Florida High Speed RailMARKETING PLAN

Phase 1Tampa-Orlando

October 2003

Building for Customers

Contents

Introduction 1

1 A High Speed Rail Vision for Florida 2

2 The Market 3

3 Opportunities & Challenges (SWOT Analysis) 9

4 Service 10

5 Segments and target market 11

6 Pricing 12

7 Marketing Objectives 13

8 Key Strategies 14

9 Tactics & Execution 18

10 Budget Envelope & Master Schedule 21

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An innovative approachto building a value-addedcustomer experience forFloridians and theirguests

Introduction

Success of the Tampa-Orlando High Speed Rail link will be the result of morethan the equipment, stations and route alignments. Realizing the full benefit ofthis popular travel mode also requires a strategic offering that will optimize thesatisfaction of the customers who use it. This plan maps an innovative approachto building a value-added customer experience for Floridians and their guests.

An important characteristic of rail transportation is the experiential nature of theservice. This drives the need for strategy and policy at the management levelto support specific practices and activities at the detailed service delivery levelthat directly impacts the customer experience. Travel can be viewed as anextension of the customer’s experience at the intended destination. Both thetravel experience and the destination experience have a significant reciprocalinfluence on the customer experience and satisfaction.

Research has shown that customers' evaluation of transportation services andtheir decision to patronize them depend equally on what services are providedand on how the operators deliver on various aspects of the trip experience beingpurchased. That is, the organization and operation of the staff, the informationsystems, the facility configuration, the station and train environments, and otherresources are part of the product the customer is purchasing and are importantto satisfaction and repeat patronage.

Customers with bad service experiences will tell 11 people and those withfavorable ones tell just 6 people. In other words, a company’s reputation sufferstwice the impact of its failures as opposed to its successes. Positive customerexperiences will be critical particularly at start-up for the Florida High SpeedRail project, as there will be a high degree of public and media focus on thishigh profile initiative and first impressions are difficult to change. The needto deliver service excellence is further driven by the high standards and cus-tomer expectations set by Disney and the Orlando International Airport.Standards by which Florida High Speed Rail will be judged by customers willbe likely set by their experience with these two organizations.

The following are core principles upon which the marketing strategy for FloridaHigh Speed Rail has been developed:

• The travel experience begins while the customer is still at home and is impactedby each contact point, including his/her trip on Florida High Speed Rail Service

• Employees are extremely important - key to successful implementation of thedesired practices and key to improving levels of customer satisfaction

• Practices must be supported by policy and infrastructure

• Senior level commitment to the practices is a major component in assuringsucessful implementation

• Systematic approach to monitoring results is fundamental

• Execution and attention to detail are keys to success

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The state population isexpected to double overthe next 25 years

The Fluor-Bombardier Marketing Plan outlines a clear road map to meet theseprinciples and delivers the final critical component in the start-up of a success-ful Phase 1 High Speed Rail link.

Florida High Speed Rail Program, Phase 1, Part 1

1 A High Speed Rail Vision for FloridaDemands on the existing transportation infrastructure and network for themovement of both people and goods in the state of Florida have increased dramatically in the past decade. Current levels of congestion on the highwaysystem is calculated to cost each state resident $620 annually in wasted time andfuel and a total of 4.5 billion hours in lost time that could otherwise be appliedto more productive use. And the problem can only get worse with the state population expected to double over the next 25 years.

In the year 2000, voters in the state of Florida expressed their vision of futuretransportation by approving a constitutional amendment mandating the devel-opment of a statewide high-speed passenger rail network that would link thestate's major population centers.

In October 2002, the state invited interested parties to submit proposals for thedesign, construction and operation of the first proposed phase of the High Speed Railnetwork, linking the cities of Orlando and Tampa Bay. Fluor and Bombardier, twosubstantive private corporations with significant combined experience and capabilitiesin the areas of finance, design, construction, supply, installation, operations andmaintenance of high-speed rail networks, joined forces to present a solution that provides the best value and overall solution for the state of Florida and its residents.

