Australian Search Start ups profiles

The next below four posts are profiles of 4 Australian based start-ups working to revolutionise the way travel search is undertaken. These posts are a prelude to a story I have written on Tnooz that will go live next week.

Getflight profile: exchange with Getflight founder Ian Cumming

Below is a Q&A exchange with Getflight.com.au founder Ian Cumming (pictured here on stage at WebInTravel). This is an instalment in my profile series on Australian travel search start-ups.

BOOT: Date founded

Cumming: January 2011

BOOT: Name of founders

Cumming: Ian Cumming

BOOT: Name of backers/investors

Cumming: Timothy O'Neil-Dunne (t2impact), Gill Hazel (travel industry advisor), Don Takaya (PR and media relations)

BOOT: How much money have you raised

Cumming: None.

BOOT: Description of the business

Cumming: Multi-channel distribution of sale airfares across web, social and email.

BOOT: What is the revenue model

Cumming: On the B2C side - Affiliate advertising (hotels, tours, car hire), and on the B2B side - Licensing of a white-label solution.

BOOT: Any success metrics you are happy to share (traffic levels, customer numbers, revenue numbers, number of searches)

Cumming: 8,723 alert subscriptions, 52,597 deals found, 268,652 deal alerts sent, 70,972 unique visitors, 47,935 searches to airline websites.

BOOT: Something you learnt along the way

Cumming: Online distribution of airfares is complex and innovation is in a stale-mate with the conversion rate.

BOOT: Something you wish you had done differently in launching a business

Cumming: Launched in an emerging market.

BOOT: What's next for the business. What are you working on that is exciting

Cumming: We are focused on developing a licensing model which allows OTAs to re-brand and integrate the GetFlight technology platform to increase distribution of their inventory and increase user engagement.

BOOT: Favourite non-travel website

Cumming:: readwriteweb.com

Flightfox profile: exchange with Flightfox founder Todd Sullivan

Below is a Q&A exchange with Flightfox.com founder Todd Sullivan (pictured here right on Mt Kilimanjaro with co-founder Lauren McLeod ). This is an instalment in my profile series on Australian travel search start-ups.

BOOT: Date founded

Sullivan: January 2012

BOOT: Name of founders

Sullivan: Todd Sullivan, Lauren McLeod

BOOT: Name of backers/investors

Sullivan: Startmate Startup Accelerator

BOOT: How much money have you raised

Sullivan: $25k to fund proof of concept

BOOT: Description of the business

Sullivan: Flightfox is human-powered flight search; we use humans to beat machines. For a finder's fee, flight experts all over the world compete against each other to find you the best flights. Unlike most flight search engines (and travel agents), our experts search all the major airlines, budget airlines, special offers, newsletters, forums, and frequent flyer programmes. They use their many years of flight "hacking" experience to route you through the best cities, get you on the best flights, and save you as much money as possible.

BOOT: What is the revenue model

Sullivan: We take a cut of the finder's fee, but with future investment we'll also generate commissions on flight bookings.

BOOT: Some examples of savings and interesting routings that people have comp up

Sullivan: Our most unusual trip was for a customer travelling with 3 cats. Of course, Expedia and Kayak don't cater to cats, and most travel agents will direct you to the airlines, but on Flightfox, our experts had experience travelling with pets and knew all the tips and tricks. For example, there are strict regulations regarding weather; in winter, many airlines restrict travel for pets. In terms of savings, we've saved people over $5,000 on complicated and premium class trips. Even on short domestic trips, our customers offload the searching to us and have peace of mind that our experts have found you the best price. On our average trip, which visits a few cities internationally, we save customers 27%.

BOOT: Any success metrics you are happy to share (traffic levels, customer numbers, revenue numbers, number of searches)

Sullivan: 5,000+ users and over $30,000 in finder's fees, all in our first 8 weeks since launching our beta product.

BOOT: Something you learnt along the way

Sullivan: Firstly, Startmate is the best decision we ever made. The pace at which we iterate and the access to successful mentors, seems to make start-up success so much more likely. Our other big lessons are all to do with marketplaces. But we're only a few weeks in, so I imagine we've barely scratched the surface.

BOOT: Something you wish you had done differently in launching a business

Sullivan: we'd learned many lessons from a previous travel start-up, so there's nothing significant this time. For example, this time we spent no effort on logos, business cards, company registration, SEO, social media, etc, until we'd proven the concept and had confidence in its sustainability.

BOOT: What's next for the business.

Sullivan: What are you working on that is exciting - we're currently raising a seed round of investment to catapult our growth. We don't necessarily need investment, but we have big plans and want to make the most of the opportunity. Specifically, we have a plan to multiply revenue per customer, but for that we need investment. We have pitch days in Melbourne (27th March), Sydney (30th March), then San Francisco (3rd April) and New York (17th April). Investors are more than welcome to contact us for more info.

BOOT: Favourite non-travel website

Sullivan: 99Designs.com

Adioso profile: exchange with Adioso founder Tom Howard

Here is a Q&A exchange with Adioso founder Tom Howard (pictured right with co-founder Fenn Bailey). This is an instalment in my profile series on Australian travel search start-ups.

BOOT: Date founded

Howard: January 2008

BOOT: Name of founders

Howard: Tom Howard and Fenn Bailey

Both of Melbourne, Australia

BOOT: Name of backers/investors

Y Combinator, Paul Buchheit (Gmail, Friendfeed, Facebook), Alexis Ohanian (Reddit, Hipmunk), Stephen Bartlett-Bragg (Qantas, Sabre, EB2) and a handful of other investors from Australia & Silicon Valley

BOOT:How much money have you raised

Howard: $380,000

BOOT: Description of the business

Howard: Adioso is a travel search & discovery site that allows you to:

- search without constraints on dates & destinations ("Sydney to South East Asia late May", or "Brisbane to anywhere under $400")

- 'follow" destinations and search phrases to receive alerts as soon as new inventory is found that matches your interests and budget

BOOT: What is the revenue model

Howard: Initially, commissions on transactions facilitated via the site.

