Monaker Group Inc fka MKGI (MKGI)

[windough-shopper]

$MKGI.....CEO issues update

September 28, 2016

Dear Monaker Stakeholders, I am pleased to report, and include a link to Monaker Group’s S-1 filing (Prospectus) filed last week with the Securities & Exchange Commission. This as an important step for our corporate progress, and we anticipate that the Offering, underwritten by ViewTrade Securities, will be done in conjunction with a proposed up-listing onto the NYSE Market, as we have already initiated discussions with the Exchange.

To view the S-1 filing, visit: https://www.sec.gov/Archives/edgar/data/1372183/000158069516000741/mkgi-s1_091616.htm

The Playing Field

We are witnessing significant investment interest within the travel space, as evidenced by Airbnb’s recent round of financing and $30 billion valuation, as well as Expedia’s plans to take its German search site, Trivago, public at a roughly $6 billion valuation later this year or early next year. In 2015 alone, Expedia spent more than $6 billion on strategic acquisitions. It is interesting to note that analysts have called Expedia’s $3.9 billion acquisition of HomeAway, “the real sleeper in terms of providing the most-impactful upside.” Both of these fundings are being priced in the 10X revenue range – an extraordinary premium which seems to further confirm Monaker is in the right space.

I believe Monaker Group is on the "leading edge" of opportunity, driven by our strategic entry into and current position in the Vacation Home Rental / Alternative Lodging Rental (“ALR”) market. While ALR is still believed to be in its early growth stage, the niche is supported by impressive industry statistics:

Airbnb’s estimated annual sales of $1 billion (2015) represent roughly 1% of the current overall $100 billion industry vacation rental sector
Global vacation rental market expected to reach $170 billion by 2019 (Research and Markets)
The ALR industry is growing at 50+% annually and gaining significant interest from global investors
ALR products are unique and are not yet mainstream amongst the major OTAs (Online Travel Retailers) such as airlines, cruise, tour operators and travel consolidators


How we differ from the Competition

Approximately 10 months ago we entered the ALR space by acquiring the assets of AlwaysOnVacation (“AOV”). At the time, the AOV platform only supported a request/accept booking solution, meaning that availability depended upon the homeowner responding to the renter’s inquiries via text or email (the industry standard). Building off this model, we decided the cornerstone for Monaker’s ALR platform should be a real-time booking engine, and we engaged Primero Systems to design and implement the product. As an evolution from the norm, the next-generation Monaker Booking engine will drive sales of ALR products for our consumer-facing NextTrip website as well as to other travel retailers via an easy-to-implement, business-to-business solution package.

The Monaker Booking Engine (announced 8/24/2016) was designed to deliver real-time booking confirmations for our NextTrip customers, while providing large travel retailers "plug-and-play" access to ALR inventory and enabling them to adjust product offers to conform to their existing web functionality. This next-generation booking solution differentiates itself from the existing ALR consolidators that offer a "take it or leave it” approach that often requires months-long configuration and significant website redesign.

In addition to the deployment of our booking engine, we have secured contracts for more than 1.4 million properties from over 80 property management companies and a host of individual homeowners. We expect to have over 1 million properties up and working in a real-time format this year. Airbnb (with roughly 1.9 million properties) recently announced its interest in ALR as real-time booking and is just now moving toward a direction in which we are already firmly positioned.

Our model also boasts several other advantages. Direct-to-consumer site NextTrip will include “comprehensive travel services" that provide the user with other important travel options, including air, car, hotel, tours and activities all within a single location and site.

Our initial solution, released in March, was merely a glimpse of what is to come and will be dramatically accelerated when the NextTrip platform is fully integrated with major travel partners such as Mark Travel/Trisept, Amadeus, Sabre and several timeshare groups. These partnerships will result in significant travel offerings and services in support of our ALR inventory before year-end.

Additionally, we will be among the first to introduce Artificial Intelligence (“A.I.”) assistance to our users. A.I. appears to be taking foot with Amazon, Salesforce, G.E., Microsoft, Oracle, Google and IBM who are rushing to get into the travel space. We believe A.I. will be game changing to the industry and that we have picked the best platform through our relationship with Mark Travel/Trisept.

Financing

At this time, we are not a well-known player in the travel industry. However, with the technology, partnerships and initiatives we have already lined up, we believe that is about to change. We have been very fortunate to have strong Director support helping fund us for approximately $3 million, allowing us to concentrate on putting together the programs discussed above without having to reveal the most intimate of details/trade secrets to other financiers in order to acquire funding. My re-entry into the travel space, along with the strong financial support, is a large part of the reason we have quickly amassed key programs, partnerships and technology platforms.

The Win is Ours for the Taking

Early next year we plan to unveil our NextTrip APP - a social media, exploring, planning and booking tool (i.e. Yelp meets TripAdvisor). In the meantime, we continue to develop leading solutions in the ALR space and have secured contracts to position us to be successful. I’m convinced we are assembling the right building blocks and partners for a significant business and a recognizable name in the travel industry!

The ViewTrade underwriting, and subsequent up-listing to a National Exchange is a logical step and should help put us on the radar screen for broader investment interest. Thank you for your patience and continued interest in Monaker Group.