REDWOOD SHORES, Calif., July 24, 2007 – cFares (www.cfares.com), the first search-based travel site designed from the ground-up for the new realities of online travel, made multiple announcements today related to funding, executive and board appointments and enhanced services.
cFares announced the completion of its Series A funding, led by Oakland, Calif.-based Claremont Creek Ventures, with previous investor Garage Technology Ventures also participating in the round ─ bringing total financing to $4.5 million. The new financing will be used to extend cFares' lead in ticket availability at the lowest prices and speed the growth of its customer base.
"cFares has a disruptive business model, defensible intellectual property and unrivaled access to the best fares in the airline industry,” said Nat Goldhaber, Managing Director of Claremont Creek Ventures. "It addresses the needs of both airlines and travelers by taking advantage of major changes in airfare distribution. With a significant technology lead and a proven management team, cFares is in a strong position to be the new standard-setter for online travel.”
At the same time, the company announced an expansion of its executive management team with the appointments of Naren Nath as President and Michael W. Gunn, as a member of its advisory board. These additions to cFares' management and advisory teams further enhance its deep expertise in online travel, travel services, and software and Internet technologies.
Mr. Nath will develop and execute the company's strategy and will spearhead day-to-day management and operations. He joins cFares having most recently served as chairman of GeoPassage, a specialty and customized tour provider to more than 80 countries worldwide. Previously, Mr. Nath was Senior Vice President at Trilogy Software Inc., overseeing its Investments and Incubation group, and running its Indirect Division. Before Trilogy, Mr. Nath ran product management and marketing for Microsoft's Interactive Television Division and subsequently the Content Provider Relations group, establishing Microsoft's Internet platform as the standard with premier media and content companies.
Mr. Gunn is a highly regarded industry veteran. He is widely credited with introducing the industry to the concept of "frequent flyers,” now ubiquitous across most airlines. Before retiring in September 2002, he served as American Airlines' Executive Vice President, Marketing and Planning, as well as holding various positions with American Airlines since 1970. As Executive Vice President, he had overall responsibility for sales, the frequent flyer program, marketing, capacity planning, schedules and customer service activities.
Having proven its value proposition with consumers who are willing to pay for access to a broad range of airfares, cFares is now turning the airline distribution model on its head by offering to share its consumer revenue with the airlines and compensating them for their airfare information.
Mr. Gunn said, "When Jafri first introduced the cFares business model to me, I was immediately intrigued by this revolutionary approach to one of the problems that the airline industry faces. Rather than ask the airlines to pay for the distribution of their tickets, cFares was willing to pay the airlines to distribute their tickets. By unlocking a new source of revenue, cFares has broken rank from other travel sites, which depend on the airlines for some form of revenue contribution. I am excited to be helping the cFares team in scaling up their next-generation travel site."
Naren Nath and Nat Goldhaber will join cFares' existing board of directors, comprised of Bill Reichert, Garage Technology Ventures; Vajid Jafri, cFares' chairman and CEO, and Ramesh Punwani, CFO for the Federal Aviation Administration.
cFares: Adapted to New Realities of the Travel Business
cFares is a next-generation online travel site that is leveraging dramatic changes in airfare distribution to bring long overdue improvements to consumers and airlines. The company has several major competitive advantages: a distinct business model which capitalizes on shifting consumer buying behavior, a proven management and advisory team, and funding to accelerate its growth.
In 2002, just 15 percent of all airline tickets were booked directly with airline sites. Today, that figure has grown to more than 54 percent, according to PhoCusWright, a Sherman, Conn.-based travel industry research firm.
cFares leverages this cross-over in consumer buying behavior to bring a compelling new offering to the market. By integrating proprietary technology, travel-based search, and previously untapped sources for airfares, such as consolidators and wholesalers, cFares is able to bring the best airfares direct to the travelling public. This offering has unlocked new value for consumers, motivating them to subscribe to cFares' unique membership-based model. This in turn enables cFares to bring unprecedented benefits, technologies and business models to the airlines as well.
Company Background
Founded in 2005, cFares is the travel search site consumers are flocking to because of the great airfare deals it offers. cFares has combined a new business model that takes advantage of major changes in airfare distribution, travel-based search and patented technologies. This combination unlocks new value for the airline industry and the consumer. For more information about cFares, visit www.cfares.com.