Later, services to airlines and suppliers.

BOOT: Any success metrics you are happy to share (traffic levels, customer numbers, revenue numbers, number of searches)

Howard: We don't consider our traffic particularly boast-worthy at this stage, but our we're approaching 100K visits/month, and we refer about $2million/month in leads to airlines. We're expecting much more rapid growth in coming months once we start rolling out the new features we have in the pipeline.

Our favourite stats are:

- Avg session is > 8 minutes

- Average active visitor worth >$45 in referred airline revenue

- Our user-satisfaction survey told us that 95% of visitors would be at least somewhat disappointed if we didn't exist; 50% of those said they'd be very disappointed.

BOOT: Something you learnt along the way

Howard Travel's an awfully tough business for start-ups as you're up against decades-old technology and business practices. But if you can persist long enough to find a way through, the opportunities are vast and exciting.

BOOT: Something you wish you had done differently in launching a business

Howard: Though a lot has gone wrong, I wouldn't wish it to be any different. We'd be better off if we hadn't taken so long to get our back-end technology working properly, and sometimes I lament the 12-18 months we've been delayed due to going about that the wrong way.

But because of that challenge we've been forced to learn so much more about the fundamentals of the travel industry and of building a great company, and have had to do it on a shoestring budget, so overall we're much better off,

BOOT: What's next for the business. What are you working on that is exciting Howard: Just last week we turned on the new version of our site UI. It doesn't actually have any major functionality over the previous version, but it gives us a platform to start doing a lot more cool stuff.

We're in the process of finishing our new search platform, that will enable us to scale to handle global airline inventory, including full-service carriers via GDSs (to-date we've been limited to low-cost airlines).

We've been trialling a hotel search feature, using HotelsCombined and Airbnb as suppliers, and we'll soon be adding this into the new version of the app.

We've also been trialling our "following" feature, that allows people to subscribe to alerts on destinations, flights, hotels and activities that are of interest, and get highly focused notifications when relevant products and deals become available.

Finally, we've conceived a new approach to browsing, sorting and filtering search results, that is testing very well with users.

We're gearing up to start rolling out these features steadily over the next few months. We're pretty excited to get it all out there.

BOOT: Favourite non-travel website

Howard: HackerNews

BOOT: Where did your name come from

Howard: It was on a brainstorming list that Fenn came up with. "Adios!" seemed to nicely represent the idea of finding a cheap flight to an exotic destination and spontaneously taking off out of town.

We wanted something that was short, had the .com available, and wasn't overly literal like so many travel product names. Most of the discarded options were things like "Save-o-flight". I'm so glad we didn't go with something like that, and I'm surprised even today how many travel start-ups have these kinds of name

Rome2Rio profile: exchange with Rome2Rio founder Michael Cameron

Below is a Q&A exchange with Rome2Rio founder Michael Cameron (pictured left with co-founder Bernie Tschirren). This is an instalment in my profile series on Australian travel search start-ups.

BOOT: Date founded

Cameron: September 2011

BOOT: Name of founders

Cameron: Michael Cameron and Bernie Tschirren

BOOT: Name of backers/investors

Cameron: None to date

BOOT: How much money have you raised

Cameron: Nothing, so far we are bootstrapped.

BOOT: Description of the business

Cameron: Rome2rio is a platform for organizing and searching the world's travel information. We have built a unique repository of train, bus, ferry and air routes across the globe. Users of the site can discover how to get to any city, town, or landmark - rome2rio will show several alternatives routes by air, rail, bus, boat and car.

BOOT: What is the revenue model

Cameron: Our consumer site makes revenue through hotel and rental car commissions. We also receive revenue from airline and transport provider affiliate programs. Going forward, we also aim to make revenue through partnerships licensing rome2rio's search technology and transport repository.

BOOT: Any success metrics you are happy to share (traffic levels, customer numbers, revenue numbers, number of searches)

Cameron: In January we recorded our 1 millionth query, and broke 120,000 unique users for the month. We marked this milestone with a blog post.

Something you learnt along the way

We've been surprised by the popularity of rome2rio in India; rome2rio has received more Indian visitors than visitors from any other one country. We believe this is due to a number of factors, including a burgeoning middle class and popularity of rail travel in the subcontinent. Also, rome2rio so far has received most of its visitors from English speaking countries, so we have started work on translating the site.

BOOT: Something you wish you had done differently in launching a business

Cameron: So far, on the whole, we're happy with the approach we've taken to launching rome2rio. We launched the site early, with a minimum viable product, and used lean start-up principles to iterate and refine the product. As the product has developed and gained traction with users, we've now started to focus on the business model.

BOOT: What's next for the business. What are you working on that is exciting

Cameron: We're continuing to add more transport to the site. We recently added trains in Japan and Sri Lanka. Coverage in Australia has been expanded too. We almost have complete rail coverage, so we'll be focusing on adding more bus and ferry routes this year. We also plan to add support for building complex, multi-hop itineraries; a feature that has been requested by several users.

BOOT: Favourite non-travel website

Cameron: Who can go past the amazing digital resource of Wikipedia?

WebInTravel Australia: Call for startups to be part of the BOOT and more June 21 in Sydney

WebInTravel is coming to Sydney on Tuesday June 21 at the Shangri-La hotel. WIT Australia is a day long conference on travel distribution, travel marketing and travel technology.

I will be presenting with Ian Cummings of Getflight on trends and start up activity in online travel. I am working on a list of Australian and Asian start-ups to feature in the session. Already on the list are rome2rio, travellr, hotelscombined, adioso, viator, whl travel, Brokepacker, Globetrooper, Travellerspoint, CleanCruising, vroomvroomvroom (because one vroom is never enough) and of course Getaway Lounge and Getflight. Write me if you want to be on the list.

