||This article appears to be written like an advertisement. (April 2012)|
|Traded as||TSX: GXI|
|Industry||Travel industry , Retailing , Software Development , Information Technology|
|Founded||2002, by Brett Proud and Tom Douramakos|
|Headquarters||Toronto, Ontario, CAN|
|Key people||POS terminal , Application software|
|Revenue||$25.1 million CND (2011)|
|Net income||($834 thousand)CND (2011)|
|Employees||50-201 in 4 countries|
GuestLogix Inc., is a publicly traded Toronto-based technology company that provides onboard store technology and retail solutions that enable passenger travel operators to process ancillary revenue transactions on a global basis, at all travel touch-points, in a fully secure and compliant manner.
- 1 Company Overview
- 2 Ancillary Revenue
- 3 Product Overview (POS Terminal)
- 4 Product Overview (Software)
- 5 OnTouch®
- 6 Product Overview (Global Payment Services)
- 7 Partnerships
- 8 Client List
- 9 Stock Information
- 10 References
In 2002, company founders Tom Douramakos and Brett Proud launched GuestLogix Inc. in Toronto, Ontario. The company operates regional offices in the United States, United Kingdom, Hong Kong and sales and support centers in Singapore and South Korea. GuestLogix is listed in Deloitte's North America Technology Fast 500 and Canada Technology Fast 50 companies.
Ancillary revenue refers to the revenues generated by airlines from non-ticket sales such as onboard meals, extra baggage fees, hotel and car reservation fees, onboard entertainment and duty-free merchandise sales. This tactic has become an important financial component for low-cost carriers (LCCs) in Europe and is being adopted by all types of air carriers throughout the world. Ancillary revenue has been defined as, “Revenue beyond the sale of tickets that are generated by direct sales to passengers, or indirectly as a part of the travel experience.” Ancillary revenue has been further defined to include these categories: 1) a la carte features, 2) commission-based products, and 3) frequent flyer activities.
While much of the new a la carte services have been implemented during a time when rising fuel costs have made it difficult to lower the ticket prices on base air fares, the theory remains the same: Passenger travel services are aiming to curb internal costs by decreasing the overall ticket prices while giving passengers the option to pay only for the services they use on board. This, while increasing the amount of service options available to passengers to essentially capitalize on an increase in average revenue per passenger.
Product Overview (POS Terminal)
The latest portable POS device to be designed by GuestLogix Inc. is the XPDA-SP, which replaced the OnBoard PowerSeller. The device is manufactured through GuestLogix' hardware partner ITWell in South Korea. The device is PCI-compliant (EMV Level 1 & 2 and PCI PED 2.0) and integrated with the GuestLogix Onboard Retail Technology Platform to automate all onboard activities with pre-flight and post-flight processing requirements. It also provides communication options such as Bluetooth, WiFi (b/g/n) and 3G GSM. The XPDA-SP has an integrated printer, magnetic swipe (card) reader, barcode scanner, IC (integrated chip) reader, contactless and NFC payment capability and performs transactions by credit cards, debit cards, loyalty program redemptions, coupons, pre-payments, complimentary, micro-payments, cash tracking and multiple currencies. The device manages and tracks onboard inventories, records sales by seat and attendant, manages pricing and promotional activities on board, connects with back-office information flows, supports batch and real-time transaction processes and manages crew scheduling and operations.
Product Overview (Software)
Through its Onboard Store Technology Platform, which includes the Company's proprietary software, hardware, hosted infrastructure, travel-relevant content, aggregated data, and other components, the Company helps its clients create, operate and manage their own branded Onboard Stores.
The Company has formed its own portfolio of global content providers in 200 cities around the world, enabling operators to populate their branded Onboard Stores with travel-relevant, destination-specific offerings in the following categories:
- OnTouch® Ground Connections - destination-based transfers from airport
- OnTouch® Box Office - destination-based entertainment and attractions
To support its Onboard Store Technology Platform, the Company has introduced OnTouch® Analytics. The platform enables business intelligence capabilities to help onboard retailers manage and control their Onboard Stores.
