Transcript Our Business Strategies

STRATEGIC BUSINESS PLAN
iselectrooms.com
An Online Hotel Booking Portal
Objectives
The business proposal is to introduce our Company
and present our business plan to potential investors,
in seeking funding to finance our new start-up
business.
Our business plan will outline:What we do
Short & Long term goal
Our vision, mission & values
Risk management & Risk factors
Business model
Our management team
Competition
Financial position & analysis
Market analysis
Funding & use of proceeds
Business objective & strategies
Exit strategy
Who are we?
We are iclickmaster Pty Ltd trading as
iselectrooms.com, is an Australian registered
proprietary limited company.
What do we do?
We provides Online Travel Agency (OTA) services
for travellers worldwide.
To become a successful brand as the one-stop solution for all hotel bookings
for travellers & accommodation providers.
Be a recognised brand in the industry.
Be a profitable organisation.
Be an ethical organisation to provide a fair and rewarding workplace in the
society.
Relations – We focus and value on customer and supplier relations.
Open-minded – We are prepared and willing to accept changes.
Operations – We operate with a sense of urgency and discipline.
Motivation – Our passion in the industry is our motivation to move forward.
Success – We work to see results and success.
Business Model
iselectrooms.com is an online accommodation
booking site that offer great deals and special
discount from hotels, motels, resorts,
aparthotel, B&B, holiday rentals in over 90
countries.
Our main stream of revenue is generated from
the booking commission, affiliate programs and
advertising. We charge a flat rate of 12%
booking commission.
How we work?
Accommodation
Suppliers
Register & allocate room
deals to sell
Received booking
confirmation, modification
& cancellation
Check-in on the date
Payment after verified booking status
Verify booking status
Search, book & pay
Modify / cancel a booking
Received booking
confirmation, modification
& cancellation/refund
Travellers
Benefits to our Consumers
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Unique viewing experience
Unique content
Highly customizable
Easy to use
Community – we will build a strong community of
hotel guests’ review to allow user to share their
personal reviews that help other travellers to
make decision in hotel booking
• Security – our site uses PKC for encryption and
decryption
Benefits to Accommodation Suppliers
• Low cost distribution – no joining fee, on
commission basis only
• Easy-to-manage Extranet
• Full control of inventories
• Drive higher profitability – instant bookings, and
able to distribute up 12 months in advance
• Qualified buyers
• Global distribution
• Diverting Traffics
• Consumer Satisfaction
Market Analysis / Trends
Global online travel sales record healthy growth:
• Global travel and tourism sales up from
US$2,260 billion (2013) to US$2,840 billion
(2017)
• Healthy growth driven by rising number of
trips in advanced and emerging markets
• Global online travel sales accounted for
US$590 billion (2013), 25% of total sales
Source: Euromonitor International
Market Analysis (continue)
The spending behaviour of travellers varies
demographically, particularly in the emerging
markets, there is a huge opportunity for new
OTA entrant to penetrate the market, with its
latest innovative ideas and technology that suits
the new generation of consumer.
Capturing even a small portion of the large and
lucrative market of travel accommodation
distribution, could be a very successful business.
Competition
Our competition is intense and increasing, our competitors includes
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online and offline travel companies
retail travel agencies
tour operators
travel supplier direct websites and their call centers
consolidators and wholesalers of travel products and services
large online portals and search websites
travel meta-search websites
mobile travel applications
social media websites
group buying websites
As a new OTA entrant, we believe by increasing our brands awareness is a
critical component of our effort to gaining some market share.
In order to compete with our competitors, we need to build a truly global
travel market place, we will generate traffic and thus revenue through a
diverse customer base, and we would not target on a single customer or
small group of customers in particular.
Our Business Strategies
• 24/7 Customer Sales and Support
• Up to date information and online reservation
booking capabilities
• Effective segmentation and targeting of travellers
worldwide
• Differentiation of service capabilities and
effective online marketing
• Mobile Website & Mobile App
• Solid and fruitful strategic alliances
Solid and fruitful strategic alliances
(Our Business Strategies)
To add value to our business, iselectrooms will
establish partnership or alliance with the
following:
• Mobile Application owner or developer, who
specialized in Hotel Booking
• Affiliate Programs Marketers
• Airlines
• Hotel Management Specialists
• Public Transport Operators
• Travel Insurance
Marketing
(Our Business Strategies)
The combination of strong creative marketing and
partnerships with traffic generating sites is expected to
result in many visitors who will become loyal, repeat
customers.
