DEC 9 - DEMAND CREATION (Market Size)

After the session we had with Market Sizing with Natalia da Costa, we thought that it is crutial to do a serious market size analysis to get to know what is the potential of the market we are trying to sneak in. Also it will be mandatory to show for the moment of finding investors for this project that we strongly believe in.

Before starting the whole process up, we need to know about the potential value of this market.

According to the official report of Barcelona Turisme, which is the market we want to focus at the very first stage of Travel Companion, we have nearly 10,5 millions of visitors per year, in which 5,6 millions of them are in our potential target group (people with modern technology knowledge and acceptance), where almost 4 millions of them are visiting barcelona with leisure purpose.

In case of amount of money spend in Barcelona by visitors, according to La Vanguardia, and 20Minutos, the average amount spent per day is 99€.

In our case, we expect an average price per service purchased of 15€, and an average of 1,5 purschases by customer.
We will start charging a 10% to 20% commision to the service. This still needs to be confirmed, but let´s do the numbers on optimistic and pessimistic point of view.

This leads us to a market potential of. . .

Optimistic
3.971.660 (leisure purpose visitor) x 15€ x 20%(commision) x 1,5(times) =  17.872.470 €
Pessimistic
3.971.660 (leisure purpose visitor) x 15€ x 10%(commision) x 1,5(times) = 8.936.235 €

There is currently 1 player in this market, but their concept is not completely the same as ours, but still I can be alternative to our services.

The market share will be 50%, with a market potential according to the market shares of . . .

Optimistic   8.936.235 €

Pessimistic  4.468.111 €