Wikipedia

Snowfall (company)

Snowfall Limited is an online travel management, content and payments company.[1]

Snowfall Ltd.
Company typePrivate
IndustryCorporate Travel Management
Founded2003
FoundersStefan Cars
HeadquartersLondon, United Kingdom
Area served
Worldwide
Key people
  • Stefan Cars (CEO)
  • Christoffer Möller (COO)
Number of employees
200 (2023)
Websitesnowfalltravel.com

History

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Snowfall began with passenger service system software and mobile applications for rail and ferry providers in Sweden.

By 2014, the company was listed by Swedish newspaper Dagens industri as one of Sweden's 900 fastest growing companies.[2]

MTR partnership and lawsuits

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Snowfall began working with MTR as their IT provider for the MTR Express in Sweden in 2015.[3] The partnership appeared deep, even as staff moved between the companies such as the marketing manager, Per Nasfi.[3][4] Snowfall's founder and CEO, Stefan Cars, even acted as MTR's CTO.[5]

In June 2017 a joint venture between MTR and Guangshen Railway Company was shortlisted to bid for the West Coast Partnership franchise to commence in 2019.[6][7] In December 2018 it was accounced that Spanish operator Renfe Operadora joined their bid, with Snowfall as a software subcontractor and Trainline providing a distribution outlet.[8][9] In August 2019, it was announced that the bid was unsuccessful in the bid, losing to a joint bid by First and Trenitalia.[10]

In February 2019, MTR abruptly sued Snowfall in court citing Snowfall's behavior as "criminal".[3] Once MTR ceased working with Snowfall as its IT, marketing, sales and booking provider, it had to immediately stop selling tickets as it could not gain access to their own internet domains as those too were controlled by Snowfall.[11] In order to update customers, the rail operator had to do so via their Facebook page. In a message, they told customers to delete the app and visit a new website for tickets.[3]

MTR demanded restitution of 200,000 SEK per day until they were given access back.[3] By October 2019, Swedish tech site BreakIt, reported that Snowfall was in an economic crisis with millions in debt, unpaid taxes, a lawsuit brought against it by a former manager unpaid wages and pension payments, and 13 lawsuits from vendors who said they had not been paid.[12]

Junction

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Cars moved the company from Sweden to the UK.[13] Snowfall announced it created Junction in 2019, a modern cloud-based and open API (Application Programming Interface) ecosystem to reduce the technical barriers and costs of integrating systems and to increase connectivity between a wider range of travel suppliers and sellers [14]

Chief Product Officer, Philip Saxholm, described in an interview with TravelNews.se in 2021, Junction as a B2B platform focused on connecting operators, retailers, and partners across multiple travel sectors such as aviation, rail, bus, and ferry services. Saxholm highlighted that Junction was built as a Platform-as-a-Service (PaaS) with a pay-per-use model.[15] He described Junction's key innovation lies in its multi-modal functionality, allowing users to search for and book journeys combining different modes of transportation.[15] When asked in a follow-up how Snowfall would compete with established industry players such as Amadeus, Saxholm responded that Snowfall competes through speed, competence, company culture, and new technology, which provides clear advantages in terms of cost and functionality.[16]

In 2022, the company acquired an award-winning[17] US based booking platform called PSNGR1 after that company ran into funding issues.[1][18]

Roughly a year later, the company acquired a group travel app called AmigoGo and brought its founders, Nick Castrioty and Josh Sparkes, into the business. Chief Growth Officer, Simon Arvidsson clarified the company's position with regards to acquisitions stating that they would acquire companies that would already fit into the Junction ecosystem while continuing to pursue organic growth.[19]

Recurring Financial Troubles, Staff Fallout and UK Tribunals

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Despite efforts to maintain strong financial backing and investor confidence, reports surfaced in November 2024 that the company struggled with issues such as skipping payroll, reducing staff, and closing locations. These challenges were attributed by the CEO, Stefan Cars, to “fast-paced growth” outpacing operational capabilities, general mismanagement, and a high turnover at the CFO level.[20]

In an article in The Company Dime, the author's highlighted that critics had pointed out that Snowfall’s business model relies on outdated technology, and its ambitious claims lack focus. The company’s financial filings for 2022 revealed a negative equity of $224,761 and a total workforce of just 32 employees. Despite this, Snowfall reported investments from firms like Korelya Capital and Kingsway Capital, who expressed support for the company’s restructuring efforts.[20]

Faced with significant financial and operational challenges, additional reports surfaced leading to internal disputes and public scrutiny. In a January 2025 interview, CEO Stefan Cars acknowledged management missteps, including overambitious growth and rapid hiring, but denied any financial misconduct, asserting that the company is now “back on track” with substantial investments and restructuring efforts.[21]

Despite denying allegations of financial misconduct and asserting that the company is “back on track” with substantial investments and a new restructuring plan, many employees have voiced dissatisfaction and distrust in the company’s leadership.[21]

A group of 25 current and former employees strongly criticized Cars’ claims of stability, highlighting severe internal issues such as unpaid wages stretching across multiple months and regions, including the US, UK, and Canada. It was reported that at least four former employees pursued legal action against Snowfall in the UK courts.[22] Employees also reported revoked benefits and alleged mismanagement, which they argued undermined the company’s operational stability and eroded staff morale. These employees described an environment where trust in leadership had completely broken down, with many expressing frustration over what they saw as empty reassurances from the CEO.[22]

