Joystar is the nation’s largest and fastest growing travel agency network. The Company specializes in selling complex travel products including cruises, vacation packages and group travel through its national salesforce of over 3,000 of independent travel agents. Joystar’s comprehensive business solutions combine innovative technology, marketing opportunities and expert support services to independent and home-based travel agents giving them more time to do what they do best, sell travel. With Joystar, professional travel agents can concentrate on promoting travel and servicing their clients without the administrative and financial burden of owning/operating a traditional storefront travel agency. As of January 1, 2006 the Company’s membership was 3,118 agents. The Company believes it will have 4,500 professional travel agents by the end of 2006.
Main Revenue Models:
Travel Agency Model
Under the travel agency model, the Company acts as either an intermediary, or a merchant. When we transact travel bookings acting as an intermediary in the transaction, we pass a customer’s reservation to the travel supplier (airline, hotel, cruise line, car rental, etc.). The Company receives a commission from the travel supplier after the travel is completed. In the agency transaction, the supplier sets the retail price paid by the customer, and is the merchant of record for the transaction.
In a merchant transaction, Joystar receives access to consolidator fares (wholesale airline seats and hotel rooms) from suppliers at deeply discounted negotiated rates. Joystar determines the “mark-up” and processes the transactions as the merchant of record. Acting as a merchant enables Joystar to achieve a higher level of gross profit than in the agency model and generally provides better prices to customers than an agency transaction. Integrating merchant inventory with the online booking technology platform enables the Company to create a significant benefit to the Company’s agents, customers and preferred suppliers.