hipexplore inc. investor deck q1 2017
TRANSCRIPT
Dream & Inspire Planning En Route Sharing
WHAT WE OFFER We offers Globetrotters a myriad of extraordinary destinations for FREE.
Attractive travel Companion compatible to all devices “Speed Wins” The Platform
32%
21%
16%
15%
9%
2% 5%
OTA(ONLINE TRAVEL AGENCY)* TRAVEL INFO* ACCOMODATIONS* AIRLINE* RAIL/AUTO/BUS* DMO (Destination marketing organizations)* OTHER*
DIGITAL TRAVEL SALES*
OPPORTUNITY Massive and growing $1.3T global market opportunity. Content & community drives brand loyalty and influence on travel commerce. Users looking for one-stop experience & Mobile enhances long-term growth opportunities
PROBLEM The online Travel & Hospitality industry is overwhelmed with booking platforms causing small secluded business often disappear in the mass of competition. Marketers don't have the knowhow to keep updated on constantly moving consumer trends in the world of online advertisement. Travel is changing. People seek authenticity, and a connection to local culture when they travel. However, the experiences that have traditionally been offered to travelers are, in our opinion, undifferentiated and unfulfilling, and discovery is broken. Consumers seek Advice to fulfill their travel expectations. Way to often consumers chose the secure destination when travel planning. The planet is getting more accessible and travelers need to challenge and learn while exploring.
SOLUTION
HipExplore are an online travel platform that connects travelers with locale marketers, enabling them to explore authentic experiences. The quality of listed Businesses is secured by an extreme verification process enabling sophisticated globetrotters access to a unique portfolio of boutique businesses on a shared platform. Focuses on creating and distributing valuable content that is relevant for the target audience. Leveraging partnerships to distribute content while building awareness and ultimately attracting more visitors to a destination. HipExplore will take members on a journey through the sorts of places that make travel what it should be - exciting and rewarding.
HipExplore differentiates from the standard travel community. Besides securing the outmost amazing travel destinations to our community. Style, distinction, warmth and intimacy are key words in our content/listings which appear to attract a set of consumers looking for something different to fulfill their dreams. We offer an personalized network service to the local Business and become a respected partner. We serve the whole travel leisure industry and doesn't focus on one specific sector. Our main markets are Hotels, Resorts, restaurants, experiences, shops and beautiful destinations that we think is worth recommending. Local business are not standardized, they are individual and unique. Instead of generating revenue concentrating on the final booking or reservation fee we focus on making the brand/company stand out while engaging their customers on our social platforms with the goal of increasing their popularity.
ADVANTAGES
MISSION We seek out the little gems that offer genuine, one-of-a-kind experiences - it could be lashings of luxury at a palatial mansion or barefoot bliss on a desert island. You could crave the bright lights of the big city, or long for star-lit nights at a remote resort. Bring us your wish list and we’ll provide you with a list of places that tick all the boxes. WE’RE AN END-TO-END unique TRAVEL Platform
There are one billion travelers annually, representing a $7.6 trillion industry, roughly 10% of the global GDP. Our primary addressable market of digital travel sales spend $533* billion in 2016. We aim to capture a fraction of this addressable market. Primary target is enabling travelers (DemandSide) to unleash the full potential of every trip. There is a lot of marketing hype surrounding the changing needs of different generations of consumers. When the surface is scratched, however, HipExplore target chic Global explorers, business traveler, family groups, midlifers in their early 20s to mid-50s, with mid to upper income averages & unique needs of experience. Our second target is the tourism & travel sector (SupplySide) including everything related to leisure travel and vacations such as Hotels, Resorts, Experience, Restaurants & Destinations. The company exclusively addresses individually managed business, which have a unique identity and can offer authentic experiences. High expectations with regards to service, atmosphere, architecture, location & style.
