How Our Custom Trips Platform Grew To $3.6M/Year
This is a follow up story for Baboo Travel. If you're interested in reading how they got started, published almost 3 years ago, check it out here.
Hello again! Remind us who you are and what business you started.
Hi, I’m Paul Sarfati, the co-founder and CEO of Bamba Travel and Baboo Travel. You might remember us from our original Starter Story feature here. We specialize in creating unique, sustainable travel experiences that go beyond typical tourist destinations, focusing on deep cultural immersion and connections with local communities.
Our flagship products include bespoke adventure tours, immersive cultural experiences, and eco-friendly travel packages. We cater to independent travelers, families, and small groups looking for flexible, adventurous, and ethically-minded travel options.
Over the last 12 months, our annual revenue has reached 3.6 million USD, showcasing our steady growth and impact in the travel industry.
Tell us about what you’ve been up to. Has the business been growing?
Since our last conversation, Bamba Travel and Baboo Travel have experienced remarkable growth. We built another brand, Bamba Travel, to cater specifically to budget-independent travelers.
This strategic move allowed us to focus Baboo Travel on active adventures such as cycling and hiking multi-day trips for the higher-end market. Eventually, we merged both companies to scale our operations and optimize our offerings.
Our business has seen impressive growth. Our annual revenue has increased from $600k to $3.6 million, representing a 500% increase. We now serve around 400 clients per month, up from 50 clients per month, and our monthly revenue has grown from $50k to $300k.
To boost traffic and sales, we adopted a niche-focused marketing strategy. By targeting the young budget market with Bamba Travel and the higher-end adventure market with Baboo Travel, we increased our conversion rate from 2% to 12% and significantly reduced our customer acquisition cost (CAC). We have also taken on 18 employees and are actively hiring to support our growth.
We launched new products, including small group tours for the younger market and a variety of cycling and hiking adventures. Additionally, we started collaborating with travel agencies, online travel retailers, and corporate groups, which has greatly benefited our business. Implementing an AI sales agent, AI chatbot, and AI support system has further enabled us to scale quickly.
While some traditional marketing channels have slowed down, our focus on innovative strategies has kept us ahead. We have been keeping our existing customers happy by prioritizing their lifetime value (LTV). This involves maintaining high-quality service and continually engaging with our customers through personalized communication and exceptional travel experiences.
Our new PR initiatives have highlighted our technological advancements, unique product offerings, and strategic alliances. We have implemented a sales chatbot that qualifies leads through SMS or WhatsApp, improving conversion rates, reducing non-qualified leads, and increasing satisfaction for both suppliers and customers.
Stay resilient and adaptable. The business landscape is constantly evolving, and the ability to pivot quickly in response to new challenges and opportunities is crucial. Don't be afraid to experiment with different strategies, even if it means stepping out of your comfort zone.
What have been your biggest challenges and lessons learned in the last year?
One of the biggest challenges we've faced this past year has been the integration of Bamba Travel and Baboo Travel. Merging two distinct brands, each with its own identity, target market, and operational structure, required meticulous planning and execution. Day in and day out, we worked to streamline our processes, unify our teams, and create a cohesive strategy that leverages the strengths of both brands.
This involved rethinking our internal workflows, retraining staff, and developing a unified marketing approach that resonates with both budget-independent travelers and higher-end adventure seekers.
Another significant challenge has been adapting to the constantly changing digital marketing landscape. What worked for us in the past, such as organic social media reach, has become less effective, forcing us to innovate and find new ways to connect with our audience. We had to pivot our strategy, embracing more data-driven approaches and investing in AI-powered tools like chatbots and sales agents. These changes required a substantial learning curve and investment but were necessary to stay competitive and continue our growth trajectory.
Moreover, AI trip planning has become the norm with most big travel companies, making it harder to stand out in the market. Our biggest differentiator used to be the ease of planning trips using AI, but now we've shifted our focus to providing unique experiences and fostering human connections.
We emphasize group trips that allow travelers to meet new people, active adventures like cycling and hiking that require logistical support such as bike transfers between hotels, and booking local lodges for hiking expeditions. This human-centric approach has become our key selling point, setting us apart in a crowded market.
