Photo - SoldoutNight Inc.
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SoldoutNight Inc.

Travel Management Platform for SMEs around the world

Canada, Toronto
Market: Tourism, sport
Stage of the project: Operating business

Date of last change: 27.04.2021
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Idea

SoldoutNight is a Travel Management Platform that offers Exclusive Hotel Rates for Small-medium size companies in Ukraine, Middle East, and Southeast Asia.

We consolidate smaller companies who are unable to receive corporate rates in hotels due to low travel volume and offer them exclusive rates to help them save on business and personal travel expenses.

Current Status

Launched BETA version in December 2020. So far:
- 12 active companies with more than 150'000 employees
- $45'000 USD in Sales
- $2'600 USD Revenue

Market

We target small to medium size companies (20 - 250 employees), however still provide same service to larger companies, since we saw an interest from them.

Target market:
- Southeast Asia (Singapore, Philippines, Malaysia, Indonesia, HongKong)

Due to pandemic we made a pivot and slightly adjusted our target market by adding Ukraine, UAE and Switzerland since travel is still happening there.

Market size (pre-pandemic, data based on 2019)

- 2.5 million SMEs in Southeast Asia
- $400 billion spent on business travel with the region

Problem or Opportunity

Small and Medium-size companies do not have access to lower corporate rates like larger companies do. This is due to the fact that small businesses can't reach a needed volume of travel in order for hotels to offer a discounted rate. Hence, SMEs tend to overspend on their business travel way more than what large enterprises spend.


Solution (product or service)

We consolidate SMEs and offer them exclusive rates in our partner hotels.
It's a triple win:

- Hotels receive the required volume of bookings;
- Companies save on hotel accommodations;
- SoldoutNight gets a commission from every single booking, paid by the customer.

Competitors

We basically compete with any source that provides travel services.
It could be home-based travel agent, booking.com or airbnb.

However, if we are talking about similar concepts, I would name TravelPerk, TravelStop, Lola and Comtravo.
Even though our concept of charging customers rather than getting commission from the property is quite unique, the companies stated above have a similar b2b platform for SMEs in different parts of the world.

Also, I would include cultural aspect. Customers in Ukraine don't consider any alternatives to Booking.com or Airbnb unless you clearly specify how much money they are able to save.

Advantages or differentiators

- Business model is not unique, but it's approached from a different angle.
Hotels are willing to work with us, since we offer them smarter and more feasible financial model.
- Subscription model in Travel industry is not a thing yet. We are first company who offer such service in Middle-east and Eastern Europe.

- We save on average 36% on hotel rates. Our prices are cheaper than what can be found on booking.com or any other platform by 15-50% in partner properties.

Finance

Revenue model based on 2 main streams:

- 5-10% commission on every booking
- $129 yearly subscription per user

This model is financially more sufficient and feasible than how most of the OTAs or Travel agents currently have it, since it eliminates and financial transactions between us and hotels, leaving more room for hotels to offer us better discounts.

Business model

More of a b2b platform with some b2c elements.

Money will be spent on

- Scaling business in our target markets
- Product development
- marketing expenses

Offer for investor

We are willing to offer 2 types of investments for potential investors:

- Convertible notes with a 20% discount
- Shares of the company (with a minimum investment of $100'000 and helpful expertise in certain fields).

Team or Management

Risks

- COVID hit the industry pretty hard. Even during a pandemic, we are able to generate some traction, however, travel is not a priority for most of the companies at this time. Comparing to 2019, travel dropped by 92% in the markets we operate.

- Uncertainty with potential lockdowns.

Incubation/Acceleration programs accomplishment

Currently, we are part of the US-based Incubator program, sponsored by US AID - EO incubator.

Won the competition and other awards

not yet.

Invention/Patent

Trademark in US, Canada, Southeast Asia.

Photos

Photo 1 - Travel Management Platform for SMEs around the world
Photo 2 - Travel Management Platform for SMEs around the world
Photo 3 - Travel Management Platform for SMEs around the world
Photo 4 - Travel Management Platform for SMEs around the world
Photo 5 - Travel Management Platform for SMEs around the world
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video