Angels Group USA September 2013. ANGELS GROUP USA LLC 2 Index Page. A.Market: Accommodation in US 03 B.Competitors 09 C.Investors in the US hospitality.

Angels Group USA

September 2013

ANGELS GROUP USA LLC 2

Index

Page.

A. Market: Accommodation in US 03

B. Competitors 09

C. Investors in the US hospitality tech industry13

D. Potential entry strategies17

E. WHL-AGUSA added value19

F. Q&A21


A. Market: Accommodation in US

B. Competitors

C. Investors in the US hospitality tech industry

D. Potential entry strategies

E. WHL-AGUSA added value

F. Q&A


Market. Volume

The United States is the second largest unique market for accommodation, after Europe, accounting for a 27% of total revenues in one single country

In 2011 revenues, from accommodation and food service only, raised an aggregate of 137.5 bn USD

154.6

137.5

127

90

Europe (30.4%)

USA (27%)

Asia-Pacific (24.9%)

Rest of the World (17.7%)

Worldwide Accommodation Revenues1 Distribution(bn USD, 2011)

Notes: 1) Revenues only from accommodation and food serviceSource: American Hotel & Lodging Association


Market. US Accommodation Numbers

There are 4,9 mil. rooms in the US with an average occupancy rate of 61.4% in 2012

Comparing data from 2013, EU occupancy is 4%-6% lower for comparable months (June, April and March 2013)

PROPERTIES 52,529

ROOMS 4,900,642

SALES ($ bn) 155.5

OCCUPANCY RATE (avg) 61.4%

Jul

Jun

May

Apr

Mar

Feb

Jan

0% 10%

20%

30%

40%

50%

60%

70%

80%

71%

70%

64%

64%

64%

59%

51%

65%

60%

58%

EU US

Industry Numbers(2012)

Occupancy Number US & EU(%, monthly 2013)

Source: American Hotel & Lodging Association and Smith Travel Research Inc.


Market. Room Distribution 2012

Interstate rooms are (aprox) 1.8 mil. accounting for a 36% of total available rooms while Resort, Airport and Urban account for a 29% with 1.5 mil. rooms

Hotels with less than 150 rooms account for a 63% of total with (aprox) 3 mil. rooms

US Room Distribution(# rooms, location-size, 2012)

Source: American Hotel & Lodging Association


Market. Traveler Characterization

Out of 460 mil. person-trips in 2012, 17% where business travelers staying just one night and 29% leisure staying just one night, for a total of 46% one night travelers

From total travelers, 40% are business and 60% leisure and the vast majority make reservations (94% of business and 91% of leisure)

Business 40% Leisure 60%

Travel Alone 80% Auto travel 80%

Age 35-54 52% Age 35-54 & 55+

38% + 39%

Reservation 94% Reservation 91%

Source: American Hotel & Lodging Association; US Travel Association

Business Leisure0%

10%20%30%40%50%60%

17%29%

9%

16%14%

15%

One nights Two nightsThree+ nights

40%

60%

Business & Leisure Traveler Characterization (2012)

Traveler Length of Stay(%, 2012)


Market. Highlights

US account for a 27% of global accommodation revenues, the biggest single-country market in the world

There are 4.9 mil. rooms with an average occupancy rate of 61.4% in 2012

Interstate accommodation accounts for 36% of available rooms while resort, airport and urban combined account for a 29%

Out of 460 mil. person-trips in 2012, 46% stayed just one night in their destinations



B. Competitors




F. Q&A


ODIGEO $3,900 mil.

Competitors. Established Players

ORBITZ $767 mil.

PRICELINE $4,579 mil.

EXPEDIA $4,030 mil.

Main players are online global travel service networks offering hotel reservations, airplane tickets and other services and grew through acquisitions

The top two players also offer discounted bidding systems for spare hotel capacity like Priceline.com and Hotwire.com

• Priceline.com• Booking.com• Kayak.com• Agoda

• Expedia.com• Hotels.com• Elong• Hotwire.com

• eDreams• Go Voyages• Travellink• Opodo

• Travelocity• Lastminute

• Orbitz.com• CheapTickets.

com• eBookers.com

• Wotif.com• Lastminute.com.au• Travel.com.au• LateStays.com• GoDo.com.au

• Airplane tickets, hotels, cars, packages

• Discounted bidding


• Discounted bidding




• Airplane tickets, hotels, cars, packages in Southeast Asia, Indonesia and UK

RE

VE

NU

ES

SABRE HOLDINGS

$825 mil.

BR

AN

DS

DE

SC

RIP

TIO

N

Source: MarketLine, Orbis and company official webpages

WOTIF $150.1 mil.

Competitors Revenues & Lanscape (bn, 2011)


Competitors. New Players

Company Funding HQs Description

Cleartrip 51 mil. MumbaiTravel-Booking site focused on simplifying online booking process.

