Background
For many, the most stressful part of travel is the planning stage. In the last 5 years, the Company developed an innovative, attractive and award-winning travel planning and insurance mobile application (the "App") in response to this insight. The App offers users a straightforward and enjoyable platform to organise itineraries, discover recommendations, collaborate on travel plans with others and buy and manage travel insurance.
The travel insurance part of the application is designed to simplify travel insurance purchases and claims for UK residents. The Company promises travellers hassle-free and transparently priced travel insurance, with customers able to file a claim via its easy-to-use App in less than 10 minutes. The Company's partnership with a leading digital-first health service provides fast and safe access to medical help abroad without navigating local doctors.
Backed by industry heavyweights and FCA approved, the Company initially focused on growing its travel insurance product. Within 12 months, it was rated the #2 UK travel insurance provider on Trustpilot. Approximately £1.2m of capital was invested via multiple equity rounds to build this business and the supporting infrastructure. The Company achieved strong results, where management reporting policy sales grew 60% month on month between December 2019 and February 2020. The COVID-19 pandemic in March 2020 brought new challenges for consumers and businesses alike, with travel enthusiasts confined to their homes and dreaming of their next trip away. As an app-based agile business, the Company was able to adapt and expand its product offering. Diversifying its business, the Company further developed its App, launching its free and user-friendly planning tool for travellers, allowing users to plan future trips, share their travel plans with friends, or discover inspiration and personalised recommendations.
Management believes the App has the potential to become the travel super app. The App has demonstrated strong potential, has been the #2 Travel Planner on the App Store and received a 4.8/5-star rating from users. Further, management reported 57% month-on-month user retention, with 32% of users inviting others through trip collaboration and sharing. The Company has a digital transformation programme of change that is focused on scaling the business, looking to integrate a range of other travel services (like booking flights and hotels) and monetise its users with the option of a paid premium subscription, adopting and exploiting a freemium business model.
2022 has begun on an optimistic note for the travel and tourism industry with increased momentum and pent-up demand for travel. Management believes that the combination of its all-in-one App, strong brand, and supporting business infrastructure makes them well-placed to ride the wave in demand to become the number one travel brand for inspiration, planning and booking.
With the global online travel market forecast to reach $691bn by 2026, [1] this sale presents a rare and exciting opportunity for an opportunistic buyer to acquire a unique and industry-backed travel business and exploit the robust demand in the market.