Here is the full blurb from the programme

"Find Your Online Groove – Timothy Hughes, BOOT + Ian Cumming, Director, Insight4 Pty Ltd

Timothy Hughes, the scribe behind the BOOT (Business of Online Travel) blog, and Ian Cumming, who’s started several of his own businesses and sold one or two, will scan their eye over the digital travel landscape and share with us what are some of the cool ideas they’ve seen in search, social media, rich media and deals – what’s hot and what’s not and what you ought to be doing."

Bookings still available here. Let me know if you're attending.

PS - we debated a lot the definition of a start-up. In my mind it is any company where the founders are still involved and no exit event has occurred. As a result companies that have been around for a while can still be considered start-ups whereas younger companies that have been sold are out.

Revinate Sessions - talking social media monitoring with Revinates Michelle Wohl

In my annual predictions I called 2011 as the year in which social goes from an internet media platform to a core part of retail decision making through becoming part of the revolution in search and discovery.

I have published a series of posts around this theme. I published 5 tips for suppliers looking for an online social media strategy (via Tnooz), the role that social and other factors will play in the future of the Google search algorithm (also via Tnooz) and a PhoCusWright Innovation Summit piece on competition between start-ups Revinate and Trustyou to help companies search and monitor social media.

That post led me to virtual meeting with Michele Wohl (photo top left), Revinate’s VP of marketing. Michelle gave me a demonstration of the Revinate social media monitoring tool for hotels and we discussed social media, semantic reasoning, klout and more. Here is what we discussed

The Revinate Product

At first Wohl and I discussed the product. I like it. It needs a few more elements to be the complete package (see below) but I saw a very useful product for a hotel to understand what is going on in social media and user generated content around the hotel brand.

The product allows a hotel to track, monitor and respond to user generated content on site and social media platforms. Wohl spent 30 minutes taking me through what a typical hotel client (pty level or chain) can do with the tool. Basic tasks in the tool include:

• Monitoring and responding to reviews;
• Tracking commentary/updates through twitter; and
• Track consumer sentiment about a property and competing properties.

That is – an aggregation, tracking and social media monitoring tool.

It was some of the higher end features that impressed me including:

• “Add a ticket” and respond feature: A workflow management process that allows hotel to operationalise the information/review by assigning it to someone within the hotel and track the response. For example if the review or comment is about the restaurant it can be “ticketed” to the F&B manager to address. Very useful at bringing all elements of the property into the social media environment without over burdening staff;
• Filter and compare: The ability to filter commentary/reviews by various categories and themes. For example to see how often the “pool” at a particular property is mentioned compared to the pool at a competitor property. Allows the hotel to be able to see how they rate against a competitor at a feature and facility level, not just overall;
• Scorecard systems: Allowing data and trends to be compiled overtime and compared to competitors. Different time periods can be mapped against different competitors and different social media point. Creating the ability to set targets for staff members against measurable goals;
• Chains can roll up and deep dive: Chains can see whole of chain level and then rankings between individual properties helping to drive internal competition and improvements; and
• Pricing: The price of the product is based around the number of rooms and hotel ADR. It ranges from 1-3 times ADR per month. I like how Revinate have targeted the price of the product to be clearly measurable against a potential gain.

General Social media tips

Wohl and I also discussed some general tips and concepts around social media. Here were her tips:

1. Monitor before you create: much like the recommendations from my 5 tips for a hotel building a social media strategy Wohl says “First thing to do is the monitoring – find out what people are saying about you. Only then do let people know you are listening. Don’t sign up for Facebook or Twitter if there is no one there at the property to look after it”;
2. Respond to all reviews as long as the responses can be unique: On the question of responding to reviews, Wohl said it was critical that hotels reply to all reviews with unique responses. Even those from clearly contradictory (read mad but incoherent) consumers. She said “you are not responding to the person writing the review but the people reading it. Future bookers are making decisions to book based on management’s response to reviews and including that in their own post booking reviews.”; and
3. It is not all about TripAdvisor…but: Wohl was able to show me a series of real time client examples. In none of them was TripAdvisor responsible for more than 45% of the reviews out there on that property. Some as low as 23%. Put another way more than half of the reviews about those properties were on a site other than TripAdvisor.

More to do

As I say I like the product and it is useable right now against the volumes of UGC being created. However there is more that needs to be built to match the future quantity and iterations of content.

1. Authority/Klout measurement: There is nothing in the tool at present that prioritises one review/comment above another based on the authority/popularity/reach/klout of the creator. Wohl is aware of this and says this is one the product roadmap (update - Wohl has since told me that "Klout integration should be released in the next couple of weeks");
2. Sentiment analysis: Expanding the search, tagging and monitoring to determine whether or not the use of a word is in a positive or negative. For example is someone wrote “this hotel is the least romantic place” then being able to tell that this mention of the word “romantic” is a negative not a positive. Wohl says that volumes are manageable at present without semantic analysis ““Clients are not yet asking us for sentiment analysis as so far the review volume is manageable that they are focused on reading and responding to every review”. Clearly this volume management will not last for ever; and
3. Foreign languages: At the time we spoke the tool was tracking only English language reviews. Since we spoke - hotels can now request to have language reviews in their native (non-English) language fed into the system. The next step is the ability to combine information from foreign language and native language reviews. For example taking a foreign review that mentions the swimming pool and combining it with native language reviews in the aggregation tool. Wohl says this is "on the roadmap".