This fallout was exacerbated by reports of layoffs and office closures, as well as what some employees called “reckless promises” made to investors without a clear plan for sustainable growth. Employees accused the leadership of prioritizing rapid expansion over operational efficiency and failing to address foundational issues, leaving the workforce demoralized and skeptical of the company’s future.[20][22] The rift between staff and leadership was cited as a significant hurdle, casting doubt on Snowfall’s ability to regain stability and repair its reputation.[22]

Services

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All functionality including administrative travel management can be done through the desktop and mobile application, including booking trips, modifying reservations, tracking travel itineraries, chatting with travel support agents.[23]

Snowfall partners with multiple suppliers in the market Inventory on the platform comes from consumer, corporate, and direct integrations including emissions calculations for travelers and corporations.[24]

Partnerships

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Snowfall partners with travel management companies who resell their products via license around the world such as the UK's Gray Dawes Group, Traveltrust, Focus Travel Group and the US' Omega World Travel and Travelstore.[23]

In March 2024, Snowfall announced a partnership with Spanish travel agency consortium, Grupo GEA, to provide members with rail content from its Junction platform.[25]

See also

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References

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  1. ^ a b Jonas, David (8 August 2022). "U.K.-Based Snowfall Travel Agrees To Buy PSNGR1 Online Booking Tech". The Company Dime. Retrieved 17 May 2023.
  2. ^ "Hela listan med alla Gaseller" [The complete list of all Gazelles] (in Swedish).
  3. ^ a b c d e Wisterberg, Erik (2019-03-07). "MTR Express stämmer it-leverantör efter haveri: "Brottsligt"" [MTR Express sues IT supplier after breakdown: "Criminal"]. BreakIt (in Swedish). Retrieved 2024-11-09.
  4. ^ Åkerman, Mikaela (2017-04-04). "MTR:s reklam ska locka 40-plussarna" [MTR's advertising is intended to attract the over 40s]. Dagens Media (in Swedish). Retrieved 2024-11-09.
  5. ^ "MTR Express and SJ speak about the value of the travel agency channel". YouTube. Amadeus. 2017-03-17. Retrieved 2024-11-09.
  6. ^ West Coast Partnership and South Eastern rail franchise bidders Department for Transport 22 June 2017
  7. ^ Three shortlisted for West Coast Partnership franchise Railway Gazette International 22 June 2017
  8. ^ "MTR teams up with operator of Europe's largest high speed rail network for West Coast Partnership bid". MTR Europe. 20 December 2018. Retrieved 25 December 2018.
  9. ^ "RENFE joins MTR's West Coast Partnership bid team". Railway Gazette International. 2018-12-20. Retrieved 2024-09-05.
  10. ^ FirstGroup consortium to replace Virgin on west coast mainline Guardian 14 August 2019 FirstGroup consortium to replace Virgin on west coast mainline] Guardian 14 August 2019
  11. ^ Norrby, Jakob; Mörk, Isa (2019-03-08). "MTR Express stämmer sin IT-leverantör Snowfall" [MTR Express is suing its IT supplier Snowfall]. Turismnytt (in Swedish). Retrieved 2024-09-11.
  12. ^ Wisterberg, Erik (2019-10-02). "Ekonomisk kris i Snowfall – tidigare toppchef kräver en miljon" [Financial crisis in Snowfall - former top manager demands a million]. BreakIt (in Swedish). Retrieved 2024-11-09.
  13. ^ Hayhurst, Lee (2021-12-02). "Snowfall predicts fintech-style revolution in travel as it launches Junction". Travolution. Retrieved 2024-11-09. UK travel software specialist Snowfall has launched a next generation travel distribution platform it says will support a revolution in travel technology post COVID.
  14. ^ Hayhurst, Lee (11 March 2022). "Webcast: Snowfall Aims To Spur Innovation With 'App Store For Travel Businesses'". Travolution. Retrieved 17 May 2023.
  15. ^ a b "Inför TNM2021: Nya innovativa lösningar för reseindustrin". TravelNews.se (in Swedish). 9 November 2021. Retrieved 15 January 2025.
  16. ^ "Så funkar Snowfalls digital verktyg Junction". TravelNews.se (in Swedish). 22 March 2022. Retrieved 15 January 2025.
  17. ^ "Grapevine Wins BTN Group 2021 Business Travel Innovator Award". Business Travel News. 25 October 2021. Retrieved 18 May 2023.
  18. ^ Boehmer, Jay (8 June 2022). "Psngr1's Funding Woes Highlight New Entrants' Risky Business". The Beat. Retrieved 17 May 2023.
  19. ^ Fox, Linda (23 August 2023). "Snowfall acquires group travel app AmigoGo". PhocusWire. Retrieved 3 November 2024.
  20. ^ a b c Campbell, Jay (12 November 2024). "Investors 'Fully' Support Snowfall Despite Missteps". The Company Dime. Retrieved 17 January 2025.
  21. ^ a b Hoskins, Andy (7 January 2025). "Snowfall CEO admits to errors but says company is 'back on track'". Business Travel News Europe. Retrieved 17 January 2025.
  22. ^ a b c d Hoskins, Andy (9 January 2025). "Snowfall employees hit back at CEO's claims of stability". Business Travel News Europe. Retrieved 17 January 2025.
  23. ^ a b Hoskins, Andy (16 May 2023). "Snowfall launches PSNGR1 booking tool to market as Junction One". Business Travel News Europe. Retrieved 17 May 2023.
  24. ^ Cars, Stefan (25 February 2022). "How technology is making travel more sustainable". BusinessGreen. Retrieved 17 May 2023.
  25. ^ Adesilu, Sheena (2024-03-19). "Snowfall signs rail agreement". The Business Travel Magazine. Retrieved 2024-09-11.
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