The Wanderfly Sessions: Talking travel inspiration and discovery with Wanderfly co-founder Christy Liu

Two years ago I started writing about travel discovery and inspiration sites. Interviewing start up CEOs and Chairmen about the future of travel discovery and how to build a start up business under the shadows of Google, social media and the big four OTAs. Start up Wanderfly has joined the race for inspiration in this new wave of online travel search and discovery. I recently spoke with Wanderfly co-founder and Director of Marketing Christy Liu (pictured) about inspirations, advice for start-ups and building traffic.

We have seen a variety of different approaches to the user interface for travel discover and inspiration engines. Joobili asks you start with a date, Triporati start with 64 interest areas and ask you to rank them and Tripbase have five criteria with "sliders" to select a balance. Wanderfly's angle is for a combination of sliders on dates and price and tabs/buttons for twelve interests or activities.

Review of the site

Wanderfly have tried to differentiate themselves with a very slick landing page layout. They have integrated baseline content and descriptions with booking engine feeds and content imported from lonely planet and foursquare. There is also a Facebook connect login reminiscent of the TripAdvisor Tripfriends integrate. To date the Wanderfly destination landing page is the cleanest looking integration I have seen of social media, editorial and pricing/trip cost functionality. Result is a very usable and attractive destination page. I commend them on the UI and layout.

While the page looks good, there is still a lot of work to do around the depth of content. I did a search on Culture, Outdoors, Beach and Eco. Parameters of $5,000 per person and destination Africa. The recommendation was Masindi in Uganda (shot below).

This is an intriguing answer. It is a place I have never heard of in a country with a name that invokes many positive and negative images. It is not on my list of places to go in Africa (top 2 currently are Tanzania and the Okovanko Delta). Unfortunately the Wanderfly destination page for Masindi is light on content and does not indicate why it is that this is the best destination based on my criteria. The layout is clean and clear allowing for ease of use and encouraging reuse but consumers will need more both in terms of absolute levels of content and in terms of explanatory text on why a destination is proposed. For example there is still a bit of work to do around incorporation of and depth of news feeds and improved photo tagging to help indicate what it is that has been photographed (or how to find it).

First thing to fix is the “Change Trip” option top right. This is the button that allows users to find the rest of the recommendations made. Chances are customers wont see it or understand it and assume that there is only one recommendation. Liu told me this was a deliberate tactic. They are modeling Wanderfly after real human conversations. The theory being that a human response would be one suggestion at a time rather than a list. Click tracking should point out soon enough that consumers are not clicking on options past the first one.

Collecting Data

This time last year I published my three rules for what is needed to start a consumer information or UGC based online travel start up.

In it I discussed how important it is for a content company to collect data from outside sources. I talk to Liu about where she was getting her data to build the pages and how hard it was to collect. Liu said that the team has spent part of the last 18 months integrating into more than 20 partners for data including Expedia, Kayak, Yelp, Foursquare and Lonely Planet. Many of these are open APIs but some required customer deals. She indicated that it was also important to add an editorial level. To include a manual review, writing and matching process. Much like my 2007 post on the balance between UGC and editorial content Liu said they were aware of the need for an editorial level – especially when it comes to matching a destination to the twelve designated trip themes

Themes and trip tags

I asked Liu – why twelve themes and would more be chosen. She told me that Google traffic levels were the main criteria for selecting a theme. But she acknowledged that twelve themes were not enough. Wanderfly are planning to launch a ten to fifteen more. We also discussed the challenge in attaching a theme to an individual’s needs when each individual may have a different definition of what that theme. Luxury is a classic example. One person’s definition of luxury is very different to another. Liu is aware of this and is betting that their research and search depth can help solve this.

Company background and advice for other entrepreneurs

Liu shared that the company is 1.5 years old and is working off dollars from a round of angle funding. Liu said they are actively looking for and negotiating for a new round. An announcement was expected before the end of the year - I have not see the release yet. Via email Liu tells me that there should be an announcement coming early in the new year [UPDATE - 1 Feb announced $1mm raised from a series of angles]. Once raised money will be used on product and content – I think that is the right call.

I also asked Liu for any advice she might have for other entrepreneurs trying to launch a product or business. She replied

“the big one is to trust your gut and trust your instinct. Many people offered us advice and guidance. A few times we went through with advice that we did not feel comfortable with and did not end up where we expected.”

