“That Could Be The Moment I Just Declare Myself Out” | Dragons’ Den

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 a taste Of Festival action somewhere in the Sun [Music] Foreign Dragons my name is Rob tomony and this Is Aiden Levin and we are here today to Pitch for a hundred thousand pound for 10 of our company main stage 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 of 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 any Of the customers to buy each of the Elements individually Mainstage owns the fastest growing youth Clubbing bands we operate magalu Takeover or Napa takeover and we Cooperate awaken Ibiza Or in September we launched our ski Festival snow box and by January we Completely sold out the festival Happened in March and was great success Later on this year we'll be launching Our new website we are ski.com which is

Set to take the skiing industry 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 Hand you out our brand portfolios and Then we're happy to take any questions [Music] A no-nonsense pitch from Robin Aiden who Is 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 Ibiza a lot Not to Club but I love the the place I'm Trying to understand what's the Difference between your brand and say The under 20s or over 30. 18 to 30s everything Done by the existing large travel agents Is so outdated and they just don't get The current market at all ours are more Festival holidays so they're more of an Actual event they're going there music Related it's more it's much more Music-led it's it's essentially the the Clubs and the outdoor events or our Stages and the hotels or our or our Campsites they are essentially festivals And that is what people want at the Moment the festivals are sort of as a Common experience do people feel as Though they're all going together

There's there's a there's a mixture Really because some people are coming Just for the deal and some people come Because they want to be part of Um part of the trip young people Especially want to go on holiday where There's going to be the people of the Same age there Great start What's the plan yeah so I mean basically And we'll be taking the Takeover brand That we that we've developed to other Clothing destinations but the main thing That we're going to do um for the summer Things is expanding our current capacity So for last year we had we had um four Weeks in magalife this year we've got Eight uh we've got so much potential to Increase that to the full summer to Increase the numbers and capacity per Week and we've already seen our Passenger numbers increase by 4 000 from Last year how are people behaving in This market so do they keep going back To the same place or are you finding Them moving between your products There's a lot of people who move between The products Um so it would generally be Mega Leaf Will be the entry point and then they'd Go to Ibiza and then snow box but we Have had quite High rates of return Customers the race to return customers Suggest that if people do want to come

Back to these places they want to come Back with us I mean we have also experienced Ourselves Um not being past this age past the Clubbing holiday age too far and we're Not suggesting I am I'm just suggesting That maybe three years ago the moment I Just declare myself out If you want to come to Ibiza that's fine Come on my mom came to smoke no maybe I Won't thank you very much for the offer I might sit here A relaxed response to Leisure industry Expert Deborah meaden's questioning now Duncan bannatyne wants to get to grips With the businesses bottom line What are your accounts to October 2012 Sure our accounts show UH 60 000 pound Profit so what what about the turnover Turnover 247. And what's good what they're going to Show this year what's your projection For the show Um this year will be 1.4 million pound Turnover and the lower bound estimate of The profit would be 257 000 pounds It's been interesting you've done very Very well how old are you I'm 24 25 25. I knew I wanted to run a business after Union and we just said we'd do something Together and um yeah this is what we That's what 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 10 11 average and I'm Trying to get to understanding how have You done that and still save the Customer 20 to 30 percent okay so we're Just great at Um getting the getting the deals we've Got really low overheads Um our model is kind of to go Go for areas where there's Um things with high fixed costs low Variable costs so for example Club Tickets and lift passes we can when We're buying them in bulk we can get Such great discounts on them by Packaging that in we get we we're able To offer that great deal you have to go Back to his office and show him to run a Business So far Rob and Aiden have stood up well Under the scrutiny of the Dragons but Some of the detail they've revealed has Troubled Kelly hoppen In my mind I'm seeing all these gorgeous Young kids dressed up as hippies in These wonderful fields and up 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 I don't know the price for you We'd have everything from two star to Four star hotels on it Um the four-star hotel including ski Pass and Festival ticket will be from 350 pounds Um and the two star will be from 199 Pound including lift Parson Festival Ticket you get a bed for that you get a Bed 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 require to Have five Senate turnovers free cash Flow so if one of our hotels does uh Does have a catastrophe then Um 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 Aiden 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 picture of the business That's why I want to make an offer Um My offer Is subject to The company making 257 000 pound net profit this year well You've got your out then yeah I've come Out yeah of course I have because if They make 50 then we offer is it worth It if they make 257 that's completely Fine then I'm in so there you are tall Confidence in his figures so the caveat Is you must be 257 000 this year so Simply to that I'm gonna offer you half The money which is fifty thousand pounds I want twelve and a half percent of the Company Okay Oh guys I don't know what to do I'd give us load of money about you What up guys I I Have a real A bug bear isn't it 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're good

I'm going to make you an offer and I'm Going to offer all of the money Um and I want 25 of the business But Rob and Aiden now have three competing Offers to consider But accepting any would mean giving away 15 more Equity than they were originally Offering Time for Piers Lenny to show his hand I live in my background but I used to be Involved in a business where we run some Of the world's largest DJ management Record label uh experiential events big Brands and Ibiza 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 those things that You have to do we don't need much we Just need to be pointing in the right Direction I like it I'll make an offer So 100 000 pounds But for 15 percent Okay Flipping now wow You're the undercars didn't you huh did He Deborah 100 000 for 15 yeah Here's Lenny's highly competitive bid Has caused a stir amongst the more Established dragons

But will it be enough to secure him the Deal [Music] [Applause] Um right well uh one of the two dragons We wanted has offered us the lowest Percentage so we're gonna go for that One oh oh excellent well done well done Thanks for watching Party on yeah So which was the other Dragon you wanted Then you Deborah [Laughter] When you realize um that peers 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 And one of the Dragon investors they Were seeking The only thing terrible game The only mistake they made there is they Did not come back to renegotiate because If they'd wanted yeah but good [Music] The main thing that we have from here is Opportunity That's what Piers has given us and so Yeah we'll see where it takes us [Music]

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