Room77 43.8 mil. California Hotel-booking search engine site

Ostrovok 38.6 mil Moscow Russian online hotel-booking service

Hotel Tonight 35.8 mil. California Offers low prices on last-minute hotel bookings

Bing Travel 20.6 mil. Seattle Booking site that predicts future fluctuations in price

Hipmunk 20 mil.California

Booking site with innovative and intuitive layout.

Nor 1 17.1 mil. California Offers data-based upgrades tailored to consumer

Liftopia 2.3 mil. California Booking service for skiing vacations

Points Hound 425 th. California System for using and earning reward points.

Day use Hotels unknown France Site for booking hotel rooms for brief daytime stays

Want me get me unknown New YorkOffers members luxury upgrades during travel

Many young companies with different business models than ByHours have entered the space, and American VC firms have shown a strong willingness to invest in them

More than 80% of the latest largest deals in the Tech Hospitality are HQ in US

Source: Include Source, Crunchbase


Competitors. Highlights

Main players offer full portfolio of services, grew through acquisitions and also have popular discounted sites for travelling taking advantage of spare capacity

There are a number of new players with different business models than ByHours and the willingness to invest in the industry is strong



B. Competitors




F. Q&A


Investors. Industry Focus

126.69

347.72

US-deals Non US-deals

26.7%

73.3%

Funding to Travel and Hospitality Tech Startups(mil.; 2012)

Funding to Travel and Hospitality Tech Startups has remained strong around 28mn USD per quarter since 2012Q4

A total of 126.69mn USD, 26.7% of total funding in 2012, has been invested in US based companies

Data on Travel and Hospitality Tech Startups(2011-2013)

Source: CB Insights


Investors. Profiles

US investors with Hospitality Tech Startups in their portfolios have more than $4.8bn combined assets under management

InvestorInvestment Activity in

Travel SectorLocation Assets

Thayer VenturesVC Firm focused

entirely on Travel TechSan Fransisco Unknown

Andreesen HorrowitzInvested $60 mil. in

AirbnbSan Fransisco $2.65 bn

US Venture PartnersLead $23 mil. Funding C Round for HotelTonght

San Fransisco $625 mil.

General Catalyst PartnersLead Ostrovok’s $25

mil. C roundCambridge, MA $500 mil.

Felicis VenturesLead $30 mil. Round

for Room 77Palo Alto $112 mil.

Ignition VenturesLead $15 mil. round for

HipmunkBellvue, WA $825 mil.

Concur Perfect Trip FundInvested $40 mil. in

CleartripRedmond, WA

$150 mil.

Source: Include Source, Crunchbase, Techcrunch, Company web pages


Investors. Highlights

Investment in the Hospitality Tech Startups remains strong for the last three quarters, US accounting for 27% global investment

Investors that entered recently in the industry account for $4.8bn in assets under management



B. Competitors




F. Q&A


Potential Entry Strategies

Traffic

• Interstate traffic

–36% of US available rooms

–Service areas & transport unions• Top 5 busiest airports:

–Atlanta, Chicago, LA, Dallas, Denver

• Top 5 cruise ports:

–Ft Lauderdale, LA, Miami, Seattle, NYC

• Combination of the above

Agencies

• Top 20 travel agencies:

–Carlson Wagonlit Travel

–BCD Travel USA

–Maritz Travel Company

–World Travel Partners Group

–Sovereign Holdings

–Navigant International

–Consumer Club

–…

Helthcare/SPA

• Top 5 cities by # of Hospitals:

–New York

–Chicago

–Los Angeles

–Detroit

–Washington DC• Top 5 Health Insurers:

–Oxfor Health Plans

–Kaiser Foundation Health Plans…

Attending to the different channels and density of users there are a number of strategies that will depend on ByHours focus

Interstate traffic in combination with a choice of cities where Los Angeles appears at the top of all different channels and Chicago could be a good choice for an unnoticed pilot

Source: U.S. Travel Association, Orbis Database



B. Competitors




F. Q&A


WHL-AGUSA Added Value

Angels Group USA can offer a full service, integrating legal, immigration, consulting services and project management for the US market entry

ANGELS GROUP USA PROJECT MANAGEMENT SCOPE

ENTRY STRATEGY DEFINITION

NEGOTIATE HOTELS

AGENCIES PARTNERS

• Public Relationships

• Digital Media Marketing

• Advertisement

• …

• VCs roadshows

• Pre-agreements

• Incorporation & Immigration

• Partnership agreements

• Geographies

• Channels

• Hotel chains

• Actions

• Calendar

• Identify target hotel chains

• Contact and negotiate agreements

NEGOTIATE & MONITOR SERVICE PROVIDERS

ORGANIZE FINANCING ROUND

1

2

3

4

VC & INVESTOR RELATIONSHIPMANAGEMENT



B. Competitors




F. Q&A


Q&A

Q&A


Thank You

Angels Group USA September 2013. ANGELS GROUP USA LLC 2 Index Page. A.Market: Accommodation in US 03 B.Competitors 09 C.Investors in the US hospitality.

Documents

angels group usa llc

angels group usa llc

us accommodation numbers

qa slide

rooms us room distribution

rooms account

global accommodation

highlights us account