ZoomAway – Revolutionizing the Travel & Recreational Industry

ZoomAway Travel Inc. (TSXV:ZMA – $0.23 CAD & OTC: ZMWYF – $0.17 USD & Frankfurt:4ZO – €0.16) provides hotels, golf and ski resorts, and other activity providers with a seamless, scalable and fully Integrated Technology Platform that allows customers to book discounted packaging of lodging, ski, golf, attractions, events, entertainment and transportation.

ZoomAway’s suite of technology components seamlessly integrates into a client’s website, providing their customers with a real time one stop shop for all of their travel and recreation needs, all while maintaining the clients branding and brand position. Be it a room and a tee-time or lift tickets, spa treatments and a weekend getaway for one, ten, or one hundred people, ZoomAway puts it all together.

ZoomAway’s unique solution provides the most advanced combination of Technology and Service available. Moreover, the Company’s scalable call center supports the technology platform with market knowledgeable staff delivering friendly personal service.

Some of the Company’s clients include: Palms Casino Resort Las Vegas, Half Moon Bay Golf Links, Vail Resorts, Course Co., Atlantis Casino Resort Reno, and Edgewood Tahoe.

The Company has been active for a couple of years, but only became public two months ago, making it an ideal time for investors to get in at the ground level.

Revenue Streams

At this moment a big majority of the hospitality industry does not have a one-stop technology solution to package recreation, activities and transportation in conjunction with overnight accommodations. Hotels all over the world are perfectly equipped to book room reservations. However, they can’t handle complex customized quotes from guests.

ZoomAway’s powerful platform on the other hand allows for the packaging and booking of lodging and endless activity and entertainment options all at once. The Company currently offers a number of products, which are all based on its software platform:

  • White Label Clients: Hotels, resorts and activity providers hire ZoomAway to embed software and fulfill reservations on and from their websites respectively. The ZoomAway software has the same look and feel as the host site, maintaining brand integrity. All components of the service are discounted to ZoomAway and marked up to the consumer to generate a profit.
  • Retail: ZoomAway also offers its services to retail customers who book directly on its own website.
  • Groups: ZoomAway’s sales team generates leads for large group bookings. Whether it be incentive groups, leisure groups such as golf or ski outings, small meetings, weddings, government or even convention size groups, this segment produces good volumes for the Company.
  • RMS: The Company’s Reservation Management System is a software set that offers private or corporate group outings a registration tool that allows their customers to book everything from rooms to activities in a secure, private domain that can be fully customized to their specific needs. For a reasonable annual fee and a percentage on each transaction, these clients can add as many groups as they would like on the fly.

Most of the Company’s sales at this moment are derived from white label sales. And that’s no surprise as hotels need technology and service solutions that drive customers to their websites and loosen the grip that large online travel agencies (OTA) such as Expedia and Priceline have on them.

In addition, hotels are desperately looking for additional revenue streams to capture their share of the $947 billion US travel, recreation and activities market.

Expansion Strategy

As the travel, recreation, and activity industry in North America continues to grow, providers of these amenities are looking for new innovative solutions and partnerships to increase revenue, reduce reliance on online travel agencies (OTA), and attract customers directly to their websites.

ZoomAway has entered a huge market. Consider that there are more than 17,000 golf courses and700 ski hills in the United States, with tens of thousands of hotels in close proximity to those attractions.

Several well-known hotels and leisure facilities have already signed on. The Company now has close to 50 clients in the Las Vegas, Reno and Pebble Beach/Monterey markets. It aims to triple that amount in 2017. Growth will come from expanding in both current and new markets such as Northern California, the Pacific Corridor, Orlando in Florida, Scottsdale/Phoenix in Arizona, and the Pacific west coast ski markets.

Over $2 million in sales have been generated since the launch, and the Company has set a revenue target of $7.5 million for 2017, the first full year of operations.

Conclusion

ZoomAway Travel Inc. leads the way in marketing solutions for hotels, golf courses, ski resorts and other activity providers that increase revenue, reduce cost, and improve their ability to accommodate today’s active traveler.

By utilizing ZoomAway’s suite of technology components along with its domestic call center, clients can, for the first time, provide their customers with a truly one stop shop for all their travel needs.

Also ZoomAway’s management team is top notch with several veterans in the gaming and hospitality industries.

We feel very fortunate to have discovered this Company so early in its public existence, as it has a tremendous amount of upside potential going forward.

The Company has the first-mover advantage, and can as such capture a significant piece of the market at the warm weather year round destinations like Las Vegas, Palm Springs, and Orlando. ZoomAway aims to hit revenues of $7.5 million next year. With margins between 17% and 24%, the Company looks very attractive. Buy recommendation.

Next week, we’ll publish an interview with the Company’s CEO Mr. Sean Schaeffer, and shortly thereafter you can expect the initial Research Report.

The Company has close to 45 million shares outstanding and its market cap is less than $11 million.

Smallcaps.us Advice: BuyPrice Target: $0.50Latest Company Report (pdf)
For important disclosures, please read our disclaimer.

  • I wanted to provide some feedback on this stock. I initiated a small position but discovered that a fee (foreign fee) was imposed upon the trade. The fee is applied because the way Zoomaway decided to settle its trades. The fee is imposed upon buy and sells for each transaction.

Leave a Reply

Your email address will not be published.