Chatflights

Chatflights is an app-based, human-powered digital concierge and award flight travel agency that specializes in credit card points and miles. By taking the stress and insecurity out of flight booking, Chatflights invites its users to communicate one-on-one with human experts via a chat-based service located right in the app. For up to 10x fewer points and miles, Chatflights will search for hard-to-find award redemptions and complex routes, diligently working to make sure the best possible travel outcome is found. The booking experts are available in real time with full-service chat support during the entirety of booking and traveling. Chatflights is a very popular service in Sweden with over 8,000 active accounts and a steep growth curve of 126% CAGR, now making its US debut. Chatflights, Inc. is a DE C-corp.

Transcript

1. !"#$%"&''()*+",'*-)$.+$"/'."01$" &234"!*5"!6672$*8 DIY fl ight booking is unpopular because it’s error-prone, time-intensive and spammy. Chat fl ights is for people who’s time and sanity are a precious commodity. They also happen to be the highest-margin customers in the industry. A better way 👇
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3. <=*5$>)-"?@@'.82*)84 The landscape is changing. Market shares are up for grabs, talent is easily recruited and people are open to new solutions. <')*83"=*5"A)7$3 23,800,000,000 unredeemed miles and 300,000,000,000 credit card points globally and this number is growing, but redemption is a nightmare. <$'@7$"9'B$",1=8 Customers prefer live chat over any other contact channel. Chat is expected to continue to grow by 87% in the next 12-18 months. ,238'>$."C$.B)-$"D=-22> The accelerated discontent with existing, bot-based services is a golden opportunity for disruption in the travel industry in particular 01$.$:3"?@@'.82*)84"&.$%)*+")*"81$" 0.=B$7"E*5238.4 💰
4. A New Booking Concierge For The Busy And Af fl uent. A$$8",1=867)+183"
5. 1.Download the app 2. Chat with experts 3. Receive tailored solution s 01$"F)+1GD=72$"0.=B$7"C$-8'.")3" H)@$"6'."I)3.2@8)'* 0.=B$7"=+$*83"=.$"=7)B$J Recent research shows that 43% of travelers still prefer to use an agent when booking a fl ight . JK28"81$4"=.$"*'8"()-()*+;"Planning a trip over the phone or via email is dated and time consuming; a missed opportunity given existing technology and smartphone prevalence. L<$'@7$"=.$"%)77)*+"8'"@=4"=*481)*+"6'."="6.$$"8)-($8;M"Points and miles are an exploding currency that high-value customers rate as very important, and there is no service to help them spend it wisely, that is, until now . H$5$>@8)'*. Chat fl ights offers a hassle free solution, enabling customers to redeem what is rightfully theirs. ✈
6. Chat fl ights is the only truly mobile and dynamic personal booking solution in existence today. Chat fl ights takes the stress and insecurity out of fl ight booking by inviting customers to communicate in real time with human experts via a proprietary chat app. N1$81$."6'."@')*83"'."-=31"'."K'81O"Chat fl ights’ agents will do all the work to fi nd the best possible fl ight travel solution out there. 01$"!@@"01=8:3"A)33)*+
7. <.)-$"/'-23 0.=B$7"F=-()*+ PQ@$.)$*-$ ,1=867)+183"0=($3"?B$."N1$.$" E*-2>K$*83"/=77"C1'.8 ?0!"Booking websites are spammy, stressful and not set up to handle complicated travel. 0.=5)8)'*=7"0.=B$7"!+$*-)$3"While they know how to make customers feel special, they haven’t updated their engagement model and tend to charge for more than is needed. 0.=B$7"F=-()*+"Sites are popular but require individuals to wade through dense content. Redemption remains a nightmare. 👀 RSTTOTTTOTTTOTTT RUTTOTTTOTTTOTTT RSTOTTTOTTT
8. Domestic 
 Economy International Business 
 / First Open Jaw Award
 Travel Mileage Run Multi-
 City Activities / Transfers Full Service
 Destination OTA's Chat fl ights Travel Agencies 01$"N1)8$"C@=-$"&$8%$$*"?0!:3"=*5"0.=5)8)'*=7" !+$*-)$3"E3"01$"A'38"<.'6)8=K7$ Chat fl ights takes over where OTA’s are no longer helpful but a traditional travel agency feels like overkill or simply too slow and dated. With a focus on value rather than price, Chat fl ights offers an easy way to do complex travel and points booking, ignoring destination curation altogether. 01)3")3"%1$.$" 81$"1)+1$38">=.+)*3")*"81$")*5238.4"=.$"6'2*5; Value Complexity
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10. !).7)*$"A)7$3 ,.$5)8",=.5"<')*83 The number of credit card points outstanding in the US amounts to roughly $1.5T, making the source of travel redemption almost limitless. ,'>@7$Q"0.=B$7 Airline revenue from within the US jumped to $247B in 2019. About 30% is international, 80% of which is leisure, a total market of some $60B. . ,'>@7$QO"7'*+"1=27"8.=B$7 - what travel agencies wish they were doing exclusively because that’s where the margins are . 📈 Award Travel is very di ff erent from buying a ticket with points through a credit card portal. Finding award seats is laborious and tedious but can yield up to 10 times the value. Example JFK - Tokyo in Business Class = 848,065 points (or $8,480 in cash) on amex.com. Chat fl ights found the exact same ticket for 85,000 points (10x)
