Whatever floats your boat

How one boat-based business keeps sailing despite COVID’s turbulent waters.

A specialist online boat hire platform is thriving in what has been a difficult environment for many event-based businesses. Flotespace’s innovative model provides boat owners with the opportunity to rent out their investment and makes it easy for consumers to find Australia’s best boats for hire. 

Hugh Treseder and Mike McKiernan are the co-CEOs of Flotespace, a major player in the field, and they are experiencing significant growth despite of – indeed, perhaps because of – the pandemic. With many Australians forced to change the way they socialise due to restrictions brought on by COVID-19, 90 per cent of the business’s recent bookings have been made for private events, as boat-based gatherings can provide more space and flexibility.

Hugh and Mike believe the surge in interest comes from the fact that hiring a private boat is a good way for people to reconnect in times of uncertainty, when they aren’t allowed to congregate in the way they did pre-COVID, because the social restrictions mean they can’t organise a group event at an indoor venue, restaurant or bar.

For boat owners, Australia’s growing appetite for water-based events means customers are willing to spend more. In fact, Flotespace has experienced a 40 per cent uplift in bookings for luxury boats, and the average daily booking price has increased by 39 per cent. Savvy boat owners are embracing the chance to maximise their investments by renting their boats out, safe in the knowledge that they can control their prices, schedule and availability, but that the company will take care of everything else.

“With the tech team we have now, there is no shortage of incredible solutions.”

We spoke to Hugh and Mike about the story behind the business, the last 12 months and their plans for the future of the business.

ISB: What was the inspiration behind you setting up Flotespace?

HT: What began as a scribble on an iPad three years ago, soon turned into a scalable business whose main objective is to enable everyone to experience the incredible life on the water. Having founded Flotespace, I serendipitously met Mike – who is also the founder of Deckee, Australia’s leading boating safety app – and it was immediately clear that we had complimentary skills and shared a passion for the water, boating and innovation. We are now both joint CEOs of Flotespace and have built a solid foundation with ambitious plans to grow the business internationally. Our aim is for people looking for an event, celebration or escape on the water to simply “Flotespace it”, as opposed to trying to navigate hyper-localised sites through an internet search.

ISB: And when did you launch the business?

HT: Founded in 2017, Flotespace officially launched in late 2019 and has rapidly grown to become the leading boat hire site in Australia. We have been lucky to attract some incredible talent over the years and recent appointments such as Jeff Lewis (ex-VP of technology at TripAdvisor) have enabled us to really step things up.

ISB: Please tell us about the role technology has played in the development of the business.

MM: Tech for us is critical, however we are also well aware that customers expect an outstanding experience and, as a result, we deliver a blend of automation and subject matter expertise. We are constantly developing our service and efficiencies through various means. Instant book capability and live calendar availability are a few of the ways we are enabling our customers to have a more accurate and streamlined user experience. We have some very exciting functionality coming that should enable us to cater for other markets just as effectively.

We are constantly working with our suppliers and boat owners to identify areas that require automation, smart tech and better efficiencies. The proof is in the pudding so to speak and much of how we communicate the positive effect of our service is through well-qualified bookings that in turn increase their income. Instant book, live calendar availability and several other key functionalities are being rolled out and ultimately will enable us to deliver a streamlined product to customers, presenting them with accuracy, excellent customer experience and the opportunity to simply book instantly with confidence. 

ISB: What impact did COVID-19 have on the business, and what role has technology specifically played in you keeping the business “afloat”…no pun intended?

MM: We went into COVID-19 seeing it as an opportunity. We doubled down and stayed laser-focused on our plan. While there has been a significant uplift in sales and people wanting to reconnect, we are now at a point where we can accurately forecast market demand and supply, and act accordingly. What was great about this uncertain time is it allowed us to connect far more effectively with our boat owners and demonstrate the true value of having their boats on Flotespace. We now drive up to 80 per cent of the business for most of the boats on our platform, creating a great new business driver for our boat owners.

As Australia’s appetite for water-based events grew as we’ve moved into the summer months, customers are willing to spend big, and we’ve seen a 40 per cent uplift in bookings for luxury boats, as well as the average daily booking price increasing by 39 per cent – arguably a result of international travel being prohibited for the foreseeable future with Aussies spending money locally.

With many Australians forced to change the way they socialise due to restrictions bought on by COVID-19, 90 per cent of our recent bookings have been made for private events, as boat-based gatherings can provide more space and flexibility.

ISB: How do you see the business developing in the next couple of years, and what role does technology play in those plans?

MM: Over the next couple of years Flotespace will enter multiple international markets with huge potential for growth. Our aim has always been to be recognised as the leaders in our chosen markets prior to expanding into new destinations. We are constantly reviewing our efficiencies, technology and how best to deliver a fast, accurate and fun experience to customers. With the tech team we have now, there is no shortage of incredible solutions. Our success has come from being open to pivoting ideas, listening to our customers and not being precious about things changing. 

We’ve also recently teamed up with tech founder and CEO of Airtasker, Tim Fung, who has invested in the platform and joined us as an adviser.

This story first appeared in issue 31 of the Inside Small Business quarterly magazine