My take

The look and feel is great and my support of the inspiration space is well known. To success Wanderfly have three challenges to face

1. Depth of Content – as per above (and my comments in a recent Tnooz search post) the future of search will need lots of content and information but will also need the reasons for the results. Consumers will want to know why a result was chosen. Specifically what elements of the search drove that result and what influencers pushed it. Wanderfly have started the collection part through their 20 plus connections. But more is needed in areas of news, photos and activities. More importantly they need to work on a reasoning index. A method for describing the reasons behind the recommendation
   
2. Distribution - with the revenue model for inspiration and discovery sites still under development and lagging the travel retail sector, finding a voice in the marketing noise of online travel is very hard for value of travel discovery and inspiration sites. This is no greater challenge for Wanderfly than any other site. Liu is aware of this - especially the challenges of search. To succeed in search Wanderfly will need to ensure that their aggregated landing pages are sufficient to meet the unique requirements of Google and can adjust to meet all the changes occurring the page rank algorithms. Liu told me in a follow up email that the longer term marketing plans are to focus on affiliate distribution through major deals and widget/link affiliate programs.
   
3. Reasons for launch “notice a problem while we were trying to book a trip” - Kevin May of Tnooz and Rod Cuthbert of Viator have a theory (that I agree with) that any business founded in online travel because some people were trying to plan a trip and noticed that it was really hard and thought they should build something to make it easier….is doomed for failure because it is being built for a very small audience in mind (ie the founders). Wanderfly will be confronted with this challenge. To ensure that the product is designed with a large enough audience in mind.

Check out Wanderfly and let me know what you think.

TripAdvisor Sessions: talking tastegraph and sociograph with TripAdvisor Product VP Adam Medros

In part 1 of my interview with TripAdvisor VP of Product Adam Medros we talked through the launch of the TripAdvisor Trip Friends product and the challenges/benefits of living in a Facebook world.

In this part 2 we review the sociograph vs the tastegraph as a means for recommending. Recommendation through the sociograph means drawing advice and responses from those in the same social network as a user. The tastegraph refers to basing recommendations and search results on the preferences of and feedback from people who like the same things as the user regardless of the existence or not of a social connection.

I asked Medros what he thought about these two trends and whether or not he thought the tastegraph was a better recommendation process than the sociograph. Here is what he had to say

Medros of TripAdvisor: When we talk recommendations at TripAdvisor we talk about a hierarchy of advice. The top of the hierarchy is the wisdom of friends and this is what Trip Friends enables. Trip Friends does more than allowing you to ask your friends, it lets you know which friends to ask. At the other end of the hierarchy is what TripAdvisor has been doing for 10 years – wisdom of crowds. [The crowd providing] A broader set of advice and opinions than available from a transaction provider. In the middle there is the tastegraph – we call it “people like me”. Where you can filter down the recommendations and wisdom of friends through “people like you” filters. The tastegraph is better than wisdom of crowd but not as good as wisdom of friends.

There are three approaches to collecting data for recommendation engines. Two don’t work.

1. Give to Get: Asking consumers to do a survey of who they are and use the results of the survey to show recommendations. It doesn't work and no one does it;
2. Black box: Take all of the click steam data – put it into the "black box" and produce an answer for the consumer. Does not work. No matter how much consumers tell you they want recommendations this way, they (the consumers) do not believe the results when they come out. This method is easier for a transaction site that has only transaction data to rely on. But for research site consumers are all over the site for many different reasons. Too noisy to trust the click data; and
3. People Like Me and Finger Printing: Try to finger print a hotel or travel experience by asking people to choose similar experiences. The best version of this is, "If you like this hotel in city X you will like hotel Z in city Y".

Almost all of these approaches have a scale component. The wisdom of friends needs the scale of a billion pins from the Cities I've Visited app. People like me need scale to aggregate up the different finger print characteristics.

My Take

I see the value in having access to friends to complement the crowd content on TripAdvisor. This is also a very good implementation by TripAdvisor. That said I feel that the path to recommendations is through the tastegraph/people like me approach more than the sociograph. I have lots of friends, close friends, that have very different interests to me and whose recommendations I won't take.

