The document describes a new airline subscription service called JetSet founded by Kali Hoang, Verden Salvador, Boey Yu, and Carolyn Zhang. The service offers domestic flight tickets through a $500 per month subscription that allows customers to purchase up to three round-trip flights for a $100 fee per flight. The founders aim to provide affordable and accessible flights to major hubs in the U.S. for budget travelers through their subscription model.
While consumers in the United States anticipate spending less on travel this summer, the growth of digital travel bookings remains healthy, according to Adobe Digital Index's "2016 Travel Report." In fact, online spending for flights and hotels is rivaling numbers seen in retail during the peak online shopping days of the holiday season.
Adara, a travel data company, found that 78% of business travelers do more than half of their shopping online (compare this to the 59% of leisure travelers and 34% of non-travelers). Also consider the fact that business travelers use smartphones to shop online 20% more than leisure travelers and tablets 18% more than leisure travelers and it’s clear where the spending potential exists.
Donload this paper at: http://skift.com/wp-content/uploads/2015/07/Adara-report-july-2015.pdf
The new year brings new trends across all industries, and travel is no exception. While some patterns will continue, such as the increase in solo traveling and blurred lines between business and leisure trips, travelers may set new priorities in 2020.
Here are some trends to look out for this year.
Travel and hospitality industry - 2017 analytics landscapeMetriplica
Use and importance of analytical strategies in the travel and hospitality domain. This relatively recent development presents both a unique challenge and an extraordinary opportunity. An opportunity that many brands are not fully capitalizing on. We travel to connect, detach, explore and experience the world outside our homes. Some of us travel for business while others travel to discover themselves.
Let's see how.
Adobe Digital Insight’s latest Travel Trends Report for 2017 draws from 16 billion visits to major U.S. travel, airline, hotel, car rentals, and online travel booking sites between January 2015 and March 2017. Spend by U.S. consumers for the summer travel season is expected to slow to 5.1% year-over-year growth (down -66% from last). Online bookings for flights are on par with last year, yet increased prices for both airfare and hotels cause a drag on sales. Consumers can still save by getting the best prices on domestic flights 125 days in advance, and hotels 33 days in advance.
Vast amount of data is generated at every step of the travel cycle. How to convert this data to derive value for customers? Learn more through this whitepaper
Webinar: Personalization in Airlines with Tom Bacon and Dr. MedepalliRateGain®
Take a look at this presentation to understand how airlines are losing revenue by
only focusing on fares and why personalization of experiences is the way forward.
While consumers in the United States anticipate spending less on travel this summer, the growth of digital travel bookings remains healthy, according to Adobe Digital Index's "2016 Travel Report." In fact, online spending for flights and hotels is rivaling numbers seen in retail during the peak online shopping days of the holiday season.
Adara, a travel data company, found that 78% of business travelers do more than half of their shopping online (compare this to the 59% of leisure travelers and 34% of non-travelers). Also consider the fact that business travelers use smartphones to shop online 20% more than leisure travelers and tablets 18% more than leisure travelers and it’s clear where the spending potential exists.
Donload this paper at: http://skift.com/wp-content/uploads/2015/07/Adara-report-july-2015.pdf
The new year brings new trends across all industries, and travel is no exception. While some patterns will continue, such as the increase in solo traveling and blurred lines between business and leisure trips, travelers may set new priorities in 2020.
Here are some trends to look out for this year.
Travel and hospitality industry - 2017 analytics landscapeMetriplica
Use and importance of analytical strategies in the travel and hospitality domain. This relatively recent development presents both a unique challenge and an extraordinary opportunity. An opportunity that many brands are not fully capitalizing on. We travel to connect, detach, explore and experience the world outside our homes. Some of us travel for business while others travel to discover themselves.
Let's see how.
Adobe Digital Insight’s latest Travel Trends Report for 2017 draws from 16 billion visits to major U.S. travel, airline, hotel, car rentals, and online travel booking sites between January 2015 and March 2017. Spend by U.S. consumers for the summer travel season is expected to slow to 5.1% year-over-year growth (down -66% from last). Online bookings for flights are on par with last year, yet increased prices for both airfare and hotels cause a drag on sales. Consumers can still save by getting the best prices on domestic flights 125 days in advance, and hotels 33 days in advance.
Vast amount of data is generated at every step of the travel cycle. How to convert this data to derive value for customers? Learn more through this whitepaper
Webinar: Personalization in Airlines with Tom Bacon and Dr. MedepalliRateGain®
Take a look at this presentation to understand how airlines are losing revenue by
only focusing on fares and why personalization of experiences is the way forward.
Angel Investor Mock PresentationINTRODUCTIONPriceline is a te.docxjustine1simpson78276
Angel Investor Mock Presentation
INTRODUCTION
Priceline is a team of experts with more than 500 workers; passionate and self driven individuals whose desire is to make travel for its customers easier.
Priceline.com History
The Priceline Group, founded in 1997 by Jay S. Walker, is the world’s leading provider of online travel and related services provided to consumers, and local partners in 224 countries and territories through six primary brands. Collectively, The Priceline Group operates in 224 countries and territories in Europe, North America, South America, the Asia-Pacific region, the Middle East and Africa; providing services in over 42 languages (Priceline Group, n.d.).