Wrap up

With social media there has to be a balance. Each dollar spent on social media is a dollar not spent on paid search. Each person hour spent on replying to a TripAdvisor review is an hour not spent on CRM analysis, on property client management, on managing an existing sales channel and other critical sale and customer retention activities. Now is the time for social media focus and work. But it is not the time for sacrificing online marketing and client management in favour of chasing every tweet down the endless social media rabbit hole. I like what I have seen in Revinate as a means for helping find that balance.

Any hoteliers out there with experience using Revinate or a competing product with any comments?

Dave Cunningham of OurExplorer on sale to Viator

Recently we read through Tnooz and TechCrunch that destination activity specialist Viator had bought human tour guide search and booking engine OurExplorer (press release here). Once the deal has closed, Viator will own the main assests of OurExplorer. An emerging start up brand and a rating system, search engine and booking functionality for 2,400 individual guides.

I had a chance last week to talk with OurExplorer founder and CEO Dave Cunningham about the sale process and what he learned as the boss of an online travel start-up. [for more background on the company see my 2008 interview with Dave]

BOOT: How was the sales process?

Cunningham: It took about fourteen weeks to complete. Six weeks of work in the background then eight weeks of due diligence to confirm the value and the legals.

BOOT: 14 weeks to do a deal – that’s quite quick?

Cunningham: It felt very long. For a small team due diligence is a lot of work. It is a massive risk as a start-up to engage in a sale process. The company we lost 10-15 weeks of growth in the process.

BOOT: What did you learn from the sale process that would benefit other start-ups?

Cunningham: Three steps to us building out OurExplorer

1. Build the platform an website
2. Establish the supplier base (guides); and
3. Build demand

Of these - do not underestimate how hard the work is to build out a supplier base. Need dedicated sales people – start-ups constantly underestimate how hard to get a quality supplier database. Only once you have a decent supplier base can you drive traffic – which is difficult enough.

I wish I’d had more paper evidence of supplier’s commitment. Both in terms of contracts and exclusivity. OurExplorer would have been worth a lot more with paperwork on supplier.

BOOT : Did you user a broker or advisor? If so, do you have any advice in using an advisor?

Dave: Yes. If getting biz broker to help – insist that they take less up front and more on the back end. This made it easier for us to see who had the contacts in the industry. We negotiated to double exit fees and reduce upfront. Any company that said yes to the deal provided us with confidence of the value of their network.

Too many start ups have the same number of companies on their power point deck as the exit. In Australia everyone has Fairfax [large AU media company] or News [News Ltd, the AU arm of News Corp] on their slides as a buyer. Need to have a profitability strategy in your plan. Cannot be reliant on a sale exit – especially in Australia where there are limited buyers.

BOOT: What are the integration plans with Viator?

Dave: Viator have confirmed that they will keep the brand. Viator had two options

1. integrate product – select the top 1000 or so guides (out of 2,400) and add them into the Viator product set; or
2. keep the OurExplorer brand and dedicate effort to grow the business and brand

Viator are doing both. Integrating and keeping brand alive. Viator have around 5,000 products. By adding 2,400 guides to the product list this is a big add.

BOOT: What’s next for you?

Cunningham: One job left. I am going to the World Tour Guide Association conference in January for a good quality hand over. Then done. Then looking to buy into another start up. To help them drive sales and marketing.

My Take

OurExplorer are the definition of the long tail in travel (I mean that in a good way). They are the first (that I know of) to provide searching, rating and booking of individual guides. I think it makes a good addition to Viator.

For my 2008 interview with Dave see this post

Thanks to Håkan Dahlström via Flickr for the photo

Introducing the Twelevator Pitch - an elevator pitch in the age of Twitter

I helped out at the WebInTravel Innovation Bootcamp as a start-up mentor. In this I was advising a start up on their 5 min pitch to investors. Four companies pitched, then broke with their mentors for a 1 hour workshop, then pitched again. Three of the four will get to hit the WIT Mainstage. More details here

I won't mention the name of the company that I helped out because their pitch was in real trouble from the beginning. After their initial 5 minute pitch I had no clear idea what their product was. This was not a question of complexity or being too deep in technology. Rather their pitch had so many different angles, commentary and ideas in it that the product could be anything from a dating site, social network, trip planning site, content site, niche online agent, community site and more.

The first job we had as mentors was to get the company to describe their product in a quick and clean format. I set them a challenge. Break for 5 minutes and come back to the mentor group with a tweet like 140 character description of the product - what a laughingly called later on a twelevator pitch. Our reasoning for this is that a start up has to be focused. To be focused you need a simple goal and product aim. If your product/business can't be described in a 140 characters then chances are different parts of the start up team have different ideas as to what the company is working on and will pull the company in different directions.

I knew the start up was in trouble when 15 mins later the team had still not returned with a product description tweet. In those 15 mins they were debating as a group what it is they wanted to do and constructed a long and involved idea. Eventually they did return but with closer to 280 characters of pitch.

We put together a new pitch for the rest of the period but the lack of focus in the start up was telling.

There are a lot of elements that a start-up needs to include in a venture pitch but before you do anything make sure you can describe your product in a short sharp twelevator pitch.

Thanks to splorp for this great photo via flickr

Tnooz: Zoombu introduces door to door search

Latest Tnooz post is live "Great way to search yet five big challenges for door-to-door site Zoombu". My thoughts on UK travel search start up Zoombu. Their product is one of the first to do “multimodal door-to-door search”. Check out my interview with founder Rachel Armitage, thoughts on the product and challenges they face. Full post here.

Steve Sherlock of Oodles: the search for funding and the deal with Wotif that almost happened

Car rental search site Oodles is part meta-search, part travel agent and part loyal program deal search site. The classic meta-search part is the ability for consumers to search multiple sites in one go. The travel agent part is that Oodles collects commission on paid bookings (when customer pays car company) not on a per click meta-search basis. The interesting loyalty program part is that if you give your Airline or Car frequent flyer number to Oodles, then they will add to the search results specialist loyalty program deals. Means that a person who is both a Velocity frequent flyer (Virgin Blue), Qantas Frequent Flyer and Hertz Gold Club member will see an integrated display including special deals from Europcar (Virgin partner), Avis (Qantas) and Hertz as well as other deals from Thrifty. This is a great and - as far as I can tell - a unique offering in car rental and meta-search generally.