The first time I used Trip Friends it took a few clicks more than I expected to get logged in and up and running. Once in, I found the product easy to use and easy to integrate into a search. But looking down the list of friends connected for the destination I was interested in (Hong Kong) I was not convinced that any of them knew any more than I did. The one friend I do have that lives and grew up in Hong Kong did not have that in her profile so was missed.

I think the "like button" is going to rule the world one day. By that I mean that tools and products to allow content consumers (online or off) to positively or negatively vote for an item or content (including Facebook, Digg, StumbledUpon and more) will drive the future of content and transactional consumption. But I think this is more likely to happen in a "people like me" or tastegraph environment than an environment driven by "what do my friends think".

Now to you - tastegraph or sociograph - which one will rule?

TripAdvisor Sessions: Talking to TripAdvisor VP Adam Medros about Trip Friends and living in a Facebook world

It has taken me a while to type it up but I wanted to share with you my interview with TripAdvisor Product Vice President Adam Medros on their (now not so new) Trip Friends feature that allows review and destination surfing on TripAdvisor to be combined with Facebook social search features.

If you have not come across the Trip Friends product yet, it allows you to connect your TripAdvisor search to your Facebook network. Practical results are an ability to see who in your network may live, have visited or have knowledge about a destination. This data comes from Facebook friend's profiles and Cities I've Visited "pins". Targeted questions can be asked and answered combining the mass crowd input of Tripadvisor's UGC information and the sociograph responses of a user's Facebook friends (for more on the product see the Tnooz review).

The BOOT is full of stories from me about the evolution of online travel from a transactional activity to a recommendation and inspiration service. You will have seen my interviews with various inspiration and discovery start-up CEOs (Triporati, Joobili, Tripbase, LikeCube) as well as my general posts on the Travel Discovery & Inspiration sector. In part 1 of my discussion with Medros of Expedia's TripAdvisor we discussed discovery, inspiration, product development, lead generation and having to live in a world ruled by Facebook (part 2 here). Here are the details of the discussion

BOOT: How long did it take to build the feature?

Medros of TripAdvisor: TripAdvisor does weekly releases covering 10 or 12 different projects at any one time. We have a building and launching mentality. It helps that we are a content company, not not transactional based as transactional sites need to be much slower and more careful in their launches. This feature took 5 months of work. Some was working through the detail of how it would work – some rewriting code as Facebook changed their feed. 2 weeks before launch we had to rewrite the private messaging functionally because of changes on the Facebook side.

BOOT: What are the future plans for the feature?

Medros of TripAdvisor:There are a couple directions we want to take the product

1. Big Picture – pushing on working more closely with partners in the industry to talk to travellers and users that helps plan a better trip to add advice from experts to advice from Facebook friends;
   
2. Mobile - We re-launched our mobile site in Dec 2009. Want to add this feature to that platform. Currently getting more than 2 million users a month on mobile; and
   
3. Network effect – expanding the buckets of things consumers can share with each other.

BOOT: What is like being tied to Facebook? Must be hard and challenging to give up so much control to them?

Medros of TripAdvisor: Without a doubt (a challenge to be tied to the Facebook experience). The benefits are clear but also a number of dependencies we have to manage:

1. General dependency: What would we do if Facebook build their own travel Q&A product? We can't worry about it as we can't stop something like that happening and it would go against public claims by Facebook to be independent;
2. API dependencies: Facebook have a tendency to change features and the API often. For example app notification went away and was never replaced; and
   
3. Downtime dependency: What happens if the Facebook API has downtime? Figuring out how to message to users when there is latency coming from not you.

Despite this we need Facebook. We tried to build a version of Trip Friends on our own a few years ago – did not take off because consumers did not want to maintain another social network.

BOOT: Do you think Facebook is or will become a place for consumers to do transactions?

Medros of TripAdvisor: Facebook (the platform) is ready but users do not think that way just yet. Have yet to see any real interest in transacting on Facebook other than within games. Good innovators dilemma. Is like the early days of Google. Both Facebook and Google are going to get closer and closer to the lead generation side of marketing through delivering people to sites that can transact.

BOOT: Any thoughts on letting hotels participate - to get involved like they can in responding to reviews?

