Boarding Pass
“There are no competitors - Toorz will be first on the market.”
As the world recovers from the pandemic, Toorz has raised $1.8M to help Group Tourism make a comeback through digitization
10:3613.02.22
CTech's Startup Boarding Pass, a new series highlighting companies early in their startup journeys, is highlighting Toorz, a group tourism and travel company that helps Online Travel Agents with digitization for large groups.
Toorz founders David Frank (left) and Dr. Mike Griffiths. Photo: PR
“According to U.S. Department of Commerce statistics, the total Tourism market in the USA in 2019 was approx. $430 billion, of which approx. $200 billion was 'outgoing' tourism and $230 billion 'incoming' tourism,” explained Founder and President David Frank. “There are no known statistics for group tourism but the educated estimate is approximately 20% for outgoing and 50% for incoming - i.e total of approx. $155 billion. These figures do not include the huge number of domestic group tours by American citizens within the USA.”
Toorz founders David Frank (left) and Dr. Mike Griffiths. Photo: PR According to Frank, the company will utilize knowledge of the travel industry and computer science to optimize the product for the market. The product exists already and there is also Proof of Concept.
“There are no competitors. We will be first on the market,” he promises.
Company ID
Name: Toorz, Inc.
Sector: GROUP Tourism and Travel
Product/Service description: Toorz inc is an Innovative GROUP Tourism Marketing Company in the USA combining Proprietary Technology with the Human Element in addressing a market failure in the digitalization of GROUP Tourism. For example, OTAs - Online Travel Agents such as Expedia, Bookings Holdings etc. - do not handle groups of more than nine people. Toorz has identified five specific subsectors of GROUP Tourism which are wide-open to innovation and has a detailed Business Plan including Proof of Concept.
Founder Bios:
Dr. Mike Griffiths - CEO and CTO; Ph.D. Computer Science;
David Frank - Founder and President - decades of experience in marketing international group tourism
Year of Founding: 2016
Last Investment Stage: Seed
Total investment to date: $1,800,000
Investors (leading and all):
David Frank; Transgloball Travel Ltd.
Current number of employees: 3 full-time, 3 part-time
Open positions: COO; Office Manager
Website:
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Interview:
How was the idea born?
I have vast experience in marketing group travel from the USA to Israel over many years. Whereas all other aspects of tourism in the USA have been successfully digitalized, Group Tourism has not. The OTAs (Online Travel Agencies) such as Expedia, Bookings, Orbitz, etc. have been hugely successful in the digitalization of the tourism product but do not handle groups. This is a market failure that we have identified and are able to correct.
What is the need for the product?
To simplify, and rationalize to the greatest possible extent, the marketing of the various forms of the group travel product. An organized 'one-stop-shop’ in place of - or additional to - the Legacy Group Tour Operators.
How is it changing the market?
By online efficiency combined with personal 'human' service to potential group tour organizers.
How big is the market for the product and who are its main customers?
According to U.S. Department of Commerce statistics, the total Tourism market in the USA in 2019 was approx. $430 billion, of which approx. $200 billion was 'outgoing' tourism and $230 billion 'incoming' tourism. There are no known statistics for group tourism but the educated estimate is approximately 20% for outgoing and 50% for incoming - i.e total of approx. $155 billion. These figures do not include the huge number of domestic group tours by American citizens within the USA.
The main customers for this market are airlines, hotels, tour-coach operators, tour guides on the one side - and Affinity Tour Groups, Event and Congress Organizers, Incentive Tour Organizers, and the millions of people wanting to travel in groups on the other side.
Does the product exist already? If not - at what stage is it and when is it expected to hit the market?
The product exists already - there is also Proof of Concept. Soft launch was delayed by COVID-19 but will be in either April or May this year, 2022.
Who are the main competitors in this sector and how big are they?
There are no competitors. We will be first on the market.
What is the added value that the founders bring to the company and the product? (Knowledge, experience, industry connections...)
The added value of the founder is knowledge and experience in marketing group travel in the USA; the CEO/CTO is an experienced Ph.D. in Computer Science, and the CMO has years of USA marketing experience in tourism.
What will the money coming in from the round will be used for? (R&D, Personnel, Marketing, offices...)
The first $500,000 will be used for setting up the infrastructure for the Soft Launch - mainly for marketing, Back Office, and for fine-tuning the technology. No salaries nor other remuneration will be paid to the three above-mentioned in the previous answer).
Is there anything else you want us to know?
This is exactly the right time to invest in international tourism. There is huge pent-up demand owing to COVID-19. By June 2022, most tourist destinations worldwide will be open to visitors. The company investment was bootstrapped until COVID froze tourism including investment in tourism. We intend to do a Soft Launch by April 2022 but need an initial small investment of $500,000 (Series A), followed immediately by a Series B of $10 Million when A is successful. Toorz inc’s financial projection after 4 years is $1 billion revenue with EBITDA (earnings before interest, taxes, depreciation, and amortization) of $100 Million.
In the "Startup Boarding Pass" section , CTech will cover the (relatively) small investments made in companies during the early stages of their existence - and the entrepreneurs and startups who have not yet had the opportunity to reveal their stories to the world. Please use the linked form and fill it out according to the guidelines. This form is intended for startups raising between $500,000 and $3 million from venture capital funds, angels, or official grants from Israeli and foreign institutions. If relevant, someone at CTech will be in touch for follow-up questions.
