What does GuestLogix do?
GuestLogix is an onboard retail technology and application service provider to the passenger travel industry. Its Mobile Virtual Store™ platform is recognized as the leading onboard retail system in the airline industry today. The Company also facilitates the introduction of new products and services that can be sold onboard via its platform to achieve more profitable sales for its customers.
What is a Mobile Virtual Store?
The Mobile Virtual Store™ is a platform comprising wireless handheld devices, software and Web services that allow operators to plan, provision, sell, and control the sale of goods and services during pre-departure, onboard, and post-arrival operations. The transactions can be cash or cashless. The GuestLogix technology integrates with the operators' existing CRM, ERP and accounting systems to completely automate their retail business.
How is the Mobile Virtual Store different from a traditional POS retail solution?
A point of sale interface is incorporated within the Mobile Virtual Store™ platform. While traditional POS retail products also help with planning and provisioning, the GuestLogix solution encompasses workflow automation and alerts to fine tune retailing in an environment that is constantly changing and where each departure to arrival segment is essentially managed as a unique virtual store. The Company also manages the cash handling and reconciliation at the end of each trip.
How does your POS interface work?
GuestLogix provides a state-of-the-art handheld device specifically designed for use on board transport systems. The interface can also be deployed as software on seatback screens and passengers' equipment, such as laptop computers, for customer self-service. As most transport systems have yet to be 'webified' the GuestLogix interface stores the transactions locally until a secure Internet connection is established for final secure processing of onboard sales.
How much has been invested in your platform to date?
The Company has invested over $16M in product R&D. There are a number of elements to its platform that are innovative, proprietary and patent-pending.
Who are your competitors?
The Company's competitors include enterprise software firms (e.g. SAP), software firms in the travel industry (e.g. Sabre), business processing outsourcing firms (e.g. Gate Gourmet), duty free services providers (e.g. Duty Free World), handheld POS providers (e.g. Ingenico), and transaction processing companies (e.g. First Data). GuestLogix is the industry's only end-to-end solution provider.
How many airline customers do you have?
The Company has 28 airline and rail customers in various stages of deployment throughout the world.
Who is your single largest customer?
The Company's largest customers in terms of revenue today are American Airlines, Delta Air Lines and LSG SkyChefs.
Who are your airline customers?
GuestLogix has captured 7 out of the top 10 global airlines. The customer list includes American Airlines, Delta Air Lines, Alaska Airlines, US Airways, United Air Lines, Ryanair, AirAsia X and Germanwings to name a few. The firm’s customer agreements collectively represent more than a 800 million passenger trips annually.
How long does it take for an operator to deploy your onboard retail system?
Once an agreement is signed, the Mobile Virtual Store™ implementation will follow a staged process, including training, which takes 6-8 weeks. An operator with 400 aircraft, for example, would typically require 2-4 months to fully deploy the GuestLogix solution across its entire fleet.
Why do airline operators want to become retailers?
Non-ticket revenues generate more profits per passenger than any other revenue component. Onboard retailing is recognized as being strategic to profitable airline operations and GuestLogix allows operators to become smart retailers without any capital outlay.
How large is the onboard retail market with airlines?
The airline industry manages 2.82 billion passenger trips annually. The average onboard revenue generated by airlines is around US $1-$1.50 per passenger trip. The airlines' leading ancillary revenue producer generates five times the industry average in onboard sales per passenger trip. The Company estimates the onboard retail market to be worth up to $20 Billion by 2011.
Are you serving any other passenger verticals?
The Company's other market segments include rail and ferry operators. GuestLogix has one rail customer to date and plans to expand this business segment in Fiscal 2009 with a concerted effort in Europe. The rail industry is least 8 times larger than air travel in terms of passenger trips.
How does the company sell its solution?
The Company sells its Mobile Virtual Store™ solution directly and through channel partners such as LSG Sky Chefs, Newrest, Compass, Klarago and Thales.
What does your solution cost?
GuestLogix provides its platform service on a transaction basis. The Company supplies and funds the devices and software services. Customers must commit to a minimum number of monthly transactions to participate in the no capital outlay model.
What are the company's sales to date?
The Company's revenue has been growing at a rapid rate for the past three years. For the first quarter ended February 28, 2009 GuestLogix achieved approximately $4.0 million in sales up from $1.4 million from a year earlier.
How is the Company capitalized?
GuestLogix is publicly traded on the TSX Venture Exchange (Symbol "GXI") in Toronto. Coincident with its listing in August 2007, the Company secured a private placement financing of over $9.0 million. In November 2008, the Company raised another $1.0 million through a private placement with a Canadian institution.
How many shares are issued and outstanding?
As at February 28, 2009, the total common shares issued and outstanding were 55,495,438.
Who are the main shareholders?
As at November 30, 2008, management and employees owned 35% of the company on a fully-diluted basis. |
