Sa Trails

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Transcript of Sa Trails

Tourism is a Concentrated Industry

THE PROBLEM

BUT

Emerging Markets are Fragmented

THE PROBLEM

International travelers lack

AccessThe destinations they visit lack

DataGaining insight into fragmented, dispersed markets

is costly and time consuming.

Access and Data lead to

Sales

THE MARKET

THE MARKET

Tourism accounts for over 9% of

Global GDP

In 2013, 1.035 billion international arrivals spent

over $1Trillion at the destinations they visited.

THE MARKET

Our initial market:

South America

• 26,000+ Hotels,

• 11.5MM international travelers

present every day

• Attributes $385BB of GDP to

Tourism

THE SOLUTION

Travelers spend valuable time learning about the destinations that they visit

We’re in just the right spot to make that knowledge actionable

THE SOLUTION

HOW?We turn internet access into a

powerful communication gateway; for travelers, our

clientsand our advertisers.

THE SOLUTION

We make the internet work for hotels and travelers and pay for it by capturing affiliate revenue from existing purchases.

We’re a profitable company without selling a thing.

WHY SA TRAILS

In exchange for use of our software, hotels allow us to advertise to their guests, and our position on local networks allows us to benefit from the travelers’ ecommerce activity.

WHY SA TRAILS

By providing a free software suite, built and maintained in Austin, Texas, and distributed via low cost and locally available hardware, to hotels, hostels, and resorts – we create a direct channel to each traveler and the ability to completely control their internet experience.

WHY SA TRAILS

We know travelers, specifically, how to identify and enablethose that we can turn into more than tourists.

We tap a limitless pool of travelers to create a multi-level direct marketing force of Traveler Salesmen managed by regional directors, and

supported by local customer service teams.

WHY SA TRAILS

The same network of Traveler Salesmen links us to advertisers already targeting them through traditional means. At low cost, we convert their

ads to digital content, improving their ability to reach this lucrative market and convert on their existing ad spend.

INDUSTRY OVERVIEW / DYNAMICS

HOSPITALITY = FRAGMENTED

ADVERTISING = TRADITIONAL

COMPETITION = OFFLINE

DISTRIBUTION POTENTIAL = UNTAPPED

MARKET SIZE

Over

4BB DaysOf international travel received per year

Conservatively

$20BBIn existing ad spend within the industry

REVENUE

We have generated $.30 per user, we believe $1.60 per guest at each client property is reachable within a year

+ + =

RISKS

RETENTIONWhat happens if nobody finds value in our

communication tools?

What service would you like to see at Ideal Hostel?

We pay them!Our model leaves plenty of room for

revenue sharing.

COMPETITION

Absence of leveraged connectivity

Offline advertising

Large networks engaging in free internet for widespread branding

Paid subscription services that focus on WiFi performance management

RISKS

CAN WE MANAGE THESE NETWORKS?

CAN WE FIND EFFECTIVELY SOURCE LOCAL ADVERTISERS?

CAN WE ESCAPE BEING EATEN?

IS YOUR SYSTEM CAPABLE OF SUPPORTING A NETWORK AT SCALE

Defensibility is at the core of our systemalong with our software, market entrants cannot

beat our boots on the ground.

THE OUTLOOK

We are building a company for sustainable profitability.A company with a high floor, and an even higher ceiling.

Conservative outlook assuming income from only affiliate and local ad sources, limited to the South America market

THE OUTLOOK

It is notable, however, that we partner with the largest Online Travel Agencies, a group of companies renown for their aggressive growth through acquisition.

Specifically, these companies have pursued start ups that have united disparate markets within a single network, precisely our mission.

THE ASK

We have already received $650,000 of the $1,000,000 ininvestment capital we are seeking to fund our operations.

We expect this will allow us to reach positive cash flow byQ1 2015 and be profitable next year.Use:

• Fund current operational expenses• Expand to five sales regions by end of 2014• Fill additional software dev position

Terms:• Pre-Money valuation $3mm• Class A preferred shares with liquidity preference, otherwise equal to common stock

Company Structure:• Texas based LLC, headquartered in Austin• Existing sales offices in Colombia, Argentina, and Costa Rica• 17% of a 22% employee options pool remains unassigned