OK - Here's why IFLY (and the warrants IFLYW) are my pick:
IFLY is a new, growing and profitable travel agency that is about to launch a ground-breaking website to add to the powerful business model they have already developed with their telephone sales unit.
The management* has shown they can grow sales while containing costs - they have two profitable quarters behind them and the next quarter will show even greater net income.
The new interactive website, which is has been tested by several of the investors who post on this board, is unique and brings benefits specific to the Internet travel sector. The interactive element of the website is a secure CHAT session with a travel agent on the other end.
Having entered all your personal information and itinerary details the agent can then quote you the best prices they have through the CHAT session.
Specific and unique benefits:
1/ IFLY travel agents can quote lower prices than are permitted to be published over the internet.
2/ Commissions on tickets are capped at $100 as a travel agent is quoting you a price - vs $10 commission cap for computer quoted prices over the Internet.
3/ Transaction time (compared to telephone sales) is cut dramatically as information is entered by the customer and feeds directly into the computer system.
4/ Travel agents are able to handle more than one customer at once.
5/ Customers are more likely to buy over the Internet with a real human being on the other side of the website who is attending to their needs and questions - more sales are closed per visitor than on other
Internet travel websites.
[Personal example: On my own recent test of the site the agent was able to ask us, via the CHAT, if we could fly one day earlier - we typed back "YES" - and received a price back that saved us $300 more!
And IFLY beat PTVL's prices (NY to Cape Town)by $440 and was the best price for that trip that my colleague, who flies that itinerary often, has ever seen by far!]
While other Internet travel sites like PTVL have focused on marketing, IFLY has focused on it's relationships with the airlines and with the company that supplies the reservation system (SABRE) and also focused on developing technologies that bring important efficiencies to the reservation process. They have negotiated excellent ticket prices and good commissions.
Add to that that the travel sector is set to grow enormously on the Internet - AND that the company is already profitable and in the top 100 travel agencies (they quote very low prices in general) - and you get a very potent mix.
A particularly interesting point to note is the small float of only 1.4 million shares.
* IFLY's management team has a combined experience of over 100 years in the travel and airline ticketing business, one member is a former president and CEO of Continental Airlines.
+++++++++++++++++++
The website is due for full release to the public before the end of the year, according to the CEO, Mark Mastrini. Recently the CFO, Jerry Sendrow, confirmed the site is on schedule for year end release.
For more information go to the corporate page of their current website at: lowairfare.com
The IFLY Investor Website is run by one of the investors who posts on this board and contains a wealth of links to information on IFLY, a great place to do your reseach from: members.tripod.com
|
