Escappy Travel disruptively solves three considerable problems in the tourism sector.
First problem : facing the client;
Second problem: facing the tourism value chain,
Third problem: in the face of the global condition generated in the sector by COVID 19.
1. Regarding the Client: 80% of people usually travel to 20% of the destinations and about 45% of these travelers return dissatisfied with their investment (FONTUR), since these traditional destinations in each country are overloaded in high seasons , the service is deteriorating, the prices increase significantly, moreover, the final experience is not fully adapted to the wishes of the traveler, this happens due to three main reasons:
? People do not have enough time to plan a truly differentiating trip.
? Clients are unaware of the wealth of tourism in each country. In addition, travelers have a hard time agreeing with friends, partners or family and for this reason they always end up going to the same destinations.
? The traditional travel agencies just have generic, overcrowded and static travel packages, which do not fully adjust to the wishes of each client.
2. Regarding the tourism sector, airlines travel on average with 36% of their seats empty (ICAO) and accommodations have an average of 32% empty rooms during the year (COTELCO). This ""marginal product"" generates millions of losses per year and transfers the operating cost overrun to the customer, who have to pay for all the occupation of the installed capacity.
3. In summary, regarding the current situation, thousands of local tour operators who depended on tourism for their daily livelihood, rural communities and small businesses, now have no way to monetize using their tourist attractions, due to the global contingency of COVID 19 by which they have been gravely affected.
Escappy Travel is a pioneer in LATAM in the ''Travel to Surprise'' model, where our clients find out about their destination only 24 hours before traveling, in addition to achieving 100% personalized trips (according to customer requirements)
via technology. This model solves the problem through three lines of business:
1. Surprise Trips: trips to alternative paradises, where our clients find out about their destination only 24 hours before traveling. Through technology, we perfectly understand the desires of our clients to connect them directly and without intermediaries with paradisiacal destinations and innovative accommodations that best suit their needs, budget and travel dates, achieving a customer satisfaction index 93%, a 33% repurchase rate and saving the client over 100 hours of planning. This disruptive business model makes it possible to occupy the ""marginal product"" of airlines and accommodation (product that they already know they lost), achieving a unique commission model in the Latin American tourism sector, obtaining discounts between 30% and 50% with airlines and accommodations to occupy their chairs and empty rooms very close to the date of the trip.
? 2. 100% tailored Automated trips : perfectly personalized trips where we characterize the wishes of our clients through technology, allowing automated customization of routes, cities, accommodations and activities, achieving in seconds the trip that the client wants without limiting it to a static and generic plan. This automated multi-destination model allows customers to save more than 35% compared to traveling through traditional agencies and more than 15% compared to traveling on their own.
? 3. Virtual tourist experiences: via our platform, we connect local tour operators with cyber-travellers hundreds of kilometers from the destination, allowing them to live unique immersive experiences, being pioneers in virtual and augmented reality travel, cultural, agritourism, and even gastronomy tourism from home.
Currently the market requests greater personalization in each experience it buys (not just travel). People seek to live experiences that are tied to their desires.
? In certain seasons, destinations are saturated and due to this causes prices to rise, services deteriorate, ecosystems are damaged and waiting times for experiences increase, which generates unsustainable tourism over time due to the deterioration of ecosystems by the overload that occurs. At Escappy we look to boost tourism, give visibility to emerging destinations and obtain certain benefits for travelers in terms of costs and planning times. The more surprises the trips have, the more customers save since we can ""play"" with a series of variables that influence the trip and thus be able to obtain the best prices and always making the perfect match with the wishes.
? We count with a network of hosts around the world who can accompany travelers as much as they want virtually or in person and thus be able to enjoy these local people to live more enriching experiences.
At Escappy we make the perfect match between the client's wishes and the best travel plan, the more surprises the more they will save.
We focus on 4 market segments:
1. Young university students between 18-24 years old with sense of adventure. Their purchase impulse is in group trips, with friends, moreover, they are motivated by discounts and look for economy.
2. Young workers between 25-35 years old in Colombia, without many financial responsibilities or if they have enough time to plan a trip,in this case, They seek to save time and have unique experiences in their social circles.
3. Foreign youth and adults:
3.1) partially or totally Young residents in different countries..
3.2) Young students in exchange programs. These segments are part of a large market in Colombia and Latin America, where the traditional travel agencies are swiftly losing share due to new styles of consumption among millennials and post-millennials. This market is made up as follows: - Only in LATAM, the tourism market moves more than US$ 420 billion a year (world travel & tourism council), with a growth of 50% in the last decade, being the region with the highest growth, with more than 72 million tourists (Evaballarin, 2019) . - Peru, Colombia, Brazil and Mexico lead the issuing market (outbound tourists) in LATAM, with 50% of sales in the region. (AXON, 2018).
4. A market that has begun to have a lot of relevance is the family's market. Where the factor that is given the most value is getting to know new destinations and being able to organize something where everyone can agree much more easily, without worrying about details.
TAM: Total Potential Market USD $263 B
SAM: LATAM Available Market USD $12.6 B Expansion projections in Europe and Asia.
SOM: Opportunity Colombia USD $1.5 B