The X Train

X Train Concept – The Party Train

Club

Sexy, Fun, Adult Themed, Luxury,All Inclusive Party Train

Celebrity sightings, Ultra Lounges andGo-Go Dancers

Our Passenger CarsFrom the time you step on board until you get off you will be entertained. Our X-tainers will delight, amuse and engage you. We will incorporate Social Media and encourage return trips.

An Unmistakable Look

Ultra Lounges

Create a “I must have a Table” for the must be seen crowd!

SeductiveTempting*Alluring*Inviting*Attractive

KraveTrystTAOPure

Consist Layout

Full Consist with 18 Cars

Economy +Ultra

LoungeService

Car

Economy + Economy + Economy + Economy + Economy +

Economy

Economy +

Vegas Class

Vegas Class

Vegas Class

Ultra Lounge

Service Car

Economy + Economy +

Economy +

3 Vegas Class = 1422 Ultra Lounges = 282 Service Cars11 Economy = 920

Daily Riders

Yr 1 16,065

17,212

18,359

19,507

19,507

19,507

19,507

19,507

19,507

19,507

19,507

19,507

227,198

Yr 2 42,456

44,751

47,046

49,341

51,636

53,931

56,226

58,521

58,521

58,521

58,521

58,521

637,992

Yr 3 58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

702,250

Yr 4 58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

702,250

Yr 5 58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

58,521

702,250

Ridership

Entertainment

Xtrain Waiters will be there to serve a delicious famous Chef inspired meal. Each car will have a Bartender, Server and a Conductress. The Conductress will be the concierge upselling Las Vegas and Southern California activities and services.

The Xtrain waiters (bartender and server) are sophisticated, spontaneous and a great act for the train. Posing as servers, they hoax and amuse the guests before revealing themselves as singing waiters. They will rotate to the next car each hour and guests will be able to vote for their favorite one through social media, Facebook and Twitter.

On Board Personnel

When you are seated you will receive a complimentary snack and a bottle of water. You will then be served a signature dished that a famous Chef has signed off on, along with a complimentary beverage.

Sample Menus

F&B

PrepareWith a menu carefully planned by an executive advisory board, the food will be prepared off-site for delivery.

Chef on X-TrainAs the food will be prepared and ready for cooking on the train, our executive chefs will cook the already prepared food and set for service to the customer.

ServeOur servers with be “X-ertainers”, combining both service and entertainment to the customers on the train. These servers will have 2 functions- food service and entertainment.

CleanNot a small job, the cleaning crew will pick up all dishes, silverware, glasses and remaining food items on a daily basis and replace them with clean utensils for the next train delivery.

cycle

Arrange and prepare meals for delivery

Delivery to the train occurs around 6am daily with both breakfast and dinner already prepared

Customized meals will be cooked on the train for all customers, with more up-sell choices of food, beverages and concessionary food

Energy, excitement and entertainment. Our “X-ertainers” not only serve the meal, but also periodically turn into “X-Train Entertainers”, much like the Bevertainer concept used in Vegas.

At the end of a very long day, our crew is there to cleanup all used meals, glasses, utensils and plates.

Clean Up and Deliver

Off-site Kitchen

Delivery

On Train Cooking

Service, with a flair

• Simple to the point and allow for a one stop shop with 1 transaction while selling Ancillary Products.

Call Center Web Conductresses

POS will be web based and mobile apps will be utilized by staff and customers for onboard and ancillary products and services.

Technology

Call Center Web Conductresses

Loyalty ProgramYou receive a boarding pass on your first visit LEVEL 1, you earn points by frequent trips. Food, beverage and merchandise purchases will receive discounts based on your level. The more you use your card will depend on your level. The highest level will have special perks on the train. Your card acts as a credit card during each of your trips with a one tab close out prior to debarking. Your card can be used at Hotel and Casinos for a variety of amenities and discounts.

The average American today is a member of 15 loyalty programs. Already more than one in four members prefers to access a given loyalty program via mobile.

By using a mobile app for our loyalty program we will be able to push messages to their smart phones and tablets enticing them into offers while on the train or while they are in town, completing the customer cycle.

This will also allow us to capture user behavior data on our customers allowing us to upsell future trips based on their likes.

We will integrate our loyalty program into our social media efforts along with using gamification techniques to engage our fans and encourage them to purchase branded products keeping points always in play.

