pitch deck 9-20
DESCRIPTION
TRANSCRIPT
locked fare, flexibility, peace of mind
Ryan Houck Brandon Collins
Jack Connor
71000
2000
1weeks before departure
Dubai -- New York
Lowest Fares
Leaving Aug 18thReturning Aug 24th
pric
e (U
SD)
71000
2000
1weeks before departure
Dubai -- New York
locked-in airfarepric
e (U
SD)
• Choose a range of possible departure dates
• And/or choose a range of possible return dates
Source: Forrester, USTOA
DomesticEconomy Leisure
InternationalEconomy Leisure
• 10% cancellations or no-shows
• 1.7% of travelers buy insurance or pay change fees
• $1.2 billion US market
New York -- Paris, France
Brian pays holding price: + $30
$600(lowest market value)
$500(quoted steadyfare)
$450(lowest market value)
steadyfarepurchased
graph not to scale
ticketpurchased
steadyfare pays ticket price: - $600
Brian saves: $70
Brian pays steadyfare: + $500
Benefits:
• Saved money on ticket
• Provided extra time to plan trip
• Peace of mind while planning
Los Angeles -- Bali, Indonesia
• Current low price: $950
• Economy ticket range: $950 - $1100
• Offered steadyfare: $1000
• Holding price: $40
Jessica pays holding price: + $40
$950(lowest market value)
$1000(locked-in airfare)
$975(lowest market value)
steadyfarepurchased
graph not to scale
ticketpurchased
steadyfare pays ticket price: - $975
Jessica pays $40
Jessica pays steadyfare: + $975
Benefits:
• Provided flexibility to determine schedule
• Peace of mind even with a demand-ing work schedule
• Never had to pay change fees!
steadyfare purchase
no ticket purchasedticket purchased
price movesabove locked fare
cash effect: cash effect:
cash effect:
price remainsbelow locked fare
+
+
-
steadyfare purchase
no ticket purchasedticket purchased
price movesabove locked fare
cash effect: cash effect:
cash effect:
price remainsbelow locked fare
+++
+
-
steadyfare purchase
no ticket purchasedticket purchased
price movesabove locked fare
cash effect: cash effect:
cash effect:
price remainsbelow locked fare
+++++
++
--
steadyfare purchase
no ticket purchasedticket purchased
price movesabove locked fare
cash effect: cash effect:
cash effect:
price remainsbelow locked fare
+++++
++
-- ++
steadyfare purchase
no ticket purchasedticket purchased
price movesabove locked fare
cash effect: cash effect:
cash effect:
price remainsbelow locked fare
+++++
+++
--- +++++
Algorithm analyzes historical data and prices on upcoming flights to estimate:
• Seasonality trends
• Variability in prices
• Rate at which prices change as the departure date approaches
• Estimates the probability that prices will increase above varying price levels
• Probability (and other factors) influences holding price
7 41000
2000
1weeks before departure
Dubai -- New York
brief steadyfare
extended steadyfare
pric
e (U
SD)
• Online travel agencies are the largest seller of airline tickets in the US market
• Airline tickets are typically a high sales, low margin product
Launched beta website
Interviews for travel and tech websites
In process of filing for provisional patent
First steps towards integrating with major online travel agents
SeedStartup Fall 2012 Spring 2013 Fall 2013
- build prototype - SF public launch - pilot test with OTA - license to multiple OTAs
- market potential - direct and licensed sales channels
- market expansion analysis
- new market launch
- product viability - customer preferences
- launch OTA channels
- expand industries
Inflow:
Outflow:
avg. revenue / steadyfare $30avg. margin / steadyfare $15required reserve / steadyfare $100potential on-site sales 200potential OTA licensed sales 5000
salaries (1-2 new hired) $20k-30kmarketing $4k-5kservers $1kworkspace $1.5k-2.5kmisc. software / services / travel $2.5k
• Size of round: $600k
• Provides required capital requirement to support steadyfare sales
• Funding drives steadyfare sales for next 12 months
Brandon Collins
Jack Connor
Ryan Houck
+1 . 510 . 502 . 5712 (USA)+971 . 56 . 7249037 (UAE)[email protected]
+1 . 847 . 682 . 8273 (USA)+971 . 56 . 7248963 (UAE)[email protected]
+1 . 559 . 389 . 7888 (USA)+971 . 56 . 7249036 (UAE)[email protected]
