From the X Train website:
Quote
Las Vegas Railway Express, Inc.
The "X" Train
Las Vegas Railway Express, Inc. is in the business of transporting travelers between Los Angeles and Las Vegas by traditional conventional rail. We plan to operate a single travel route marketed primarily to the leisure traveler from the Southern California basin enabling us to sell rail travel as a stand-alone operation bundled with hotel rooms and other travel related services. Our unique travel option will offer a diversified product that will set us apart from travel related options of automobile and air. We plan on offering "X" Train tickets initially at $99 roundtrip.
We have developed a business model that is focused on one of the most sought after travel destinations within the United States by providing a more leisurely option for the over 12,000,000 annual Southern California/Las Vegas visitors who currently travel between the two areas while at the same time extending their “ Las Vegas Experience” time while in route.
Our primary goal is profitability. We believe we have developed a unique and differentiated business plan for this market and industry and we plan to execute it. The” X” Train has an important economic story to convey. Reconnecting passenger train service from Los Angeles to Las Vegas will add needed incremental revenue to Las Vegas, assist in its growth strategy, and significantly add tax revenue for the current and future developmental projects the city wants to pursue. In the public’s mind, Las Vegas is a much bigger city than it really is and the public always wants to know what is happening in Las Vegas. Its global reach extends well beyond the 40 million annual visitors reflected in the facts that travel programs, reality shows, poker tournaments, and celebrity visits are constantly in the news. Because of this exposure, the “X” Train is an ideal public relations vehicle to bring the public’s awareness of passenger train service, AMTRAK and Las Vegas back to the forefront.
There has been no regular passenger rail service between these two demographic areas for 13 years. The two primary reasons why passenger train service has not been offered are; the time and cost advantages of traveling by other means and secondly, the train route itself was not profitable.
We feel we have the answers to the two primary reasons why passenger train service between the two metropolitan areas has not been successful. It is our belief that the time and cost advantages have shrunk significantly to a point where traveling by train is a legitimate option for our targeted customer.
The major connector between Orange County and Las Vegas, Interstate 15 (I-15) is becoming increasingly congested, with motor vehicle travelers experiencing substantial delays during peak travel times (e.g., Friday and Sunday afternoons). Average daily traffic (ADT) on I-15 just south of Las Vegas is calculated to be around 60,000 vehicles; through Primm, ADT is around 39,000. By the year 2020, traffic is projected to increase by more than 100 percent, with the respective ADTs projected to be 126,000 and 78,000. The segment of I-15 between the I-215 interchange in Las Vegas and the state line at Primm is programmed for widening from four to six total lanes. This will lessen peak congestion in the near term, but substantial congestion is expected to recur by 2020 with continuing growth in roadway traffic demand. Documented automobile travel times between California and Las Vegas are increasing as a result of the congestion in the Cajon Pass. Information obtained from Automobile Association of America (AAA) reveals current travel times from California areas are as follows:
Origin Destination Distance Travel Time
Orange County Las Vegas 267 3 Hrs 52 Min
Burbank Las Vegas 271 3 Hrs 53 Min
Ventura Las Vegas 330 4 Hrs 41 Min
San Bernardino Las Vegas 225 3 Hrs 15 Min
These times represent typical travel time between Southern California and Las Vegas, and assume minimal traffic congestion. On weekends or during holiday periods when travel between Southern California and Las Vegas is typically higher, the travel time can increase significantly and delays are common. In fact, these delays can cause drive times to increase to well over 6 hours each way. Our discussions with the two host railroads have assured us they can schedule our train service within a five hour time frame which is a very favorable time period compared to the current times for driving.
The increasing cost of gasoline may lead to a travel mode shift away from the automobile for some trips. As recently as September of 2005, new research indicates that the increasing cost of gasoline may finally have reached a point where it is impacting travel plans. During the spike in fuel prices in 2008, the amount of traffic that crossed the Nevada/California border declined. Further, it is our belief that the recent gasoline price decline from their highs in 2008 is temporary. AAA recently published a report showing both California and Nevada as states that have the highest fuel prices in the nation currently at or above $3 a gallon (#3 and #7). Our introductory price point of $99 roundtrip is designed to stimulate demand against the cost of driving to and from Las Vegas and is comparable to the costs of driving.
We feel our business model will tackle the second reason we feel passenger train service has not established a foothold within this highly sought out market: the ability to turn a profit. We are an entertainment company with our actual train travel revenue contributing just a portion of our total revenues. A majority of our project’s profits will come from revenue generated by sources not directly tied to the operation of The “X” Train. This income will come from our efforts to “package” our train ticket customers with other amenities associated with traveling to Las Vegas; room reservations, show and entertainment, tours, nightclub/lounge reservations and local transportation. Our strategy is to capture a majority, if not all, of our revenue through our own website. The Las Vegas Convention and Visitor Authority 2008 Southern California and International Visitors Version show us the following:
59% of Southern California customers plan their trips less than one month ahead of time
98% decide where to stay BEFORE they leave home
71% decide which show to see BEFORE they leave home
24% use the internet to plan their trip
62% book their hotel accommodations using the internet
84% use the internet to book their transportation
For our business travelers, we will have one and possibly two cars that will cater to their wants and needs. Offered and sold much like stadium luxury boxes, each car can be outfitted to each company’s needs, be it for a board meeting or product demonstration.
Our product will be considered “new” and our focus on the amenities associated with this travel experience will differentiate ourselves. No other travel option will afford its customers the experience and comfort of our accommodations. In fact, we know of very few, if any, travel dining options offered by a world renowned chef. We will have a “show” kitchen car in order to provide food and beverage service by world renowned celebrity chef Rick Moonen along with several lounges/bars and corporate cars. Finally, we feel there is an underappreciated market of those who choose to smoke, and we will have several cars designated for them. All cars will be outfitted with the “latest and greatest” information technology including power outlets at each seat and WI-FI access throughout our consist.
Finally, we plan on focusing our efforts on people’s most valuable commodity, time. If you want to spend your time conducting business, you will have the ability to do so with phone and internet access on board. If you want to spend your time reading a book, you will be able to read it in the travel industry’s most comfortable accommodation with food and drink delivered to your seat or you can place yourself (and your book) in one of our bars or lounges. If you smoke, we will have a place for you as well (and it will not be outside the dock door!) So however you wish to spend your time, we will make sure it is treated as the valuable commodity it is.
American municipalities and business are facing very difficult times today as we all know. Sadly, most are tackling their bottom line challenges using familiar strategies where their primary efforts are focused on cost cutting and service reductions. The Las Vegas Railway Express team believes these strategies are mistakes. In a time when our country is looking for engagement, competence and a feeling of community with one’s place in it, the “X” Train will differentiate itself by providing people with the aura of better and simpler times when personalized service and long lasting relationships were more than a marketing term. This service focus, along with the value we will present will enable this customer to drive our top line organically in the years ahead.
