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Proud to Present Flynow.com An online airline reservation company

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... prices on FlyNow.com's competitors like Orbitz, Travelocity, and Priceline ... Our competitors are Orbitz.com, Travelocity, Expedia.com, Priceline.com, etc. ... – PowerPoint PPT presentation

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Title: Proud to Present Flynow.com An online airline reservation company


1
Proud to Present Flynow.com (An online airline
reservation company)
  • Juweria Muqtadir
  • Puneet Singh
  • Purvesh Patel
  • Davida Sumler
  • Raymond Cata

2
Executive Summary
  • There are over 35,000 flights per day and many
    empty seats
  • Large percentage of the traveling public has to
    make last minute travel arrangements
  • Airlines charge customer hundreds or even
    thousands of dollars for not making a reservation
    at least 7-14 days in advance, even when many
    seats on flights go unfilled especially during
    off peek times and as the result of last minute
    cancellations
  • Flynow.com will allow users to buy airline
    tickets up to 4 to 6 hours before departure by
    contracting with the major airlines to sell those
    seats at sizable discounts.

3
Todays Agenda
  • Business Proposal
  • Target Market
  • Market Share
  • Project Charter
  • Project Team Contract
  • Stakeholder Analysis
  • Scope Statement
  • Scope Management Plan/Control Policy
  • WBS/WBS Dictionary
  • Business Plan
  • Managerial/Marketing/Technical/Financial

4
Business Proposal
  • Allow airline passengers to buy tickets to all
    major airlines online
  • Customers go to our website and select the
    destination based on location, time and price
  • All fares reflect similar discounted prices on
    FlyNow.coms competitors like Orbitz,
    Travelocity, and Priceline
  • Website will be using secure billing software
  • An email and printable receipt will then be sent
    to the purchaser to verify payment and confirm
    travel arrangements
  • An SSL certificate will be obtained and a
    vigilant effort will be made to secure all credit
    card information and customer data

5
Target Market
  • Who are our Customers
  • People who need last minute tickets at affordable
    prices
  • All Major airlines
  • NWA, Delta, USAirways, etc.

6
Market Growth
7
Market Share
  • Whole online airline reservation industry
  • 86 billion/year
  • Expedia.com……45.3
  • Orbitz.com …….24.9
  • Travelocity.com..23.1
  • Priceline.com…..6.7
  • Others…………...3 (2.58 billion)
  • We have about .00005 or 0.005 of the total
    market share, which is about 4,300,000 (4.3
    million)

8
(No Transcript)
9
Project Charter -Objectives
  • Design and build a website for FlyNow.com
  • Fly Right Now feature allow customers to book
    last minute tickets
  • Allow customers to buy airline tickets using
    secure billing software

10
Project Charter -Approach
  • Accomplish this by contracting with all major
    airlines enabling our customers to make last
    minute travel arrangements for sizable discounts
  • Conduct a survey of customers and consultants
    concerning online ticket reservations
  • Develop the internet site using an iterative
    approach, soliciting a great deal of user
    feedback
  • Consult experienced project managers on similar
    projects

11
Project Charter -Roles and Responsibilities
12
Team Contract
  • Code of Conduct
  • Avoid conflict, take care of problems early.
  • Keep other group members updated on information
    related to project.
  • Work together as a team at all times.
  • Participation
  • Be open for new approaches and ideas.
  • Keep discussions on track.
  • Provide the opportunity for equal participation.

13
Team Contract Contd.
  • Communication
  • Make a decision on the best way of communication,
    which is email, face-to-face meetings, and class
    time.
  • Have the group project managers for their
    specific weeks arrange facilitate group
    meetings.
  • Present ideas clearly and concisely.

14
Team Contract Contd.
  • Problem Solving
  • Encourage everyone to participate in solving
    problems that may occur.
  • Only give constructive criticism, not personal
    attacks against one another.
  • Strive to build on each others ideas.
  • Meeting Guidelines
  • Meet as much as possible.
  • Document major issues and decisions related to
    our project and email them to each team member.

15
Key Stakeholders
  • Raymond Cata
  • Purvesh Patel
  • Puneet Singh
  • Juweria Muqtadir
  • Davida L. Sumler
  • Bank of America
  • All Major Airlines
  • NWA, Delta, etc.
  • Website Q
  • Other employees contractors
  • Programmer Accountant

16
Stakeholder Analysis
  • Raymond Cata
  • On the project team
  • Very much a team player and likes challenges.
  • Level of interest very high
  • Level of influence very high
  • Suggested that we use web log and wireless
    communications to keep in touch.

