Anthony Chan, group managing director, Chan Brothers
SINGAPORE-based Chan Brothers Group will incubate and fund startups that are related to travel and tourism, lifestyle and hospitality, with strong growth potential across international markets, under its accelerator programme launched today.
It has partnered Singapore-based venture capital and incubation firm, TNB Ventures, which is said to have accelerated the growth of some 80 startups in the past three years. Together, they will start identifying these startups or accepting pitches in the next six to nine months.
Those accepted will be incubated in Chan Brothers Lab, an area up to 186m2 in one of the group’s properties which it is currently converting into a modern workspace equipped with a kitchenette, meeting rooms, Internet, etc, where startups can work and interact with one another, attend symposiums and talks organised by the partnership, have the support of admin staff and gain access to Chan Brothers Group key advisors and mentors who will share their experience and industry insights – one area which travel startups often lack.
Veteran travel professional Allen Leng, who has held senior positions with Singapore Airlines, UOB Travel and BCD Travel, has been hired as director of Chan Brothers Lab and a director at the corporate office.
The partnership with TNB aims to raise S$1 million (US$745,629) in capital funding for investment in the startups and operations, with both partners prepared to be angel investors themselves.
Chan Brothers group managing director, Anthony Chan, in a phone interview with TTG Asia e-Daily, said: “If we can incubate five to 10 startups in the first quarter of 2017, that would be a good start.” He expects most of the startups to be from the region.
When asked why he decided to launch the programme, Chan said: “The fear of being disrupted is the biggest motivation. If we don’t get involved in the new economy, we will be out.
“As a corporate, we always have to be forward-looking…We realise that in the new era, it’s not just about booking engines or OTAs, or just the pure booking of air tickets or hotels. There are a lot more elements (to travel) and a lot more can and are being done. So we want to know what the trends are, also to look and borrow the experiences of other industries on how they embrace technology and the new economy.”
Chan said: “We want to shift the global axis of travel innovations and disruptive ideas to Asia. It is better for us to disrupt our own business than have others disrupt us.”
When asked what expertise/mentorship a traditional agency can bring to emerging travel startups, Leng said: “We are a licensed travel agent – there are things that startups may require an umbrella to operate within. We bring to the table our network of suppliers and we can give them access to inventory systems for them to remould as part of their proprietary programmes depending on what they think is the next big thing.”
Chan gives the example of a startup that wants to promote travel to Chinese travellers through WeChat and has the technology but does not have the suppliers. In another example, a startup based in London has amassed great lodges in 40 countries, yet has no distribution.
Chan Brothers Group celebrated its 50th anniversary last November, with Chan at a gala dinner packed with industry supporters hinting of the accelerator programme.
“…I can’t help feeling excited when I listen to young people, many times my children and their friends talking about a new concept or startup ideas, so we must continue to improve, upgrade, reinvent and transform ourselves. In this aspect, we have already established a road map for the future and have started implementing some of the initiatives,” he had said.
To join Chan Brothers’ accelerator programme, email lab@chanbrothers.com.sg