I was talking about Oodles today with Founder and MD Steve Sherlock. Steve and Oodles are in the middle of a search for a new round of funding. In a true web 2.0 fashion Steve is blogging his way through the experience in series of "diary of an entrepreneur raising capital" entries over at the anthill website. Included is a story about how Oodles was almost acquired by Australian online travel giant Wotif.com. It is an interesting series of diary notes and a recommended read.

I like the different angle that Oodles has taken from others. Allows consumers to see a display of a combination of inventory (loyalty program discounted and regular) that I have not seen on any other online travel site. Oodles already have the car rental traffic lead in Australia so appear to be executing well. The challenge for them is the constant start-up problem in Australia - finding the funding to continue to feed the growth.

Interview with Joobili boss Jared Salter - Part 2 - timed search, refinement and turnips

This is part 2 of my interview with Jared Salter, CEO of time based travel discovery and inspiration company Joobili (pictured here to the right of Joobili Co-founder Tamas Gabor). In Part 1 we discussed the founding of the company including raising money in Budapest with just a powerpoint presentation. In this part Jared and I talk functionality, discovery and inspiration online and turnips.

BOOT: Your site starts of with a time based search rather than destination based search. You need a lot of data to provide consumers with information on every event and activity around the world. Where do you get the data from and how do you plan to get more?

Jared from Joobili: We started off by creating it in house with a team of writers scouring the web, collecting events and writing up. We needed to do this to get us started, however clearly there is a scalability issue with approach. Now we are partnering with local tourism offices to access their content. In this area there is a big advantage is being in Europe. We now have deals with 12 or13 European national tourist offices, 25 regional tourism boards and 75 plus local promoters. They have joined us Joobili pro members. We give them a back end to upload and manage events.

BOOT: Where are you in the evolution of the product?

Jared from Joobili: Very early. We only became visible to Google in the last month as we were so focused on the front end. I am not worried about this as I feel this is pretty common with start ups.

BOOT: A challenge with a discovery and inspiration site is to decide how to balance up front searching and refinement. How much to you request from the consumer before a search is conducted versus how much to you move the consumer information collection to the post search refinement stage. I could not help but notice that in a random search I have just conducted for Nov 11-18, the number one recommended event is the Raben-Chilibi Turnip Festival in Richterswil Switzerland. Clearly I will need to refine this search for there to be valuable information (not that I have anything against the Swiss or Turnips). How did you balance asking for information upfront versus refinement?

Jared from Joobili: It was a big internal debate and am not sure we have found the answer yet. We made the decision to err on the side of simplicity by having only a date search at the beginning. You might seem more filters on the front page in later versions but for launch we erred on simplicity with just time search up-front.

We will need a much need larger content base before pushing the filter angle and profiling. Paraphrasing TripAdvisor’s Marc Charron– when it comes to profiling “rather than figuring out who you are, it is about figuring out when you are”. Completely agree with your EveryYou idea. We are saying to the customer – “tell us when you are and then filter who you are”.

BOOT: Another challenge for a discovery and inspiration site is building customer loyalty. Getting the customer to use the product more than once. How have you through about the challenge of customer retention?

Jared from Joobili: According to Google, the online travel research process is 29 days from inspiration to book. Therefore we are planning to introduce a save search parameter. We know you want to go on holiday on a certain date – so we will let you save that search. We can then provide email notification any time a new event is added to the database. Or eventually build a recommendation engine based on that search parameter.

The next part will be integrating price into the results through partnerships with other sites. One other trend is that price is no longer the sole motivator as discounting becomes permanent. For example we have been working with Wizz air [Low cost carrier in Europe]. They offer a 50 euro flight to Rome. It is always 50 Euro. There is not longer an urgency around the discount or low price because they always a low price. Therefore Wizz need to match the cheap flight with time sensitive inspiration to build in a sense of urgency. Price is an extremely motivator for travel behaviour but it is becoming not enough to drive urgency in consumer behaviour.

BOOT: What else in online travel has you excited?

Jared from Joobili: I am so focused on the discovery space that I have not thought about other areas. Everyone is talking mobile and Augmented Reality which is going to going to be great and interesting. But there are fundamental issues with online travel that we have not yet figured out and discovery is one of them

BOOT: How radical do you think the change will be in how we search and book travel online? Are the big four Online Travel Agents facing the same sort of radical change and industry shift that the offline agents faced in the 1990s and if they are not careful the OTAs could be in real danger?

Jarend from Joobili This period of change is not exactly the same [as the 1990s early 2000s were for offline]. The big OTAs will not be the innovators in the industry but have such a controlling part of the pie. Joobili can innovate the discovery process but need the big guys to make the booking. We hope we generate more interest in the discovery stage.

This will be more than just about content – as consumers have to know what you are searching for. All of these sites are throwing in content for SEO benefits but still asking consumer to type in what they want. Is not about the content it is the interface or experience to help the consumer to discover something new.

My take and summary

I enjoyed this chat with Jared. Not least of which because it was good to get a European perspective on the travel discovery market. Joobili is still in seed stage so we need to be a little bit forgiving on the “turnip” result but it highlights that there is a lot of data collection and back end refinement/recommendation work that Joobili needs to do before the product is ready for any dramatic marketing investment. I think Jared knows this. For more on the challenges in starting a content company see my 3 rules for starting a UGC business.

Part 1 of the interview is here.