The Fluor-Bombardier partnership, operating as Florida High Speed ProjectHoldings Company, is committed to making Floridians' vision of their trans-portation future a reality by delivering an economic, self-sustaining solutioncomprised of the following elements:

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FLUOR is a registred service mark of Fluor Corporation

A business,entertainmentand tourism hub

• Bombardier* JetTrain* high-speed rail technology - a made in Americastate of the art, high-speed train set

• A project management approach that coordinates and integrates thedesign, construction, operations and maintenance of the systems civil and systems assets

• A management plan that facilitates a smooth transition from assetdevelopment to asset management – from build to operate

• An operations and maintenance plan tailored to the highest systemsafety and reliability

• A marketing strategy and plan that ensures that the needs of projectstakeholders and future customers are appropriately addressed, thus maximizing ridership potential and return on investment,while fulfilling the desired reductions in traffic and congestion.

2 The Market

2.1 Size, Growth Rates and Projected Ridership

Spread over an area of 66 square miles, Orlando is the biggest city in centralFlorida. A business, entertainment and tourism hub, Orlando is just 4 miles fromUniversal Studios and 20 miles from Walt Disney World. Disney’s presence, ofcourse, is the primary reason behind the fact that Orlando is the fifth-rankingUS destination for overseas travelers.

Tampa Bay, located on the east cost of Florida, enjoys an unusually strong androbust economy in comparison to the general US economic doldrums. Recentlydescribed as "Wall Street South", the "quality of life" is often cited as one of thefactors that have attracted a growing number of businesses to locate in theregion.

The population of Metro Orlando, encompassing Orange, Seminole, Lakelandand Osceola Counties was estimated at 1.4 million in 2000, projected to growto 1.6 million by 2005 and to 2.2 million by 2025. The Tampa Bay region washome to an estimated 3.4 million residents in 2000, with approximately 2.2 mil-lion located in Hillsborough, Pasco and Pinellas counties. Polk County's pop-ulation was estimated at 433,000 in 2000.

Tampa Bay, Polk County and Orlando are the three metropolitan areas that willhost the first proposed phase of the Florida High Speed Rail program. The rider-ship study commissioned by the Florida High Speed Rail Authority indicatedthat total corridor population is forecast to increase 33 percent from 2002 to2025. The Orlando region (Orange, Seminole and Osceola Counties) populationis expected to increase by 46 percent over this same period.

The Tampa Bay Region (Hillsborough, Pasco and Pinellas Counties) populationis forecasted to increase by 23 percent and Polk County by 38 percent.

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* Trademark(s) of Bombardier Inc. or its subsidiaries

Employment in the corridor is expected to increase by 46 percent by year 2025.The Orlando and Lakeland regions will increase by about 57 percent, the TampaBay Region by about 37 percent.

Overall, the number of hotel rooms is estimated to increase by about 83 percentbetween 2002 and 2025. The highest rate of increase is expected in the OrlandoRegion (about 100 percent). Tampa Bay Region hotel rooms are expected toincrease about 46 percent and Polk County rooms by about 22 percent.

The Authority's ridership study estimated annual ridership within the corridorbetween Tampa, Lakeland and Orlando by both local residents and visitors(Greeneway alignment) in 2010 to range from 1,657,000 - 1,904,000 generatingrevenues of $27.9 to $29.7 million. This is anticipated to grow to ridership of2,450,000 - 2,844,000 and revenues of $41.6 - $44.5 million by 2025.

The Orlando market includes a large segment of ‘captive’ customers. These arecustomers who purchase ‘bundled’ transportation and/or accommodation pack-ages. In this case the choice of mode is not made by the traveler but is insteadmade by the transportation providers and attractions that contract for the services.Major purchasers of service in the region include: Disney, Major Hotel propertiesand the Convention Center.

Ridership and Revenue Forecasts

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MARKET SIZE BEELINE ALIGNMENT GREENEWAY ALIGNMENTRidership Revenue Ridership Revenue

(Thousands) (Millions) (Thousands) (Millions)

AECOM WSA WSA AECOMAECOM WSA AECOM WSA WSA

Intercity Market 1

Tampa – Orlando 4,400 4,504 582 453 $14.7 $11.4 484 377 $12.1 $9.3

Tampa – Lakeland 3,430 3,427 339 326 $3.9 $3.7 341 326 $3.9 $3.7

Lakeland – Orlando 2,780 3,022 275 285 $4.7 $4.8 226 231 $3.8 $3.9

Subtotal 2 10,610 10,953 1,196 1,064 $23.3 $19.8 1,051 934 $19.9 $16.9

Airport Access (Choice Market)OIA – Intl. Drive 1,610 1,604 210 266 $2.5 $3.2 N/A N/A N/A

