The International School Of Hospitality

(TISOH)

Presented By – Akshata NilkundCole Grundstedt

David LeeEmily Tien

Outline

SWOT Customer Analysis Our Plan Demand Analysis Financial Analysis Conclusion

SWOT Analysis Strength

UNLV name association Industry contacts Short duration programs Accreditation

Weakness Lack of brand awareness Serious financial liabilities Some undifferentiated online products

Opportunities New international market Spa industry is the fastest growing in the hospitality and

leisure arena, 12% annual growth rate – According to ISPA

SWOT Analysis Threats

Competing with well established distance education such as –

University of Massachusetts (UMass Online) – Certificate in Meeting and Event Management

Cornell University (eCornell) – Certificate in Executive Leadership

Roosevelt University (RUOnline) – Certificate in Meeting, Convention and Event Management

Large amount online competitors for Wedding and Event planning

Customer Analysis Three customer groups

Local Online International

Customer definition 18 – 65 years old At least high school diploma Works/interested in Leisure & Hospitality

Industry

Customer Analysis cont. Using Census, BLS, CPS statistics

152,552 potential students in local market

128,908 potential students in online studies

48,446 potential students in international market

Customer Analysis cont. Demographics – by educational attainment

Over half are between 25 and 45 years Slightly more than half are female Average income of $33,068 (1.6% spent on education) Average tuition expense for Int’l student - $17,030

Market potential $81 million in Local Market $68 million in Online Market $825 million in International Market Try to grab the biggest slice you can!

Current Demographics 70% female 90% are from Las Vegas area

Situation Analysis

Observations -

Capture International Market, huge potential Capture more male market Online market not as strong Seize Spa Hospitality sector

Our Plan

Focus Shift Streamline Curriculum International Market Introduce Spa Hospitality Management

Certificate

Our Plan – Focus Shift Recommendation

Move focus away from Online Program Focus on corporate partners and internships, perhaps for

course credit?

Justification Online Program has smaller market Multitude of competitors nationwide Las Vegas location is TISOH’s competitive advantage Offer real world experience, other companies cannot

match

Our Plan - Streamline Current programs -

Conference Management & Event Planning Wedding Coordination & Design Many of the same courses

Proposed change - Establish event planning core curriculum Offer concentration in Conventions and/or Wedding Planning Additional fee for dual concentration

Justification By streamlining, increase capacity and reduce payroll Attract more students with dual certificate option Attract more male students

Our Plan - International Recommendation

Target Market – International students, focus on Asian market Offer Hospitality Industry Jargon class Schedule programs for summer Higher tuition for International students

Justification TISOH can now issue M1 visas 48,000 international students all over the world want to come to USA

for hospitality. Weak U.S. dollar Foreign students always pay in cash (financial aid from home country) Over 50% of all foreign students in USA are from Asia. Summer classes best time, school and work holidays As before, focus on internships - competitive advantage due to the

contacts and proximity with Las Vegas

Our Plan – Spa Mgm’t Recommendation

Introduce Spa Management Certificate Program Courses include –

Introduction to the spa industry, Services and treatments Spa Operations Spa Industry Finance Spa Marketing and Branding HR and Leadership for Spa Managers Guest Services and Relationship management Spa Resort design Career Management Internship

Again, focus on Internship opportunities in Las Vegas Advertise at Las Vegas ISPA conference expo

Our Plan – Spa Mgm’t Justification

Only 2 schools offer this course in U.S. – UCIx and ASU both online.

TISOH has competitive advantage, offering a class room course and provide hands on experience.

Furthermore, Spa is a vital part of Las Vegas’ economy

2.1M visitors coming to Las Vegas alone for Spa treatments

Our Plan – Summary Marketing

Scale back pay per click advertising ($30k / yr) Increase advertising in Asia

Print campaigns – hospitality magazines, schools Focus on “Las Vegas” in all advertising, i.e. TISOH Las

Vegas Use Las Vegas skyline in print media Add link on UNLV’s website

Positioning Best location for hospitality education – Las Vegas Can offer valuable industry experience “The Only Place for Hospitality – TISOH Las Vegas”

Demand Analysis Current State – no changes

Linear Regression

Best Estimate – all recommendations implemented

Linear Regression Historical Industry Data

Year

Conference Management / Event Planner

Wedding Coordination and Design

Art of Concierge Online Total

2005 7 0 0 0 72006 24 18 16 6 642007 30 35 28 10 103

2008 43 52 42 15 1522009 54 70 56 20 2002010 66 87 70 25 248

Year

Conference Management / Event Planner

Wedding Coordination and Design

Art of Concierge Online

Event Planning + 1 conc.

Dual Conc. Convention &

WeddingSpa

Management Total2005 7 0 0 0 0 0 0 72006 24 18 16 6 0 0 0 642007 30 35 28 10 0 0 0 103

2008 0 0 55 15 124 12 27 2332009 0 0 73 20 163 16 71 3432010 0 0 92 25 200 20 88 425

Financial Analysis

2005-Loss $95,453 2006-Loss $91,584 2007- Estimate profit $14,138

2008-2010 Financial issues SBA loan $678,000 Renegotiate certificate fee Bigger space as capacity grows Travel expenses Costs for additional classes

Financial Analysis 2005-2007 Income Statement

2008-2010 Projected Income statementTotal Revenue 609,400$ 100.00% 908,350$ 100.00% 1,122,300$ 100.00%Total Cost of Goods Sold -$ 0.00% -$ 0.00% -$ 0.00%Gross Profit 609,400$ 100.00% 908,350$ 100.00% 1,122,300$ 100.00%TOTAL EXPENSES 505,510$ 82.95% 731,120$ 80.49% 902,303$ 80.40%

EARNINGS BEFORE INT & TAX 103,890$ 17.05% 177,230$ 19.51% 219,997$ 19.60%Less: Interest Expense (Loan) 54,035$ 8.87% 53,565$ 5.90% 53,056$ 4.73%

NET PROFIT BEFORE TAX 49,854$ 8.18% 123,665$ 13.61% 166,941$ 14.87%

2008 2009 2010

Total Revenue 24,630$ 100.00% 146,752$ 100.00% 400,000$ 100.00%Total Cost of Goods Sold 1,000$ 4.06% -$ 0.00% -$ 0.00%Gross Profit 23,630$ 95.94% 146,752$ 100.00% 400,000$ 100.00%TOTAL EXPENSES 118,365$ 480.57% 238,335$ 162.41% 385,862$ 96.47%

EARNINGS BEFORE INT & TAX (94,735)$ -384.63% (91,584)$ -62.41% 14,138$ 3.53%Less: Interest Expense (Loan) 748$ 3.04% 0.00% 0.00%NET PROFIT BEFORE TAX (95,483)$ -387.67% (91,584)$ -62.41% 14,138$ 3.53%

2005 2006 2007 (estimated)

Other Issues Benefits

Increase international brand awareness More diverse pool of students

Potential negative impact Increased capacity needs

Conclusion The purpose of the MOA was to attract

more students to TISOH.

We have successfully justified our recommendations to achieve this goal.

Our Plan helps reduce costs and increase revenue.

“The Only Place for Hospitality”

TISOH Las Vegas