Deck_Hotel... · platform, a mobile payment wallet for a major international telecom company and a...

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INSIDER PRICING IS HERE Pitch Deck July 2018 | Confidential www.hotelinsider.com

Transcript of Deck_Hotel... · platform, a mobile payment wallet for a major international telecom company and a...

Page 1: Deck_Hotel... · platform, a mobile payment wallet for a major international telecom company and a mobile banking system for a Latin American non bank financial institution. Between

INSIDER PRICING IS HERE Pitch Deck July 2018 | Confidential

www.hotelinsider.com

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You paid 8-20% too much for hotels your whole life….

Insider prices will change that!

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K E Y H I G H L I G H T S

DISCOVER RESERVE

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FREEMIUM MODEL Use it for free or become and Insider for

4.99 USD / month to unlock the full potential:

1 Find your hotel 2 Book with best

price guarantee 3 Get 8-20% cash back4Enjoy destination

lika an Insider

World’s best hotel cashback program Insider perks and upgrades Insider destination services

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• Business plan to use technology and concept to eliminate the traditional travel agent

• Superior pricing of 8.8-17.6% less than any other hotel reseller and the hotel’s own website

• USD 10 million technical platform developed for USD 2 million

• Operational cost break-even at 10 000 subscribers

• Projected cash flow break-even 3Q 2019

• Blockchain based booking and settlement system for hotels under development

• 5 senior in-house developers / 12 person strong content / support team in Manila. Sales / digital marketing team Barcelona

EXECUTIVE SUMMARY

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0103VISION

Our vision is to have THE most competitive hotel prices through unique cashback program and hotel partnerships

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K E Y H I G H L I G H T S

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BUSINESS PLAN

Use technology to transform professional travel agent rates accessed via global distribution systems (GDS) to “consumer friendly format”

Offer 88% of the received sales commission from hotel as a cash back to the traveler, in effect making him/her the travel agent

Offer travellers direct access to “commission free” (net prices/wholesale) travel agent rates that are not available in any other channel

Use technology to reduce settlement costs related to hotel bookings by offering savings both to the consumer and to the hotelier

Superior visual presentation of the hotels

1 Eliminate need of traditional Travel agent 2 Smart transfer

of savings back to traveller3 B2B sales

and free test periods 4 Consumer

viral conversion stategies5Algo based

selection of GDS rates

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Eliminate the traditional online travel agent

Start with direct sales to small and medium sized corporations in the Nordic and expand thereafter market by market matching growth in hotel portfolio

Offer consumers free test periods and seed viral campaigns in various local areas and organisations globally

Use analytics of consumer data to sell packages to corporations both as a corporate travel savings product but also as a “perk” for staff for private travel

Build a global network of affiliate partnerships through revenue share

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• World’s best hotel cashback program and access to net rates

• “Always” 8-20% less than the hotel’s official website prices

• 10 000 hotels, +150 new hotels added weekly

• Redeem cashback to bank account or PayPal (debit card coming in the U.S.)

• Responsive web / iPhone app

• Integrated dynamic referral program

• Public launch July 2018

PRODUCT HIGHLIGHTS

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• Equity issue of GBP 0.63 million

• Funding before large road show IPO offering planned for 2019

• Price per share SEK 0.80 per share Pre-money valuation SEK 23.8 million

• 9.3 million shares offered / 25%

• 29.75 million outstanding shares today

OFFERING

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Thomas Steen CEO and Founder • MBE, MScFinance• 25 years business experience• Experience from 2 successful start-ups • Extensive experience with advanced

quantitative modelling• Passion for design / UX

Nastassia Laurusiuk Head of Accounting • Masters of Science Accounting• 9 years business experience • Extensive experience with

accounting, administration and business development

Syed M. Shah Senior front-end/iOS developer • Bachelor of Computer Systems

Engineering• 8 years software development

experience• Extensive experience with iOS

enterprise apps development, and iPhone/iPad apps

Anna Rysicka Senior front-end/web developer • Bachelor in Computer Engineering• 6 years software development

