Business of Roadtrippers - Essay Example

Customer Problems Roadtrippers has been able to recognize some of the problems that individuals face in order to plan a road trip in the United States and has been able to solve the problems efficiently. Planning the road trip and also getting an idea of the cost of travelling are the major hurdles faced by the people. Moreover, they remain worried about the availability of accommodations and eateries along the route they plan to follow. Not only Roadtrippers help in mapping the route, but also plot the interesting destinations along the route, food and drinks outlets, accommodations within 10 to 50 miles. This is the most attractive service that enterprise provides to its customers. Solution Roadtrippers has evolved as a partner for the individuals interested in taking a road trip and also remains by the side of the travelers during the whole trip. It is a web based software application in which the customer can mention the starting and the destination of his choice, and the application will map the route the traveler may follow. The customer can also customize the proposed route according to the places he or she chooses to visit along the route within 10 to 50 miles of radius. Presently, majority of the population owns a smart phone and since the application is also available on the smart phones as well as on the recently launched Apple watch, customers can easily access the site while travelling. The application also calculates the approximate cost of fuel that will be incurred while covering the whole trip. It also facilitates the customers by providing the updated cost of fuel if the customer adds some changes in the trip (“About”). Unique Value Proposition Roadrtrippers’ unique value proposition involve its unique approach towards making road trips, usage of advanced communication technologies, possessing a team of experts in the fields of engineering, business development, product designer, writer, data science and mobile application development. There are various software applications where the customer can consult to decide the route of their trip, but the Roadtrippers along with indicating the route for the road trips also plots the accommodations, food and drink outlets, attractive side scenes, national parks and other interesting spots along the chosen route within 10 to 50 miles of radius. The company has partnered with Google maps initially and now with Mapbox, to perform its services. The company also provides turn to turn direction to the customers and thus they do not need to stop in between and ask for the guidance. It is also equipped with a team of travel writers and local experts who help in gathering information about the still unexplored interesting destinations that can be reached by road (“Plan Your American Road trip”). Key Metrics Key metrics forms the foundation for monitoring the performance of any enterprise. Since Roadtrippers is a web based software application which measures its performance by taking into account the number of registered customers, duration of web visit, the number of repeated users and web visits and sign-ups. Since its inception, it has started growing nearly 50% traffic every month. In July 2013, the site had 1.3 million web visits and 45000 sign ups. It has also experienced a high time and engagement on site with an average of 7 minutes. It has also been observed that the number of registered users is accelerating rapidly (“About”). Channels Channels are very important aspects of the business model of a company as they are the mediums through which the enterprises establish connection with their customers. Roadtrippers are an online application based industry which can only be available to the individuals with internet access. The start-up has also launched mobile applications for smart phone users by which they can follow the proposed route while travelling with the help of the mobile application. The company has also launched applications which are compatible to the Apple iPhones and Apple Watch. The development of these applications helped the enterprise the customers using the particular smart phones. Though the company has a rising number of customers due to its unique services, it cannot access many individuals who do not use the internet (“Roadtrippers app reinvents travel guide for digital age”). Customer Segment It has been observed that a major portion of travel in the United States is by car. Though, the development of online air ticket reservation lead air travel to capture a significant portion of the travel industry in America, the car travel segment has occupied the second position. Thus, the company generally targets the individuals who have a passion for driving. It is known that a large percentage of the bookings in hotels are done by the car travelers. This indicates the potential of the car travel segment in the travel industry of America. Thus, Roadtrippers targets the individuals with a passion for driving and also people who are technology friendly. As a result, most of its customers are young adults who are passionate about exploring new travel destinations. Roadtrippers also helps the young generation to plan their trips according to their limited budget (“About”). Unfair Advantage Roadtrippers have a number of qualities which distinguishes itself from other travelling sites. A site named Cost2Drive helps travelers by calculating the cost of the trip which was established in order to solve the problem of high gas prices (“Roadtrippers closes $2.5 million round from new VC firm headed by Sequoia alums” ). However, the approach of Roadtrippers is different as it not only helps to calculate the cost of fuel and plan the route of the trip, but it also provides the customers with information about the hotels, attractions, natural wonders and weird stuff along the route within a radius of 10 to 50 miles. Moreover, the interface of the site makes it easier for the customers to navigate to desired locations. Cost Structure Roadtrippers employ a team of experts from different fields to develop the technologically advanced technique to support its operations. It also hires expert travel writers who can represent the information in the websites which finally attracts the customers to plan a trip following the route. Thus, employee wages and technological up gradation occupy a major portion of the financial resources of the Company (“Team”) Revenue Stream Revenue from advertisements is the main source of income for Roadtrippers. Moreover, the firm is planning to launch direct booking options for accommodations and experiences and also have plans to expand internationally. Thus, the company’s revenue will increase if it collaborates with the hotel, restaurants and local experiences. Effect on Business Elements if the Customer Segment is changed to Retirees If the customer segment of Roadtrippers is changed to retirees, the enterprise at first must find different channels to market its products as retirees are aged people and are not very much technology friendly. Thus, the enterprise must adopt other channels like the television and radio, print media to promote its services. Retirees are concerned about the cost of travelling. So, the enterprise must propose routes to the chosen destination which are most cost effective. Roadtrippers must also focus on the availability of accommodations along the proposed route because older people will not be able to travel for a long time without resting at intervals. The local experts employed at the enterprises are required to search for locations and places which are comfortable to visit for the retirees. Introduction of Competition If competition is introduced in the market of Roadtrippers, its key metrics will be significantly affected as the customers will get an option and will check out the service provided by the competitor before planning his or her trip. Moreover, the cost structure will also be influenced as the enterprise may need to hire experts and more employees to expand its operations and incorporate more innovation in their service. The revenue of the firm will also be decreased due to the introduction of competition in the market. Risks faced by Roadtrippers Since it is a startup company, the enterprise faces the risk of acquiring sufficient financial resources for funding its operations. The company has a unique value proposition and thus offers unique services. The enterprise has grown at a rapid pace and proved to be profitable organization. Thus, this may attract potential entrepreneurs to invest in this sector. The introduction of competition may pose significant risks for Roadtrippers. The enterprise has plans to expand its operations beyond the United States and this will require local experts in those regions. The company may face some challenges in finding employees while expanding its services. Opportunities of Roadtrippers Road trippers may increase its revenue by collaborating with the hotels and restaurants along the proposed routes and also with places that offer unique experiences. It has immense opportunities in the international market. Thus the company should explore this by expanding its operations beyond the United States. Since the company provides unique services, it is profitable and thus attracts huge investments from venture capitalists. Works Cited “About.” Roadtrippers, Inc. 2015. Web. 15 June 2015. “Plan Your American Road trip.” BBC, 2015. Web. 15 June 2015 “Roadtrippers app reinvents travel guide for digital age.” Nast UK, 2015. Web. 15 June 2015. “Roadtrippers closes $2.5 million round from new VC firm headed by Sequoia alums.” Tnooz, 2015. Web. 15 June 2015. “Team.” Roadtrippers, Inc. 2015. Web. 15 June 2015. Read More