OIA – Disney 2,950 3,207 462 851 $5.6 $10.2 537 873 $6.5 $10.5

OIA – T. Bay & Lakeland 450 464 66 93 $1.6 $2.2 69 97 $1.6 $2.3

Subtotal 5,010 5,275 738 1,210 $9.6 $15.6 606 970 $8.1 $12.8

TOTAL 15,620 16,228 1,934 2,274 $32.9 $35.4 1,657 1,904 $27.9 $29.7

Airport Access (Captive Market) 3

Ridership Revenue

(Thousands) (Millions)

OIA – Intl. Drive 530 $6.4 530 530 $6.4 $6.4OIA - Disney 2,190 $26.3 2190 2190 $26.3 $26.3

TOTAL 2,720 $32.6 4

Grand Total 2,464 2,804 $39.3 $41.8 3,847 4,094 $54.2 $56.0

AECOM

N/A

1 Candidate market does not include areas outside of the service area or sub markets not likely to divert traffic to HSR.2 Intercity market regular commuters using prepaid discount fares includes 3 Captive market from the International Drive area and Disney are estimated based on survey data4 Revenues are expressed in 2002 dollars

Source Ridership Study EXHIBIT 7-1: 2010 Annual Ridership and Ticket Revenue Forecasts by Market

(Thousands)

Employment in the corridor is expected toincrease by 46 percent

Orlando InternationalAirport is a majorport of entry forinternational visitors inthe continentalUnited States

2.2 Current Travel Options

2.2.1 Air

Orlando International Airport served approximately 25 million domestic and1.7 million international passengers in 2002. It is ranked 15th largest airport inthe US; 24th in the world. Its focus on customer service has earned it a firstplace ranking in Customer Satisfaction amongst US airports and it is alsoranked the world’s 4th most convenient airport. There are more than 450 flightarrivals and 450 departures daily, with scheduled non-stop service available to68 domestic and 25 international destinations. It is a major port of entry forinternational visitors in the continental United States.

At the time of the Florida High Speed Rail Authority’s ridership study, air travelbetween the Tampa and Orlando markets was limited to one flight per day, withmid-morning departure from Tampa and an early evening return from Orlando.FAA records indicate that there were an estimated 20,000 person trips (one-way) in the year prior to September 11, 2001. Of these trips, 16,000 were forconnections to other flights, while 4,000 represented true origin to destinationtravel between the two markets.

Airfare Tampa-Orlando

2.2.2 Road Network – Personal Vehicles

Metro Orlando is served by a well-developed road network. Florida’s Turnpikeand Interstate 4 bisect in Metro Orlando and other major state roadways includeU.S. 441, 17/92, 27 and 192. Toll roads include State Road 528, State Road 408and State Road 417, a 100-mile beltway encircling Metro Orlando. The 12.5-mileOsceola Parkway links the international airport to major attractions and sixregional arterial highways.

Department of Transportation traffic counts reveal that intercity travel betweenthe Tampa and Orlando markets was approximately 69,200 vehicles in 2000 andis forecasted to grow to 74,000 by the year 2010.

2.2.3 Private Operators

There are more than 40 private operators that cater specifically to the touristmarket, moving visitors between the airport, local hotels and area attractions bybus and van. The largest of these is Mears, who is also the current operator ofthe Disney bus system.

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AdultChild

$177N/A

$274N/A

expedia.com search results One Way Return

2003 Mears Tariff to Orlando International Airport

Mears also markets a SuperPass product that further bundles airport transferswith unlimited transfers between Disney attractions in Mears zones 3 and 4.Other representative transportation providers include Murray HillTransportation Group, Prestige TownCar and AccessLine Transportation.

2003 Mears SuperPass

Murray Hill Transportation Group

Prestige TownCar

AccessLine Transportation

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Additional Nights available at $11.00

$59.00 $70.00 $81.00 $92.00 $103.00

$52.00 $63.00 $74.00 $85.00 $96.00

Adult

Child

3 Nights 4 Nights 5 Nights 6 Nights 7 Nights

$50.00 $90.00

$50.00 $90.00

Magic Kingdom Resorts & Kissimmee 192

Animal Kingdom & All-Star Resorts

One WayFrom Orlando Int'l Airport Round trip

$45.00 $80.00All Other Disney Resorts

$45.00 $80.00Universal Studios

$45.00 $80.00Downtown Orlando

$40.00 $75.00International Drive

* After $5 Off Coupon for Internet Reservations

Family of 5 Shuttle or BusPer Person

$80.00* $25.00

Hotels & Resorts

International Drive / Convention Center Area

Prestige TownCarRound Trip

Orlando International AirportTransfer Rates

Compare to OthersRound Trip

$80.00* $28.00Lake Buena Vista

$80.00* $28.00

Taxi

$65.00

$80.00* $28.00International Drive / Convention Center Area $90.00

$80.00

$90.00Hwy 192 Area

Up to 4 Passengers. Includes meet and greet at the baggage claim and road tolls.

