh was forced to stop for lack of funding
- 17. Hotel's Sales –Current Model of Distribution and Business Walk In’s Hotel’s Websites Channel Managers OTA’s Whole Sale B2B Tour Operators Direct Corporate Local Sale International Sale GDS Rack Rate Run of The House – Rate based on availability (Chain Hotels) Distribution Channel Based on Commercial Agreement with final client Competit ive based on region and Volume Competitive – Limited Availability – Traffic Based Based on Volume and Commitments with restrictions High Rates Close to Rack Rates Travel AgentsPassengers OTA’s Hotels allocate rooms to different sales channels, based on seasons and occupancy rates – it’s an availability game rather than a price game in most cases.
- 18. Hotel's Sales –Travelsheikh.com Business Model Walk In’s Hotel’s Websites Channel Managers OTA’s Whole Sale B2B Tour Operators Direct Corporate Local Sale International Sale GDS Rack Rate Run of The House – Rate based on availability (Chain Hotels) Distribution Channel Based on Commercial Agreement with final client Competit ive based on region and Volume Competitive – Limited Availability – Traffic Based Based on Volume and Commitments with restrictions High Rates Close to Rack Rates Travel Agents B2B Passengers B2C OTA’s XML Hotels allocate rooms to different sales channels, based on seasons and occupancy rates – it’s an availability game rather than a price game in most cases. Travelsheikh.com
- 19. Why It Works? Wideoffering of Hotels provided by all sort of suppliers and middle suppliers Availability is always there – Travelsheikh.com technology search ‘Best Available Option’ between mapped hotels from all suppliers Bookings are generated by thousands of Travel Agents across the world – Volume = Better Rates by suppliers Travel Agents using the same deposit for payments for all services Hotel choice trends of any geographic area is secured
- 20. How It willWork? B2B Travel Agents are too limited to outsource hotel content from outside their geographic region (financial – exposure – education) B2B Travel Agents are used to book the same hotels for their clients based on their experience or offers from suppliers (based on the suppliers preference), without having the chance to discover better options Hotel’s whole sellers are more focused on certain areas for their volumes The wider the range, the better and new destinations offered = more business for Travel Agents Competitive edge in offerings with the OTA’s, available for the travel agents
- 21. Who Can Makeit? Travelsheikh.com solution, being one of the most advanced in the market, has all the features and connectivity technology to make it happen Travelsheikh.com with all the Ancillary services (Airlines, Car Rentals, Insurance, Packages, Excursions, Transfers…etc.), opted as the best solution that offered all from one portal without the burden of heavy financial commitments (no minimum access) The fact of having both B2B and B2C, gives a trusted approach for the clients and the travel agents in terms of full hotel data and the comparison of price between the 2 channels – with the margin secured for the agent.
- 22. Car Rentals Packages Excursions/Activities Transfers Travel Insurance AncillaryServices in the B2C and B2B Markets B2C B2B Direct with CR Companies Auto Holidays Car Trawler Direct with CR Companies B2C B2B Emirates Holidays Expedia Tempo Holidays Emirates Holidays B2C B2B B2C B2B B2C B2B Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com Travelsheikh.com
- 23. Competitors? A view ofthe main Travel Players in the MENA market in comparison with Travelsheikh.com yamsafer.comFlyin.comBookings.comTravelsheikh.com Expedia.com Cleartrip.com B2CB2CB2C/B2BB2C/B2B B2C B2C Airlines Hotels Car Rentals Packages Excursions/Activities Transfers Travel Insurance Hotels Airlines Hotels Hotels Airlines Hotels Airlines Hotels Car Rentals Packages Excursions/Activitie s Cruise
- 24. Why B2B ismore Vital Than B2C Today? – 1 - B2B Majority of Travel Agents are SME’s with limited Financial strength Ratio between IATA and None-IATA agents is 20-80 Travel Agents IATA access is becoming more expensive and hard to obtain Travel Agents will always have a market in the under-developed countries due to many cultural and financial reasons Many Countries around the world are still not served by IATA based on economical, security and instability status Travel Agents are usually with little education, therefore less exposure to the world Travel Agents are more involved in the day to day business than in development of their business and prefer to keep the comfort zone of what they know. Travel Agents have more power and trust in their local markets than OTA’s Many Services/products are not available Online e.g. charter operation, Pilgrimage, Events…etc., where travel agents can always win back clients in cross selling!
- 25. Why B2B ismore Vital Than B2C Today? – 2 - B2C Credit card in the region and many other regions, is still immature E-commerce even In the USA – The most developed 20 years ago, is still at 60% penetration Client’s profile s for B2C is yet very little (credit cards availability, Internet Savvy, Online Payment Trust, Language Barrier and understanding of their needs in terms of travel) Travel Agents – even if higher in rates – still get the biggest chunk in credit facilities for their clients Airline, Hotels and other services mixed prices and conditions makes it harder to self book and be exposed to hidden penalties and other charges Clients are using OTA’s to understand the price only, yet opt to book from their agents eventually (Expedia are making more money in advertising than actual sales)
- 26. B2B Until B2Cmatures…. Travelsheikh.com main strategy is, accumulating more volumes from the B2B markets in order to be competitive eventually in the B2C market. With the assumption that B2C penetration in the region will match what is USA B2C market in 20 years today, still at 60%, The B2B Model, 20 years from Today will still have 40% market share in our region, again with the assumption, the region develop steadily amidst the political and economical turmoil