Medros of TripAdvisor: Starting to think about that. TripAdvisor serves two sides of the trip equation. The user side of recommending and the industry side as well. Hoteliers should be able to contribute to trip planning experience. As long as users know the bias of the advice. There is room for us to take this functionality and add advice from experts as well as friends.

In part 2 I talk to Medros about the differences between the sociograph and the tastegraph.

What are your early impressions?

Introducing the "Tastegraph" - discussing recommendations with LikeCube's Emmanuel Marchal

After a post on Tnooz about non-destinational search I spoke with Emmanuel Marchal a Director of recommendation based B2B search provider LikeCube (Crunchbase profile here) about the future of travel search and the power of recommendations.

I have not doubt that the future of online travel is recommendations. Finding a way to give people a targeted recommendation based not only on their demographic or individual wants but on their wants at a particular moment in time. I call this my EveryYou principle (EveryYou definition here, more articles here). Developing a way to do micro targeting at scale.

Marchal's LikeCube is a B2B software as a services solution that purports to provide travel review and retail sites with targeted recommendations and search. His opening sales pitch for LikeCube is similar to that of any search site - give me your data and I will give you the best results for a search string. The LikeCube twist on traditional search is that answers are based not on links and page ranks but on the commonality between the likes and preferences of the content contributors. Marchal pitched this to me as targeting results based on the users "Tastegraph" rather "Sociograph". Instead of linking recommendations and results to the thoughts and feedback of those in the same social network as a user (sociograph), LikeCube targets recommendations and search results from those with the same likes and preferences of the user (tastegraph).

He gave two great examples of how standard approaches to reviews on a content or retail sites do not result in a useful recommendation. The first example was the reviews around TripAdvisor's Dirtiest Hotel of 2010 - the Heritage Marina Hotel in San Francisco. It won the "dirtiest" award in part because 174 of the 330 reviews ranked the hotel as "Terrible". Clearly - according to this rating - no one would ever want to stay there. But 48 of the reviews rated the hotel as "Very Good" or "Excellent". That means 15% of the reviewers of the dirtiest hotel of 2010 think the Heritage Marina is a fantastic place to stay and are keen to stay there again. People with different tastes and needs can see the same hotel in a very different light. Review sites are trying to manage these contradictions by helping users to refine a recommendation by reviewer demographics. The plan being to allow a consumer to see reviews only from people of the same demographics to maximise the chance of getting a recommendation form people with the same interests. This leads to Marchal's second example. He showed me two reviews for the same hotel on Booking.com. Both reviews were by people self classified as "young couples". One rated the hotel a four out of ten the other a nine point five. Additional classification and demographic criteria is not the answer to making reviews more relevant. As Marchal says (and I agree), these two examples highlight the need for a next generation of recommendation search.

That's the theory of LikeCube. I like the theory and enjoyed the conversion with Marchal. The challenge is seeing LikeCube in action. The first implementation of LikeCube is Qype ( a European Yelp clone).

Unfortunately as a B2B solution that requires access to a client's data source, it is impossible to review LikeCube in action outside an implementation. With only one implementation to view it is very hard to make an accurate assessment of LikeCube in action. In LikeCube's defence they only launched last November (at World Travel Mart).

LikeCube's challenge is not winning over people to the idea of targeted tastegraph based search results, it is building scale and proving that their technology can do what is promised. Winning more implementations and proving the case behind the technology (and as a result winning more implementations). Is the standard challenge for a B2B software start-up - made harder by the consumer facing nature of a LikeCube implementation. If they can do it then I predict this to be a very valuable space to be in.

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.

Interview with Joobili boss Jared Salter - Part 1 - rasing money in Europe

While the fees, sales and my promo is bigger than your promo claims that are the battle of the OTAs in the US has ramifications for the state of the industry going into the second decade of the 21^st century, I continue to be most excited by the innovation coming out of travel discovery and inspiration sites. Sites set up to help customers answer the open-ended question “where do I go next”. A question that is only now being asked of the online travel industry on Google, Twitter, Facebook and elsewhere. The sites that are at the forefront of data analysis and projections in line with my EveryYou concept of using the technology and social transformation in front of us to develop a specific and targeted recommendation of one based on the unique combination of desires, needs and interests of each individual at any moment in time.

