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Business Plan of American Experience Travel
Transcript of Business Plan of American Experience Travel
American Experience Travel
China Travel Service Head Office Co., Ltd
Premier Sports Travel (in U.S)
Thompson Sport (in England)
Other travel agencies
Domestic travel in China
Chinese and other professional basketball leagues
Watching the games online
Using a professional college recruitment service
Critical Success Factors for AET
We aim to provide an opportunity for Chinese fans of travel and the NBA with an all-inclusive travel experience to the United States:
Watch NBA games live
Sightseeing and shopping
Office Maneger in China (1)
Office Manager in U.S (1)
Office Staff (2)
To be the best and largest sports travel
agency in the world
AET is a private, for profit partnership
An equal three way partnership spreads the risk
AET provides travel experiences centered on a visit to an NBA team
Tourism destination includes Los Angeles, Miami, Boston, New York City and Washington D.C
All of the AET tours are all inclusive: meals, lodging, travel arrangements, game tickets, additional experiences and Visa preparation services
12 day packages during the NBA season.(Oct.-Jun.)
AET's main office is located in Boston, MA, U.S, and its branch office is located in Beijing, China.
Partners: Katie, Yuxin,Chun who also perform general manager and manager duties
4 Tour guides in US
2 office staff in Beijing and 2 in US
China has a gross population of 1.34 billion and nearly 1/3 of the population are NBA fans (450 million)
30 million people in China watch an NBA game every week, and NBA.com/china can average 7.5 million page views during the finals (1/3 of all traffic to NBA.com)
The United States is #1 “dream destination” for Chinese tourists. 800,000 Chinese visitors in US in 2010
An average Chinese tourist visiting the US spends $6,000 per stay.
Primary Target Market
Features of main consumers (Age18-50):
College student: grow up with NBA. The loyal followers of NBA.
Parents: their children will study in U.S
Middle-class: they have great buying power and pursue high-quality living.
"An estimated 300,000 millionaires and rising. A middle class of around 250 million people.An estimated 300,000 millionaires and rising. A middle class of around 250 million people. A 1.3 billion population, long starved of retail opportunities, that spent US$6 billion on luxury goods last year."——Ernst &Young, 2008
”China’s consumption of luxury goods will rise from 12 percent to 29 percent by 2015“.——Goldman Sachs
Offer discounts and rewards for referring new customers
Campaigns on Weibo & Renren.com the main social media in China
Offer discounts through Groupon
Advertise on NBA.com/china
High-quality management team, who knows both Chinese and American market.
Product and service are unique
Simple internal organization structure, which is managed easily
Effective business type(equal three way partnership), which optimizes the allocation of resources
Limited destination choice during start up phase
Limited reputation in start up phase
Very few similar services in the industry
China's high GDP and large population leading to increased spending
Chance for increased brand recognition for NBA
More flexible tourism policies of Chinese and United States government
Cost Recovery Pricing
Cost recovery pricing is the most important strategy , especially in the phase of start-up.
Competitive and market pricing strategies are also necessary, especially when the competition is severe.
AET uses all the strategies to price properly.
Other factors to consider: the demographics of the market, advertising in the industry, the newness of the good/service, inflation and deals.
Compared with regular season, AET sets a new price for playoff games to maximize revenue without driving down demand.
The number of customers
(cc) photo by medhead on Flickr
D12 Visiting LA China town & watching Lakers game
D1 LA city site seeing & Shopping at Lakers Store
D2 Universal Studios
D3 Hollywood trip
D4 Visiting Lakers’ s training center
& watching Lakers's game
D5 Shopping at outlets
D6 UCLA trip
D7 Watching Lakers training & Interactivity with Lakers game
D8 Visiting Getty Museum
Customer Service System
Internal Customer Satisfaction
D9 Activity with Lakers Youth Foundation & watching match of Lakers
D10 California Institute of Technology trip
D11 Shopping & Seeing Movie Star's Homes
Large and growing market
Industry has not addressed
Revenue every year first 5 years
120 out of 450,000,000
$600,000 - 5 years > $780,000
Office Staff (2)
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