17
Stakeholders Analysis Contd.
  • Purvesh Patel
  • On the project team
  • Team worker, knowledgeable coder, detail oriented
  • Level of interest very high
  • Level of influence very high
  • Suggested that we keep track of details and
    better communication.

18
Stakeholders Analysis Contd.
  • Puneet Singh
  • On the project team.
  • Very detailed oriented, team work is a must for
    him, timely and friendly person.
  • Level of interest very high
  • Level of influence very high
  • Suggested that we all be team players and give
    100 effort.

19
Stakeholders Analysis Contd.
  • Juweria Muqtadir
  • On the project team.
  • Detailed oriented, team worker, timely and
    friendly
  • Level of interest very high
  • Level of influence very high
  • Suggested that we have major project details
    written out instead of just oral conversation.

20
Stakeholders Analysis Contd.
  • Davida L. Sumler
  • On the project team.
  • Easy to work with, likes things done on time.
  • Level of interest very high
  • Level of influence very high
  • Suggested that we work on the group project at
    home if necessary.

21
Stakeholders Analysis Contd.
  • Bank of America
  • Financial provider
  • Likes things done in a timely manner and is
    business focused.
  • Level of interest very high
  • Level of influence high
  • Suggested that we keep them informed and to do as
    they say and do it quickly.

22
Stakeholders Analysis Contd.
  • All Major Airlines (Delta, NWA, etc.)
  • Project sponsors.
  • Demanding, business focused.
  • Level of interest high
  • Level of influence high
  • Suggested that we ask them anything, they are
    willing to help out.

23
Stakeholders Analysis Contd.
  • Website Q
  • Website designer.
  • Very smart, best designer we know.
  • Level of interest high
  • Level of influence high very hard to replace.
  • Suggested that we keep the company happy and they
    will stay with us.

24
Stakeholders Analysis Contd.
  • Other Employees Contractors (Programmer
    Accountant)
  • Employees and contractors to hire.
  • Business focused, easy to work with, and
    efficient and fast.
  • Level of interest high
  • Level of influence high
  • Suggested that we pay them well and on time and
    there wont be any problems.

25
Scope Statement
  • Budget for the project is 50,000. Additional
    114,000 per year will be required for
    operational expenses.
  • Borrow 80,000 from Bank.
  • Team meets at least two times a week to manage
    scope of the project.

26
Control Policy
  • If Changes occur
  • Urgent
  • Team will come to decision over phone
  • If not all member are available, then email will
    be sent to inform rest of team members
  • Non-Urgent
  • Team meets once a month to review changes

27
WBS
  • Initiating
  • determine/assign project manger
  • identify key stakeholders
  • prepare business case
  • prepare business charter
  • prepare business plan
  • Marketing/Managerial/Finance/Technology
  • Planning
  • Organize/schedule project meetings
  • Prepare team contract
  • Prepare scope statement
  • Prepare WBS
  • Prepare schedule and cost baseline
  • Establish task resources
  • Establish task duration
  • Establish task dependencies
  • Create Gantt chart draft
  • Review and finalize Gantt chart
  • Identify, discuss and prioritize risks

28
WBS Contd.
  • Executing
  • Survey
  • User inputs
  • Website content
  • Templates and tools
  • Links
  • Site Feedback
  • Search feature
  • User Help
  • Website design
  • Website construction
  • Website testing
  • Website promotion
  • Website roll-out
  • Project benefits measurement
  • Controlling
  • Status report
  • Closing
  • Review final budget

29
WBS Dictionary
  • Name Initiating
  • Description defining and authorizing a project
    or project phase.
  • Name Determine/assign project manager
  • Description determine/assign the person(s) who
    will work with the project sponsors, the project
    team, and others involved in a project to meet
    project goals.
  • Name Identify key stakeholders
  • Description identify key people who are involved
    in or affected by project activities and include
    the project sponsor, project team, support staff,
    customers, users, suppliers, and even opponents
    of the project.

30
Business Plan
  • Managerial Plan-Davida
  • Marketing Plan-Puneet/Raymond
  • Technology Plan- Purvesh
  • Financial Plan-Juweria

31
Managerial Plan
32
The Management Team
  • Juweria Financial Manager
  • Duties are to take care of all things related to
    finance (transactions, basic accounting, etc.).
  • Purvesh Technological Manager
  • Duties are to take care of all things related to
    technology (touch basis with programmer, etc.).
  • Davida Human Resources Manager
  • Duties are to take care of all things related to
    management (hiring firing, training, benefits,
    etc.).
  • Puneet Raymond Marketing Managers
  • Duties are to take care of all things related to
    marketing (advertising and sales, etc.).