I have already done a number of profiles in this area including one of the Budapest based Joobili (pronounced Jubilee). Now I have had a chance to spend time over skype with Jared Salter the founder and CEO of Joobili to hear about his experiences in founding a online travel company in Europe, on time based travel inspiration, on the balance between pre search information requesting and post search refinement and the rights and wrongs of attending a Swiss turnip festival.

In short Joobili is a time based travel search, discovery and inspiration engine. At the entry screen you select the date range you are interesting in travelling on and Joobili replies with a list of festivals, activities, events and time based entertainment that are on during that time period. Options for refinement are then presented to help narrow down the list to a short list of trips. Joobili starts with the question “when do you want to go?” rather the standard OTA question “where do you want to go?”.

As with other interviews, this is best suited to a two part blog post. In the first part we will talk about the set up of the company especially raising money in and running a business from Europe. Then in part two I will share our discussions on the functionality of Joobili and the travel and inspiration market/industry.

The interesting summary of part one of this interview is that Jared and his partner Tamas Gabor managed to raise seed money for an Eastern European based company without a prototype. They had a business plan and powerpoint that so impressed or struck the Swiss born Esther Dyson that she gave money without a working site and despite the possible challenges of monitoring a business off the beaten track (VC wise).

BOOT: Where did the idea come from? Do you have a history in tech or travel?

Jared from Joobili: I moved to Budapest from a corporate job in San Francisco to do an MBA. There I met my co-founder of Joobili Tamas Gabor. It was his idea to look at calendar based travels. Other sites start with the destination. We spent the first few months scouring the internet but could not find anyone doing calendar search. We built the initial business case during the MBA. The product took off when we secured funding.

BOOT: At what point did you decided to seek funding? Had you built a proto-type yet or did you manage to get funding off the back of a powerpoint deck and business plan?

Jared from Joobili: It is different for each entrepreneur but as neither of us had a tech background we had to raise money with just a business plan. Which was tough. But we needed money to build a beta site.

BOOT: Europe is not famous for lending money on a ppt only. Traditionally Euro VCs want to see something built, if fact more often than not they are looking for series B work. Did you have to go to America to get angel funding with nothing built.

Jared from Joobili: Yes Had been going after a lot of different Euro investors and VCs. We were lucky that Ester Dyson (investor in Orbitz, Flickr, Delicious, Dopplr and more) was coming to Budapest as part of some Euro boards that she was on. We got a meeting with her to show her our detailed plans and forecasts. It ended up being just a one hour but she committed. “This is something that belongs on the web” was her quote.

BOOT: Budapest is not the first place that springs to mind when I think of online travel and tech innovation. What has it been like trying to run a business from Budapest?

Jared from Joobili: From a standpoint of travel and start up it is a bad thing- as you miss out on the networking opportunities. So we do frequent trips to London. Last September we were involved in Seedcamp – one of only two travel companies. This month I will be at WTM so we get out as much as we can. That said there is a reason we started here and I would do it again. It is very cost efficient to develop technology here. There are some talented developers in Budapest. Given the amount of seed capital we raised, we would never able to build this business in San Francisco or London.

BOOT: Are you looking for more funding?

Jared from Joobili Fair to say that any start-up is always on the hunt for more money to develop new features. The list of features we want to build is longer than we can afford. And this is a tough market, especially for the discovery part of travel as it is the least tapped space of the travel process.

In part two we will talk about the Joobili business model and travel discovery and inspiration business.

Update - here is part 2

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

Voyij - Sidestep founders and staff re-enter the meta-search war with a discovery and inspiration twist

One of the first things you learn as a lawyer when doing mergers & acquisitions work is the importance of the non-compete clause, especially the term of the non-compete. That is the restrictions you place on the people selling a company from walking out the door with "your" money, their knowledge and immediately setting up the same or similar business elsewhere. There is not a legal standard for a time period for a non-compete after a sale as it depends on the amount of money paid, the geographies involved and more. That said you would expect any major deal to come with a minimum two year non-compete. One year is possible but for acquisitions of a decent size you would expect to see at least a two year restriction on shareholder/owner managers (ie not "regular" staff, just those with a substantive stake in the business) .

