3. A)- Investor Presentation
What is
TravelSheikh.com?From the centre of the globe to the
heart of the world, TravelSheikh is the
first Arabic online travel engine in the middle east.
An online one-stop-shop catering for all travel
services targeting the MENA region,
whilst providing international
content using multiple selling channels
providing over 1100 travel agent and around
4000 individual customer across 13 countries in the
Initiated and established by (5)
employees and later-on composed of (30)+
highly qualified and competent team of travel and
IT professionals.
4. The market
Market opportunity
• Scope for being a genuine
first mover with a majority
of online sales by
suppliers.
• B2C focused OTAs only
Online Travel in the
ME is a rapidly
growing market with
positive
fundamentals.
$0bn
$20bn
$40bn
$60bn
$80bn
2010 2011 2012 2014
Middle East
Outbound Travel
stands over
USD 70 bn+
per annum
Online
share of
USD 15.6
bn+
per annum
Growing at
26.4%
per annum
7. More than 65% of travel agents do
not have the ability to book and
purchase different related travel
deals directly through the
providers, TravelSheikh web site will
give this ability to travel agents
allowing them to gain access to
all the content and inventory of
the travel services & make
instant reservations. TravelSheikh
works on prepayment by depositing
money into the agencies accounts.
The Channels (B2B &
B2C)
Business-to-Business (B2C)
The credit card online transaction
is not popular within the region
for many issues, nevertheless
provides the ability for consumers
to purchase directly through the
website. However, its main cash
flow comes from the B2B
approach. Once the B2C approach
B2BB2B
B2CB2C
8. SAMSUNGSAMSUNG
BONUS+BONUS+
TravelSheikh
will be a
one-stop-
shop that
matches Expedia
as a model
exceeding it with
our B2B
capabilities catering
for un-attacked
markets of
small
travel
agents
TravelSheikh
will
benefit
from a
contract
of $1.6mn as a
bonus over
the next 5
years
TravelSheikh
will
benefit
from an
agreement
with SAMSUNG-
Africa to be
the sole
built-in app in
all their
devices
sold in
The advantages
9. MarketsTravelSheikh Already
existed in
several Markets
and will expand
into much more
potential ones
in 5 YearsTravelSheikh are
looking to grow our
active agents to 5k, and
growing their spending
to $15k per agent per
month; meaning
over $900mn of gross sales.
Business Plan -
nutshell :)
SSRSSR
GCCGCC AfricaAfrica
50005000
AgentAgent
$15k$15k
spending/mospending/mo
nth/agentnth/agent
GS ofGS of
$900mn$900mn
LevantLevant N.AfricaN.Africa
EastEast
EuropeEurope
SEASEA
10. Required Investment
TravelSheikh is seeking seed
funding of 2.5M us$, to
restart the business
model out of Dubai
Expansio
n 25%
Operation EXP
50%
15%
Advertising
& PR
10% Reserve
§§
$
2,500,000
12. Airline's Sales – Current Model of Distribution and
Business
Direct
IATA -
BSP
IATA -
BSP
Airline
Offices
Air
Airline
Website
GDS - SabreGDS - Sabre
Country C
Market Fares
Country C
Market Fares
GDS -
GALELIO
GDS -
GALELIO
GDS -
AMADUES
GDS -
AMADUES
Travel
Agents
Consolidat
ors
OTA’s
Passenger
Country A
Market Fares
Country A
Market Fares
Country B
Market Fares
Country B
Market Fares
Travel
Agents
Consolidat
ors
OTA’s
Passenger
Travel
Agents
Consolidat
ors
OTA’s
Passenger
13. Airline's Sales – Travelsheikh.com Business Model
Direct
IATA -
BSP
IATA -
BSP
Airline
Website
GDS - SabreGDS - Sabre
Country B
Market Fares
Country C
Market Fares
Country C
Market FaresCountry A
Market Fares
Country A
Market Fares
GDS -
GALELIO
GDS -
GALELIO
GDS -
AMADUES
GDS -
AMADUES
Travel
Agents
B2B
Consolidators
OTA’s
XML
Passenger
B2C
Consolidators Consolidators
Travelsheikh.com
14. Why It Works?
One Stop Shop for all Airline Content and Pricing
One Supplier
One Payment Conciliation
Cross Market Fares
Wider Airline Availability
Alternative for none Existence of IATA & GDS in many regions
15. How It will Work?
B2B Travel Agents are too limited to outsource airline content from outside their
geographic region (financial – exposure – education)
B2B Travel Agents are forced by airlines (usually national carriers) to keep their
share high with them (issuing from their own GDS will lower the share)
IATA/BSP Countries are limited in content with the participating airlines in the
country
Competition is very hard and with the same Market fares available/per country –
Agents are not making money, yet can’t stop the main service of their business and
count on cross ancillary products -
16. Who Can Make it?
Travelsheikh.com created the model in the region and managed to serve a
network of 1200 travel agents in 9 different countries with much competitive
rates than what is available in those markets.
Travelsheikh.com with all the Ancillary services (Hotels, Car Rentals, Insurance,
Packages, Excursions, Transfers…etc.), opted as the best solution that offered
all from one portal without the Purdon of heavy financial commitments (no
minimum access)
* Travelsheikh was forced to stop for lack of funding
17. Hotel's Sales – Current Model of Distribution and
Business
Walk
In’s
Hotel’s
Websites
Channel
Managers
OTA’s Whole Sale
B2B
Tour
Operators
Direct
Corporate
Local Sale International Sale
GDS
Rack
Rate
Run of The
House –
Rate based
on
availability
(Chain Hotels)
Distribution
Channel Based
on Commercial
Agreement with
final client
Competit
ive based
on region
and
Volume
Competitive –
Limited
Availability –
Traffic Based
Based on
Volume and
Commitments
with restrictions
High Rates
Close to
Rack
Rates
Travel AgentsPassengers OTA’s
Hotels allocate rooms to different sales channels, based on seasons and occupancy rates – it’s an availability game
rather than a price game in most cases.
