Why invest in Zonetail?
The majority of people’s lives and dollars are spent in and around places, such as their condo, work, or hotel — often within a 5-mile radius or less.
Given this, there’s a lack of convenient, useful, and contextually relevant ways of connecting people with where they live or stay, and the surrounding area.
Conversely, local businesses have few ways of connecting directly with condo residents and hotel guests.
Zonetail connects hotel guests and condo residentsto the building and neighborhood.
The Zonetail mobile platform provides hotel guests and condo residents access and interaction with building amenities and services. It also connects guests and residents with neighboring restaurants, stores, services, and attractions.
In partnership with the Asian American Hotel Owners Association (AAHOA), the largest hotel association in the world,
Zonetail is in the process of rolling out its mobile platform to over 25,000 hotels, representing over 50% of the U.S. market.
Zonetail is also rolling out to 2000 condo buildings in Canada, representing an estimated 400,000 units, and 20% of the Greater Toronto Area condo market in partnership with the property management software company, Shiftsuite.
Competitors don’t have the location-based anchor or market distribution.
Competitive location based apps such as Google, Yelp, and Trip Advisor provide a ‘fire hose’ of unstructured, general area directory style information that is non-engaging, and not contextually relevant. Neither is it anchored to and therefore relevant to where people live or stay.
While some hotel chains offer their own branded app, they don’t offer property specific information or connect users to the neighborhood. the problem is most travellers don’t always stay with the same hotel brand. In addition, most people don’t always stay with the same hotel chain. Neither do they want dozens of hotel apps on their phone.
With 25,000 hotels and 2,000 condo buildings, no competitor is close to acquiring the same market distribution as Zonetail.
Greater Toronto Area Condo Building Coverage
How Zonetail makes money.
Zonetail’s mobile platform is offered free to hotel and condo property management partners.
The company derives its revenue through merchant ads in the app’s ‘Explore’ section providing advertisers a highly effective way of engaging with hard to reach hotel guests and condo residents.
Zonetail delivers a better option for advertisers than other methods such as direct mail.
For example, the average direct mail piece to condos costs 25 cents per drop with a response rate less than 1%. Worse, due to resident disinterest, unaddressed direct mail often goes directly into the recycling bin. Zonetail offers advertisers a strong alternative at a fraction of the price. And it’s not one shot, the message is always on, 24/7/365, with a content management system allowing the message to be changed anytime they want.
Zonetail is actively approaching advertisers in both Canada and the U.S. and is currently in discussions with national retail chains, restaurant chains, travel-based credit cards, and cannabis products and delivery partners, amongst others.
Zonetail will also be introducing other methods to increase potential revenue, including transaction-based, with the recent announcement of its partnership with Foodora, the food ordering and delivery specialist, as an example.
Hotel booking engine opportunity.
Zonetail is actively investigating the development of a hotel booking engine, offering direct booking to AAHOA’s 25,000 member hotels as well as other hotel partners.
AAHOA members own almost 1 of every 2 hotels in the United States.1
The average hotel annual occupancy rate in the United States was 60.7% in 2016 with an average hotel room rate of approximately $124 a night.2
Based on these numbers we assume AAHOA member hotels do approximately $188.17M per day in reservations, which is $68.6B annually.
Assuming an 8% commission, (substantially less than online travel agencies) Zonetail would generate approximately $55M per year in revenue for every 1% of the AAHOA reservation market captured.
1. https://aahoa.com/about-aahoa
2. Hotel News Now “STR: US hotel performance for total-year 2016, Q4 2016” Jan. 23, 2017
The mobile market.
According to emarketer, mobile advertising will continue its dominance, accounting for more than two-thirds of digital ad spending in the US, at an estimated $87.06 billion in 2019.
By 2020, the channel will represent 43% of total media ad spending in the US—a greater percentage than all traditional media combined.
By the end of the forecasting period (2022), mobile ad spending is expected to more than double that of TV. The channel will make up $141.36 billion of US media ad spending, while TV will account for $68.13 billion.
Our mobile technology.
Zonetail continues to upgrade its technology with features and functions derived from user experience.
The recent integration of advanced location-based geo-fencing technology adds real-time, physical context, along with a richer understanding of customer intent to the Zonetail platform. It also adds to Zonetail’s analytics suite, tracking attribution, ROI, and customer behavior with contextual data.
This new integration allows Zonetail to capture behavior-based user data with pin-point accuracy down to five meters, versus most competitive technology at 100 meters.
For advertisers it means they can precision target users with offers at the time and place they’re most likely to respond. For hotels it means they can improve their online reputations and scores, as well as improve guest response to promotions such as food and beverage specials.
Management, advisors, and board.
The collective experience of Zonetail’s management team has decades in hospitality marketing and digital technology specifically suited to making the company a success.
A new company with a 50-year history.
Zonetail is the continuation of a legacy business, called Kingsway Agencies. Started in 1960, Kingsway was the oldest company in North America supplying hotels with in-room printed guest directories. All of the learning gained from over 50-years experience in the hospitality industry is in our pedigree. Packaged in an elegantly simple, and easy to use design, Zonetail is the modern remix of that business, and is the mobile solution hotels are looking for.
So, why invest in Zonetail?
Zonetail dominates in hotel distribution, rolling out to 25,000 hotels, representing over 50% of the US, and more than 12% of the global market.
Zonetail dominates in condo distribution, rolling out to 2000 buildings, representing 400,000 units, and 20% of the greater Toronto area market.
Through Zonetail’s mobile app, advertisers can now benefit from constant access and engagement with hard to reach hotel guests and condo residents that they’ve never had before. This allows Zonetail to capture its share of the projected US mobile ad spend at $87.06 billion in 2019, rising to a projected $141.36 billion in 2022.
The recent integration of advanced location-based geo-fencing technology will add real-time, physical context, along with a richer understanding of customer intent to the Zonetail platform. It allows Zonetail to capture behavior-based user data with pin-point accuracy down to five meters, versus competitive technology at 100 meters.
Zonetail is exploring new technology and revenue streams including the development of a direct hotel booking engine to benefit our hotel partners, our users, and our shareholders.
The collective experience of Zonetail’s management team has decades in hospitality marketing and digital technology specifically suited to making Zonetail a success.
How to invest in Zonetail.
Zonetail is listed on the TSX Venture Exchange, ZONE:TSXV. The company’s common stock is available for purchase online, through a registered stockbroker. Most online brokerage firms also allow you to purchase stock. For more information contact us: ir@zonetail.com