Why am I giving you this little trip down memory lane to my days as a lawyer (even though I have admitted that every now and then I miss being one)? Because in late December 2007 the online travel industry was "rocked" by the meta-search equivalent of Pepsi buying Coke with the announcement of Kayak Buying Sidestep for $200mm. It was pitched as a merger but quickly became clear that the Sidestep brand would disappear and much of the Sidestep management would move on (see my post deal interview with Kayak VP comm Kellie Pelletier for more).

Now some 15 months after the Sidestep sale (ie outside of 1 year but within the typical 2 years) I have come across an announcement that a number of ex-Sidesteppers are back in the travel meta-search business with the launch of Voyij.com (pronounced "Voyage" and much cheaper than trying to buy the inactive but clearly for sale Voyage.com).

The press release (care of Business Wire) dates the launch of Voyij as 13 May 2009 and is heavy in linking the likely success of Voyij to the Sidestep pedigree of the founders and staff. According to the Voyij blog work on the product started as far back as March 2008 (ie just after the acquisition). Listed on the Voyij website as founders are Sidestep co-founder Brent Stewart (Voyij CEO), Sidestep Software Architect Nick Atkins (Voyij CTO) and Sidestep UI engineer Paul Kim.

Former Sidestep CEO Rob Solomon is quoted in the press release saying some glowing words but is not listed in the About us section as being either a founder or on the advisory board. To be clear I have no information either way on the post acquisition obligations of anybody but love the idea of seeing former employees of a target company build something to battle back against an acquirer.

Post Sidestep machinations aside, Voyij are coming at meta-search from a different angle to Kayak/Sidestep. I am tempted to describe their approach as a mixture between meta-search and the travel discovery and inspiration sites that we have been discussing so much here at the BOOT. Whereas your typical meta-search business asks you to type in a To/From combination and produces a set of results, Voyij ask for your departure point and an indication as to when you are prepared to leave. It then recommends both deals and destinations. For example selecting SFO as a departure point selected "beyond August" as the departure date recommend flights to Long Beach as being the cheapest options. For Vacation deals the top recommendations were Southwest Vacations deals in Oakland and Las Vegas.

True to their Sidestep origins the Voyij UI design team have produced a well laid out site for refining the sort order by date, price, destination, facilities and more. However the discovering and inspiration pieces are much weaker than the dedicated players that I have looked at such as Triporati (interview with founder here) and Tripbase (interview with founder coming soon). The meta-search part is seamless and attractive but they will need to develop a lot more depth in the recommendation part other than simply selecting the nearest and cheapest option otherwise they will limit their market to nearby weekend get-aways.

Final world - the name is going to hurt them. In typing this post I must have misspelt the name more times that I got it right, even though it should be phonetically easy to remember. Similarly messed up the URL a few times (thankfully without unintended and unsafe at work consequences).

Let's all welcome the team from Voyij back to the meta-search war front.

PS - Dennis Schaal has some interesting thoughts on the Voyjig functionality and the perils of screen scraping here on his post here.

Swine Flu, Triporati and how to recommend alternatives

I am very much a Swine Flu sceptic. I am not a swine Flu denier - clearly it is a dangerous strain of the flu. Rather I believe that there is too much fear going around compared to the fatality rate. Wikipedia is reporting a suspected 101 fatalities to date. While that is terrible for those impacted, we need to take the number, risks and world response into perspective compared to the numbers that die each year in South East Asia from Malaria and in Southern Africa from HIV/AIDS. Some of the responses have been so wildly out of proportion that they defy belief. For example, serious debates were starting in Sydney last week as to how much food we should stockpiling, doctors were reporting people under the flight path worried that they could be picking up the illness from incoming passengers, in Egypt mass pig slaughters are ensuing. All of which is clearly ridiculous.

Aside from the realities for the flu versus the “pandemic panic”, it is clear that there will be a negative impact on Mexico as a travel destination. The combination of the Pandemic Panic with the Decapitation Dread of the drug war and Kidnapping Kaos from travellers being snatched from beaches has caused mass cancellations for bookings to Mexico. I am reminded of the huge reduction in visitors to Hong Kong and Macau during the dark days of SARS in 2003.

Most of the OTAs have responded by building dedicated pages for customers on the site and support staff within their customer care centres (here is the Orbitz page, here is the Travelocity page). Most are also waiving cancellation fees.

