Shark Tank's Loss, Brian Altomare's Gain: LugLess Baggage Service Expands By 500% After Rejection

Brian Altomare, founder of LugLess, entered the airline baggage services industry after his business pitch was rejected by Shark Tank in 2013. LugLess offers a service that enables travellers to ship their luggage in advance at competitive prices, positioning itself as a cost-effective alternative to expensive airline baggage fees. The business saw a quick rise, generating $215,000 in its first year. Hoping to expand, Altomare appeared on Shark Tank, seeking a $100,000 investment for a 10% stake in LugLess, but he ultimately left the show without a deal.

Business Instincts and Growth Surge

Despite the sharks' feedback that the business was "too expensive" and would struggle against competitors like FedEx and UPS, LugLess's popularity soared, tripling its customer base within a year. Altomare's instincts proved correct, as his baggage transportation service offered a compelling solution to travellers, particularly those with larger families or substantial luggage needs. Customers responded positively to the convenience and cost savings LugLess provided, enabling them to bypass lengthy check-in lines and avoid excess baggage fees. Just a month after his episode aired, the business saw a 448% surge in demand.

LugLess's growing popularity even earned it a spot on Entrepreneur Magazine's 100 Brilliant Companies of 2014 list. Altomare reflected on this achievement, telling The US Sun, "We grew 500% after the show because regular travellers resonated with what we pitched as a cost-competitive alternative to checking bags with an airline." He described the influx of consumer interest as "a great vindication" following the show's exposure. Customers provided enthusiastic feedback, acknowledging LugLess as a smart solution for affordable travel.

"They Don't Walk In The Same Shoes": Altomare Criticises Shark Tank Judges

Altomare expressed his disappointment over the sharks' lack of investment, suggesting their perspective is disconnected from that of everyday travellers. "They are millionaires and billionaires on the panel," he said, adding that he felt the judges couldn't empathise with the average American's travel struggles. According to Altomare, the sharks missed the potential in LugLess because they don't "walk in the same shoes" as most Americans, who often grapple with high airline fees and long check-in lines.

Since its founding, LugLess has grown significantly and now serves over 250,000 users, generating what Altomare calls "full-year 2016 revenue in under two weeks." He attributes much of this success to his appearance on Shark Tank, which, despite not securing funding, brought widespread attention to his business.

A Humbling Experience with Valuable Lessons

For Altomare, the rejection on Shark Tank was a humbling experience. He prepared extensively for the show, navigating a rigorous application process with multiple interview stages and rehearsals, none of which guaranteed a deal. Today, Altomare is focused on expanding LugLess, pursuing new partnerships, and refining the business model to continue transforming the travel experience for his rapidly growing customer base.