Our Loyalty Program

• Loyalty rewards using the built-in rules engine• Give customers greater flexibility to redeem their loyalty rewards using self-service online functionality or via the call center• Generate ancillary revenue through integrated program partnerships• We will build loyalty with multi-tier loyalty programs, flexible redemption and partner point integration• Instantly post transaction activity to customers' accounts, giving them credit they can view upon landing• Allow our staff to easily set or modify program rules via the Management Console• A 360-degree view of the customer to enhance the customer experience, as well as develop new customers• Features• Online registration and account statement• Real-time accrual (at boarding)• Multiple redemption options• Partner points capabilities• Customer service/administration• Comprehensive on-demand reporting• Online data store (ODS)• Full suite of APIs• Built-in rules engine for configuring awards and promotions• Points awarded through third-party partners (airlines, credit cards, etc.) can be easily defined and integrated• Award travel redemption using points alone or points and money

Hotel and Casino Packages with their Rooms, Shows and Dinning packaged

Lease of space – Time Share, Wine Vendor, Hang Over Guy

Affiliate Programs

Bounce Back Tickets at a discounted rate

Private cars Bachelor/Bachelorette Parties

WeddingsAnniversary

Birthdays

• Ancillary Sells

Food

•Wine and cheese plates•Signature dishes (sushi)•Snacks•Desserts

Beverage

• Private Label Liquor • Premium Drinks • Wine• Soda• Water

Merchandise

• Souvenir glasses with signature drinks• Shirts • Hats• Mugs• Survival Kits

Advertising

•Sponsorships/Preferred Partner Program•Web banners• Wraps, Dura trans,• Rack Card• Displays,• In-seat Publication. •FIDS, •Floor Decals

Ancillary Sells

* Will also do trade on advertising to be able to discount tickets and get better margins.

The technology will be web based and mobile friendly. Allowing for e-ticketing.

We will package opaquely by property allowing for a discount.

Upsell, Cross-Sell, To Create More Value for Money Benefits

• Generate new revenue and increase profitability• Integrated shopping basket and dynamic packaging models offer higher profit potential• Super PNR for greater flexibility and enhanced customer service• Flexible connections to travel partners• Lower total cost of ownership

Selling and Merchandising Features• Seamless, integrated shopping cart functionality gives customers flexibility in building their full itinerary and adding ancillary

services later• Dynamic packaging capability provides flexibility to bundle distressed inventory or preferred vendor partners using opaque

pricing• Customers receive a single itinerary email including the confirmation numbers from each supplier• Tailored up-sell and cross-sell offers to customer segments enable you to create differentiated services• Built-in support for multi-language and multi-cultural content

Travel Partner Features• Cater to local markets and buying habits — select and connect preferred travel industry partners to for offer high-demand travel

services• Combine content from multiple sources for a single search• Easily access bookings in a Super PNR to enable customer self-service• We will customize the system with extensive configuration options for data mappings, search parameters, Application

Programming Interface (API) parameters, etc.

Efficient Administrative Support Features• We can supports five ancillary booking payment models, configurable per supplier• Manage local inventory, merchant model, pricing and other terms

PsychographicsDrive Market Psychographics and Las Vegas Behavior

2011 LVCVA Year End Study

• Nearly 60% of visitors to Las Vegas Drive.• 94% of all Californians Drive to Las Vegas.• Drive visitors visit Las Vegas twice as frequently as airline visitors. (7.8 v. 4.3 over

the last 5 years)• 89% of Drive visitors in Las Vegas are here on a repeat trip.• Drive visitors were significantly more likely to confirm a room reservation after

leaving home but before arriving in Las Vegas.• Most visitors decided where to gamble after arriving in Las Vegas, though 25% more

drive visitors had decided where to gamble before arriving in Las Vegas.• 71% of drive visitors make entertainment decisions enroot and after arrival in Las

Vegas.• Only 4% of drive visitors use travel agents to plan their trip.• Only 6% of drive visitors used social media to plan their trip.• 40% of drive visitors used the internet when planning their trip. (verses 74% of airline

visitors)• Drive visitors were far more likely to book their accommodations directly with the

hotel.• The mean party consists of 2.3 individuals driving to Las Vegas. This number

fluctuates seasonally.• The drive market remains an average of 4 days, 3 nights per trip in Las Vegas. The

average daily expenditure per day is almost identical between fly and drive customers.• 50% of reservations were booked directly by calling the hotel property. (Verses 21%

of airline visitors)• Drive visitors are far more spontaneous. Almost 90% of reservations are booked

within one month or less of the arrival date. Almost 60% within two weeks or less.• Drive visitors are more likely to have paid regular room rates.• Drive visitors spend 3.1 hours per day gaming. (verses 2.7 for airline visitors)• Drive visitors visited an average of 5.4 casinos per trip. (8 for airline visitors) • Drive visitors are significantly more likely to gamble on the strip.• 52% of drive visitors saw a show.• More than a third of the drive visitors visited a lounge or nightclub during their trip.

