Adventure Excursions Unlimited
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Adventure Excursions Unlimited (AEU) was formed January 2001 to provide hard adventure sport/travel packages with upscale accommodations, gourmet food, and celebrity service providers to wealthy clients. AEU Hard adventures include Helicopter-skiing, kayaking, white water rafting, and mountain biking. The founders of AEU are Jordan Stephan, MBA/JD, Jillyn Certo, MBA, and Loren Harlo, MBA. In addition to their MBA status, they are passionate about the activities AEU will offer.
An opportunity exists for two reasons:
Virtually all companies that provide "hard" adventure activities appeal to a lower income client. Companies that appeal to a wealthier clientele generally provide "soft" adventure package. Hard adventure activities involve difficult physical requirements. They carry a higher level of risk than do "soft" activities. Soft adventure activities may involve physical exertion, however they involve a low level of risk and can be engaged in by non-athletic people.
The company's target customers are high income (min. $75,000 for single person), health-conscious individuals interested in popular hard adventure sports. These are lawyers, bankers, executives, doctors, etc. The major purchasers are located in urban areas within major United States cities. Our customers are more likely to be married. 51% are men and 49% are women.
There is rapid growth in the market and increasing demand. In addition, more niche markets are evolving. Initially, it will be difficult to compete with experienced providers, especially the market leaders. However, AEU's target market is an exploitable niche and our service is differentiated. AEU's target market members will have similar activity interests, more disposable income and less sensitivity to price.
We will provide a luxury service with prestige value. Our prices will be out of reach for the majority of adventure travelers. Service will be priced based upon luxury competitor prices and the value added of our offering. Providers that offer offering luxury services similar to ours do so at prices similar to ours. We are competitively priced in the luxury market. Because we appeal to luxury and thus a smaller market, volume will be limited. However, we will be able to capture a higher gross profit margin.
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