Businessmodel of TravelBird

Customer Segments

TravelBird has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at all consumers seeking travel deals.

Value Proposition

TravelBird offers three primary value propositions: cost reduction, accessibility, and brand/status.

The company reduces costs through its main feature. It offers six travel deals daily that provide discounts ranging in size from 30% to 70%.

The company creates accessibility by providing a wide variety of options. It operates in 11 different countries across Europe. It has acquired several companies since its founding, enabling it to provide a broader range of destinations – these include Belgian travel platform mytrip.nl, Dutch travel platform BookVandaag, and the booking website TravelCoupon.nl. Lastly, it enables customers to use many different payment options, including PayPal and payment cards such as Visa and MasterCard.

The company has established a strong brand due to its success. It is one of Europe’s fastest-growing online travel firms. It serves more than four million travelers annually, at a rate of about 19,000 per day. Its website receives over 9.5 million visitors per month. A survey found that more than 8 out of 10 of its customers would recommend it to friends, and it has over 750,000 fans on Facebook.

Channels

TravelBird’s main channel is its website. The company promotes its offering through its social media pages.

Customer Relationships

TravelBird’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website provides a number of self-help resources, including access to an e-mail newsletter with selected offers, a blog with travel advice and insider tips, and answers to frequently asked questions. That said, there is a personal assistance component in the form of phone, e-mail, and live chat support.

Key Activities

TravelBird’s business model entails maintaining a robust platform for its customers. The platform includes its website and mobile app.

Key Partners

TravelBird forms strategic partnerships with business-to-business firms such as loyalty programs, large retail chains, and tour operators in order to enhance offerings for its clients. The company also maintains affiliate programs (varies by country) through which it invites third parties to promote it on their platforms (websites and mobile apps). Leads that result in purchases earn them commissions.

Key Resources

TravelBird’s main resource is its software platform, which serves 9.5 million visitors per month.

It depends on human resources in the form of technology employees who maintain and update the platform and customer service personnel who provide support.

Lastly, as a startup it has relied on funding from outside parties, raising $38.75 million from three investors as of November 2014.

Cost Structure

TravelBird has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely marketing expenses, a fixed cost. Another major driver is in the area of customer support/operations.

Revenue Streams

TravelBird has one revenue stream: revenues it generates from a transaction fee it charges consumers for trips booked through the site.