$35.00 $65.00

$40.00 $75.00

$40.00 $75.00

$40.00 $75.00UCF Hotels

One WayTo Round trip

$45.00 $75.00Lake Buena Vista Hotels

$45.00 $75.00Disney Resorts

Universal Studios Hotels

$45.00 $80.00Maingate Area Hotel - Hwy 192

Downtown Orlando

$ 5.00 $10.00Additional Passenger

International Drive Hotels

$ 9.00 $14.00 $14.00 $16.00 $22.00

$14.00 $24.00 $24.00 $28.00 $40.00

$ 6.00 $10.00 $10.00 $12.00 $18.00

$10.00 $17.00 $17.00 $20.00 $31.00

Adult One Way

Adult Round Trip

Child One Way

Child Round Trip

Zone 1 Zone 2 Zone 3 Zone 4 Zone 5ORLANDO INT'LAIRPORT HOTELS

DOWNTOWN,S. ORLANDO

INTERNATIONALDRIVE

LAKE BUENAVISTA, WALTDISNEY WORLDHWY. 192 W.

KISSIMMEE, E.S.27 & 1-4. HWY.192 east of S.R.535 WINTER PARK, MAITLAND

The current ground trans-portation offeringincludes taxis, towncars,limousine services and buses

High Speed Rail will drawfrom the auto tripmarket, particularly forintercity trips

2.2.4 Public Transit

The public transit agency, Lynx, serves Orange, Seminole and Osceola counties.Lynx offers an extensive public transportation system recognized for its inno-vation in service design and delivery. In addition to conventional services theLynx ‘Lymmo’ is a branded bus service that operates on a three-mile dedicated-lane system in downtown Orlando. Lymmo service is available free-of-chargeto customers.

2.3 Competitive Analysis

Metro Orlando is served by a range of transportation options. Visitors travelingto and from Orlando can do so via the extensive highway network that connectsit to all major metropolitan centers. Air travel is accommodated by a choice ofdomestic and international carriers, operating out of Orlando International andseveral other airports. Local travel options include both public and private tran-sit service operators (Disney’s manages its own transit fleet), shuttle and taxiservices, and personal automobiles.

The availability of High Speed Rail Service in the marketplace can be seen asboth a source of competition and complimentary to existing transportationoptions. High Speed Rail poses no direct competition to international or interstateair travel, but will compete directly with air travel in the common markets that itserves. Air travel may provide faster flight plan times, but once airport access,check-in, security and baggage claim wait times are factored in, the total traveltime by rail is very competitive. For example gate-to-gate travel time betweenTampa and Orlando is approximately 45 minutes. An additional hour and 20 min-utes needs to be factored in to arrive at total air trip travel time for direct flights.

At the current service level – one non-stop flight per day- air service does notpose a significant threat to High Speed Rail, nor does it constitute a significantsource of potential new riders.

High Speed Rail will draw from the auto trip market, particularly for intercitytrips. The Florida High Speed Rail Ridership Study team estimated the uncon-gested travel time between the Tampa and Orlando markets (Downtown Tampato Orlando International Airport) in 2000 to be 82 minutes increasing to 91 min-utes during peak periods. Travel time during these periods is projected toincrease to 84 and 99 minutes by 2025.

Rail travel times of approximately one hour are very competitive with privatevehicles and transit alternatives even when transfers are factored in. Travel byrail also allows customers to take advantage of amenities and facilities andmake more productive use of their travel time.

2.4 Economic Environment

The dominant feature of the economic landscape is tourism. Metro Orlando ishome to many popular tourist attractions, including Walt Disney World, Disney-MGM Studios, Epcot, Disney's Animal Kingdom, Universal Studios Florida,Universal Studios Islands of Adventure, and Sea World of Orlando.