On a personal level, managing the rapid growth and increased complexity of the business has brought its own set of challenges. The mental and emotional stress of leading a merging company can be overwhelming. I've had to grapple with imposter syndrome, constantly questioning if I’m making the right decisions for the business and our team.
Balancing these internal struggles with the external demands of expansion, maintaining a healthy work-life balance, and avoiding burnout has been a continuous challenge. However, these experiences have also taught me the importance of resilience, self-care, and the value of a supportive team.
Over the past year, we've learned some hard but invaluable lessons. One of the biggest mistakes we made was underestimating the complexity of merging two brands. Initially, we assumed that combining Bamba Travel and Baboo Travel would be straightforward, but we quickly realized that aligning our teams, processes, and brand identities was far more challenging than anticipated.
We missed some opportunities to streamline operations earlier and had to play catch-up to ensure everything ran smoothly. Another challenge was adapting to the rapid adoption of AI trip planning by competitors. We were blindsided by how quickly AI became a standard offering in the travel industry, forcing us to rethink our differentiators.
This shift was difficult to manage, but it pushed us to refocus on creating unique, human-centric travel experiences. By emphasizing personalized adventures, group trips, and logistical support for activities like biking and hiking, we carved out a niche that set us apart.
On the positive side, we've made some excellent decisions that have significantly benefited our business. Our investment in niche-focused marketing and strategic partnerships with travel agencies and online travel retailers has paid off. Collaborating with corporate groups and implementing AI tools for sales and support has also been a game-changer.
These initiatives have helped us scale efficiently and enhance our customer experience. A cool personal update is that I’ve started practicing mindfulness and meditation to manage stress and maintain focus. This habit has improved my decision-making and helped me stay grounded during challenging times. Additionally, fostering open communication and transparency within our team has built a stronger, more cohesive work environment.
The lessons we've learned this year have been profound. We've realized the importance of staying adaptable and being prepared for rapid changes in the market. Luck and timing also played roles in our success, particularly with the growing trend towards sustainable and immersive travel experiences, which aligned perfectly with our offerings.
We've applied these lessons by staying agile, continuously innovating, and prioritizing our customers' needs and experiences. The ability to learn from mistakes, coupled with resilience and a focus on human connections, has been instrumental in our ongoing growth and success.
Consider whether venture capital (VC) is the right path for your business. While VC funding can accelerate growth, it often comes with significant expectations and pressures.
What’s in the plans for the upcoming year, and the next 5 years?.
In the upcoming year, we plan to expand our product offerings to include more specialized tours, such as culinary adventures, wellness retreats, and eco-tourism packages. We're particularly excited about entering new markets in Asia and South America, where we see tremendous potential for growth. These regions offer rich cultural experiences and breathtaking natural landscapes that align perfectly with our mission to provide unique and immersive travel experiences.
Looking ahead to the next five years, our vision is to establish Bamba Travel and Baboo Travel as leading global travel brands known for our commitment to sustainability, cultural immersion, and exceptional customer service. We aim to enhance our technology platform to offer a seamless and personalized booking experience, incorporating advanced AI tools to tailor recommendations and support.
Our goal is to continue expanding our reach, bringing our unique travel experiences to a broader audience while maintaining our core values of ethical and sustainable travel.
In the short term, our focus is on scaling our operations efficiently and ensuring that our new product launches are successful. We plan to strengthen our partnerships with travel agencies, corporate groups, and online travel retailers to increase our market presence. Long-term, we aspire to foster a community of passionate travelers who prioritize meaningful and responsible travel.
Our ultimate aim is to create a positive impact on the destinations we serve by supporting local communities and promoting cultural preservation. By staying true to our vision and continuously innovating, we believe we can achieve sustainable growth and make a lasting difference in the travel industry.
What’s the best thing you read in the last year?
One of the most inspiring books I read this year is "Vagabonding: An Uncommon Guide to the Art of Long-Term World Travel" by Rolf Potts. This book offers a profound perspective on travel as a way of life, rather than a mere escape from everyday reality. It delves into the philosophy of long-term travel, encouraging readers to embrace the journey and the transformative experiences it brings.
