Sa Trails
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Transcript of Sa Trails
THE PROBLEM
International travelers lack
AccessThe destinations they visit lack
DataGaining insight into fragmented, dispersed markets
is costly and time consuming.
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