Startup Spotlight: The online platform reselling unused travel bookings

Have you wondered what happens with the millions of unused travel bookings every year? SpareFare came up with a creative solution – the online platform is connecting people who have bought flights, holiday packages or hotel rooms but can no longer use them, with people seeking discounted travel options.

In this Q&A we’re talking with Galena Stavreva – the CEO of SpareFare and member of our London chapter. She is a UK qualified solicitor who quit her practice to create this procet – a secondary marketplace for travel reservations.

Galena shared some insights about their journey in the startup world and the lessons learned on the way.

Tell us more about Spare Fare and how did you come up with the idea?

Millions of people lose money on their unused travel bookings every year because they are not aware of any safe and hassle-free ways to resell their reservations.

By transferring their booked non-refundable reservations to SpareFare buyers, sellers are able to partially or fully recover the money they paid for the trips, while buyers get a true discount of up to 50-60% by not paying the current price of the bookings. We offer fraud protection to both buyers and sellers and dramatically reduce the risk of transferring flights, hotel rooms and holidays to strangers by acting as an intermediary.

How big is the market of unused travel bookings?

Massive! And it is only going to get bigger. Not all travel bookings are transferable (but most are, so don’t despair). For airline tickets, the airline needs to allow name changes. There are over 60 airlines that do, most of which are European low-cost carriers.

With hotels it is much easier and we are yet to see a hotel that does not want to change the name on the reservation. And if a traveler needs to resell a package holiday, they should know that all package travel in the European Union is transferable, thanks to EU law.

What have you learned so far in building the company?

Quite a few things. Running a startup for the first time is a very steep learning curve. The first thing that I learned is that it is a very emotional time. In this journey, you care so much more about everything that happens with the startup than you ever would in your job as an employee.

I expected the hard work, that’s a given, but I was not prepared for the emotional roller coaster! The second big lesson for me was that the best training happens on the job.

It does not matter how many books you read, or how many courses you go to. You may never feel ready enough to start.

I read a lot of books and spoke to a lot of founders before I started SpareFare, but in retrospect, it would have been better to just start and figure things out on the go. Even if your idea fails, the experience will be invaluable. And it will teach you a lot more than any book can.

And lastly, future entrepreneurs must remember that success at anything comes down to focus and effort. And we control both. 

What are the biggest challenges and risks you are facing? How do you handle them?

This is true for all companies, but it is especially true for startups – the team you hire is either going to make or break the business. Our biggest challenge is getting the best people on board and infecting them with our enthusiasm for the business. We handle this challenge by being 100% honest about everything we do for and expect from our team.

Any exciting plans for the future of SpareFare that you want to share with the industry?

We want to create a new type of shared economy in travel. In 10 years, we want everyone to be aware that they can resell their travel reservations to other people, and for SpareFare to be the go-to site for everyone looking for a cheap holiday, flight or a hotel room.

We want to enable millions of people every year to travel cheaply and see more of our amazing world. We want to help everyone who is not able to travel recoup at least some of the money they spent on their holidays, making travel more affordable for everyone.

Thanks, Galena, for the invaluable insights!

📹 Watch the video to get a better idea of what SpareFare is all about: 

Follow SpareFare  on Travel Massive and get in touch with Galena Stavreva on LinkedIn to learn more about their startup journey.