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Guerilla / Grassroots Marketing
Internet Advertising
Effective Online Marketing
Online Affiliation
Internet Mutual Links
Strategic Alliances
Public Relations
Incentives
Web Site and Technology
(Our Business Strategies)
We will have to keep pace with developments
across the internet, mobile browsers and
tablets. iselectrooms is focused on ensuring
content on its site is simple and provides basic
information to enable customers to make
informed decisions and transact seamlessly.
Short Term Goal
We aim to achieve the following, in the next 1224 months to add value to the business.
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Increase accommodation suppliers
Establishment of 24/7 Call Centre
Industry recognition
Air ticket booking facility
Channel Manager System
Itinerary Manager Mobile App
Increase accommodation suppliers
(Short Term Goal)
iselectrooms.com currently has entered into
contract with 5,000 accommodation providers,
in 90 countries, to sell base number of rooms.
We anticipate another 200,000 hotels or more
will join onboard in the next 12 months and
this number will continue grow as the
Company progresses.
24/7 Call Centre
(Short Term Goal)
We will establish at least two 24-hour-a-day,
seven-day-a-week Call Centre for traveller
sales and support by telephone or via e-mail,
with the goal of providing superior customer
experience. For purposes of operational
flexibility, we use a combination of outsourced
and in-house call centers.
Industry recognition
(Short Term Goal)
We are planning to join the ATAS (Australian
Federation of Travel Agents) and IATA
(International Air Transport Association),
which will provide a strong platform for
consumer recognition of professional conduct
and business ethics, and can strengthen a
business reputation and value proposition to
the customer.
Air ticket booking facility
(Short Term Goal)
We intend to integrate air-ticket booking
facilities on our booking portal. The flight
booking feature will help to attract wider
target audiences to our business, and thus will
add significant value to our business. Booking
commission generated from sales of air tickets
will be an additional to our revenue stream.
Channel Manager System
(Short Term Goal)
The company has already developed a channel
manager system, Room Rates Connect, a distribution
platform provided for Hotel Suppliers to manage and
distribute their inventories to various OTAs.
This product will add to our revenue stream by
receiving a monthly subscription fee from the users.
The major target audiences would be the existing and
future suppliers of iselectrooms.com.
We had carried out 50% of the development work, and
the project is temporary placed on hold now due to
lack of resources and funding.
Itinerary Manager Mobile App
(Short Term Goal)
Developing and integrating a unique Itinerary Manager Mobile App.
The concept of this App is tailor made to suit on-the-move mobile and
tablet users, to plan and organise their itinerary. Unique features
including, function to allow upload and storage of air tickets
confirmation, hotel booking confirmation, transport tickets, vouchers,
offline walking maps, plan your trip day-by-day, weather forecast, best
sights recommendation, seamless sync your trip across all devices, also
included sync with Social Media. This Mobile App will be offered free
of charge download and use for iOS and Android users.
The App will complement our Hotel Booking site in a way which it
serves as a platform for cross-selling iselectrooms’s accommodation
booking facilities, and promote iselectrooms’ brand name.
Long Term Goal
• We will consider to spin-off the channel
management system and Itinerary Manager
Mobile App as individual products when mature.
• In the long-run, we need to ensure our ability to
maintain and increase the overall number of
traveller transactions flowing through our brand
and shared global platforms in a cost-effective
manner, as well as our ability to attract repeat
customers to our sites. Our long-term goal is to
explore and pursue the growth opportunities in
the emerging markets, especially in China, India,
Brazil.
