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Crystal International Travel Group, Inc. (OTCBB: CINT)
Untitled Document
Crystal International Travel Group, Inc. (CINT) is a development-stage company that provides diversified, multi-asset travel products and services focusing on price stability, including airline, rental car, cruise and hotel reservations, tours and excursions and travel documentation assistance. CINT addresses the needs of business and leisure travelers who travel frequently such as timeshare owners, cruise vacationers, college students, and businessman - the so called "Predictable Pattern Travelers" who are looking for reliable services, quality and stable pricing.
The Company's unique offering, IntelliFares™, is a service which allows frequent travelers to lock in 5 years of air travel at a fixed and discounted price. Crystal International Travel Group, Inc. uses a patent-pending process to set prices for IntelliFares based on current and predicted future airfares. Crystal distributes its products and services through traditional travel supplier networks, including airlines, online and off-line travel agencies, cruise lines, time-share developers, and sellers. In addition, CINT owns and operates "The Travel House," a traditional travel agency that make reservations for airlines, hotels, rental cars, tour packages and cruises and then issue tickets and reservation confirmations. All its products and services are available online.
A business model that ensures fare price stability for business and leisure travel
CINT's business model merges the knowledge, reliability and human touch of the travel agent community with the advanced technology, speed and flexibility of online travel planning to address one of the travel industry's most pressing issues - price stability.
The Company focuses on business and leisure customers who travel frequently and in predictable patterns such as timeshare owners, vacation home owners and others. It addresses the needs of this lucrative travel niche segment with an innovative new offering that allows them to lock in five years of roundtrip travel at fixed rates and discounted prices.
Two complementary product offerings address broad spectrum of travel needs
IntelliFares™ was created to address the needs of business and leisure travelers for flexibility in their travel planning, a rich variety of travel options and competitive fares. Customers are able to purchase airline tickets for future travel between two designated cities at competitive prices. Authorized distributors of IntelliFares (or I-Fares, depending on the distribution channel) sell round trip tickets for five years of travel; customers on average realize 20% savings on their air fare over the course of the 5 years.
The Travel House employs teams of travel experts who create attractively-priced travel packages for customers. Prices are low because the Company negotiates bulk contracts with travel suppliers at wholesale costs. The Company's Travel concierge team assists leisure customers in planning their next vacation and helps business travelers ensure their next business trip is free of hassles.
Partnerships to increase the Company's visibility and contain costs
CINT creates relationships with travel suppliers through a wide range of promotional strategies designed to increase its visibility while reducing marketing and customer service costs.
For example, the Company has finalized a partnership agreement with Mexicana Airlines for ticketing IntelliFares customers in the West Coast markets that Mexicana Airlines serves. In addition, the Company has signed a 60 day exclusivity agreement with ResortCom International, a leading resort and timeshare operator, in order to complete an agreement to distribute its IntelliFares products. CINT has also partnered with Flying Dutchmen Travel to distribute IntelliFares, and with AIG Travel Guard to provide travel insurance at no additional cost for the customer's first round-trip IntelliFares flight. Finally, the Company has engaged
UBS to manage customer deposits to ensure resources are available to honor service delivery.
August 2007 launch of IntelliFares provides impetus for future growth
The August 2007 commercial launch of IntelliFares positions the Company for robust revenue growth in the second half of this year. CINT is offering IntelliFares in partnership with Mexicana Airlines for air travel between Los Angeles to key Mexican resort destinations with price availability beginning August 27, 2007. Other West Coast gateways will be announced in upcoming months.
Frequent travelers can enjoy significant fare price savings with IntelliFares. For example, travel between Los Angeles and Cancun is priced at $1,532.80 for five years, including a one-time $59 activation fee; fares from Los Angeles to Huatulco are $1,666.75 for five years, including the activation fee; fares between Los Angeles ando Cabo San Lucas are $1,264.85 for five years, including the activation fee; and fares from Los Angeles to Puerto Vallarta are $1,666.75 for five years, including the activation fee.
Strong 2007 sales outlook
CINT expects to sell more than 3,000 five-year IntelliFares units by year-end 2007. Ticket prices for IntelliFares range from $1,265 to over $4,000, depending on the round trip cities and travel dates. The Company anticipates 2007 gross revenues from IntelliFare sales could range between $3.8 million and $12 million.
Experienced management team
The Company's management team together represents over 90 years of travel and hospitality industry experience gained with leading travel industry competitors such as Club Med, Celebrity Cruises, Royal Caribbean Cruise Lines, MGM Grand Corporation, CMI Network and Apple Vacations.
Peter Dugan became CINT's Chairman, President and CEO in July 2007. He was the founder and Chairman of DVC Worldwide, an award-winning consumer marketing and
promotion services company dealing with Fortune 100 companies. Mr. Dugan brings over 30 years of marketing and branding experience to the Company.
$871 billion market opportunity
US personal travel & tourism expenditures are estimated at $870.6 billion or 9.0% of total personal consumption expenditures in 2007. By 2017, US personal travel & tourism expenditures are expected to reach $1,439.7 billion and represent 9.2% of total personal consumption expenditures.
Rising oil prices, personal income and travel prices make locking in today's air fare for future travel an attractive alternative. According to Accenture's Transportation & Travel Service practice, travel companies must devise innovative solutions and focus on cost effectiveness to profit from travel industry growth. Accenture also predicts travelers will increasingly lose interest in commodity products and instead demand solutions specifically designed around their needs. Travel service providers must also blend the right mix of distribution channels - such as the Web, agents or catalogs - to provide complete solutions.

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