While consumers are rushing to cancel trips, they are also looking for alternatives – which feed very neatly into the recent stories on the BOOT over travel discovery and inspiration. Travel inspiration engine Triporati have built a series of pages around the concept of MexicoAlternatives.com.

When a customer goes to this site they can click on the destination in Mexico they were intending to travel to and Triporati’s pages (fed by people and technology) recommend alternatives – by region. For example the top pick alternatives for Acapulco they recommend Fort Lauderdale, Cartegena Columbia, the British Virgin Islands, Mykonos is Greece, Boracay in the Philippines, Durban Coast in Sth Africa, and good old banana bending Queensland.

I like this idea and see it is a good use of Triporati style content to respond to a traveller need. The challenge will be getting the resulting organic traffic. I see the Triporati site rating at number 4 to “Mexico Alternatives” on Google but not on the first page of “alternatives to mexico” (your Google results may vary). Full Triporati press release here.

gracias Esparta for the photo on Flickr

Martin Colling, the Bow tie, Travel inspiration, lunch and the real Madrid

I was in Madrid for work a few weeks back. It was a classic case of business travel that sounds amazing - "a week of work in Madrid" (especially to my Australian based friends) - but where reality was far from the hype. I was staying at the Eurostars Madrid Tower, a five star hotel in the newish "Cuatro Torres" area of Madrid (pictured here). A new commercial part of the city disconnected from the heart. Imagine an area of Madrid like a Chatswood or junior La Defense or Repulse Bay (depending on your city of reference). You understand what a I mean - a soulless place close to, but not close enough to, a vibrant global capital.

Result was that we spent the entire time in the 30 story hotel or on a bus or in a dining room. There was one moment were I dashed across the multi-lane or mini highway in front of the hotel and found a local bar to have a coffee in. Other than that I could have been anywhere on the planet.

The work was very productive but the non-work highlight was a lunch with Amadeus' Head of Airline Robotics - Martin Colling. As well as working for Amadeus, Martin has an airline industry blog called "the Shearwater Blog" (what is it about Amadeus people and blogging??).

Martin and I had a great lunch together. The sun was shining and after a week of corporate meals we were outside in a local "joint" for a menu del dia. I finally felt like I was in Spain rather than Hotelland. I enjoyed the conversation too. With Martin's day job focused on Airline sales and ancillary revenue our conversation quickly turned to online sales for airlines and following the recent themes on the BOOT to travel discover and inspiration. We talked at length about all of the activities that a customer engages in on and offline before making an booking and after making a booking. The inspiration, research and collaboration before and the additional planning, sharing, reminiscing and repeating that goes on afterwards. Martin has just published a post on his thoughts on this area (with a heavy airline slant) called "Using a Bow Tie to Make Optimal Marketing and Technology Investments". It is the BOOT's recommended read of the week.

thanks to Pulsarin over at flickr for the photo

Triporati - Jim Hornthal interview

A new theme for the BOOT has been working on classifying and and analysing the different travel content, planning, community and search sites. Last month I started off this work through a review of Triporati (and drawing a comparison to my favourite non-travel web product Last.fm). This month I was able to continue my investigation into the sector via an interview with Triporati Chairman Jim Hornthal. We cover areas such as the business model, UGC vs editorial, the company and more.

Business Model

Hornthal was clear that Triporati's main distribution and monetisation push will be around working with partners. I have been hearing this again and again with content/planning/community sites. Most recently in my review of TripIt and before that in an interview with TripSay Board Member Alfonso Castellano. The rationale behind this is clear and makes sense to me. The battle for traffic from Google (either paid or organic) is either too expensive for a travel planning/inspiration site (in the case of paid) or not the core competency (in the case of organic). Better to take a great travel planning/inspiration product and add it to other high trafficked travel sites that are focused purely on booking or content (or both).

One of Triporati's first major deals here is with the triple A (Automotive club) network of sites. There are multiple link offs from the base AAA.com site and Triporati hosts the final landing page (here is the AAA Carolinas Example). There is lots of bespoke work for each deployment as it needs the media spaces from AAA, the booking widgets from AAA and trip options from Triporati are redefined for the partner. In effect AAA is the media partner and Triporati plays the content and technology role. Hornthal is particularly happy with AAA as a partner as AAA brings a offline presence as well as online. At the start 250 AAA travel agents are using Triporati to provide the expertise that is taken away from offline agents as the fam trip continues to disappear into the travel industry history books.

