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GoMe.com. Team Young Money Skyler Dougherty Elie Ballas Kimi Lee Jay Levine Steven Greitzer. Concept. The idea came from… Travel this summer (during tourism offseason) in Costa Rica Familiarity with “Private Sale” industry and Hotel industry Market Opportunity
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GoMe.com Team Young Money Skyler Dougherty ElieBallas Kimi Lee Jay Levine Steven Greitzer
Concept • The idea came from… • Travel this summer (during tourism offseason) in Costa Rica • Familiarity with “Private Sale” industry and Hotel industry • Market Opportunity • Hotels have empty rooms, airlines have empty seats, tourism industry suffers in offseason • Travel is appealing, yet expensive and cumbersome to plan • Solution • Give hotels, airlines, and tourism businesses the opportunity to cut deadweight loss and price discriminate while providing customers with very cheap package-deal rates. • Create meaning for both sides of the market – tourism industry and travelers • Business model similar to Groupon, which has proven to be quite successful, yet targeting a different industry
Customers • Age 21-35 • Enthusiasm for travel • Largely single – disposable income • More inclined to travel impulsively • 21-35 age group encompasses over a third of total leisure travels in the US • 21-35 age group spends more on entertainment, dining, and alcoholic beverages than any other age group • Our customers like to travel, yet find it too expensive and hard to plan. They need access to cheap travel, hotel, and activity rates. • We will reach our customer through: • Search Engine Optimization • Search Engine Marketing • Ads on Affiliated Websites • Purchasing Mailing Lists • Reference Incentive • We will understand our customer through: • Social Media Quizzes – “What is your perfect vacation?” • Personalizable preference profiles on our website Source: Tourism Economic Development Council
Market • We are targeting the tourism industry, both domestic and abroad. • Domestic tourism market: $459 billion (2006-2009) • US tourism expenditures abroad: $333 billion (2006-2009) • The tourism market has been steadily growing since the recent recession, and is predicted to continue this growth. • Our target market will continue to expand • One limiting factor to the growth of the tourism market is the high cost of travel. • Our entrance into the market will address this by offering affordable travel, thus expanding the reach and size of the market. Source: data.un.org
Business Model • Scarcity, exclusivity, price motivate customers to buy • Incentive for businesses – influx of revenue, develop repeat customers, breakage, online reviews, no risk • Revenue • We take a portion from the deals • Future – ads on our site, premium for hotels/airlines to be featured • Costs • Consumer acquisition – advertising, buying lists, reference incentive • Staff – site maintenance, deal negotiators, etc. • Capital – servers, office buildings, etc. • We expect to be profitable within a year. • Scalability
Competition • Other “Private Sales” Companies • GiltGroup Jetsetter, Giltgroup City, LifeBooker • Potentially Groupon • Travel Compilers • Kayak, Bing, Expedia, Orbitz, Priceline, Travelocity, Yahoo! Travel, etc. • Large share of market, steady sales, slow growth. • Barriers to entry in the market • These existing travel companies have acquired traction with customers • Airlines and hotels may have existing contracts with other travel-compiling business. • As the Private Sales industry has proven profitable, and travel is steadily increasing as the economy recovers, now is an optimal time to enter this market and compete with these companies.