Maestro Investor Presentation Mk4 JAN2017pptx
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Transcript of Maestro Investor Presentation Mk4 JAN2017pptx
Private & Confidential
Private & Confidential The Maestro Group
The Maestro Group is the Australian travel agency’s “Airbnb” of travel product suppliers.We provide direct pathways for travel agents to engage with and purchase from international suppliers of accommodation, land activities, cruising and travel packages. There are no wholesale commissions, and the products are presented at Net rates with clear margin advantages for Agents, and competitive prices for consumers.
Slide 1
Disclaimer
• The content of this presentation is to be treated as ‘commercial in confidence’. You may discuss the information with your business associates, accountants, advisors and solicitors only, and they must also ensure that they follow the CIC requirements herein.
• You are not to copy, reproduce or alter this information in any form or any way for any reason, though you may forward it to associates, your accountants, advisors and solicitors.
• We believe that the information and forecasts contained herein are accurate and as complete as this format allows. We do not accept any responsibility for possible errors and omissions, nor for market changes or any other factors outside our control.
Private & Confidential The Maestro GroupSlide 2
We are experienced, passionate and we understand the travel industry.
Our model removes the wholesaler from the transaction between the supplier and the consumer.
The result is increased competitiveness in the market and increased returns for members
Our vision is for Maestro to be a global Brand that revolutionises the way the travel industry works.
Our technology is world-class in accommodation and cruising.
Private & Confidential The Maestro Group
50 Years Senior Travel Industry Experience- we know what needs to be done!
Slide 3
Our Primary targets are privately owned, independent agencies. (approx: 900 agencies in Australia)
Our 2nd Adopters are likely to be privately owned franchisees of agency chains. eg. Helloworld. (There are approximately 2000 such agencies)
Our Target Market is Easily Defined and reached
Private & Confidential The Maestro GroupSlide 4
1. Diminished returns and falling margins for all travel agents.
2. Vertical integration of agency networks.
3. Trusted Brands have gone, including Jetset, Travelworld, Harvey World Travel and Travelscene.
4. Franchisees and members have been forced to re-brand.
5. The presence of on-line ‘travel agents’.
The Current Travel Industry model is Broken
Private & Confidential The Maestro GroupSlide 5
Replace wholesalers and their fees & commissions by facilitating direct relationships between international Suppliers and Travel Agents.
This reduces the Cost of Goods Sold by between 20% and 35%.
Agencies are able to use savings provided by the Maestro model to counteract competitor pricing and/or enable increased margins for themselves.
Private & Confidential The Maestro Group
We Have a Solution
Slide 6
Agencies do not have to change affiliations.
Our Members make higher margins than by using wholesalers.
We already have 43 countries covered in our portfolio. Our Members work directly with the overseas inbound suppliers. They are the real experts.
Maestro Cruising has been selected to be the launch customer in Australia with exclusive access to a unique Cruise booking engine. This will be available to Members and non-members
No large expensive call-centre is needed
Private & Confidential Slide 7 The Maestro Group
Our Unique Selling Proposition is our Business Model(slide 10)
Marketing
Private & Confidential
Small target audienceEasy to ‘find’ Key Aspects1. Trade advertising & PR2. Introductory mail-outs3. Direct visitation4. Loyalty scheme
Targets definedVisits arranged Key Aspects1. Membership sales2. In-house Product training3. New products and technology
Sales
The Maestro GroupSlide 8
and
There are 6 profit streams:1. Maestro Travel agency bookings (Members only)2. Maestro Cruising (Members & non-members) 3. Icon Holidays’ packages (Members only)4. Maestro Select Hotels (Members & non-members) 5. Fx gains across all product lines ave. 3% gain on Gross sales6. Membership fees• Member target: Travel agencies with turnover above $5m per year• Core business focus: Packaged travel, cruising & accommodation• Marketing focus: Direct sales, PR, Annual conferences
Our Unique Business Model
Private & Confidential
We are an international travel Brokerage. Our core group of Members buy in.