33
The Business Aspects
  • As of right now, we are keeping the business on a
    small business level. We are not looking into
    franchising right now.
  • We are only looking to hire 4 additional
    employees two full time and two part-time
    employees.
  • Once hired, the new employees are required to
    attend training for 1 week.

34
The Business Aspects Contd.
  • Benefits included are
  • Health and Dental
  • Choice between HMO and PPO
  • Vision
  • Only free eye exams are covered.
  • Vacation, Holidays and Sick Leave Days
  • Will be working most holidays.
  • Life Insurance

35
The Business Aspects Contd.
  • Retirement Plan
  • 401K plan is provided with basic features
  • Employee contribution
  • Employer contribution
  • Loans
  • Additional Perks
  • Disability
  • Short term and long term
  • Educational
  • Employees are encouraged to seek further
    education to improve skills. Reimbursement is up
    to 2500 and restricted to 9 credit hours per
    term.

36
Marketing Plan
37
Market Analysis
  • Our target market that we will be selling
    primarily to is general public. The total percent
    of business will be 100.
  • Our target Customers will be worldwide. Our
    target industry is all major Airlines for
    example Northwest Airlines, American Airlines,
    SPIRIT, SWA, LUFTHANSA, and British Airways.

38
Competition
  • Our competitors are Orbitz.com, Travelocity,
    Expedia.com, Priceline.com, etc. Some of these
    companies have been in this business from past
    10-20 years.
  • Price/Strategy We will be selling discount
    tickets online rather in person.
  • Product/Service Features We provide same day
    travel in the last 4 to 6 hours before departure
    on any major airline with prices up to 50 off.

39
Competition Contd.
  • Market is highly competitive.
  • The strengths that our business plan carries are
    the major discount and last minute flying, which
    is our unique product. If we look at the
    weaknesses there are none. Theres no other
    market out there which provides a last minute
    flying. This is why our plan is so unique to
    compete in the market out there.

40
Environment
  • There are some important economic factors that
    will affect our product and service as follows
  • If energy price rise it will affect the business.
  • If taxes rise up it will affect the business.
  • If certain airline files bankruptcy it will
    effect the business.
  • Legal Factor that will affect the market
  • Federal, State, and Local regulations for travel
    agencies.
  • Obtain a sales tax license from State of Michigan.

41
Environment Contd.
  • Security is another legal factor that will affect
    our market such as
  • Flights are cancelled due to terrorism.
  • Major security issue for example unattended
    baggage or box.
  • Government factors Too many government
    restrictions can discourage people to fly. For
    example
  • No Liquid allowed.
  • No Sharp items allowed.
  • Long Lines through security check.
  • Removing certain clothing.
  • Multi Screening of Baggage or Suitcase.
  • Each traveler will be limited to one carry-on bag
    and one personal bag (i.e., purse or briefcase).

42
Environment Contd.
  • Environmental Factors we have absolutely no
    control over environmental factors for example
  • Bad weather will delay the flights.
  • High security alert will delay or cancel the
    flights.
  • Major airline accident will delay the flights.

43
Product or Service Analysis
  • Description We are selling airline tickets
    online. The service that we are providing is
    convenience and the ability of the customer to
    make a last minute reservation on any major
    airline with the opportunity to save money on
    regular prices.
  • Comparison Ease of use and convenience. We
    appeal to the procrastinator by making it
    possible to save money without advance
    reservations.
  • Disadvantages Our policy is if cancellation
    occurs there will be no refund what so ever
    unless a security issue occurs.

44
Marketing Strategies/Market Mix
  • Image Company will have cheap but convenient,
    good quality service, and excellent customer
    service. It is very important for a business to
    have a good image out there in order for them to
    grow. Good Customer service is always a top
    priority and customer satisfaction.
  • Features The features our company will emphasize
    are cost savings, convenience, and quality.
  • Pricing We will be using a following pricing
    strategy
  • Competitive (we will be competitive with major
    online companies like Travelocity and Expedia in
    there pricing of online tickets).
  • Below competition (in our Fly Right Now feature
    we will have prices well below the competition).

45
Marketing Mix Contd.
  • Customer Service We will provide 24 hours ticket
    purchasing and 24 hours tech support.
  • Sales/Credit Terms All sales are final and no
    credit unless security issues.
  • Competition Our Company specializes in last
    minute traveling. The Customer can book a ticket
    in advance or book a ticket just several hours
    before the flight departs and still save up to
    50 of the original price.

