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Individual Journey vacations and Train’Shares (timeshares) have similar plus separate abundant markets.
Based on evolving circumstances regarding sales, earnings or other factors, the number of Journeys allocated for individual Journey and Train’Share sales can be purposely adjusted.
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.
Desirable profits are generated if only one of the primary products, individual Journeys or Train’Shares is sold.
Individual Journeys are sold at prices that are lower than equivalent luxury foreign train fares 16. A typical eight day ATs Journey by Rail fare is currently about $1,048 per person per day (double occupancy) compared to fares from about $1,133 up to $2,844 for foreign luxury train vacations 14. This price variance gives ATs the option and opportunity to increase fares while retaining a competitive price advantage.
Train’Share 5 ownership includes a right to use Cars and is represented by a one time purchase of points (“Points”) 5. Points are used like currency to acquire Journeys and are automatically replaced each year at no cost. The average price paid for a Train’Share (Train’Share Points) over five years exceeds $37,000. Train’Share Points can also be used to acquire other vacations through RCI 17, the world’s largest timeshare exchange company.
An additional Journey use product is Fractional interests (shared ownership) 6 of specific self sufficient Cars. Ownership conveys title to a share of the Car which can include from a 1/12th four week to a 1/6th eight week share, providing rights to a single four or eight week or multiple shorter Journeys each year. Assuming all sales are for four week periods, the average price for fractional interests over five years is about $221,000.
Additional revenue comes from the sale of branded and other gifts, special on board events, extra entertainment on activity cars, off-car activities including Tracks to Adventure tours, personalized on-board services, and from management of Train’Share and fractional interest owner associations.
7. Competition
There has been and are no train vacations in the USA that compare to ATs’ scheduled Journeys by Rail.
ATs Journeys are provided in collaboration with Amtrak, the USA’s long distance passenger rail service that provides some relatively mediocre onboard sleeping accommodations.
Amtrak moves passengers between stations on nice, higher density cars with limited sleeping accommodations, and no layovers. To visit en-route locations passengers have to leave an Amtrak car and move to a hotel.
Amtrak services are not considered to be competitive but instead supplement Journeys by Rail. ATs enjoys economic benefits by collaborating with Amtrak.
High quality passenger service is offered by Rocky Mountaineer Rail Tours, a high capacity single train with two engines, 10 or more cars, no sleeping accommodations, not many of ATs’ Amtrak related operating advantages, and has to tolerate potential long train limitations 18. Service is from May through November; because of its size, with many cars, and for other reasons it does not change routes to operate in favorable weather venues. Passengers move to a hotel at night. Some Rocky Mountaineer customers are a source of ATs Journey buyers.
Service is from May through November; because of its size, with many cars, and for other reasons it does not change routes to operate in favorable weather venues. Passengers move to a hotel at night. Some Rocky Mountaineer customers are a source of ATs Journey buyers.
From time to time a few privately owned passenger rail cars provide sporadic mediocre, regional, shorter distance commercial passenger train service in the USA that does not include regular scheduled departures, the amenities, service level, layovers or overall quality that ATs Journeys and Cars provide.
Foreign luxury trains compete for the same international rail and luxury travel vacation markets 8, 9 as ATs. Their fares are higher because they don’t have economic and operating benefits that are available to ATs .
Luxury vacations, including Journeys by Rail, compete for a significant luxury travel market 8. The unique railroad characteristics of ATs Journeys provides product differentiation that creates a consumer awareness advantage over typical upscale resorts.
RCI, the world’s largest vacation exchange timeshare business 15, with over 3,000,000 members, has accepted Journeys by Rail to be included in their Registry Collection 19, a small exclusive group of the world’s “most desirable” resorts. Journeys will be included in RCI’s catalogue when departures start.
16 See https://americantrainvacations.com/fare-comparisons
17 See https://americantrainvacations.com/atv/documents/rciexerpts.pdf
18 See section 4
19 See https://www.theregistrycollection.com/information