Extension of Onboard Access
In today's onboard environment, the primary method for accessing the store is provided via a Flight Attendant who uses a GuestLogix Handheld Point-of-Sale Device (HHD) to transact a sale. GuestLogix' Onboard Store Technology Platform is extending store access on board in the following ways:
- Via seatback based In-Flight Entertainment (IFE) systems
- Via passenger-device based IFE systems
- Via portable-device based IFE systems
- Via WiFi based Connectivity Providers
Extension of Off-board Access
The following are the ways that GuestLogix is extending store access off board:
- Via the Web (for store access at home and at destination)
- Via Mobile (for store access at all travel touch points)
Product Overview (Global Payment Services)
GuestLogix holds 28 payment and travel industry certifications for its Transaction Processing Engine to process transactions worldwide. It supports multiple payment mediums, EMV transactions (both Chip & PIN and Chip & Signature), Non-EMV (swipe) transactions, contactless card transactions, mobile-based NFC transactions and e-Commerce transactions. GuestLogix' Global Payment Services offers declined cards re-submission, payment card blacklists and its in-house GuestLogix hot list as fraud risk prevention techniques, and provides optional outsourced payment services as the Merchant of Record.
Alpha Flight Services - an onboard caterer in Australia and New Zealand that provides service to 16 major airlines
digEcor - a leading provider of Inflight Entertainment Systems to an extensive global customer base
InFlight Sales Group - the largest onboard duty free service provider in Asia Pacific
LSG Sky Chefs - provides airline catering, in-flight equipment and logistics for more than 300 airlines. Their catering services have been integrated into the software for the OnBoard PowerSeller 2. Currently in legal disputes, LSG no longer a customer.
Rodamas Group - a technology importer to Indonesia that works closely with retail and travel industry support
Servair - a subsidiary of Air France, specialized in airline catering, with a focus in France and surrounding areas
Skytrac - a provider of catering and warehousing solutions for travel operators. Mostly dissatisfied with GXI performance.
Thales Group - a leading international electronics and systems group, addressing defence, aerospace and security markets worldwide
The Facilities Partner -a UK-based logistics and catering company focused on the rail sector
GuestLogix Inc. currently serves passengers travelling on:
- Estonian Air
- Garuda Indonesia
- Horizon Air
- Hong Kong Airlines
- Hong Kong Express
- Jetstar Airways
- Midwest Airlines
- Qantas Airways
- Saudi Arabian Airlines
- Transpennine Express
- TUI Ski
- United Airlines
- United Express
- US Airways
- XL Airways France
- and provides service to ACES (Atlantic City Express Service) rail carrier out of New Jersey and London Midland and Cross Country rail carriers in the UK.
GuestLogix Inc. went public in August 2007 and was traded on the TSX Venture Exchange (Symbol: "GXI") until the closing of February 26, 2010. On March 1, 2010, GuestLogix began trading on the Toronto Stock Exchange (TSX) under the same stock symbol.
July 2013: ...amendment of its existing $7 million financing, by way of promissory notes (the "Notes"), originally announced on December 3, 2012 (the "Financing"). The Financing also included the issuance by GuestLogix of an aggregate of 3,500,000 common share purchase warrants to the holders of the Notes.(http://guestlogix.com/pr/pr_07-18-13.html)
November 2013: ... entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and Cormark Securities Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, 9,092,000 common shares (the "Shares") of the Company, at a price of $1.10 per Share (the "Offering Price") for aggregate gross proceeds to GuestLogix of $10,001,200 (the "Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,363,800 Shares at the Offering Price, exercisable in whole or in part for a period of 30 days following closing of the Offering, to cover over-allotments. If the over-allotment option is exercised in full, an additional $1,500,180 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $11,501,380. (http://finance.yahoo.com/news/guestlogix-inc-announces-10-million-214100479.html)
- GuestLogix Inc. Q4 2011 Management Discussion & Analysis dated February 27, 2012
- "GuestLogix - Mall in the Sky", Report dated: December 1, 2008 by Research Capital
- "Ancillary Revenue Conference Preview 2007 Preview", Dated: September 2007, OnBoard Services Magazine - Worldwide
- “Buckle Your Seat Belts - Airline Executives Predict More Fees and Plan to Sell More Services via Their Web Sites”, Report dated: August 17, 2007, IdeaWorksCompany.com
- "Understanding American Airlines' approach towards ancillary revenues", Article dated May 21, 2008, Eye for Travel Magazine
- "GuestLogix launches first fully integrated mobile POS device with PIN Pad for travel markets", Article dated February 10, 2009 by Theodore Koumelis for Travel Daily News International
- GuestLogix Adds NFC Support to Airline Payment Terminal
- GuestLogix' New Global Payment Services Provides Airlines and Travel Operators with Industry's Most Comprehensive Technology
- "Growthgen Equity II Inc. Announces the Closing of Qualifying Transaction With GuestLogix Inc.", Report dated on: August 2nd, 2007.