Potts' emphasis on slow, immersive travel aligns perfectly with our mission at Bamba Travel and Baboo Travel, reinforcing the value of cultural immersion and meaningful connections.
Another valuable read was "Let My People Go Surfing: The Education of a Reluctant Businessman" by Yvon Chouinard, the founder of Patagonia. This book provides incredible insights into building a business with strong ethical values and a commitment to sustainability, much like our journey to becoming a B-Corporation. Chouinard's approach to balancing profitability with social responsibility has been a guiding inspiration for us. His story is a testament to the power of purpose-driven business, and it’s a must-read for any entrepreneur looking to make a positive impact. You can find the book here.
For articles, the piece "The Rise of Adventure Travel" from National Geographic highlights the growing trend of adventure travel and its significance in today’s travel industry. It underscores the increasing demand for authentic and challenging experiences, which resonates with our focus on active adventures and group trips. This article provides a great overview of the industry’s direction and is a valuable resource for anyone interested in the future of travel. You can read it here.
These resources have not only inspired me personally but have also influenced our strategic decisions and reaffirmed our commitment to providing sustainable, meaningful travel experiences.
Advice for other entrepreneurs who might be struggling to grow their business?
For entrepreneurs struggling to grow their business, my top piece of advice is to stay resilient and adaptable. The business landscape is constantly evolving, and the ability to pivot quickly in response to new challenges and opportunities is crucial. Don't be afraid to experiment with different strategies, even if it means stepping out of your comfort zone. Sometimes the most unexpected approaches can yield the best results.
One common mistake I see is entrepreneurs spreading themselves too thin, trying to be everything to everyone. It's important to identify your niche and focus on excelling in that area. For us, understanding the distinct needs of budget-independent travelers versus high-end adventure seekers allowed us to tailor our offerings and marketing strategies effectively. Specializing and becoming an expert in a particular market can set you apart from competitors and build a loyal customer base.
Another critical aspect is maintaining a strong connection with your customers. Engage with them, listen to their feedback, and make them feel valued. This not only helps in building trust but also provides insights into improving your products and services. Implementing AI tools for customer support has been a game-changer for us, enabling us to provide personalized and timely responses, which has significantly enhanced customer satisfaction and retention.
Lastly, invest in your team. A motivated and well-supported team is the backbone of any successful business. Encourage open communication, foster a positive work environment, and provide opportunities for professional growth. Remember, your team’s success is your success. By focusing on building a strong, cohesive team, you’ll create a foundation for sustained growth and innovation.
Additionally, consider whether venture capital (VC) is the right path for your business. Venture capital is not for everyone, and it's important to reflect deeply on whether it's something you want for yourself. While VC funding can accelerate growth, it often comes with significant expectations and pressures.
Alternatively, bootstrapping and growing your business slower but organically can allow you to maintain greater control and build a solid foundation at your own pace. Evaluate your long-term goals and decide which approach aligns best with your vision and values.
In summary, stay adaptable, focus on your niche, maintain strong customer connections, invest in your team, and carefully consider your funding options. These principles have been instrumental in our growth and can help any entrepreneur navigate the challenges of scaling a business. Keep pushing forward, learn from your setbacks, and stay committed to your vision.
Are you looking to hire for certain positions right now?
Yes, we are currently looking to hire a Sales and Marketing Manager with a strong passion for sales and experience in the travel industry. This full-time position involves expanding our sales channels, increasing direct bookings, and managing our marketing and sales teams.
The ideal candidate will have a proven track record in sales, excellent leadership skills, and a deep understanding of the travel market. If you are enthusiastic about travel and have the expertise to drive our growth, we’d love to hear from you. Interested candidates can apply by sending their resume and cover letter to us.
Where can we go to learn more?
You can learn more about our exciting travel experiences and stay updated with our latest offerings on our website and social media channels:
Website
Instagram
- Baboo Travel
- Bamba Travel
Email
- [email protected] / [email protected]
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