The Maestro GroupSlide 9
Current Position and Opportunity
Private & Confidential
THE MAESTRO GROUPMEMBER AGENCIESGross revenue per
month (current)
GENERAL AGENCIESGross revenue per
month (current)
Monthly Net revenue 3 years after investment
Maestro Travel $20,845 NA $32k pm
Icon Holidays(Icon has lain dormant for 2 years)
At market. Not yet re-launched
$7,055(Previous 2 years
$191,000*)$62.4k pm
Maestro Cruising Launch in December NA $61.95k pm
Maestro Select Hotels Launch within 3 months NA $57k pm
Total Commissions/Net revenue NA NA $213,350 pm
The Maestro GroupSlide 10
Competitor Analysis
Private & Confidential
Fees $300 Set-up Fee$780 per year $20k+ per year $14k+ per year
Marketing activities Buy in, not compulsory Buy in, Compulsory Buy in, Compulsory
Annual Conference Australia, compulsory, own cost
Las Vegas, compulsory, own cost
Overseas, compulsory, own cost
Members Agencies with + $5m turnover
Agencies with + $10m turnover
Agencies with + $10m turnover
Own ProductsLive cruise bookingsLive accommodationIcon Holidays
Cruise on request (RQ)Accommodation on RQ
Cruise on requestAccommodation on RQ
The Maestro GroupSlide 11
Maestro Booking System (wholly owned custom software developed by CBS P/L) Icon Information & Booking System (wholly owned custom software by CBS)
Intellectual Property
Private & Confidential
maestrotravel.com.aumaestrocruising.commaestrovacations.comiconholidays.com
The Maestro GroupSlide 12
Private & Confidential
Simon Hills – Co-founder and Managing Director 25 years in wholesale & retail travel Past Chairman of CATO (Council of Australian Tour Operators) Founder and Owner of Icon Holidays (luxury travel brand) Ex tourism consultant for SOCOG prior to the Sydney Olympics Past Director of the Northern Territory Tourist Commission Ex Consul General of Nepal
John Morley – Co-Founder & Company consultant• 30 years experience in senior sales and marketing roles• Past Chief Executive Officer of Kirra Holidays• Past Chairman of My Planet Australia• Past Committee member of CATO
The Maestro GroupSlide 13
John Morley – Co-founder and Company Consultant• 30 years’ experience including senior sales and marketing roles• Past Chief Executive Officer of Kirra Holidays• Past Chairman of My Planet Australia Wendy Taylor – Company Consultant• 30 years corporate management experience• Substantial consulting expertise in governance, strategic and business planning, • Board and executive experience in a range of sectors.
Norm Collins• 20 years at the forefront of travel technology in Australia.• Former Director of the Australia Federation of Travel Agents (AFTA)• Owner and developer of TDS ARENA, an innovative booking distribution and payments system for the travel industry worldwide. This
is the platform that drives Maestro Cruising.
Bruce Shaw• Has been providing travel solutions and unforgettable holiday’s for his clients for over 20 years.• An Accredited Master Cruise Consultant, a global accreditation recognized by the International Cruise Council of Australia.• Lead consultant in the development of the TDS ARENA system and Maestro Cruising.• Past Board Member of Traveller’s Choice.• Current Chapter Chairman of AFTA
Team: Advisors
Private & Confidential
The Maestro GroupSlide 14
Funding and Timeline
Private & Confidential
Self-funded Ops costsTravel costs.Office costs.
$55k seed funding
Self-funded Ops costsTravel costs.Office costs.
Growth phase
KEY DATA1. Website built 2. Booking system built 3. 25 destinations. 4. 19 contracted Suppliers. 5. 12 Agency Members. 6. Break-even.
KEY DATA1. Contract with TDS 2. Contract with AIC 3. Contract with SEH Hoteliers. 4. 43 Destinations. 5. 38 Suppliers. 6. 12 Agency members. 7. Break-even at June 30
2013 - 2015 2016 2017 2018
Fully staffed.Fully funded.Independent.
