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Up to about 38 Cars, including 29 that will operate on scheduled routes with about 140 bedrooms will be in service within several years. Other Cars include a few private (business) Cars with bedrooms and activity Cars that provide additional entertainment venues traveling as part of trains that include several Cars.
ATs Cars include single and two level (hi-level) Cars. The upper level of two level cars is the full 85 foot length of the car. The lower level includes about 45 foot of useable space between, plus extra equipment areas over and adjacent to the wheels. Two level cars can’t travel on some Amtrak routes due to height limitations. Some Amtrak trains are limited to either single or two level cars; ATs Journey routes are scheduled accordingly. Two level cars provide more useable space and related economic and passenger comfort advantages including: a better view from the upper level; elimination of the need for a lower level hallway which permits bedrooms or other facilities to be designed to use the full width of a Car; extra space at either end for car equipment; walk-in entry with no stairs; an elevator; and, Amtrak mileage charges are lower per square foot because their mileage charge to pull single and two level cars is the same, which can lower the related cost per passenger if extra space is used for bedrooms.
ATs’ first Car, the Sunflower 12, 3 (cars are named after flowers), is a self sufficient two level four bedroom car with an elevator, full dining and lounges. It has been mechanically rebuilt and has been Amtrak certified. Interior modifications will be completed in time for departure dates which start about seven months after funding occurs. During this time passenger bookings will be confirmed and departures dates will by scheduled with Amtrak.
Additional Cars have been selected and are available. Preferred alternative cars that Amtrak will soon retire to allow standardization of commuter train cars or more suitable newly available Cars from other sources may replace the Sunflower and other Cars.
Car mechanical repairs and improvements have been completed on an outsourced basis, overseen by ATs personnel. Interior modifications are managed directly by ATs at a different shop. All Car improvements will be carried out at an in-house ATs shop within a couple of years; planning for a facility has started.
Other privately owned Amtrak certified cars used sporadically for personal purposes, that are not ideal for permanent ATs service, may be used on an interim basis to meet demand until more ATs Cars start operating.
3. Business Model
ATs’ mixed use business model includes the sale of Journey by Rail vacations as conjunctive vacation products creating multiple revenue streams. The two primary products are individual Journey vacations 2 and Train’Shares (timeshares) 5.
ATs’ mixed use business model 13 features the two primary products, individual Journeys and Train’Shares. This model is used by major resort and timeshare developers including Wyndham, Marriot, Hilton and others. ATs management has prosperous experience using this business concept for a prior boutique vacation project.
The operation of Cars provides Journeys by Rail that are distributed and primarily sold as individual Journey vacations 2 and Train’Shares 5.
Mixed use product 13 synergies include sales and occupancy benefits that go back and forth to each product. They have a combined significant conjunctive market that benefits from reduced cost per sale cross promotions.
The number of Journey time periods allocated to either of the primary products, individual Journeys or Train’Shares, can be easily changed to feature one or the other based on evolving considerations.
Relatively high net earnings would occur if only one of the two primary products is sold. Management and sale of individual Journeys and Train’Shares can be separated based on evolving sales, management preferences and other circumstances without negatively impacting long term profits.
ATs’ business model includes a ‘pull’ inventory growth strategy. For a few years the cost to acquire and/or improve Cars can be delayed until after the need for more capacity (bedrooms) is ‘pulled’ by identified demand, at which time more rail cars can be prepared for service knowing that high individual Journey passengers and Train’Share Owner occupancy is assured by individual Journey and/or Train’Share advance sales. Many reservations for luxury vacations are confirmed a year or more in advance, and are typically made at least eight months ahead of departure dates, which is more than ample time to complete Car improvements.
The business model includes collaboration with Amtrak to pull ATs Cars, and with other key entities.
12 See https://americantrainvacations.com/atv/documents/sunflowerspecs
13 See https://www.amtrak.com/privately-owned-rail-cars