experience• Experience with various front-end

development projects, HTML5/java expert

Dawid Rysicki CTO - Lead Developer Hotel Systems • Master of Computer Systems Engineering• 10 years software development experience• Extensive experience with

back-end systems. NEO4J graph data-base expert

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TEAM

Shella Butiong Hotel production & Support • Bachelor of Science in Tourism• 14 years experience from the hospitality industry • Various hotel front-end experience and travel

agent experience

KEY STAFF

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John C. Abbott Director

John C. Abbott, age 48, is an entrepreneur and investor with a background in Mergers & Acquisitions. John is a co-founder and director of BrasPay, Inc., a developer of FinTech software solutions.

Between 2007 and 2016, John served as CEO and later as Chairman of The Meet Group (NASDAQ: MEET), a consumer internet company. Under John’s tenure, MEET consolidated a series of ‘meet new people’ social networking properties,including MyYearbook for $100MM and Skout for $55MM, resulting in market capitalization increase from approximately $13MM to $325MM or a 733% increase on a per share basis.

John began his career at JP Morgan, where he worked in the Latin America Mergers & Acquisitions area between 1992 and 2005 in New York and São Paulo.

John holds an AB in History from Stanford University and an MBA from Harvard University.

Song Kim Director

Song Kim, age 45, is a FinTech and blockchain/ cryptocurrency expert with over 20 years of software engineering experience. Since 2012, Song has served as co-founder and President of BrasPay, Inc., a developer of FinTech software solutions. Song’s recent FinTech projects include development of a cryptocurrency-based betting platform, a mobile payment wallet for a major international telecom company and a mobile banking system for a Latin American non bank financial institution.

Between 2009 and 2012, Song was Founder and CEO of Dotblu, Inc., a group purchase platform, acquired by BuyWithMe (Gilt Group). Previously, Song was co-founder and Director of Engineering at Loyalty Lab, Inc, acquired by TIBCO in 2005.

Song holds a BS in electrical engineering from Kettering University.

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TEAMDIRECTORS

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new hotel rooms under construction per February 2018

GLOBAL MARKET OUTLOOK

1.6 M 4% 91%annual growth in overnight

stays 2016-2019of international travellers rely

on their Smartphone

global tourist trips in 2019 from 0.9Bn in 2014

1.4 Bn 2.7 Tr 83%USD sales of travel products in 2019, CAGR +4% from 2014-19

of Millennials place a premium on personalisation

0103M

ARKET

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Source: UNWTO, Ibisworld, Wikipedia, American Express, Euromonitor, Hotel Insider

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of all companies travel more than 5 times per year

BUSINESS TRAVEL

+50% 56% Priceof all companies book their

trips themselvesIs the most important factor in

selecting travel agency

Source: UNWTO, Ibisworld, Wikipedia, American Express, Euromonitor, Hotel Insider

days is the average business trip

2.3 10 of 10 88%like a good deal of employees would be happy

to get cash back on their business travel

0103M

ARKET

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1 free night per

No

Yes

Selected hotels

Free night

Platform only

Members

* First year incentive is 3x points if downloading of Expedia app = 4.3% first year payback.** 0$ rollover, points expire after calendar year*** 8% when using Orbitz credit card, Platinum member, LIMITED to eligible hotels

Source: Hotel Insider research, Road Warrior Voices: Best Reward Program Survey, April 2015.

SUPERIOR REWARD PROGRAM

HOTEL INSIDER

Reward

Net prices

Price guarantee

Coverage

Cash back value

Redemption

Condition

10%

No

Yes

Selected hotels

Discount

Platform only

Members

1.4-1.8% *

No

Yes

All hotels

Discount

Platform only

Members

3.7%

No

No

All hotels

20 points = 1 $

Platform only

Members**

3%***

No

No

All hotels

Discount

Platform/redemption

Members ***

10 nights8-20%

YES

YES

ALL hotels

1 point = 1 $

Bank / PayPal

Subscription

ONLY ONLY

(Cash)

0103COM

PETITION

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A subscription model allows for a different market opportunity..

