A new company that delivers luggage from home to hotel has been launched to the trade.
The company, named Luggage Mule, is aiming to help clients travelling on low-cost airline flights to save money by delivering bags to hotels, while giving agents commission.
The new venture will be led by director Jordan Makin with financial and product backing by Ian Brooks and Antony Martin.
Working with UPS, the company will collect luggage from the holidaymakers’ home two to four days before departure to arrive at their hotel on the day they land.
The company is aiming to carry more than one million bags a year in the next three years. It has developed an XML services with UPS so travel agents can add the option to their websites and earn commission.
“Currently the travel trade receives no commission for selling low-cost carrier flights or add-ons including booking luggage. Luggage Mule will change that by including a fee in the basic price and also allow agents to charge a booking fee of GBP5 and/or add a commission of their choice to the basic Luggage Mule price,” explained Martin.
“We see this initially as a B2B business being sold via agents, since it is not cost effective on a B2C basis given Google’s advertising prices or the advertising cost to establish the brand awareness required. However, we do plan to grow as a B2C business over the next three years,” he added.
It is estimated the Luggage Mule option could save journey times by four hours by eliminating check-in time and carousel queues when using a low-cost carrier. Prices will start from GBP49.99 for a 25kg bag on return flights to Spain against Ryanair’s GBP170 charge to put a bag in hold, or GBP119 at easyJet.
The service will launch on a beta basis in October 2013 but will offer the XML connection from September.