Agenda

1. Introductions

2. Addressing the Challenge

3. SWOT

4. Industry Forecast

5. Market Research

6. Amtrak’s Travelers

7. Financial Analysis

8. Solution

9. Time for Questions

Team 10

Brent Aguilar, Jessica Bishop, Cynthia MacInnis, Ian Tresselt, Joel Zolnier

Addressing the Challenge

Improve User Experience in the Northeast Corridor

3 challenges- Inconsistent links to other transportation

- Aging infrastructure

- Lack of funding

Although the Northeast Corridor (NEC) is the only profitable region for Amtrak, there is room for improvement

Source: Master Plan Working Group

Strengths- Scenery- Easy boarding- Rewards program- Rail industry monopoly- Conducive to impulse travel- Prominent in metropolitan areas- Wi-fi available for duration of trip - Expansive rail coverage of Northeastern corridor- “Acela Express”: Efficient service between major Northeast cities

Weaknesses- High overhead cost- Inconsistent customer service - Costs more than bus and automobile travel- Crumbling infrastructure– rail, bridges, tunnels - Derailments can cause large-scale injury and death - Secondary transportation needed after station arrival - Lacks strong branding, aesthetics and communication

Opportunities- Upgrade amenities- Vertical integration- Improve leisure routes- Clarify various policies- 1:1 interaction with brand- Customer service improvement- Improve on-board entertainment- Opportunities for unused seats/assets- Social media usage for communication- Form partnerships with related organizations

Threats- Rail accidents- Union shutdowns- Threat of terrorism- Government shutdowns- Government funding loss- Other rail systems- MAGLEV- Alternate travel methods– air, bus, auto

Transportation industry forecast

Accounts for 3.1% of US GDP ($, 2014)

Innovative Solutions- Green Technologies

- User Experience

- Smart Transportation

Market Research

The Golden Age of Travel

What do consumers really want?- Service

- Consistency

- Interaction

- Adventure

Business Traveler

Amtrak Moves Businesses Forward

What they care about- Efficiency

- Reliability

- Ease

- Environment

Leisure Traveler

Amtrak Liberates Casual Travel

What they care about- Efficiency

- Reliability

- Ease

- Environment

Financial Analysis

Program CostsElement Start Up Maintenance

Adventurer Program App Dev & Maintenance* $270,000 $96,000/yr.

Media Development for Special Interest Groups** $10,000 $12,000/yr.

Advertising Promotion*** ------- -------

Total Cost, Year 5 $0.820 M

Estimated 5-Year Operating Income $590.3 M

Estimated 5-Year Income Increase $589.4 M* (Mobile forms, online)** (hoop.la, online)*** Redirect current annual marketing budget of $42.2M (Amtrak FY2014 Budget Request, online)

References: See Team 10 Amtrak Marketing Plan

Amtrak Adventurer

“Let’s Take An Adventure Together!”

Re-branding of the Amtrak Rewards Program that Features- Easier Communication

- Location Technology

- Add-On Perks

- Seat Reservations

- Pre-order Food

- Perks

This application will remind us that rail travel is historically significant and filled with passionate stories of past adventurers!

Questions?