Business Model of Iglu.com
Business Model of Iglu.com:
Before Iglu.com started, the vast majority of ski trips/packages were offered by tour operators (76% of the market for UK ski holidays) who were unable to tap into the chalets in Europe due to their fragmented nature and scale inefficiencies. Iglu used technology (internet) to overcome this and increased the size of the pie and created a niche for itself. Earlier, only 25% of ski holidays taken were self-organised as travellers wanted freedom, flexibility and good value for money. Iglu's business model provided a solution to these travellers.
Target Customers (Who) and Products Offered (What)
Iglu offered skiers an option to create their own ski packages. Iglu's business model focused on customers that can be divided into two categories: Occasional, distant skiers who typically relied on packaged tour operators but wanted to discover new places and the more frequent skiers, living closer to the mountains to assemble their own holidays in unfamiliar areas.
Marketing and Sales Proposition (How)
Online search facilities enabled skiers to match chalets and localities as per their needs. It offered more options to choose from, advantage of lower prices for last minute availability and up-to-date status on availability. Skiers were made aware about Iglu.com brand through online advertising using Internet service providers, portals, public relations and classified advertisement. Trade shows, sponsored ski and snowboard teams and events to build awareness among chalet owners were organised. Through the website it also offered cheaper promotions for chalet owners as well relative to local agents and classifieds. Lot of investment was made on the website design, database management so that it was user friendly and customer can easily search all the chalets available; re-configuration and system integration was done to enable chalets to interface with site; and IT systems to interface with call...