11. ,1=8"=*5"N1=7$3"G"!"A).=-7$"'6" C-=7$"=*5"D=72$ ,1=8")3">).=-27'23 - It enables agents to handle 6-8 times the activity compared to traditional email or phone because agents"can juggle dozens of customers at once without getting confused, and without anyone losing their patience. Customers can go about their business and respond in their own time. All communication is instant, linear and concise, and the format is familiar. !%=.5"&''()*+"=88.=-83"N1=7$3"- Since Chat fl ights steers clear of laborious destination curation and focuses exclusively on complex and award fl ights in Business Class and up, there is a laser focus on high- value customers (so-called Whales) with strong unit economics. Current Chat fl ights users have an average points balance of 293,000 and 80% of bookings are in Business Class. 💬 0.=5)8)'*=7" 0.=B$7"!+$*-)$3 WQ"$66)-)$*-4
12. The Hook - Chat fl ights uses award redemption as the hook to attract exclusively high-value customers, actively avoiding the long tail of low value booking business, through 2 acquisition channels. Enterprise Sales - Targeting organisations whose employees amass inordinate amounts of points and miles, such as consultancies, investment banks and corporate law fi rms. Marketing - a marketing mix based on learnings and successes from 3 years of experience in the Swedish market with heavy emphasis on a ff i liate partnerships. !%=.5"H$5$>@8)'*"!88.=-83" F)+1GD=72$",238'>$.3
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14. Key Statistics • 7,500 accounts created • 39% recurring revenue • $329.27 average annual user spend • Average order 1.35x a year • Customer Lifetime Value $658.54 • Customer Acquisition Cost $46.13 ,1=867)+183")3"D=7)5=8$5"=*5" &'2*-)*+"&=-( Revenue and growth is back and surpassing pre-pandemic rate s Product-market fi t for consumer demand and tech solutio n Proven marketing strategy and funnel (7,500 customers to date ) Enviable CAC-LCV ratio s US operations up and running Chat fl ights Sweden $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2019 2020 2021 ,!XH"UYZ[ 🎉
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16. A=.-1"UO"YTYU, Maureen O’Hare N1$*"-=*"%$"+'"'*"B=-=8)'*"=+=)*a" 01)3")3"%1=8"$Q@$.83"3=4 INDUSTRY EXPERTISE: As for leisure travel, Barnekow thinks it will have "a short-term boost, and then we'll see the same levels as before. We've never had as much traf fi c to the app as now; it seems people really are craving to book travel. Ninety percent of what we're selling now is for departure after the summer, so people seem to be thinking it'll be safe to fl y by then." A=.-1"YO"YTYU, Andrew Kunesh ,1=867)+183"-=*"1$7@"4'2"K''("K$88$." =%=.5"8)-($83"b"1$.$:3"1'% APP REVIEW: For the right traveler, Chat fl ights can be a good way to fi nd and book award fl ights, especially for lesser-known rewards currencies. It takes much of the work out of booking award tickets — all you have to do is text a booking agent your travel itinerary and points balances through the Chat fl ights app. This format ensures timely communication, which is important when booking hard-to- fi nd award space. /$K.2=.4"YYO"YTYU, Joe Cortez #$%"<')*83"C$=.-1"0.=B$7"!@@" 9=2*-1$3"6'."c;C;G&=3$5"0.=B$7$.3 COMPANY FEATURE: Arguably, the most challenging part of booking award travel is determining not only which points and miles to collect, but the most appropriate way to use them. A new startup wants to help you combine all of your points to fi nd the best premium travel options using all of your points balances. <.$33
17. C8.'*+"=*5"PQ@$.)$*-$5" 9$=5$.31)@"0$=> !7$Q)3"&=.*$('% Alexis has spent most of his professional life as a successful entrepreneur. He founded Chat fl ights in October of 2016, which he has boot-strapped and built into a solid $300,000 revenue business that is already breaking even, with a clear path to pro fi tability. Prior to Chat fl ights, Alexis co-founded Green Hat People, a company dedicated to Employee Engagement through active learning and immersive participation. The company continues to thrive today; with 40 employees across 8 markets. Prior to this fi rst entrepreneurial venture, Alexis spent two years in the FMCG sector with Unilever. Alexis has a Master in Accounting and Financial Management from the Stockholm School of Economics, is quadrilingual and has extensive experience in global travel . /'2*5$."=*5",P?O"C8'-(1'7>"
18. C8.'*+"=*5"PQ@$.)$*-$5" 9$=5$.31)@"0$=> A=78$"&=.*$('% In 2009, Malte founded The 86 Company, a premium spirits company, in New York. As CEO, he successfully grew the start-up into a $6M revenue business with 18 employees, across several countries. Malte lead the process of an exit in July of 2019 to Brown Forman Corporation (owners of Jack Daniel’s Whiskey), a publicly traded company with a market cap of $32B. Prior to this venture, Malte spent 9 years with Absolut Vodka, holding various positions; culminating in the Marketing Director role, based in New York. With an MBA from INSEAD, Malte brings a world class academic background to the table as well as a wide international outlook. He has lived and worked in 4 continents, in over half a dozen countries and in cities such as Brussels, Bogota, Sao Paulo, Singapore, Stockholm, Paris and New York. Malte is quintilingual and is a passionate global vagabond . <.$3)5$*8O"#$%"d'.("
19. 01=*("d'2; Malte & Alexis 💥