1st Capital Raise $250k.
KEY TARGETS1. Cruise & Accomm fully operational.2.100 Agency members.3. 50 destinations.4. $800k cash at hand.5. $400k profit.
KEY TARGETS1. Air-tickets operational.2. 150 Agency members.3. 50+ destinations.4. Wholesale deals.5. Direct contracts with chosen hotels.6. $3m cash at hand.7. $6m post tax profit.
The Maestro GroupSlide 15
Maestro Travel Membership target: 300 agencies Grossing an average of $1.8m each per annum:Total Australian Agency (3450 agencies) sales of accommodation and touring $4.81b Gross.Our Budget Target: 0.14% or $6,840,000
Maestro Cruising target: 22 agencies Grossing an average of $510k each per annum:Total Australian Agency (3450 agencies) cruise sales $1.76b Gross.Our Budget Target: 0.63% or $11,220,000
Icon Holidays Luxury product target: 300 agencies Grossing an average of $20k each per annum:Total Australian market $6m Gross. Our Budget Target: 100%
Budget target is 0.36% of the potential Gross sales available to us.
Private & Confidential The Maestro GroupSlide 16
Financials: Projections
Private & Confidential
2016/2017 2018 2019 2020$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Forecasts
RevenueExpensesNet Income
YEARS
REVE
NU
E
The Maestro GroupSlide 17
Key Risks & Mitigation Strategies
Private & Confidential
Risk Likelihood Impact Mitigation strategy Responsible
Copy-cats Medium Low Sign up target agencies asap. Simon
Inability to sign members Low High
2 BDM’s in the market to advocate to, and sign up, target members. Introduction of product to whole market
BDM’s
Destination disruption eg. civil war, earthquakes
High Low Current signed contracts covering 43 countries which will ameliorate risk Simon
Opposition from Agency Groups &
wholesalersHigh Medium Target privately owned agencies and
franchisees.Simon & BDM’s
Global economic collapse Low High Develop domestic products. Product
manager
The Maestro GroupSlide 18
The Ask, Our Offer, Use of Funds, Exit Strategy
Private & Confidential
Ask & Offer
Total Raising AUD$250,000 – $500,000
Pre-money evaluation
Current NAB Valuation: $800,000.After 3 years, valuation of $15,000,000 to $25,000,000 (based on achieving only 50% of projected sales/profits)
Ordinary Shares 30 shares @ $10,000 ea.
Equity Offered30%
Use of Funds
Cap-Ex 40%Sales & Marketing 24%
Staff 20%
Overheads 16%
Exit StrategySell to another business eg. Jetset Travel Group, Flight Centre, APT
The Maestro GroupSlide 19
References
Private & Confidential The Maestro Group
1. ABS Outbound Travel Data (2015) – used to gauge overseas travel volumes
2. ABS Travel Agency Data (2013) – used to see trends in retail agencies
3. Roy Morgan Values Segmentation – enables us to better target prospective Members
4. Attendance at World Travel Market 2012 – 2015 and attendance at various seminars on industry trends
5. Membership of the Council of Australian Tour Operators – peak wholesale body (Chairman for 4 years)
6. In depth discussions with our focus group of 4 active agencies
7. Combined 50 years plus involvement with the travel industry, most of these in senior management
8. ‘Reportlinker’ for downloads of various relevant travel industry data
9. Various industry newsletters from Australia, USA and the UK
Data from Points 1, 2 and 3 is free and easily accessed. Data from Point 8 is paid per report chosen. Newsletters from Point 9 can be subscribed FOC. We use Travel Daily, Travel Weekly and Cruise Weekly from Australia, ABTA Newsletter from the UK, the ASTA Newsletter from the USA and the Travel Pulse from the UK and USA.
Slide 20
Simon Hills
M: +61 (0) 418 522817
P: +61 5417 3474
Private & Confidential The Maestro GroupSlide 21