18. Hotel's Sales – Travelsheikh.com Business Model
Walk
In’s
Hotel’s
Websites
Channel
Managers
OTA’s Whole Sale
B2B
Tour
Operators
Direct
Corporate
Local Sale International Sale
GDS
Rack
Rate
Run of The
House –
Rate based
on
availability
(Chain Hotels)
Distribution
Channel Based
on Commercial
Agreement with
final client
Competit
ive based
on region
and
Volume
Competitive –
Limited
Availability –
Traffic Based
Based on
Volume and
Commitments
with restrictions
High Rates
Close to
Rack
Rates
Travel Agents
B2B
Passengers
B2C
OTA’s
XML
Hotels allocate rooms to different sales channels, based on seasons and occupancy rates – it’s an availability game
rather than a price game in most cases.
Travelsheikh.com
19. Why It Works?
Wide offering of Hotels provided by all sort of suppliers and middle suppliers
Availability is always there – Travelsheikh.com technology search ‘Best Available
Option’ between mapped hotels from all suppliers
Bookings are generated by thousands of Travel Agents across the world – Volume
= Better Rates by suppliers
Travel Agents using the same deposit for payments for all services
Hotel choice trends of any geographic area is secured
20. How It will Work?
B2B Travel Agents are too limited to outsource hotel content from outside their
geographic region (financial – exposure – education)
B2B Travel Agents are used to book the same hotels for their clients based on
their experience or offers from suppliers (based on the suppliers preference),
without having the chance to discover better options
Hotel’s whole sellers are more focused on certain areas for their volumes
The wider the range, the better and new destinations offered = more business for
Travel Agents
Competitive edge in offerings with the OTA’s, available for the travel agents
21. Who Can Make it?
Travelsheikh.com solution, being one of the most advanced in the market, has all the
features and connectivity technology to make it happen
Travelsheikh.com with all the Ancillary services (Airlines, Car Rentals, Insurance,
Packages, Excursions, Transfers…etc.), opted as the best solution that offered all
from one portal without the burden of heavy financial commitments (no minimum
access)
The fact of having both B2B and B2C, gives a trusted approach for the clients and
the travel agents in terms of full hotel data and the comparison of price between
the 2 channels – with the margin secured for the agent.
22. Car Rentals
Packages
Excursions/Activities
Transfers
Travel Insurance
Ancillary Services in the B2C and B2B Markets
B2C
B2B Direct with CR
Companies
Auto Holidays Car Trawler Direct with CR
Companies
B2C
B2B Emirates Holidays
Expedia Tempo Holidays Emirates Holidays
B2C
B2B
B2C
B2B
B2C
B2B
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
Travelsheikh.com
23. Competitors?
A view of the main Travel Players in the MENA market in comparison with Travelsheikh.com
yamsafer.comFlyin.comBookings.comTravelsheikh.com Expedia.com Cleartrip.com
B2CB2CB2C/B2BB2C/B2B B2C B2C
Airlines
Hotels
Car Rentals
Packages
Excursions/Activities
Transfers
Travel Insurance
Hotels Airlines
Hotels
Hotels Airlines
Hotels
Airlines
Hotels
Car Rentals
Packages
Excursions/Activitie
s
Cruise
24. Why B2B is more Vital Than B2C Today? – 1 -
B2B
Majority of Travel Agents are SME’s with limited Financial strength
Ratio between IATA and None-IATA agents is 20-80
Travel Agents IATA access is becoming more expensive and hard to obtain
Travel Agents will always have a market in the under-developed countries due to many cultural and financial
reasons
Many Countries around the world are still not served by IATA based on economical, security and instability status
Travel Agents are usually with little education, therefore less exposure to the world
Travel Agents are more involved in the day to day business than in development of their business and prefer to
keep the comfort zone of what they know.
Travel Agents have more power and trust in their local markets than OTA’s
Many Services/products are not available Online e.g. charter operation, Pilgrimage, Events…etc., where travel
agents can always win back clients in cross selling!
25. Why B2B is more Vital Than B2C Today? – 2 -
B2C
Credit card in the region and many other regions, is still immature
E-commerce even In the USA – The most developed 20 years ago, is still at 60% penetration
Client’s profile s for B2C is yet very little (credit cards availability, Internet Savvy, Online Payment Trust, Language Barrier
and understanding of their needs in terms of travel)
Travel Agents – even if higher in rates – still get the biggest chunk in credit facilities for their clients
Airline, Hotels and other services mixed prices and conditions makes it harder to self book and be exposed to hidden
penalties and other charges
Clients are using OTA’s to understand the price only, yet opt to book from their agents eventually (Expedia are making
more money in advertising than actual sales)
26. B2B Until B2C matures….
Travelsheikh.com main strategy is, accumulating more volumes from the B2B markets in
order to be competitive eventually in the B2C market.
With the assumption that B2C penetration in the region will match what is USA B2C
market in 20 years today, still at 60%, The B2B Model, 20 years from Today will still
have 40% market share in our region, again with the assumption, the region develop
steadily amidst the political and economical turmoil
