Platform for personal travel automation

Previously, the entrepreneurs from this startup created the No. 1 platform in the self guided tour market with ~20,000 audio tours in 3,500 cities and 3,000 museums around the world in 75 languages. Millions of people travel with them every year. They won that market due to their B2B2C strategy and ability to involve thousands of travel and culture experts in creating (on their own) digital content for their platform. Now their goal is much more ambitious – to become the leader of the $100 billion Tours & Activities (T&A) market.

Today’s leaders (GetYourGuide, Klook, Viator, etc.) have succeed in automation of communication with travel service providers. But the services themselves remain offline and therefore expensive. The reason is that no one knows how to digitize the knowledge of local experts on a global scale and embed it in a convenient digital product.

First the entrepreneurs made a leader in the audio tour segment and they will now leverage their experience and existing network of 50,000 culture and tourism experts. They will enable them to earn by creating digital guides, itineraries and providing online support to travellers. The business model is a combination of free and paid services in B2B, B2C and B2G segments. The startup is inviting investors with a €2M check for 1 year and a 100% IRR to conquer the world of automated travel. There are several ways how the startup offers their product/service, depending on the type of customer:

– For travelers: They have a web-site and mobile Apps (will be launched in Jan 2023).

– For content providers: The startup has web CMS to create their audio guides, itinerary, etc.

– For content channel partners (3rd parties, who integrate/distribute the startups’ content in their own Apps/Webs) the firm has API.

Business model:

Their business model consist of the following revenue flows:
– B2B2C Content licensing: They license their content (audio guides, travel itinerary, local tips, etc.) to 3rd party services such as Maps, Navigators, Voice assistants, InVehicle Infotainment, etc. Their content allows 3rd parties to improve their user experience and introduce new monetization models.
– B2C subscriptions: The startup sells subscriptions to access content in their own App&Web.
– OTAs Affiliates: When they propose travel itinerary to their customer, they allow to buy all required tickets/accommodations in one click and get affiliate commissions from OTAs.
– Local Services fee: The startup helps local travel experts to sell their services (e.g. guided tours, photo shooting, car transfer etc.) to their customers and get fee for this.
– There are several other monetisation models, which allow the firm to earn money on content creation.

Customer type / profile:

B2B2C

Preferable investor type:

Angel Investor, Venture Capital, Incubator/Accelerator, Strategische Investeerder

USP’s:

The startup differs from their competitors in that:
– They successfully involve tens of thousands of travel experts around the world to create great content for their platform on their own.
– The startup creates a cheap digital product in the traditionally expensive analog market and take away its “long tail”.
– They do not lock customers on their product, but rather implement the service through B2B2C partners, getting millions of their users without marketing costs.

Capital amount needed:

€2.000.000,-

Investment need:

– €800.000,- to bring the product to the market: each new feature allows the startup to sell more products to already attracted clients, increasing LTV with the same CAC.
– €740.000,- for attracting B2B2C partners: major B2B2C partners are leveraged to bring the product to millions of new users, reducing CAC.
– €460.000,- for marketing: each involved expert brings the startup energy and knowledge, increasing the value of the product.

Sector:

Leisure, Mobility, Travel, Platform

Phase:

Series A

Number of founders:

5

Current number of employees:

7

Experience founder(s):

Previously the founders have created the world leading platform in the self guided tour market with tens of thousands of content providers and millions of users. For 10 years, they have gone through all stages of development, hence they have vast experience, circle of acquaintances and motivation to change the world of travel.