Key Management Members (1)
Abby Loh
Primary Role: Co-Founder, Company Owner
Education: University of Melbourne & Swinburne University of
Technology
Abby is a passionate entrepreneur who started 2 companies in
Australia. She co-owned a Gibson Land Real Estate, Real Estate
Agency in Melbourne and Aparthotel Business named Grand
Harbour Accommodation, Melbourne. She was responsible for the
sales and online marketing the Aparthotel business. Abby has
worked as a Business Analyst and SAP Consultants for SCA Hygiene
Australasia, Sealed Air Corporation (US) which had stationed in
Australia, Hong Kong and China. She graduated from the University
of Melbourne with a Bachelor of Information & Technology and
current holder of an Australian Property Estate Agent Licence.
Key Management Members (2)
Lisa Loh
Primary Role: Co-Founder
Education: University of Melbourne
Lisa was a co-owner of Gibson Land Real Estate, a leading local real
estate agency and Aparthotel Grand Harbour Accommodation in
Melbourne, prior to joining iselectrooms.com. Throughout her
management in the both business as an entrepreneur, she ensured
overall smooth operation and profitability of the business. Before
that she was working at IOOF Fund, one of Australia’s largest
financial services companies, in the fund management department
focused on financial advisory. She also owns a Malaysia’s Property
Website – YouProperty.com.my. Lisa earns her Bachelor Degree of
Commerce from the University of Melbourne and also holds a
current Australian Property Estate Agent Licence. She is fluent in 4
languages, Cantonese, Mandarin, English and Bahasa Indonesia.
Our Skill Sets
The current skill sets within our team:• Project management
• Budgeting
• Online marketing
• Programming in PHP, HTML5, mobile applications (Android & IOS)
• System designing
• Graphic design
• Testing (as end users)
• Business development
• Sales
• Customer Services
• Supplier (hotel) relations
• Multi-Language skills
Upon obtaining its first round of funding, the Company will hire more staffs
to fully implement and execute the business strategies outlined in this
plan. The Company executive staff and operations will be in Melbourne,
Australia.
Risk Factors
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Intense competition in the industry
Changes in search engine algorithms or arrangements
Currency exchange
New technologies
Staffing
Fraud
Uncertainties
– local economic or political instability and threatened
– incidents of actual or threatened terrorism
– natural disasters or events such as severe weather conditions,
volcanic eruptions, hurricanes or earthquakes
– health-related risks, such as the Ebola, H1N1, SARs and avian flu
outbreaks.
– travel-related accidents or the grounding of aircraft due to safety
concerns
Our Risk Management
There will be risk and uncertainties that we may
encountered during our operations that we will
need to identify, assess, review, monitor,
mitigate and take action to control, in order to
minimise the impact on our business.
Depending on the events and circumstances, we
may choose to accept, reduce, transfer or avoid
the risk if applicable.
As a new company, we will gain experience in
managing operational, marketing and other
problems that will arise.
Current Financial Position
From the beginning of this project’s
development in early year 2012, launch of the
website in the end of year 2013, and to date,
we have been self-funding throughout the
process. We have so far invested
approximately $1.5million, to fund this project.
Financial Analysis
The projections for iselectrooms are quite favourable
assuming that the company is able to capture even a
small portion of its target market.
With a very conservative 0.5% market penetration rate
(based on the number of room night) projected in its
second year of operations, the company would be
profitable in that year with.
If the business continued with a very moderate growth
rate to achieve a 2% market penetration by the end of
the 3rd year of operations, the business would produce
a favourable income in its third year.
Sales Forecast
Conservative forecast based on revenue from booking
commission, affiliate program, and advertising banners and
ads only.
Funding & Use of Proceeds
In order to achieve this growth, the Company is looking to
secure funding via an equity placement to make investments
in a variety of areas and fund cash flow requirements for the
next 8-12 months of operation. The Company is seeking for
initial of $5 million to finance these activities.
The proceeds from this equity financing activity will be used
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Setting up call center
Payroll
Marketing and Strategic Alliances
Tech/Equipment/Start-Up
General & Administrative Expense (G&A)
Contingency
Exit Strategy
Possible exit strategies for the investors may
include floating the company on a stock
exchange or selling the company to a trade
buyer.
Our Contact Details
Abby Loh
Founder/Owner
+6018 202 3818
[email protected]
loh.abby
Lisa Loh
Owner
+6018 203 3038
[email protected]
iselectrooms