SAAS platform for business process management in hospitality

Class: ERPSpecialization: RMSRevenue Management System

RSR индекс: AA

2

Hotel - base in hospitality industry

Worldwide - 1 000 000 hotels (considering different types of service organization)

Target of General Manager – increase the profit.

Decision maker – General Manager (Owner).

3

Main problem

Falling of profit in hotels

Main cause:

Internet sales channels lead more customers to the hotels, but :

Marginality of each sale for hotels falls due to high level of competition of channels.

Maintenance cost of each transaction is growing due to outdated information structure.

Absence of expenditure management system in most market segments.

4

Competitors?ERP, class PMS

Booking engine

Built-in BISeparate BI

Expensive client-server systems

Channel Managers

Front desks

5

Solution. SAAS platform

Revenue Management

System

Expenditure Management

System

Suppliers channelsSales channels

BI – profit management, analysis of all processes in hotel chains.

6

Profit management

?

$, K % $, K %

Income (accommodation) 500 510 + 2

Average Daily Rate (ADR) 0,2 0,204 + 2

Variable costs 200 40 190 -5

Fixed costs 200 40 190 - 5

Profit 100 20 130 + 30

= $30K monthly

Case. Business-hotel 130 rooms, 3*. MoscowBased on analysis of processes we suggest our solution allows to get the additional profit.

7

Instruments

$, K % BI

Income (accommodation) 510 + 2 Flexible rates, avoiding price wars, loyalty of clients , etc.Average Daily Rate

(ADR)0,204 + 2

Variable costs 190 -5 Decline sales commission,

suppliers average cheque, etc.

Fixed costs 190 - 5 OptimizationHardware, wage fund,

depots, etc.

Profit 130 + 30

= $30K monthly

Case. Business-hotel 130 rooms, 3*. MoscowSolution value – one platform for all instruments.

Profit management

8

Above Corporate chains – industry synergy

Example: event tourism. Uniting of hotels to service some events, increase average cheque by 15%.

9

Example: geographic tourism. Joint proposal and focus allow hotels to reduce promotion costs by 20%.

Above Corporate chains – industry synergy

10

Example: specialization (fitness, gastronomy, etc). Combining hotels in groups by interest allows to build loyalty programs and better proposal that increases revenue by 15%.

Above Corporate chains – industry synergy

11

Market

Segment Amount Costs $ Market share Ecvi

Luxury 200 000 3 bln 20% 600 mln

Middle 500 000 7,5 bln 50% 3,75 bln

Hostels and hotels B&B type

300 000 4,5 bln 30% 1,35 bln

TOTAL 1 000 000 15 bln < 30% 5,7 bln

Market volume ~1 000 000 hotels. Software costs 15 bln. $ a year.

12

Monetization

Segment Package $/month

Luxury Full 1000 + % P

Middle Selective 500 + % P

Hostels and hotels B&B type

Basic 200 + % P

SAAS service, monthly payments, direct sales, cross-sales via partnership with portals and adjacent platforms. Binding to profit (% P) to attract additional customers.

13

Lead generation

Segment Amount Term

Direct sales 300 2014-2017

Managing companies 200 2014-2017

Associations 100 2014-2017

Dealers 500 2014-2017

TOTAL 1100

14

HMA Ecvi features

Unified view of services allows to combine in a complex services of all types.

Using BI to optimize sales, purchases, stocks.

+ + +

=

15

Stage of HMA Ecvi

March-June 2014

6 clients

30 Trials

2 hotel chains

•3 managing companies

16

VersionType of object/

functionality*** Localization

2014 2015 2016

I II III IV I II III IV I II III IV

2.0

50-150 rooms, base back office

1-3

V V V V V V V

2.1BI chains 1-3

V V V V

3.0

150+ rooms, BI Collaborate, CRS

1-3

V V V V V V V V

3.1

Supply Management System, CRM

1-4

V V V

3.2

Resorts, sanatoriums, cruise ships

1-4

V V V V

Л 1 1-4

Market of close countries

V V V V V V V

4.0

Premium segment

1-5 V V V

Л 2 1-5

Scandinavia, East and South Europe

V V V V

Ecvi roadmap 2013-2016

17

Team

Dudin Sergey, leadership and coordination Experience in complex automation of hotel properties. More than 10 projects fulfilled.

Dudina Yanina, commerce and financePutting new products on the market, more than 350 installations of PMS system in hotels.

Pigin Igor, business analysis and technologyDeveloping of software for hotel industry. More than 70 interfaces with adjacent systems.

Gmyzin Ilya, system analysis and developing Development of enterprise portals, CRM systems, more than 10 major projects completed.

Sergeeva Tatyana, marketing and promotionCreating and developing of partnership network. More than 100 installations of hotel product via partner network.

18

Investments

Search $2000K for

Versions release 2.0.-4.0Direct sales, creating of resellers network, integration with leading technology partners

Borrowed fundsPersonal fund $200КFund of pre-seed investments $150К

Further targets• 1000 hotels - 3 years - 7 mln.$ • Globalization, adjacent markets – 5 years – 150 mln.$• Ecvi – industry platform of HORECA

19

Summary

www.ecvi.ru info@ecvi.ru Dudin Sergey +7 921 938 73 08

Ecvi – SaaS-platform for process management in hospitality industry.

BI (Business Intelligent) – core of profit management system, including instruments for sales and suppliers management.

Ecvi – above corporate chains – synergy to increase the profits of all participants through the platform Ecvi.

Target. Ecvi – HORECA standard.