Uptake CEO Yen Lee talks revenue plans, expansion plans and lessons learnt

Am on an interview roll here at BOOT HQ. To keep things going I thought it was time to catch up with Uptake CEO Yen Lee. Initially launched as Kango in 2007 with backing from Shasta Ventures Uptake is building a review meta-search business. They have a series of algorithms and search methodologies for collecting and analysing huge numbers of reviews for hotels and destinations (currently US only). They hit the news again in September last year having secured another round from Shasta just moments before the GFC entered our acronym dictionaries.

A year after the new round and four months after Kayak announced the expansion of Travelpost into review meta-search I wanted to find out from Yen how the company was going and what he thought about the market. Here is some of our exchange

BOOT: How is the business tracking?

Yen - four big milestones from the last twelve months:

1. 5,000 sites in the index;
2. Technology is working;
3. Raised the second round; and
4. Hit a million uniques in traffic.
   

BOOT: With 5,000 sites in the index and a significant traffic base is the focus now onto revenue, is the product ready?

Yen - want to increase the number of sites searched by 100-200 times. Beyond dramatically expanding the size of the index also want the display to be better customised based on consumer preferences.

Any other expansion plans? What about using ad networks to sell CPM campaigns for revenue raising

Yen - we are happy for now with the CPA model from click referral. Not under pressure to turn to ad networks and CPM. Areexploring expansion possibilities outside of English language but in no rush. Also to expand the product into destinations. Believes long term there is more money in destination activities than hotels. There is a third expansion plan but Yen would not share what is was.

BOOT: Has Kayak's Travelpost revamp left you worried? How about TripAdvisor?

Yen - would be flattering to think we are on radar of either of these companies [as a competitor]. Is convinced there is space for Uptake to take on both of them.

BOOT: Any worries about the fall in online advertising spend?

Yen - not really as not very close to it. Focused on CPA and lead generation revenue. While banner/brand spend is soft, performance based advertising continues to be very strong. Expects growth in CPA to be stronger than PPC as traffic is even more qualified than paid search.

BOOT: Now that you are through your early stages as a start-up what things have you learnt about launching a company and growing a business?

Yen - couple of things

1. There were some early staff members better suited to building prototypes and early products than for scaling the business. Learnt that it was OK to move people around and shed some people and move on;

2. Cash is king -"don't worry about dilution" and "if you have a choice don't spend a dollar"; and

3. Should have been more aggressive with the consumer experience part of the product. Were very aggressive on the search index and algorithms. Should have displayed the same aggression in building consumer experience and gotten to it three months earlier.

My Take on Uptake

I am not sure what it is about my most recent round of interviews with travel search and discovery sites. Like the others before him in this series Yen is sounding very confident and very relaxed. No furrowed brows and tough talk filled with reality checks and challenging growth plans. He has a comfort brought on from money in the bank and limited revenue pressure (or "lots of runway" as they say in the best Valley coffee houses). My guess is Uptake is actually more concerned about the Kayak move into review meta-search than they are letting on but Yen does have a product that is not only a year a ahead of Travelpost in functionality but most importantly a year ahead in terms of Google indexing. The meta-search model in reviews is not yet proven but the revenue model behind sending qualified leads to hotel companies and intermediaries is proven.

What do you think - is review meta-search a viable business? Can Uptake fight off product launches and marketing pushes from Kayak and TripAdvisor?

Tripbase CEO Reuven Levitt Interview Part 2 - tips for start-ups raising funds

This is Part 2 in my notes from an interview with Tripbase CEO Reuven Levitt. Part 1 was a review of the product and a discussion of the business of travel inspiration and discovery.

In this part I will share with you some of the interesting insights and comments from Levitt on this experiences in raising funding in the Valley. The trigger for the interview series was Tripbase securing $2 million in series A funding.

Tripbase is not the first time the Levitt has raised money for start-ups. In his last venture he raised $12 million through the "usual" VC routes. I asked him what advice he would have for other start-ups looking for cash. Here are his top three tips:

1. Build a prototype before you do anything else: To attract the two key elements to success (people and money) a start-up needs to build a proof of concept as quickly as possible. The fastest way to do that is to use open source technologies. It is very important to get "30%-50% of the way" to a product before looking for money. Levitt says that a lot of start ups hold back on doing a fast build of a prototype for fear that they will be copied. Levitt's view is that copying is not the area to worry about. He says there is more of a risk in going slow and hidden rather than fast and a little more open.
2. Bootstrapping is critical: Levitt could not over emphasise the importance of being tight with money as a start-up. The phrase he used regularly was "focus on spend". Putting this another way "Start ups do not tcome out of luxury. Investors need to see hunger."; and
   
3. Start-ups often look for funding in the wrong places: Levitt believes that "private people with deep pockets" are the best places to look for funding, rather than VCs. On location, there is "no comparison to being in the Valley" because "by sheer numbers you will meet people". The only draw back of the Valley is that "it is very competitive...lots of people competing for money...lots of options on where to invest".
   

Any other tips out there from other entrepreneurs? While writing up these notes I was also reminded of a post from Jeremy Liew of Valley VC group Lightspeed Ventures on Five things start ups must spend their money on.

Tripbase CEO Reuven Levitt Interview Part 1 - travel discovery, the travel genome and the magic of the slider

Am loving the recent run of interviews that I have been doing especially in the travel discovery and inspiration space. I have finally had a chance to write up my notes of an interview with Reuven Levitt of inspiration start up Tripbase. The interview and story came in part from my series of posts on the travel discovery and inspiration companies and part because Tripbase has just closed a round of series A funding, securing $2 million from private investors. I am going am going to do two posts on the interview. This first one will be on the company and the market. In part two I will share our discussion on start up fund raising.

What is Tripbase?

We have been talking on the BOOT about the different approaches that companies are choosing for generating recommendations. There is the criteria based selection process of Triporati, the event based selection of Joobili and the deal/price hunting approach of Voyij.