On the revenue side, because of the bespoke set up work Triporati is charging a set up fee, monthly fee tied to traffic as well as the obligatory ad share. I am impressed that Triporati is generating upfront payments from partners as this is not a normal practice in online travel where affiliates are used to a rev share only way of life.

[there is also a test version with TripAdvisor from a a email engagement plan]

On Editorial versus UGC

I have blogged before about how content companies need to find a balance between editorial content and UGC. Too much editorial and you risk not being up to date because editors cannot be in as many places as often as the masses out there. Too much UGC and you end up with the masses going off topic and insulting each other.

Hornthal's view on this balance is to have Triporati's technology and their editors as the discovery engine and then the crowd as a validation engine. Is clear to Triporati that you need to link the two parts but also need to keep them separate. I agree with this approach. Hornthal also put it like this "know where the right answer is not what the right answer is".

On the Triporati Company Background

I alluded in last month's post on Triporati to the pedigree behind Triporati - with Triporati founders Hornthal and Sharlene Wang being behind Preview Travel. The Triporati Board is also packed full of high profile names - Tim Draper (of Draper Fisher Jurvetson), Ted Leonsis (former Vice Chairman of AOL), David Patrick (Charles Schwab), Ron Conway (Google angle investor). Impressive.

My take

I get this space. I am very excited about this space. Triporati well placed to take the lead and own it. The product looks good, they have money and a Board stacked full of experience. The only but is that Triporati takes the Vacation Genome approach as the starting point (much like Pandora in music) rather than the user based recommendation editorial control (much like Last.fm in music - see earlier post if you want this explained further). This does not mean I will bet against Triporati as all the pieces are there, the approach is right and I don't see the genome over crowd approach as a fatal flaw. Triporati is the site and business that competitors TourDust, Geckogo, Joobili, TripBase, TravelMuse are behind and have to chase. [have already written a post on Joobili - more on the others soon].

Seems like I am being too nice. Second positive review in a row (TripIt earlier this week). Am determined to find someone to be nasty about next week.

Travel Discovery : Joobili raises money and targets Discovery & Inspriation

alarm:clock are reporting that Budapest based online travel start-up Joobili has raised some funds from Esther Dyson and Hamu & Gyemant (not sure who they are as in Hungarian). Caught my attention for two reasons. Firstly I am always drawn to online travel start-ups with cash, particularly during the Global F'n Crisis. Second because of the timing of this announcement. Joobili (pronounced "jubilee") are in the Travel discovery & inspiration category. Just last week I wrote a detailed post on this category as part of a profile of Triporati. Just yesterday I interviewed Triporati chairman Jim Hornthal (a post of which will be up soon).

Where Triporati came at the discovery & inspiration process through a "vacation genome project", Joobili are targeting "timely travel". One (Triporati) uses the desires of the consumer, matched to the expertise of the content and technology of the engine to recommend destinations. The other (Joobili) uses the dates of planned travel to help identify events that a consumer might want to attend, which then dictates the destination for travel.

In the slider interface on Joobili the consumer selects the date range, hits "inspire me" and then is presented with events and activities which can be refined further. For example I selected 1 July - 21 July 2009 and the first recommendation was the "Benicassim International Fesitval" in Spain. Number two the "Moldejazz festival" in Norway. I like the idea and have seen no one else doing this but think it will only work if the refinement tools are incredible - which means better than they are now. Not sure if it can work with the refinement after the "inspire me" button, not before (site is still in beta). As an Australian based user (and despite my surname) I am unlikely to ever rush off and visit the Llangollen International Musical Eisteddfod in deepest darkest Wales (third choice in my search results). Below is a 2 min video on how the site works.

Don't know much about the founders including CEO Jared Salter and Tamas Gabor. But Jared also runs the company blog and is kind enough to already have the BOOT in his blogroll. Jared - if your out there, tells us more about the company.




PS last minute Google search before pressing publish found that Travolution has also picked up the story.

update Aug 2009 - Travolution have a post "Joobili's design evolution in four screenshots" if you want to see the site design change from private beta to now