BODY
I. Position Statement
To be the leading online travel business for value conscious, leisure travelers in North America and to help people experience the world.
II. Problem Statement
The airlines’ rules do not permit fantasy bidding (a second offer) since that would allow unacceptable probing of prices. This has led to a decline in customers’ satisfaction that is threatening the core of the airline industry. Priceline can partner with sellers to unload surplus and help improve customers’ satisfaction.
III. Elevator Speech
We see an opportunity for Priceline.com to enhance their sales, customer base, and overall customer satisfaction in the airline ticketing segment of the business. We see opportunity in this area as the airlines rules do not permit fantasy bidding (a second offer) since that would allow unacceptable probing of prices. Creating a strategic alliance with airlines will allow Priceline.com the opportunity to enhance customer satisfaction by allowing the customer to bid on surplus airline tickets. This will allow Priceline.com to provide their customers the name your own price option, just like their hotel, car rental, cruises and other package deal offerings. With the creation of this new model, the overall enhanced customer experience will lead to greater sales and profits for Priceline.com and the partnering airline companies.
IV. Description of product and business
Increased operational scales imply a better position for the company to negotiate better terms. Over the last 15 years, the company has ranked as the best internet travel agency across the globe (Monica, 2016). The main focus of the company is to have an established network in the Asian and African countries. Asia is gaining prominence in global aviation and is expected to become the world's leading travel market. Total air traffic for the region is forecast to grow at an average of 6.2 percent, and by 2035, passenger traffic throughout Asia will constitute 48.7 percent of global passenger traffic. Driven by the region's strong economic development, highly effective industry structure, and increasing accessibility of air transport services, more than 100 million new passengers are projected to enter the market annually. Air traffic to, from, and within Africa is expected to grow .
Angel Investor Mock PresentationINTRODUCTIONPriceline is a te.docx
JetSet Presentation
1. Founded by Kali Hoang, Verden Salvador, Boey Yu, Carolyn Zhang
2. Introduction
We are an airline consolidator company offering domestic flight
tickets to major hubs through a subscription service that allows
customers to purchase round-trip flight tickets at a more
affordable rate. Tickets are easily purchased through our website
or mobile app. The subscription cost is $500 per month and
customers are charged a non-refundable service fee of $100 per
round-trip flight, the maximum number of tickets being three
round-trip flights per month.
3. Our mission is to provide budget-conscious travelers
with a perfect, seamless balance between affordability
and accessibility when booking a flight ticket to major
hubs through our subscription service from the next
business conference to an impromptu adventure.
Mission Statement
4. Market Trends
➔ Increase in US digital travel
sales between 2012 and
2018
➔ Increase in consumer
expectations
➔ Increase in business travel
volume and spending
5. Growth Opportunities
➔ U.S. airline industry forecast to grow 24.5% from 2014 to
2019
◆ Approximately 4.5% annual increase
➔ Revenue plateau in 2019
United States airline industry value forecast: $ million, 2014-19
Year $ million % Growth
2014 154,098.8 5.4%
2015 160,523.8 4.2%
2016 167,559.9 4.4%
2017 175,211.6 4.6%
2018 183,347.4 4.6%
2019 191,818.5 4.6%
SOURCE: MarketLine
6. Marketing Objective
➜ Maximize revenue
➜ Release different
subscription plans
○ Ex: Family plans
➜ Dominate U.S. market
➜ Move into the
international market
➜ Become a renowned
brand
7. Target Markets
Secondary
Mid-twenties to mid-
thirties young
professionals who
travel often for
pleasure.
Primary
Mid-twenties to mid-
thirties young
professionals who
travel often for
business.
8. To young professionals who want to travel and have
the time and flexibility to do so, JetSet is the flight
subscription service that gives you the most affordable
flights around the U.S. because of the monthly
subscription service.
Positioning Statement
9. Price
$500 subscription fee
$100 per round trip flight
Marketing Mix and Communication Plan
Product
Flight subscription
service for three round
trip flights to major
domestic locations.
Place
Flight tickets are available
for major US hubs:
Boston, Chicago, LA,
Miami, New York, San
Francisco, Houston,
Seattle, Denver
Promotion
Heavily social media
based
“If you could fly anywhere
without worrying about
time or money, where
would you go?”
10. Pricing Plan
➜ Consolidators resell tickets for 20-70% lower than published
prices
○ Paying 30-80% lower for tickets
➜ Average round trip flight in U.S. is $388
○ We pay $116.40 to $310.80
○ Average of $213.60 per ticket
➜ $500 Subscription Fee + $100 Per Round-Trip Flight
# of
Flights
Taken per
Month
Cost Revenue Profit
Profit
Margin
1 $213.60 $600 $386.40 64.4%
2 $427.20 $700 $272.80 39%
3 $640.80 $800 $159.20 19.9%
11. Sales Forecast and Financial
Objective
➜ Reach 12% profit
within three years
➜ Estimated 38,000
business trips
every day
➜ 28 trips=8
subscriptions
○ $6400
12. Contingency Plan
➜ Set aside 5% of profit after
breaking even to be prepared
for refunds
➜ $100 service fees will not be
refunded
➜ If one round trip has been
taken, only two-thirds of the
$500 subscription fee will be
returned