In Tripbase's case they have tried to distil trip recommendations critera to just five parameters - Nightlife, Dining, Shopping, Nature and Attractions. A search is then based on selecting your starting point (ie location), dates and (through using sliders) the relative positives and negatives of preferences the traveller has on each of the five parameters. For example I searched for a Spring (October) holiday from Sydney for a family of four with the following slider preferences hoping to reflect a "family" perspective (picture)

The initial recommendations in order were: Auckland, Brisbane, Canberra, Tokyo and Melbourne. [What is interesting about that is that the next trip I have booked for the family (Easter next year) is to the South Island of New Zealand].

Search results are one thing but it is the refinement that is critical for recommendations. There is a need for a balance - enough to allow the consumer to find what they want but not too much to be overwhelming. The main refinement available from Tripbase are budget, weather and continent (Levitt is promising more).

Here are the results (picture)

I like the idea of the price refinement. That said, I moved the value slider a lot and did not get presented with a much greater variety of recommendations.

Where did they idea come from, where does the data come from?

Levitt and the rest of the Tripbase team came to the travel recommendation area not from a travel background but from a history of computational biology and building recommendation engines in the biochemistry field. This led him to attempt to build a generic recommendation engine and commence work on taking that engine and modifying it for travel. As he described it to me Tripbase is made up of two components rather than one. The first is the data centre and information collection mechanism. The second is the Tripbase website itself which sits above the data centre, providing and interface for customers to access the information.

They call the data centre the Travel Genome Project (not to be confused with Triporati's Vacation Genome Project). Levitt is claiming the TGP indexes and scrapes over 3,000 websites and therefore up to 22 million reviews. As Levitt put it "we use artificial intelligence techniques to make "sense" of a destination" drawn from the huge number of data sources being scraped and searched. So while Triporati is using technology and people/editors hand in hand to determine the results, Tripbase is relying on computational data analysis to sort through the overwhelming amount of data available - including the need to estimate prices and costs.

Thoughts on the market and monetisation

He has plans for both elements of the product and there are clients for both. At this stage the plans for Tripbase are further distribution and customer experience refinement (ie general competition in the discovery and inspiration space). For the Travel Genome Project plans, he was keeping his cards close to his chest, not giving away too much. If it is true that he has with this product a unique (or near unique) way of indexing destination information then he has a powerful tool for distribution through partners. But was not sharing a plan as to how he would take advantage.

Tripbase are not yet focused on monetisation and are in no rush. Levitt says he is not under revenue pressure yet and he wants to get the product right first. He contrasts this to the Big Four (Expedia, Orbitz, Travelocity and Priceline) who he saw as struggling to innovate and grow because they are, as Levitt put it, "struggling to focus on costs and spend marketing money while trying to cut back on fees and keep the business growing"

My Take

The basis of the product is an automated way of indexing enormous amounts of travel data through algorithms that link descriptive data, price data and sorting criteria. Very interesting. But there is still much to do before the product is a hit. While the search process is easy, I found that the refinement process did not produce the variety of options that I would have expected. The search process was much less complicated than Triporati but the results from Triporati were more creative, unexpected and intriguing. That said, it is hard to say which recommendation I would actually be more likely to act on- the creative unexpected one (Triporati) or the proven more anticipated on (Tripbase). Also I liked the the "cost per day" and average hotel and flight cost information provided with each recommendation. The price estimations seemed very accurate (as far as I could tell) and varied with time of year/season.

Monetisation will be a challenge but not an impossible one. As Levitt admitted the travel inspiration business is a "distance away" from purchasing behaviour and therefore will take time to target to advertisers.

In summary the product has made a great start. Some challenges to overcome but I am definitely seeing some a very entertaining and competitive battle starting to emerge between the different discovery and inspiration players. Do you have any thoughts on this space and the emerging battle lines?

Update - part 2 of interview here

WebInTravel 2009: The BOOT will be there and so will a startup or two

I had a great time last year at WebInTravel (for reminder coverage look here). This year's WebInTravel is on October 20-23 alongside ITB Asia at Suntec in Singapore. The BOOT is planning to be there. Hope to see you there also.

One great session from the 2008 WebInTravel was the Start-Up Pitch competition between entrip, Conference Bay and TripFilms (the eventual winner). Siew Hoon is running this session again at the 2009 WebInTravel and is calling for submissions from companies looking to join the Start-Up Pitch competition for 2009. More details here. If you are a travel start up looking for exposure then I recommend getting involved.

I will be participating in a couple of sessions at WIT but the full programme for 2009 has not yet been released. Will let you know when it is. You can early register here (will open a word doc). Siew Hoon is also runing a series of lead up events called WIT*E - the first one on April 30 with presentations and discussions with Nigel Roberts of Marina Bay Sands, Robin Yap and Sashank Nigam of Insight Vacations and Jeaneete Ho of Raffles.

What's a better idea, entrip, Conference Bay or TripFilms? Depends who you ask.

WebInTravel hosted a "Start-Up Pitch" session. Much in the form of a very scaled down TechCrunch50, this session saw a short list of three companies engaging in a strict 5 minute pitch to a judging panel made up of investors and venture capitalist. The three finalists in the pitch were

- entrip. a travel organisation company based in India. Presented by founder and boss Anthony Hsiao. This company is trying to be the ultimate in travel organisation mash-ups. A way to bring together all of the elements of planning, tracking and sharing a trip. It ha as UI that enables a traveller to plot on a map where they are going and then have automated links to content, information, booking profiles and a place to store and share. Planning sites are gaining traction recently. GoPlanit and TripIt have been passed members of the TechCrunch50 (interview with GoPlanit here and TripIt here). entrip's difference is in its UI. By using a map based approach entrip gives the user a very different approach to planning and booking. The site has just started so there are challenges ahead fro Hsiao and the rest of the team but is a great beginning.

