Best Pitch Ever! Mainstage Travel Dragon's Den Series 11 Episode 7

okay you've done Glastonbury reading the Isle of Wight you've had tea in the park what next the world that's what our next entrepreneurs hope with a niche holiday business aimed at those who want to taste a festival action somewhere in the Sun good afternoon dragons my name is Rob domine and this is Aiden Levin and we are here today to pitch for a hundred thousand pound the 10% of our company mainstage travel mainstage travel is a fully bonded tour operator and has been operating for two years the internet and low-cost airlines have seen the demise the traditional package holiday model of flight plus accommodation our packages are different and the bottom line to our business model is to sell holidays at a lower price than other customers to buy each the elements individually main stage owns the fastest growing youth climbing band we operate Maggie to take over why Napa take over when we cooperate away can I beat her or in September we launched our ski festival snow box and by January we completely sold out the festival happen in March and was great success later on this year we'll be launching our new website we are ski calm which is set to take the skiing in street by storm our marketing is smart and our operation is slick this year we will have over 5,000 people going on holiday with us and we have a huge plan for future growth I'm not gonna hand you our brand portfolios and then we happy to take any questions a no-nonsense pitch from Robin Aiden who are seeking a hundred thousand pounds in return for a 10% stake in their company but kelly Hoppen is keen to establish precisely what sets their business apart in a crowded market I go to a be sir a lot not to club but I love the place I'm trying to understand what's the difference between your brand and say that under under 20 s or over 30 everything done by the existing large travel agents is so outdated and they just don't get the current market at all as a more festival holidays so they're more of an actual event they're going there music it's more mute it's much more musically it is it's essentially that the clubs and the outdoor events are our stages and the hotels are our are our campsites they are essentially festivals and that is what people want at the moment the festivals are sort of it as a common experience the people feel as though they're all going together there's a mixture really because some people have come in just for the deal and some people come because they want to be part of part part of the trip young people especially want to go on holiday where there's gonna be those people of the same age there great start what's the plan yes I mean basically and we'll be taking the takeover brand that we've developed to other clothing destinations but the main thing that we're going to do and for the sum of things is expanding our current capacity so for last year we had we had in four weeks in Magaluf this year we've got eight we've got so much potential to increase that to the full summer to increase the numbers in capacity per week and we've already seen a passenger numbers increased by 4000 from last year how are people behaving in this market so do they keep going back to the same place or you finding them moving between your products there's a lot of people who move between the products so it would generally be Magaluf will be the entry point and then they'd go to Ibiza and then snow box and but we have had quite high rates of return customers the rates of return customers suggest that if people do want to come back to these places they want to come back with us we have also experienced ourselves not being past this aged plus the clubbing holiday age too far and suggesting I am I'm just suggesting that maybe three years ago the moment I just declare myself out thank you very much for the Opera I might sit here a relaxed response to leisure industry expert Deborah maidens questioning now Duncan Bannatyne wants to get to grips with the businesses bottom line what are you 12 2012 sure I can't so sixty thousand pound profit it's what was the Tom over turnover 247 what's good what they're gonna show this you watch the projection for the show and this year will be 1.4 million pound turnover and the lower bound estimate of the profit would be two hundred fifty seven thousand pounds mm-hmm it's pretty interesting but you've done very very well how old a from 24 25 high five I knew I wanted to run a business after Union and we just said we we do something together and yeah we did the dragons are clearly impressed by the young travel entrepreneurs progress to date but Peter Jones is concerned that some of their claims are simply too good to be true you're running at nearly 20% margin when the whole of a package tour industry runs at about 1011 average and I'm trying to get to understanding how have you done that and still save the customer twenty to thirty percent I guess we're just great at getting there getting the deals we've got really low overheads our model is kind of to go go for areas where there's things we have high fixed cost low variable cost so for example club tickets and lift passes weaking when we're buying then in bulk we can get with such great discounts on them by packaging that in we get we're able to offer that great deal you have to go about his office and show me run the business so far Rob and Aiden have stood up well under the scrutiny of the Dragons but some of the detail later revealed has troubled kelly Hoppen in my mind I'm seeing all these gorgeous young kids dressed up as hippies in these wonderful fields enough on the top of the mountain I think my imagination of what I consider your business to be isn't what it is in terms of where people are staying and where they're going don't have the price fool you have everything from two stars four star hotels on there and the four star hotel including ski pass and festival ticket will be from 350 pounds and the two style will be from 199 pound including lift pass and festival ticket you get a bed for that you get it all seems fantastic the reality is if there is a disaster of some sort how are you going to afford to be able to put that right that is why we required to have 5% of turnovers free cash flow so if one of our hotels does does have a catastrophe then we will put on a different hotel somewhere else I don't think I could sleep easy at night I just think the responsibility of something going wrong with that many people booking holidays through you I think you're very brave I want to wish you luck but I'm afraid I'm out thanks a lot thank you a blow for Rob and Aden who despite an assured performance have now lost their first dragon will Duncan Bannatyne be prepared to offer them the cash which will allow their travel business to truly take flight I've got a great piece of business that's why I want to make an offer um my offer is suddenly to the company making two hundred and fifty seven thousand pound net profit this year you've got you're out then yeah come out yeah because if they make fifty then we offer is it worth it if they make sure to visit seven that's completely fine gentlemen they're yeah at all confidence in his figures so the caveat is you must speak two hundred fifty seven thousand this year so submit to that I'm good offer you half the money which is fifty thousand pound but I want twelve enough percent of the company Oh guys I don't know what to do I'd give us a lot of money value I have a real a bugbear isn't and that is that I can't quite get myself over the line with regards to the profitability but that's not to say that it's not a business to invest in I would match Duncan's offer of fifty thousand for twelve and a half percent I think you you you are very good I'm going to make you an offer and I'm gonna put all of the money and I want 25 percent of the business Rob and Aiden now have three competing offers to consider but accepting any would mean giving away fifteen percent more equity than they were originally offering time for piers Linney to show his hand my background but I used to be involved in a business where we ran some the world's largest DJ management's record label experiential events big brands and a beef and all around the world oh wow the question is getting somebody excited about 10% that's the thing you know and actually sort of getting out of bed and trying to help you do this thing we'll see yesterday we don't need much we just need to be pointing in the right direction I like it I'll make you an offer so hundred thousand pounds but for 15 percent okay flippin hell wow you real under cause in here huh Debra 100,000 for 15% yeah piers Linney's highly competitive bid has caused a stir amongst the more established dragons but will it be enough to secure him the deal well one of the two dragons we wanted has offered us the lowest percentage so we're going to go for that one well done so which was the other dragon you wanted then you Debra when you realize them that piers isn't very good just call me I'll help you anyway so success for Rob and Aiden who depart the dent with a hundred thousand pounds on one of the dragon investors they were seeking terrible P undercut estate they made their if they did not come back to renegotiate because if they'd wanted the main thing that we have from here is opportunity that's what that appears has given us and so yeah we'll see where it takes us

Channel: undefined

Views: 1,991,638

Rating: 4.7495289 out of 5

Keywords: mainstage travel, dragon's den, entrepreneur, dragon den, pitch, adenl evin, aden levin, rob tominey, aden lev, levin aden

Id: I_bpBRuUcik

Length: 12min 48sec (768 seconds)

Published: Sat Nov 04 2017