 

 

Source: Las Vegas Visitors and Conventional Authority 2011: GLS Research.

Audience TargetAge: 25-49Household Income: $60K+

Southern California – Los Angeles, San Diego DMA

Affinities: Las Vegas, night clubs and lounges, gambling, UFC, leisure and business travel, weddings and special events.

Nevada- Las Vegas DMA

Affinities: Southern California, sporting events, attractions and popular venues, leisure and business travel, special events.

Approach

• Maintain an on-going presence on all available search engines for users actively engaged in research related to travel plans from LA to Vegas and Vegas to LA.

• Focus on delivering creative to the primary target audience using all targeting capabilities available including geographic, demographic, contextual, audience, behavioral and re-targeting.

• Deliver creative formats with high affinity of engagement with the audience.• Re-target to users that have viewed brand creative, increase message frequency within the target audience, connect and

engage with high value users based upon where they are in the purchase cycle.• Use of responsive website capabilities for ease of use for users on all viewing devices to perform desired action.

Audience TargetTargeting

Our media strategy will combine all of the targeting capabilities to find and index the target audience wherever they are online. It will ensure that a creative format is available for delivery by creating each type of online ad format as needed.

Outlines below are some of the targeting capabilities we will use:

Geographic Targeting: Online advertising will enable global advertising to consumers anywhere in the world actively engaged in search for or viewing content about our brand to granular zip code targeting. It includes designated market areas and radius targeting.

Demographic Targeting: Determines to deliver an ad based on attributes of the audience such as age, gender, income, etc.

Contextual Targeting: An extension of search advertising. Just as users can search for keywords on different search engines and see ads related to those keywords, visitors to content network sites can see ads related specifically to the content they are viewing on a web page.

Audience Targeting: Qualifies users based on specific interests and intent by aggregating and analyzing their online user data and segmentation them into specific audience segments.

Audience TargetTargeting

Behavioral Targeting: Uses information based on and collected through users’ web-browsing behavior, such as the pages they have visited, which kind, which kind of ads they clicked on or the searches they made, in order to select which advertising to display to each user.Re-Targeting: A user comes to our website, a cookie’s set based on specific page visited and later, creative is targeted on their interest on other sites they visit within the re-targeting pixel network.

Media Networks:

Google Search & Display Network• Google Search including Search Partners• Google Display Network• YouTube Advertising & Video on the Display Network• TrueView In-Stream Video ads• AdMob Advertising – Mobile & In-app ads

Microsoft Search Alliance Network• Bing and Yahoo! Search including Microsoft Search Partners

Media Networks• xAd Network – mobile targeting• Pandora• AdRoll Network• Local Newspaper websites for initial launch and special events• AudienceScience

General Public Marketing

Groupon Living Social Social Media

Social Bookmarking Article Marketing Online Directories Blogging Twitter/Facebook Forums Email Marketing Email Signatures eBay Classified Online Ads YouTube

Strategic Partners Data Bases Email Blasts

Traditional Newspapers Magazines Billboards Radio TV

SEM/SEO Repeat Customers – Make them feel special.

Thank you note with bounce back coupon Tell a friend offers EBG – Companies intranets Trade shows Charity Events Silent Actions Become an on-line expert for each of the

destinations

• Outdoor

– Purchase 10 billboards between Barstow and Las Vegas on both sides of the highway, five for each side for traffic coming and going between Las Vegas and Southern California

• Print – City Magazines – City Magazines offer

great lifestyle content and high reader involvement. We will look at running in publications such as LA Magazine, San Diego Magazine, etc. especially when Las Vegas editorial is featured.

• Weekly Newspapers – Run ads in weekly newspapers such as LA

weekly, San Diego Reader and Seven in Las Vegas. These are weekly tabloid newspapers that tend to have a younger readership due to the editorial content and they are usually open to promotional partnerships.

• Radio – Radio presents a great opportunity for

partnerships. We will be able to leverage our message through promotions. Highway Radio will work hand in hand with the outdoor messaging.

Traditional Advertising Channels

Television

Television and cable television are very expensive in the drive market. In order to counter this, we will run :15 bookend spots in the morning news area tied in with traffic sponsorships.

