Photo - Arrive
53701

Arrive

Coming ashore after a long voyage

Ukraine, Ivano-Frankivsk region
Market: Real estate, Building, Tourism, sport, Services, Another
Stage of the project: Idea or something is already done

Date of last change: 29.08.2021
Min amount of loan
$  7.000
Estimated yield
6 % a year
Show contacts
1
Total required
$ 30.000
Rating
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- is looking for investment
 

Idea

Lightweight recreational cabins located in nature marrying new age technology with region specific traditional architectural solutions to be in line with nature and to foster mental balance.
The added value is largely manifested in our service which includes orderable packages: Each package offers a non-technology based off-line activity which helps guests to sink in the present moment and to connect with themselves.

Current Status

Arrive is a developed and validated idea with coherent plan of implementation, milestones table and solid business plan.

Market

Ideal Customer
Our ideal customers are young professionals (25-40) who are environmentally conscious, value design aesthetics, and consider good mental health as an important aspect of life.
Individuals who are thoughtful of global issues such as climate change and understand the importance of more sustainable travel and sustainable solutions for life. Moreover, those who are aware of the harmful influence of general life stress and want to reconnect with nature as well as people who value architectural aesthetics, unique spaces and atmosphere.

Target market
Ukrainian market of recreational rental properties is relatively new (10-15 years) and dynamically developing. Also, has numerous free niches to be filled. More specifically, recreational activities involving mental hygiene service and offgrid living are scarce in the country. In Ukraine the tourism industry has a steady 10-20% growth annually. This provides numerous opportunities to enter the market.
On top of this, the country is rated as one of the most upcoming low-cost destinations. A growing number of low budget airlines offer direct flights to the main cities (Lviv, Kiev, Odessa).
It has relatively low prices on raw materials as well as on general production costs, including electricity, water and labour.
Arrive aims to reach out to young professionals, who are aware of the importance of global environmental challenges and wish to maintain good mental health.
We are looking for nature lovers who like unique experiences and those who value design esthetics. Arrive can offer a relaxing long weekend as a first step towards mindfulness living.
Finally, it is also a perfect opportunity for those who are interested in the concept of off-grid living and filled with curiosity to experience it.

Problem or Opportunity

Problem
Due to the ongoing Covid-19 pandemic average stress levels have soared and depression rates have increased significantly, particularly in the cities.

Modern tourism lies within the metropolitan paradigm and is often associated with achieving the most, visiting the most places, or doing the most activities. Hence, it does not involve full experience of relaxation in the leisure time.

Over 30% of carbon emissions are produced by buildings globally, which highly contributes to the ever growing issue of climate change and unhealthy environment.

Opportunity
“Europeans are becoming increasingly environmentally conscious and are keen to reduce their carbon footprint when they travel. Many favor immersive, authentic experiences that enable them to interact with nature and local communities while making a positive contribution to others.”

As a consequence of mass tourism practices and everyday stress amplified by the latest Covid-19 pandemic situation, more of us seek to spend our recreational time/holiday closer to nature in a more isolated environment far from tourist masses. We regularly wish to be away from home for leisure time while we also desire to experience breaking ties with the ‘noise’ of the city both literally and in symbolic ways.

Arrive offers the solution for those seeking recreation and refuge in a nature-close environment fulfilling dreams of us who are looking for the antithesis of mass tourism. Current trends suggest that demand for these types of recreational opportunities is continuously increasing.

In Ukraine, sustainable tourism and environmental consciousness is a similarly growing although less widespread approach compared to Western Europe. Therefore, the supply side of the market is less developed. However, due to the increasing demand this is a right moment to enter the market and make investment on the field.

Competitors

Cosmos In
https://cosmosin.org/
Aparthotel for 2 to 6 people, overlooks the forest and hills near Yavoriv National Park, in Maidan, 30 km from Lviv.
‘Cosmic location to rest from city buzz, and reload yet stay connected to the city civilization’
140-160 Euros/night
In comparison to us: In our concept work and leisure have a clear separation. Also, our estate is more in nature.