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The development of theHigh Speed Rail system inthe market will help fueleconomic growth

The region hosted more than 39.12 million U.S. visitors and 2.86 million ofoverseas visitors in 1999 and enjoyed an estimated 23 million overnight touristvisitors in 2002, which is projected to grow to 27 million by 2005. MetroOrlando has approximately 107,000 hotel rooms - the second largest concen-tration of hotel rooms in the U.S. In addition to hosting a significant number ofvacationers, the hotels also benefit from a robust convention and trade showmarket. The Orlando/Orange County Trade and Convention Center, thenation’s second largest meeting facility, houses more than 2.1 million feet ofexhibit and meeting space and more than 3.6 million people are estimated tohave attended meetings and trade shows in 2001.

The region has enjoyed relatively healthy economic and employment growth.While this is fuelled in large part by the tourism sector, the region is also home toa number of high tech, aerospace and manufacturing businesses, the University ofCentral Florida and other post-secondary institutions. Regional employmentstood at 857,000 in 2002 and is projected to grow to 928,000 by 2005.

Disney is the region’s largest private-sector employer (53,000) followed byFlorida Hospital (12,808) and Universal Orlando and Orlando Healthcare(12,000 each). The largest public sector employer is the Orange County PublicSchool system (25,000), followed by the State of Florida.

The development of the High Speed Rail system in the market will help fueleconomic growth. The economic benefits of High Speed Rail to Florida havebeen documented in several recent studies. For the period corresponding to thecapital program for the Beeline Alternative the following economic benefits aregenerated for Florida businesses and residents.

• $2.5 billion in business sales

• $813 million in employment earnings

• 6,790 jobs during the five-year construction phase

For the 30 year analysis period for continuing operations the benefits are:

• $4.8 billion in business sales

• $1.7 billion in employment earnings

• 1,230 permanent jobs over 30 years operations and maintenance

For the period corresponding to construction activities near station sites, theeconomic impacts for the state of Florida are estimated as:

• $1.2 billion in business sales

• $375 million in employment earnings

• 2,780 jobs over a five-year period of phased development

The estimated impacts for the capital program, operations and maintenance, andconstruction activities in proximity to stations are additive. Thus the totalimpact results in $2.9 billion in employment earnings in year-of-expenditure

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(current) dollars. Sales among Florida firms total $8.5 billion in year–of-expen-diture (current) dollars. These impacts result from the direct expenditures toimplement and operate the proposed service and other impacts that occur ashigh quality rail service draws economic activity to the corridor and higher valued land use results from development and redevelopment activities.

3 Opportunities & Challenges (SWOT Analysis)

3.1 Strengths

• Speed

• Frequency

• Travel Time (direct access)

• Convenience

• High levels of customer service and access to amenities

• Traditional allure of passenger rail services

• High level of public support

3.2 Weaknesses

• Fixed link system

• Perception of cost, particularly relative to automobile use

• Dependency on other services for trip integration

• Need for passenger transfers

3.3 Threats

• Ridership impact of Disney decision to maintain its own transit services

between the airport and resorts

• Limited political support

3.4 Opportunities

• Development of partnership and alliances with other transportationservice providers, resorts and attractions and the travel industry todeliver a seamless, integrated customer travel experience

• Unique Florida brand

• Opportunity to showcase emerging technologies and ‘last mile’ servicedelivery alternatives

Estimated economicimpacts - $2.9 billion inemployment, $8.5 billionin sales by Florida firms

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The US Federal RailroadAdministration selectedBombardier to develop anon-electric, high-speedlocomotive specificallyfor the American market

Bombardier JetTrain is the only FRA Tier IIcompliant high-speed rail technology in the world

4 Service

4.1 Service Description

The Tampa-Orlando High Speed Rail link will feature Bombardier JetTraintechnology. JetTrain technology is the product of a joint development partner-ship with the US Federal Railroad Administration (FRA). The FRA selectedBombardier to work with them in a public/private partnership to develop a non-electric, high-speed locomotive specifically for the North American market-place. A key objective was to develop a meaningful alternative to the unsightlyand often cost-prohibitive practice of electrification of railroad right-of-ways.

The highly successful outcome of this initiative was a jet-engine powered loco-motive capable of sustained operating speeds of 150 mph. This uniquelyAmerican solution has it all - sustained high speed and rapid acceleration withnoise levels at trackside less than or equal to electric powered systems. All pas-senger cars and services are fully ADA compliant. Bombardier JetTrain tech-nology is designed for America, made in America, and already certified to USsafety and ADA standards.