COMPETITIVE ADVANTAGES

8-20% cash back- net prices. Price positioning always under competitors

Bonus services- 24/7 digital global restaurant booking service. Better services

Discover and share features- Discover destinations, share favourites, travel plans and more. Engagement

Beautiful integration - User friendly and seamless UX on both web and app. Easy and fun to use

Benefits for provider- Less dependency and social driven client targeting. Growing ground for partnerships

Versatile platform- Highly scalable and adaptable. Plug and play integration for third party providers

Prices

Services

Engagement

Seamless UX

Loyalty

Innovations

Partnerships

Transparency

COMPETITION

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K E Y H I G H L I G H T S

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WAY FORWARD

Bridge equity issue before larger IPO roadshow

Launch of Web July 2018, iOS app August 2018

Viral marketing campaign with KICKOFF code(s) with EUR 15 deposited cash points (can only be used for subscription, 3 months free service).

Affiliate marketing - unique invite codes spread via large distributors

Target is to achieve minimum 100 000 free sign-ups and 10 000 paid subscribers before end of 2Q 2019 (cash EBITDA break-even)

1 Bridge equity issue 2 Viral marketing

program3 Spread sale roadshow crowdfunding 4 Listing

2019

Corporate sales to Sweden starts end of August with newly recruited B2B team

First signed affiliate partnerships agreement starts end of August.

Expand corporate sales team after funding is secured. Key focus is Sweden and Norway initially. U.K. and Germany next.

Planned IPO/Listing 2019, dependent upon traction

Corporate U.S. market will be targeted once B2B sales traction is established in core European markets.

5Launch June 2018

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FINANCIAL PROJECTIONSRPOJECTIONS

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Numbers in EUR

P&L 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020

Business subscriptions 1) 800 5 300 11 600 20 850 27 650 39 050 50 750 62 450 70 850 82 550

Consumer subscriptions 2) 0 125 545 1 094 1 551 2 233 2 914 3 879 4 843 5 808

Sales 3) 48 333 121 157 216 843 327 303 421 162 555 797 641 229 729 311 806 200 873 433

Salaries 70 465 105 747 146 710 207 432 189 653 225 227 221 831 231 535 237 018 242 130

Marketing costs 5 450 9 916 11 768 11 251 14 484 14 484 21 332 21 332 21 332 21 332

Other operating costs 28 056 28 956 28 956 28 956 28 956 28 956 40 656 40 656 40 656 40 656

Total operating costs 103 971 144 619 187 434 247 639 233 093 268 667 283 819 293 523 299 006 304 118

EBITDA -55 638 -23 462 29 409 79 663 188 069 287 130 357 410 435 788 507 195 569 315

Net cash flow 4) -135 359 -168 594 -157 123 -117 868 -20 462 58 599 163 879 272 256 358 663 462 784

1)CorporatepackagessoldonlytobusinessesintheNordiccountries,averagepricesfromEUR19-49peryearpersubscription(rebateof59-84%vs.consumerprice)

2)Consumersubscriptionshaveanassumedconversionrateof3-5%forregistereduseraccounts.Viralreferralgrowthassumptionisest.at2%

Marketingbudgetispurposelylowforthisprojectionasitwillbeadaptedonceuseracquisitioncostandconversionratesareanalysedandfundingforthecompanyissecured.

3)Salesincludesoftware/licensefeestoathirdpartythatissecuredona3yearcontract.

4)SomedevelopmentcostsarebalancedasimmaterialassetsaccordingtoIFRSstandards.

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SAMPLE PRODUCT SCREENS

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AlphaBeta

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Browse destinations for inspiration Will be expanded with “Deals” (best rebated prices / Highest cashback)

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PRODUT

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AlphaBeta

PRODUT

Booking steps with easy access to all important details and handling of the booking

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AlphaBeta

Destination explore page with a variety of venues and 24/7 table reservation service for Insiders

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PRODUT