Homene
https://homene.com.ua/
“HOMENE” is a recreation area located near the forest, 75 km from Kyiv.
Natural, eco-friendly, silent. Cabins up to 4 people. Provided activities such as sauna, Dnipro river boat trip to the flooded church or to Kaniv, riding a jet ski and ATV.
110-130 Euros/night
In comparison to us: We give more space and privacy to our guests as we do not have multiple rentable buildings. Furthermore the extra activities/services they offer are against our mindfulness approach.

Edelweiss travel
https://www.instagram.com/p/CKjWJYiH3i7/
Off-grid cabins up in the mountains. Mountain view. No facilities provided. No heating.
2 people - 50 Euros/night
In comparison to us: We offer a higher comfort level as well as tools to experience mindfulness and more accessible by transportation means.

Advantages or differentiators

We provide off-grid cabins in remote locations, yet there is no compromise with comfort. Our estate is accessible by car as a result there is no need to compromise on what to bring as a guest.
Arrive provides a sustainable recreational house with the comfort level of a hotel.
We provide holistic experience with a core intention to allow mindful moments of arrival, grounding and being present to happen rather than a facility for tourist attractions.

Finance

Arrive will operate on short term rentals.
We calculate a 65% occupancy rate annually, which is an average rate on the European hospitality market.
An average night rate will be 100 euros.

Loan terms

60 months

Interest rate, %

6

Type of pledge

Real estate

Pledge and assets

Built property and a purchased land plot will be the asset of the company.

Business model

Sales Plan
The sales will go on direct and indirect channels. While direct sales is a priority for us, at the first stage we see indirect sales (AirBnB, OLX) as a marketing tool that will assist us in disseminating our service.
Stage 1
Database building with the help of resale partners. Discount is implemented for direct bookings.
Resale partners:
For Ukrainians: OLX,
For internationals: AirBnB, Nature.house
Stage 2
Reseller partnerships are stopped and only direct sales are in place. Customers from the database will receive seasonal promotions as well as will be notified when a new location is in operation.
External partnerships
Eco-villages, mindfulness communities.
Yoga studios and mental health oriented businesses
Environmentally conscious contraction companies (energy solutions, sanitary solutions, insulation solutions)

Solution (product or service)

Arrive is an environmentally friendly solution for people seeking remote places to work, live and relax. Our architectural solution embodies qualities of climate resilience, adaptation and low-carbon solutions.

Arrive is an off-grid wooden structure using new-age technology and upcycled materials for eco-living. It is fast to assemble locally produced and fabricated. In practice it means that the onsite building time is particularly short, taking approximately 2 weeks only.

Team or Management

Risks

1. Difficult access of the estate in case of heavy weather conditions (heavy rain, heavy snow, etc…)

Minimizing risk: careful selection of location; building good connection to locals, authorities

2. No openness towards Internet detox

Minimizing risk: well built marketing strategy including strong social media presence that highlights the advantages of digital detox (analog photography as an active tool)

3. Expected turnover rate is too high

Minimizing risk: in order to have influence on booking quantity and their time we have a marketing budget where we are able to influence booking behavior. Also, we aim to implement flexible pricing later on so less busy periods would receive some discounted price or discount on orderable packages.

4. Overestimation of demand (guest nights)

Minimizing risk: The 60% occupancy rate was decided after careful research of the market and it is in harmony with industry standards.

5. Social media marketing budget gives us the flexibility to influence the time expansion of bookings. Difficult to build up the real estate management in remote places

Minimizing risk: at the beginning (first few months) one of our crew member would be on the location
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Idea
Current Status
Market
Problem or Opportunity
Competitors
Advantages or differentiators
Finance
Financed earlier, $
Loan terms
Interest rate, %
Type of pledge
Pledge and assets
Business model
Solution (product or service)
Team or Management
Lead creditor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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