Speed: This system will be capable of operating on an unconstrained alignmentat speeds in excess of 120 mph, meeting the requirements of Florida’s constitu-tional amendment. The Tampa-Orlando High Speed Rail Service will achievean operating speed of 125 mph using Bombardier’s JetTrain technology.

Safety Standards: The interlocking controller and the ATP system will providefail-safe measures for the signaling and control equipment. The interlockingcontroller incorporates dual-channel redundant system architecture to assurereliability of critical safety systems. Infrastructure safety measures include provision of vehicle barriers, as appropriate, along the guideway and roadway,providing safety to motor vehicle traffic. Passenger safety measures at stationswill include railing and gating to promote safe movement in the vicinity of thestation and on the train platform. The Tampa-Orlando High Speed Rail Servicewill meet all federal safety standards in design, construction, operation, andmaintenance phases.

Performance Standard: The major performance features include:

• Opening service with 14 daily round trips between Tampa and OrlandoInternational Airport and not less than 8 shuttle roundtrips per day,exceeding the required minimum of 12 daily round trips

• A technology and train configuration (consist) that accommodates 288exceeding the required minimum passengercapacity of 250 passengers perconsist

• Service hours from 6 a.m. until 11 p.m.

• A consideration for increased service above minimum levels in order tooptimize ridership and revenue

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High Speed Rail will servethe needs of distinct customer groups

Station Locations: Stations are planned for Tampa, Lakeland, Disney, Orlandoand the Convention center [subject to final alignment choice]. Table belowidentifies the station locations for each alternative alignment and also shows thetrip times as determined by Train Performance Calculator (TPC) analysis.

For a trip from Tampa to Orlando, with a one minute station stop at intermedi-ate stations, Train Performance Calculator analysis determines a trip time of 58minutes from Tampa to Orlando International Airport via the Greeneway corri-dor (Designated Alignment C) and 63 minutes via the Beeline corridor(Designated Alignment D). The Tampa-Orlando High Speed Rail Service pro-posed technology and Operating Plan will deliver a system travel time that isless than the Authority’s requirement for a 1-hour 10-minute maximum traveltime between Tampa and Orlando International Airport, including stops.

Train Performance Calculator Analysis of Trip Times

5 Segments and target markets

High Speed Rail will serve the needs of several distinct customer groups includingintercity travelers, commuters, tourists, business travelers, groups and air travelers,amongst others.

5.1 Intercity

The Authority's ridership study revealed that the intercity travel market, whichcomprises of trips made within the proposed corridor between the Tampa,Orlando and Lakeland centers would represent over 60 percent of anticipatedridership, with the connection between Tampa and Orlando accounting forabout 30 percent. This market comprises a mix of local residents and visitors,traveling for a variety of purposes including work commuting, business traveland vacation/recreation and personal business.

5.2 Airport Access

The other significant market opportunity for High Speed Rail lies in trips made to/fromthe Orlando International Airport by air passengers traveling to destinations outside ofthe rail corridor. A large proportion of these trips are expected to be generated by theDisney properties and the other attractions in the International Drive area. Asignificantdemographic feature of this segment is the number of children and families.

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13.8

6.9

22.6

20.0Tampa to Lakeland

Station to Station Trip Time (min)

10.5Convention Center to Orlando International Airport (Designated Alignment D)

58.4Total TPC Trip Time (Alignment C)

Disney area to Convention Center (Designated Alignment D)

63.0Total TPC Trip Time (Alignment D)

Lakeland to Disney area

Disney area to Orlando International Airport (Designated Alignment C)

Key determinants of theHigh Speed Rail fare structure are revenueoptimization and the distinct characteristics ofthe market segments

While the frequency of rail service delivered to these individual markets willnot be differentiated, given their unique travel, information and other needs andvarying degrees of price sensitivity, elements of the High Speed Rail marketingmix such as fares, fare distribution channels, information, connecting trans-portation services etc. will have to be tailored for each of the segments.

5.2.1 Choice

The Airport access market can be further divided into Choice and Captive cus-tomers. Choice customers are those travelers who are currently making theirown choice of mode of travel to and from the airport. This segment is estimatedat approximately 5 million travelers with an average of plus or minus 2 millioncustomers expected to use either the Beeline or Greeneway alignments.