46
Advertising
  • Stay Competitive
  • The competition offers
  • Deals by Email
  • Deals by RSS feed
  • Fare alert features
  • Travel alert (weather up dates)
  • Business and Corporate travel features
  • Additional customer service features (FAQ)
  • We want to add these same features to our site to
    stay in the game

47
Advertising/Promotions
  • Start with a low cost approach
  • Internet
  • Billboards
  • Radio
  • Yellow Pages
  • Television Ads for national and international
    markets

48
Technology Plan
49
Hardware
  • Dell 2950 PowerEdge Server
  • OS Linux
  • Processor 2 Intel Xeon(s)
  • Ram 1 GB (Fully Buffered)
  • Hard Drive 2x73 GB SAS (RAID)
  • Redundant Power/Cooling
  • Bandwidth 150 GB Monthly
  • Managed Backup 25 GB Weekly
  • CISCO PIX 515 Firewall
  • Novell Identity Manager
  • T1 Connection

50
Server, Hardware and OS Contd
  • Web server software - The Web server software
    cost for our company estimated around 10,000.
  • Computer hardware to host the web site - The
    computer hardware total cost to host the web site
    estimated at 20,000. This is one time cost that
    we will have to spend on the computer hardware.
  • IT Operating System - The cost of operating the
    software for the server estimated at 300 - 500
    to start and in order to upgrade we will have to
    spend additional around 300 every 12 months.

51
Software
  • Web site software The website software for the
    creation and maintenance of the website cost
    estimated at 500.00 to start.
  • Cost breakdown are as follows
  • 400.00 for the creation software
  • 100.00 for the maintenance per month.

52
Software Contd
  • The software necessary for the analysis of
    website performance
  • Estimated costs 200 per year for the analysis of
    traffic and links among web pages.
  • Security software and hardware for the Web site
  • 200 per year for firewall software
  • 100 per year for antivirus software,
  • 2000 per year for physical security of the
    server and its components.

53
Setup
  • Web site design and setup costs
  • costs of hiring two programmers/web development
    specialists
  • Estimated costs of 40,000 per individual.
    Therefore 80,000 total costs.
  • Initial Web page layouts
  • Includes custom graphics, photographs, line art,
    audio, and video elements.

54
Fees
  • Domain name fees
  • The domain name registration fee and web hosting
    will cost 50 with 5 year contract.
  • Development of search engine keywords
  • Search engine keywords to direct customers to the
    company website
  • 219 with a one year subscription or 25 per
    week.

55
Search engines registration fees
  • The hard costs of search engine registration and
    directories depending on how many pages to
    register would range from
  • 800 - 1600 per year.
  • For example
  • Yahoo! Directory-- Recurring yearly fee to be in
    the Yahoo! Directory is 300.
  • Lycos - 50.00 minimum charge with recurring
    monthly charges. (Pay-Per-Click through).

56
Maintenance
  • The estimate of maintenance which includes
    creating new web pages, updating existing pages
    cost
  • 250-300 monthly or 3000 - 5000 yearly.
  • Upgrade the hardware and software of the server
    cost
  • range from 5000 - 10,000 yearly
  • The webpage analysis and upgrades will be done
    every six months. The software and hardware
    upgrades will be done once a year.

57
Training and Communications
  • The costs of training current and new staff broke
    down as follows
  • The cost to train at least nine people
  • fixed cost of 500 per person
  • Communications link monthly costs
  • T1 leased line
  • The estimated costs 499

58
Financial Plan
59
Financial Plan
  • Market Revenue/Share
  • Income Statement
  • Balance Sheet
  • Surveyor Pro Cost
  • Cost Baseline

60
Market Revenue/Share
  • Based on Hitwise Survey
  • 10 million users use an online airline
    reservation to buy tickets
  • With great advertisement efforts, we are
    confident that we will get 0.01 (customers) hits
    to our website (100,000 users a month)
  • Then using success rate of about 5 of customers
    actually buying ticket from us (5,000 tickets
    sold/month)

61
Market Revenue/Share Contd
  • Sabre
  • Who is the middleman between airline companies
    and travel agencies
  • With size of our company quoted us approx. 30
    profit of each ticket sold
  • So selling 5000 tickets/month will give us
    earning of 225,000/month

62
Balance Sheet
63
Contd Balance Sheet
64
Contd Balance Sheet
65
Income Statement
66
Contd Income Statement
67
Surveyor Pro Cost
68
Cost Baseline
69
Sample Page
  • http//people.emich.edu/rcata/FlyNow/flynow.htm

70
  • Questions??
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