Event: 2019 Phocuswright Europe
Product: Travel Ledger
Category: Startup Company
HQ: London, U.K.
Principal(s): Roberto Da Re, Founder & Justin Morshead
Funding: Initially incubated by Dolphin Dynamics, we are currently in the middle of our first round.
Product Description: Travel Ledger is a B2B global billing and settlement platform for non-air travel products that is run and governed by a travel industry consortium. It automates the travel purchasing process along the entire distribution chain; it reduces the cost of exchanging financial data and can more cost efficiently process payments for all parties.
Business Model: The business model is built around financial and practical incentives for buyers, sellers and trade actors (associations and IT suppliers) to adopt the platform. Participation will reduce their own cost per transaction as well as ensure a network effect, given that the more companies use the platform the more beneficial it becomes for all parties.
Competitors: Competitors could be local payment methods and companies specialized in specific use cases (i.e. commission collection). No other global competition.
Competitive Edge: Our back-office experience and understanding of the travel transaction, combined with highly secure blockchain technology, allows us to offer a low-cost data exchange and payment platform, with an open API. The "industry owned" consortium approach also ensures a neutral low-friction adoption model.
Market Opportunity: The market tells us that for every four hours of work on ARC/BSP, there is close to 40 hours of work on non-air reconciliation. There is tremendous scope for efficiency, with no standard format to exchange invoice and remittance data worth US$600B+ annually. Instead, spreadsheets, CSV files and PDFs are sent around, using various payment rails. B2B travel presents a huge opportunity for a player that can automate AR/AP and offer cheaper payments than credit cards and traditional banks.
Early Customers: We are actively engaged with several interested parties in Europe and have started work on a pilot in the U.K.