First Path

Tourism Lightning Lab Proposal

Transcript

1. FIRST PATH USING INSIGHTS FROM DATA TO MAXIMISE ECONOMIC REWARDS FROM OFF PEAK SEASONS/LESS WELL KNOWN LOCATIONS. 1 THE FIRST TABLE OF TOURISM MAXIMISING INCENTIVES ON A LARGER SCALE WHY HAVE WE NOT THOUGHT OF THIS BEFORE
2. THE PROBLEM PAIN POINTS 2 1. Concentration of tourism / visitor numbers during peak seasons and only in certain locations strains infrastructure and environment. Meanwhile other destinations that could use economic stimulus from tourism remain unknown.
3. THE PROBLEM PAIN POINTS 3 2. Tourism numbers down due to: maturing industry/flatlining growth, coronavirus travel bans, Brexit, Australian bushfires, anticipated 2020/21 slowdown.
4. THE MARKET HOW BIG IS THE TOURISM INDUSTRY IN NZ? 4 ▸ Tourism: $50bn market by 2025 ▸ $40b market in 2019 TIA website VISITORS ($B, 2019) 0 12 24 DOMESTIC INTERNATIONAL
5. THE OPPORTUNITY DATA DRIVEN INCENTIVES AND INSIGHTS 5 INFLUENCE BEHAVIOUR ▸ Identify key drivers in NZ tourism market: ▸ Data from existing and new sources: Stats NZ, TIA, Qrious, B2B merchants (see next page) ▸ Origin and proportion of domestic vs international tourists ▸ Destination preferences ▸ Sensitivity to price, timing, economy wide factors (slowdown for eg) ▸ Use incentives ($$$, discounts, gamified experiences/other network effects) to influence behaviour and encourage travel during off peak seasons and to less well known destinations
6. CHANNELS TO MARKET CUSTOMER ACQUISITION ▸B2B: ▸Partnerships with accommodation providers, F&B operators, activity and transport operators (alignment of our incentives with B2B customers: we do well when they do well) - Groupon/Trademe/First Table/Zomato style commission-based model to incentivise visits during off peak seasons/to less well known destinations ▸Proof that this model works: https://nzbusiness.co.nz/news-items/otago’s-first- table-wins-rising-star ▸Retail/individual users: ▸Social media influencers to highlight less well known destinations ▸Advertising: ▸Google SEO, Adsense ▸Facebook, Instagram, Twitter, Snapchat ▸Gamify experience - social media / network based games, Facebook/Twitter badges 6
7. THE MARKET OUR SHARE OF THE MARKET ▸ Market size considering current environment: $35b ++ ▸ Our share of the market (see example on next slide for total international and domestic tourism spend * market penetration %) ▸ Commission of 2% per transaction through First Path software/website/platform 7
8. THE MARKET SAY MARKET PENETRATION = 1% ▸ Even 1% of NZD 35b is $350m 8
9. THE MARKET AT 2% COMMISSION PER TRANSACTION ▸ 2% of $350m = $7m revenue ▸ To be more accurate, see breakdown of spend by region: https://www.mbie.govt.nz/ immigration-and-tourism/tourism-research-and-data/tourism-data-releases/monthly-regional- tourism-estimates/latest-update/monthly-tourism-spend-grouped-by-region-and-country-of- origin/ 9
10. BUSINESS MODEL P&L 10 DRAFT OF P&L COMPONENTS - FOR DISCUSSION PURPOSES ONLY
11. TIMING WHY NOW? ▸ Tourism industry needs the stimulus now ▸ Incentives needed to kickstart spending on retail/ individual end ▸ First mover advantage 11
12. COMPETITORS WHY ARE WE BETTER? ▸ Other apps only target specific industries (eg F&B) ▸ Existing products only focus on discounts, vouchers/ coupons etc, but are not targeted at influencing behaviour using these incentives 12
13. THE TEAM TEAM Nicole Tan Founder/CEO Created Day in the Life programme - BNZ, ANZ, RPM Retail; Part of EY- sponsored Summer Innovators Scholarship Programme (UC Centre for Entrepreneurship) BCom/LLB, University of Canterbury 2016; Tax professional - 3 years at big 4 accounting firms; Admitted to the Bar/NZHC Future: Co-Founder TBC TBC Developers/ programmers to build interface TBC TBC TBC 13
14. GOALS FOR LIGHTNING LAB PROGRAMME MILESTONES ▸ 1st month: market and customer validation / pre-sales ▸ 2nd month: prototype build ▸ 3rd month: sales / B2B customer acquisition 14
15. REFERENCES DATA SOURCES/REFERENCES ▸ https://tia.org.nz/about-the-industry/quick-facts-and- figures/ ▸ https://www.mbie.govt.nz/assets/da0ddd64ea/tourism- insight-series-appendix-one-market-summaries.pdf ▸ https://www.mbie.govt.nz/immigration-and-tourism/ tourism-research-and-data/tourism-data-releases/ international-visitor-survey-ivs/international-visitor-survey- data-release-materials/ 15