- Conference Bay is trying to be the eBay/Priceline of conferences. A market place that gives conference organisers and opportunity to distribute their tickets on name your own price/auction model. A clearing house for conference tickets. The theory being that every incremental ticket is pure profit for a conference organiser given the high sunk costs. I see the market here but the challenge is that conference organisers are very wary of open up any channel that promotes discounting. To get a conference up and running it is critical to get people booking early rather than waiting for deals and the last minute. That said, with economic doom and gloom all around us this might be the perfect time to be an aggregator of the potentially dropping demand for conferences.


- TripFilms was the final pitch of the day. The pitch was led by Jim Donnelly (founder and former boss of the now Sabre owned IgoUgo). Jim is an investor in TripFilms, the TripFilms founder and boss is his ex-partner in IgoUgo (Tony Cheng). Jim's pitch was a direct one. TripFilms is IgoUgo but in video. A place for the creation and distribution of high quality destination and travel videos.

Who won? entrip pulled the "people's choice award" by wining the popular vote from the audience but TripFilms secure the title by winning over the judging panel. The panel was impressed by the pedigree of the founders of TripFilms (they had already built and sold a company) as well as the immediacy of the business model around video content. On Conference Bay the panel expressed the same concerns I have above. For entrip, the panel loved the site but belived there were a lot of challenges in getting the distribution right.

What's your vote?

Official WIT version of the story here.

RedHerring likes tripJane at lot, TechCrunch 50 a little but I have not idea what they do

RedHerring is the tech boom magazine who's death keeps being reported and yet somehow managed to survive. Every now and then I check in on the online version to see what is happening. In keeping this week's (accidental) start-up theme at the BOOT, I came across the list of the Red Herring North America 100 from back in May 2008. This is their list of the top 100 start-ups in North America. Lots of good pedigree here as past winners include Google, Yahoo!, Skype and YouTube (with a little glitch around Netscape).

Much like TechCrunch50 I could only find one travel company on the list - tripJane. tripJane was also a finalist in the TechCrunch50 - being part of what they called the demo pit (ie not on the main stage but out in the foyer on a card table).

No details on the tripJane website on what they do. Something about social networking, purchasing and planning - which we have heard before. Here is the Crunchbase profile for a little more.

At lot of time has passed since the May RedHerring awards. Anyone out there from tripJane want to share with us what you do.

Promise next week to leave start-up land the get back to the more regular feature of this blog - whining about Qantas covering general industry trends.

GoPlanIt - interview with COO Jimmy Ku on the day the Dow imploded

It is start up interview and profile week here at the BOOT. Earlier this week we talked with Yen Lee of UpTake about how he felt cashing a $10,000,000 cheque moments before the Dow went into (the first of many) freefall(s). Then I posted an exchange with Our Explorer CEO Dave Cunningham about his efforts to match tour guides with lost tourists.

Today I had a chance to speak with GoPlanit COO Jimmy Ku. You’ll recall that GoPlanit was the only travel company to be part o the high profile start-up competition TechCrunch50. My earlier profile of them is here.

Discussions around money

On any normal day our interview would have focused on GoPlanit's plans to move from beta to a full release, how they would generate traffic and thoughts on balancing editorial and user generated content. Unfortunately this is not a normal day. On this day Washington degenerated into a $700 billion game of “I like George Bush less than you do” driving the Dow down 778 points (check out this interactive graphic on nytimes.com tracking the decline of the Dow with the counting of the nae votes– registration required). Unsurprisingly it meant we spent time talking about GoPlanit’s plans for raising their first full round of funding. As the Crunchbase profile states and Ku confirmed GoPlanit have raised $500k in seed capital. This is enough to support current efforts and the team of 7 but Ku admits that they will need more.

Thankfully for GoPlanit the profile boost of Techcrunch50 participation has opened a huge number of doors as they look for funding. As Ku put it Techcrunc50 guaranteed me “days of back to back meetings”. But even Ku admits that the horror on the Dow going to make it tougher. “Anyone not scared [about the Dow decline] is probably lying” said Ku “but good products will still make money and VCs will still invest in those that can succeed”

Discussions around traffic

It is too early for Ku to share any traffic numbers with us but we did discuss GoPlanit’s marketing tactics. As expected the focus will be on SEO through user and editorial content. GoPlanit needs to take time to develop each destination it is planning to launch through connecting tot a “respectable source” of content and information, building out the links to providers and setting up the framework for attracting user generated content.

Sidebar - While discussing this I noticed that both TripIt and TripAdvisor are bidding on the keyword phrase “planning a trip” (as you can see in this poorly cropped photo image).



This seemed odd to Ku. He said (and I agree) that you want to attract the people looking for a destination not someone generically searching for a trip planning tool.

Discussions around the founders

The idea behind GoPlanit is best drawn directly from CEO Steve Chen’s presentation at Techcrunch50. In short the founders separately experienced the pain of trying to organise large holidays. In Ku’s case he found himself as the designated organiser for group holidays with friends. In CEO Chen's case it was in organising his honeymoon and his general experiences post a career with Accenture as an event organiser in the Bay Area. Chen and Ku are also joined in the founder club by CTO James Chen, most recently of CNET, Rotten Tomatoes and HotorNot.

My take

I like the idea and as with many start up interviews with travel content/tool companies, if they can generate the traffic, then the ad revenue will follow. The CPM rates and advertising desire for good consumer travel eyeballs is strong enough to survive this economic Bush-wacking. The challenge is raising the money to support the product to attract the eyeballs on a day no one can get $700 billion from the US government.

Related News

• TechCrunch story on a site upgrade at the Microsoft backed PlanetEye;
• TechCrunch story on impact of the credit crunch/implosion on VCs and Startups; and
  
• Jason Calacanis on "the Startup Depression"