Crystal Releases Planning Assumptions for IntelliFares(TM) Product Sales Potential
29 Mayo 2007 - 10:09AM
PR Newswire (US)
DUBLIN, Ireland and MORRISTOWN, N.J., May 29 /PRNewswire-FirstCall/
-- Pursuant to the recent news on the developing partnership
agreement between IntelliFares, Ltd., a wholly owned subsidiary of
Crystal International Travel Group, Inc. (OTC:CINT) (BULLETIN
BOARD: CINT) and Mexicana Airlines, Fabrizzio P. Busso-Campana, CEO
and President of Crystal and Peter Dugan, Managing Director of
IntelliFares are pleased to release the following key planning
metrics for the IntelliFares(TM) product in development.
IntelliFares(TM) is a way for Predictable Pattern Travelers (PPT's)
to lock in 5 years worth of air ticket costs at a fixed price
approximately 10% below legacy carrier prevailing published fares,
depending on city pairs and travel dates. As their cost never goes
up for the airfare due to IntelliFares absorbing any price
increases, consumers stand to enjoy 25% to 30% savings over the
life of the contract. IntelliFares can maintain the selling price
over time through a combination of forward price concessions and
sound money management through its fiduciary partner UBS. "Air
ticket price volatility is one of the biggest concerns for today's
travelers when planning trips. IntelliFares(TM) was created to
directly address this concern," stated Busso- Campana. "We have
selected the timeshare owner market as our first target since their
travel patterns are predictable, and they are of the mindset and
purchase behavior to lock in future access and cost of a vacation
as they have demonstrated with their timeshare purchase," stated
Dugan. In quantitative market research conducted by an Insight
Express for the company, purchase intent scores are in the 50%
range, "which leads us to believe we may have a substantial product
here," Dugan continued. Key metrics for the timeshare industry are
as follows: 1) Out of the over 7 million timeshare weeks owned in
the US, Mexico and the Caribbean, 5.7 million weeks were used by US
citizens last year, and each week was visited by an average travel
party of 3.8 persons, according to American Resort Development
Association (ARDA) and PricewaterhouseCoopers ["Economic Impact of
the Timeshare Industry on the US Economy," 2006]. 2) Sources vary
on the number of units owned in our prime markets, Hawaii, Mexico,
Canada and the Caribbean (places which require about 3 or more
hours of air travel), yet a review of data presented by ARDA, the
Hawaiian Tourism Authority and a report on the Caribbean by KPMG,
suggest that these four markets alone encompass well over 2 million
units. 3) Currently, our average IntelliFares price to these
markets for 5 years of airfare is $1,687 or $337 per year, and that
generates an operating margin we estimate in the range of 4 to 5%.
Taken as a whole, our target of 2MM units times 3.8 travelers
represents about 7.6 million air tickets purchased at roughly
$2.5Billion in total. Our five-year program therefore has a market
purchasing potential of about $12.5 Billion. While we cannot
predict the adoption rate of IntelliFares by the travel community,
given the obvious savings to the consumer, and potential savings to
Airlines we estimate should come from more predictable sales and
reduced customer acquisition costs we believe it will be robust.
(The public is cautioned here to note these are planning
assumptions only and should not be considered guidance.) "In
addition, the travel agent and distribution community will be
entitled to up to 5% revenue share on the program, which is
estimated to be in the tens of millions over time given the above
market dynamics and assumptions," stated Robert H. Troni, air
industry veteran and recently hired President of IntelliFares
Limited. He continued, "This is a very sizeable travel market, with
ARDAs information that timeshare travelers contributed over
$10Billion to local economies after the cost of travel and the unit
itself. We are pleased to be in a position to access the potential
of this market." About IntelliFares(TM) IntelliFares is a unique,
travel product where Predictable Pattern Travelers (Timeshare and
vacation homeowners, recurring cruisers, college students) can
purchase "five years of travel at less than today's price." The
patent pending process integrates forward and bulk purchasing
disciplines with financial management methodology in partnership
with UBS in order to lock in a price for the consumer over a
five-year time horizon. It also provides a revenue share for
distributors, reversing the decline in commissions available to the
airline ticket distribution community. Details can be found at
http://www.intellifares.com/. Safe Harbor Statement This press
release contains forward-looking statements, which are made
pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
reflect the views of Crystal International Travel Group, Inc. s
(the "Company") management regarding current expectations and
projections pertaining to future events and are based on currently
available information. The statements involve a number of risks and
uncertainties, including the Company's ability to generate
sufficient sales for IntelliFares and validate the market potential
represented by the timeshare industry, the completion of its
distribution network and other factors described in the Company's
respective filings with the Securities and Exchange Commission.
Other unknown or unpredictable factors also may have material
adverse effects on Crystal's business, financial conditions and
results of operations. Accordingly, readers should not place undue
reliance on these forward-looking statements. The use of words such
as anticipates, estimates, expects, is in process, intends, plans
and believes, among others, generally identify forward-looking
statements; however, these words are not the exclusive means of
identifying such statements. In addition, any statements that refer
to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements and are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. The Company is not
under any obligation and does not intend to publicly update or
review any of these forward-looking statements, whether as a result
of new information, future events or otherwise, even if experience
or future events make it clear that any expected results expressed
or implied by those forward-looking statements will not be
realized. DATASOURCE: Crystal International Travel Group, Inc.
CONTACT: Fabrizzio P. Busso-Campana of Crystal International Travel
Group, Inc., +1-973-644-0900, Fax, +1-973-695-1662, or Web site:
http://crystalitg.com/ http://www.intellifares.com/
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