TARGET
* Custom Survey Qualifications; Age 18+, Live in UK, US or Canada (each country required for each market being analyzed), Booked travel online within the past 6 months Survey yielded: United Kingdom: 817 total completes, United States: 805 total completes, Canada: 815 total completes, Fielding dates: March 14 –23, 2016
ALTERNATIVE
There are numerous online travel leisure booking websites. In the online area HipExplore occupy, multiple types of competitors appear. The main competitors include DesignHotels.com & Small Luxury Hotels which together have around 1,000 member hotels (not including duplicates). In recent years, a number of online booking portals have emerged which focus explicitly on boutique hotels. These in particular include Chateau Relais, Tablet Hotels, Mr. & Mrs. Smith and Splendia. The other online portals, such as expedia.com and booking.com, should also be regarded as indirect competitors of hipExplore at the very least. The World's largest travel site Tripadvisor has no limit and almost No restrictions on their content and ultimo 2016 they had 690k listings. TripAdvisor also manages and operates websites under 24 other travel media brands*. *AirfareWatchdog, BookingBuddy, Citymaps, CruiseCritic, Family Vacation Critic, FlipKey, The Fork (including lafourchette, eltenedor, IENS and Dimmi), GateGuru, Holiday Lettings, Holiday Watchdog, HouseTrip, Independent Traveler, Jetsetter, Niumba, Onetime, Oyster, SeatGuru, SmarterTravel, Tingo, Travel Pod, Tripbod, VacationHomeRentals, Viator, and VirtualTourist
Digital Users / Popular Regions
61% 13%
12%
7% 3% 2% 2%
*EUROPE ASIA* Latin AMERICA* US* AFRICA* AUSTRALIA & NEWZEALAND* CANADA*
27%
11%
14%
31%
9%
3% 5%
33%
18%
26%
11%
3% 2%
7%
TARGET GROUP 50
258
30
UnitedKingdom* UntedStates* CANADA
239
1500
148
75%
60%
70%
2400
8700
806
DIGITAL USERS CONSUMING (MILLIONS)
DIGITAL MINUTES EACH MONTH
(BILLION)
DIGITAL USERS CONSUME
TRAVEL CONTENT
MINUTES SPENT ON DIGITAL
TRAVEL CONTENT (MILLIONS)
10500
21000
10500
2100050000
27800
6300
21000
Admission fee Average * Annual fee average
DIRECT COMPETITORS
996 Listings 278 Listings 520 Listings 565 Listings
Smith Hotels $30M
DesignHotels $16.5M
Small Luxury Hotels $15.6M
Relais Chateaux $11.8M
REVENUE (US$) 2015
27%
63%
10%
75%
25%
70%
25%
5%
*AG
ENCY M
ERCH
AN
T* AD
VER
TISING
* OTH
ER*
INDIRECT COMPETITORS
Priceline $9.2 Billion
Expedia $6.7 Billion
TripAdviisor $1.4 Billion
REVENUE (US$) 2015
STRATEGY HipExplore is implementing a niche strategy. A high-quality portfolio of members resulting from the company's strict selection criteria is to be carefully expanded and supplied with targeted value-added services. The overall goal of HipExplore is to support the long-term profitability of its member businesses through the brand, network and tailored services, and to ensure that they stand out from the competition. In order to attract customers to the brand we have identified brand promises and emphasized our unique selling points. The two brand promises HipExplore is to uphold are a promise to enrich the travel experience and a promise to help travelers avoid disappointment or regret pertaining to travel-related decisions. In order to make good on these promises, HipExplore is emphasizing a few unique selling points such as a valuable loyalty travel program that gives access to one explore travel package that fits the UserProfile.* We already have a small solid group of followings on our Facebook, Instagram, and Twitter accounts with a total of 32.600 ultimo 2016. This should grow rapidly and further down the road the size of media impact will open doors for sponsorship deals and collabs with (fashion) lifestyle brands that seek to be associated with the unique hipExplore community.* Traditional advertising methods are not considered appropriate for the new global online community. It is all about communicating the brand rather than advertising. And the methods used to get this message across are changing. The focus is now on social networking. However, this is not just a fad, it is already considered a large market and one which can prove to be a legitimate way to conduct business for the travel industry. * Implementation planned ultimo 2018
SUBSCRIPTION WE offer handpicked marketers unique marketing PLANS
223326
1180901
2908151
5595962
9798869
2017 PERSONNEL 2017 Net Profit (299k)
2018 Net Profit (638k)
2019 Net Profit (92k)
2020 Net Profit 1MM
2021 Net Profit 2.9MM
FINANCIALS The revenue picture of HipExplore Inc. doubles as operations move into the second year and anticipate improving sales with 3.5% monthly. Growth is expected in sales and a proportional increase in operating expenses during expansion.
$365 ARPU $7300 LTV 5% Churn RATE
HipExplore assumes the following: Market growth projections for the travel industry and for luxury travel are accurate. National economic conditions, which are favorable to the travel industry, will not experience significant decline in the next three years. International conditions will remain favorable for our service.
TRACTION
KEY INSIGHTS
Travel content is widely consumed in each country, and all saw double digit growth year over year Mobile usage is growing, and in the US mobile engagement with travel content surpassed desktop Travel is a considered and time-consuming purchase, leading travel bookers to make hundreds of visits to travel sites Nearly one third of online travel bookers were influenced by advertising when considering more than one destination
OTA’s have the highest engagement across travel site categories, accounting for more than 30 percent of total site visits
Fully Developed scalable Platform and Social Network Growing rapidly Q4 2016 35K followers Partnership in place making sure listing details is fetched from TripAdvisor Established presence with millions of tourist marketers worldwide Millions of travelers has been inspired by our content Partnership with leading boutique hotel brands 1 year Research gathering content for beta Launch 2017
MANAGEMENT TEAM HipExplore has a world class management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. We are fortunate to have close relationships with several leading business advisors. Full management team is to be appointed after primarily seed Round.
Oliver Winston van VLIET CREATIVE/Fundraising
Manuela Fette (founder) Manager/Editor in Chief
Dennis Bachmann Developer/TechGeek
CURRENTLY RAISING
$500K 12 months of runway*
To achieve key milestones of scale.
CrowdNote $2M cap / 20% discount *Note: assumes average $74.000 of quarterly burn over the next 4 quarters
Disclaimer: Statements on this pitch are based on management opinion and are forward looking. They do not represent guarantees of the future results, levels of activity, performance or achievements
SEED