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AMERICA’S TRAINS INC. (“ATs”)
For a PDF version go to https://americantrainvacations.com/atv/documents/executivesum
Confidential – See the Confidentiality Agreement at the bottom
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Status: America’s Trains (“ATs”) is a comprehensively complete, in demand niche market vacation business with assured sales and no meaningful competition that was scheduling provision of Journey by Journey by Rail (“Journey”) services on its first luxurious passenger train car (“Car”) until Covid-19 caused a suspension of pertinent Amtrak (Amtrak pulls ATs Cars) and subsequently ATs operations in early 2020. Expanding resumption of services is now under way.
Vacation Void: Amtrak assumed responsibility for intercity passenger train service in the 1970s. Upscale passenger train vacations disappeared and none allowed passengers to reside on board during extended layovers at en-route destinations. Although a significant growing consumer market exists, requisite rail vacations with on board sleeping and en-route layovers have not been available in the USA for reasons that have been resolved by ATs. No U.S. trains or cars have been included in the world’s top 25, a deficiency that no longer exists because ATs’ Cars are equal to the worlds finest.
Filling a Void: ATs is eliminating the lack of an essential vacation service in the USA and meeting substantial demand by introducing about 38 luxuriously rebuilt passenger rail Cars with up to about 140 bedrooms within several years. Cars include single and two level dining, lounge and sleeper Cars that travel alone or together as a train set, several self-sufficient business Cars with two or three bedrooms, and a few special activity Cars. Cars are acquired, improved and start service after existing advance sales assure high occupancy.
Unique Vacations: Cars provide incomparable Journeys by Rail and related services traveling throughout the USA and into Canada in collaboration with and pulled by Amtrak, as part of their trains or with an exclusive engine. Cars may also travel as part of regional freight or excursion and eventually larger freight railroads. The length of Journey vacations vary from 5 to 11 days including extended layovers at intriguing en-route destinations where passengers live on board while enjoying a wide variety of off-car Tracks to Adventure™ tours and other activities.
Products: Primary Journey by Rail products are individual (single) luxury Journey vacations and Train’Shares™ that give buyers the right to annual or more frequent Journeys with unique timeshare benefits and without timesharing limitations or concerns. Sales of conjunctive products and other services provide additional revenue.
This hybrid business model (individual vacations and Train’Shares) has been proven by major resort timeshare developers (Wyndham, Marriott, Disney, etc) and ATs management for a smaller vacation property.
ATs’ earnings can be favorable if only one of the primary products is sold and if sales are only 50% of projections. Key primary product differences are: (1) Individual Journey vacation sales generate less current annual revenue and profit but allow the repeated sale of the same Journey time period each year as an individual Journey vacation; (2) Train’Share sales produce higher and earlier revenue and profits, annual advance payment of Car operating costs from fees paid by Train’Share owners, and Train’Share management fee income; but, ongoing annual Journeys are owned by Train’Share owners eliminating repeated sales each year.
During the first 5 years about an equal number of annual Journey time periods are expected to be sold as individual Journey vacations and as Train’Shares. This ratio can be easily and profitably changed based on evolving considerations.
Multiple revenue streams (individual Journey, Train’Shares, and others) are supported by significant consumer demand.
Rail Cars: Mechanical repairs of the first Car have been completed and the Car has been Amtrak certified and 
operational; interior bedroom category upgrading is being finished. Improved Cars cost an average of about $640,000 each, up to about $775,000 for a two level Car that has a market value of about $875,000, well below replacement cost.
Competition: There is no meaningful similar train vacation competition in the USA. ATs Journeys are competitive with upscale foreign trains. Amtrak provides adequate point to point passenger service with relatively mediocre cars and suitable service. To visit an en-route location Amtrak passengers have to leave trains and go to a hotel. ATs Cars layover at en-route destinations allowing passengers to enjoy local things to do while living on board. Barriers to entry by possible competitors are expected to allow ATs to retain dominance of the all-inclusive sleep on board luxury train vacation market in the USA.
Marketing and Sales: There is strong demand for luxury vacations, Journey by Rail train vacations, and Train’Shares (timeshares). Existing selling capabilities that include in-house, travel agency, tour operator, and major strategic and tactical business affiliations are sufficient to capture the infinitesimal needed share of relatively huge pertinent vacation markets. Among other related experience, ATs managers previously founded and managed North America’s largest retail travel agency organization. Luxury vacations and timeshares (Train’Shares) are fastest growing leisure industry segments.