Communication Strategies

One Train 568 People Takes 284 Crs Off the Road One Way

4 Days/Week = 416 Xtrain One-way trips/year

SAVES811,200 Gallons of Gas

Yearly

“Did You Know?” Campaign*Utilizing Non traditional media

Speaking Points:

The “How” personality speaks to to groups, team, family and process topics. We will use the Green angle.“The X Train is committed to keeping our environment safe for all of us and one X Train keeps over 2.2 million lbs. of CO2 emissions out of our air per year.” The “What” personality will speak to results, facts and the bottom line. We agreed the  “Party Train” “What happens in Vegas starts on a luxurious party train from LA, no driving, no delays, no problem .” The “Why” personality will speak to statistics, facts and safely. The focus could be the traffic issue and/or saving gas.“The X Train is needed because the I 15 is the most dangerous highway in the nation and one X Train will save 118,144 Car Trips/Year between LA and Vegas” The “Who” personality will speak to over 21,  partying, fun and “Nightclub on Rails” angle was best.“Vegas X Train gives adult travelers a fun and luxurious nightclub on rails to start their partying between Los  Angeles and Las Vegas the moment they board.”

Messaging by audience The Green Effect The Experience Safer than by automobile Club “X” Adult Themed/21

and older

Target consumer demographics Drive Traffic Air Traffic

Social Media

Each year Las Vegas hosts many trade shows or events that have attendance of 100,000 people who use three of the largest convention sites in the United States, Sands Expo Center, Las Vegas Convention Center and Mandalay Bay Convention Center. Some of these events are:

• Consumer Electronics Show• Professional Bull Riders Championships• World Series of Poker• Las Vegas Marathon• National Final Rodeo• MAGIC International• NASCAR Winston Cup UAW Daimler/Chrysler 400

• Leisure events such as concerts by traveling artists and sporting events continue to draw millions to Las Vegas. Among the events that consistently fill Las Vegas’ nearly 175,000 rooms are:

• Super Bowl Magic• Mixed Martial Arts (MMA) Championships• Professional Boxing Title Fights• Kentucky Derby• March Madness NCAA Men’s Basketball Tournament• Halloween• New Year’s Eve• Chinese New Year

 

Los Angeles to Vegas

With over 800,000 annual domestic overnight visitors, Las Vegas ranked as Orange County, California’s sixth largest visitor origin in 2008. This figure excludes persons traveling from Las Vegas to Orange County for day trips. Las Vegas Railway Express, Inc. will set marketing partnerships with the following for Vegas visitors to enjoy the LA area. with business within the Orange county area to further drive our top

Disney Los Angles Sports Teams• Staples Center• LA Sports Arena• LA Memorial Coliseum• Dodger Stadium• Jesse Owens Stadium• Shrine Auditorium & Expo Center• Brooks Pavilion• Pico Rivera Sports Arena• AngelesThe Getty CenterThe GroveThe Geffen PlayhouseThe Griffith ObservatoryCirque du SoleilUniversalCalifornia Science CenterLos Angles OperaParamount StudiosGrammy Museum

Vegas to Los Angeles

Vegas to Los Angeles

Gaming Company MarketingRelationships + Relationships=Relationships

Diamond Resorts Deal Points

• They will use seats in their Mini-Vacs• allow their owners to use their points for purchase of a ticket at a price point of $125.00 each way. • 30% of their owners are from Southern California. • This should represent approximately 25% of our seats sold. • They will market us from their call center, Newsletter and email blasts. • They will rent space approx. size of a 4-top in each of our Ultra lounges. • Formula for every 100K of passengers we move it will be $440K annually. • With 8 trains running that will represent an additional 3.52 million in revenue to LVRE.

In addition they will use our ticketing system for all of their ticketing (Shows, Hotels, etc.) they are currently using Vegas.com. This will give us the volume we need in order to get the best commissions out there.

Pricing Strategy – Using the airlines bucket system

Price Elasticity – That’s the beauty of the bucket system and using yield management

Promotions to fill seats• Groupon • Social Living• Social Media

Using the “Bucket” System

Pricing Objectives To get to an average price point of $150.00 each way.

Vegas Station Design (Phase I)

Vegas Station Design (Phase II)

Xtrain Green EffectOne Train Can Make A Difference!

• Saves 236288 Car Trips/Year LA to Vegas• Reduces 2% of Car Trips/Year off I-15• Saves 1,279120 Gallons of Gas/Annually• Saves 4.54 Million pounds of Carbon Dioxide from going into the

Environment/Year

* Based on one Xtrain operating 4 round trips per week with 1090 people on board each train equals 416 one way trips per year

We will start a “Did You Know?” Campaign Utilizing non traditional media: Rack Card, Business Cards, Social Media, Letterhead and Website.

November 1, 2012 Source Data: Los Angeles Times “Average Fuel Economy for new cars Stands at 22 MPG” October 11, 2011 www.travelmath.com July 15, 2012 www.transportdirect.info July 19, 2012

• Sustainable Transport

• Carbon Emissions

• Air Quality

• Sustainable Sourcing Of Our Onboard Food

Positive Long Term Effect on the Environment