5.2.2 Captive

The actual values of these markets are dependent on negotiations with entitiesand providers currently providing this service. If agreement can be reached withInternational Drive entities allowing the HSR operator access to all their cap-tive markets, ridership on the Beeline alternative will increase to between 2.5and 2.8 million riders generating total annual revenues of $39 to $42 million. Ifagreement can be reached with Disney allowing the High Speed Rail operatorto access all their captive markets, the total potential ridership on theGreeneway alternative would increase to between 3.8 and 4.1 million ridersgenerating total annual revenues of $54 to $56 million.

6 Pricing

6.1 Pricing

The proposed full fare of $46.40 for service between downtown Tampa and theOrlando International Airport was developed based on elasticity analysis andmarket pricing theory. The speed and amenity offering of the High Speed RailService easily supports this fare level for the Choice market. Comparable airtravel between Tampa Bay and Orlando, depending on airline restrictions andpolicies, ranges from $145 to $270, inclusive of all taxes and fees. For travelby automobile, the Florida High Speed Rail Authority's ridership study esti-mated a cost of $0.36 per mile for business travelers. This makes the compara-ble cost of traveling the 84 miles between Tampa and the Orlando InternationalAirport by automobile roughly at $30.

6.2 Fare structure

Key determinants of the High Speed Rail fare structure are revenue optimiza-tion and the distinct characteristics of the market segments. Fare SensitivityAnalysis shows that Choice customer fare revenues are optimized at rates of 60 percent higher than the base level fares used in the Authority’s InvestmentGrade Ridership Study.

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A technology plan will beprepared for the systemthat will optimize integration

The commuter fares provide a significant discount over the full fare. The com-muter fare represents the average per-trip cost of a weekly or monthly pass andcompares favorably with the Florida Department of Transportation estimate of$17.50 for travel by conventional rail, based on Amtrak's fare calculation formula of a $9 fixed rate plus $0.108 per mile between the two markets. Thecommuter fare will be available only to authorized local residents.

For the Captive market, Orlando International Airport to Disney, a net $12 fareis anticipated.

High Speed Rail Fare Matrix – Choice Customers

6.3 Fare distribution

The nature of the Tampa-Orlando market mandates the need for a multi-channeldistribution system for ticket sales including pre-sales, packaging, on-line services,in-property sales and station ticket vending machines. The establishment of arobust on-line reservation and purchase system will allow access to ticket sales forboth individuals and agents. A technology plan will be prepared for the system thatwill optimize integration with existing legacy systems of attractions and operatorsin the region and provide maximum flexibility. The choice of fare technology willalso permit the authorization of local vs. guest travelers – and permit differentialtariff structures. Consideration may be given to designing a system of reciprocalticketing privileges with one or more transportation operators including airlines,major attractions, the local transit authority, Amtrak and private operators.

7 Marketing Objectives

1. To support the achievement of ridership and revenue targets

2. To establish a strong brand for the Tampa-Orlando High Speed Rail Service

3. To deliver a customer centric service design and operating environmentthat will achieve consistent customer satisfaction ratings in the high 90’s

4. To differentiate between the customer segments to be served in this market

5. To optimize the number and diversity of partnership arrangements withregional attractions, transportation providers and business enterprises

6. To identify and exploit non-fare revenue opportunities

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Station Pairs Full Fare Commuter FareTampa-Lakeland $24.00 $ 8.40

Tampa — Disney Area $40.00 $14.00

Tampa — I Drive $43.20 $15.20

Tampa - OIA $46.40 $16.40

Lakeland — Disney Area $28.80 $10.00

Lakeland — I Drive $32.00 $11.20

Lakeland - OIA $35.20 $12.40

Disney Area — I Drive $16.00 $ 5.60

Disney Area - OIA $19.20 $ 6.80

I Drive — OIA $19.20 $ 6.80

8 Key Strategies

8.1 Branding & Positioning

Bombardier JetTrain clearly demonstrated the value of branding at the highlysuccessful launch of the new technology in Washington DC in October 2002.Further evidence of the power and momentum that can be created around astrong brand was seen during the Florida JetTrain 2003 Tour. Building on analliance with PK Racing Cart Champion Mika Salo, a series of media eventswere staged in Miami, Orlando and Tampa, following Mika’s podium finish atthe Grand Prix Americas in Miami on September 28, 2003.

Drawing on market research and best practices a unique brand will be devel-oped for the Florida High Speed Rail Service. The new brand will leverage theappeal of High Speed Rail Service, showcase the Florida offering and salute thevision of the people of Florida in entering this new era of transportation.

8.2 Customer Centric Service Design

One of the key strategies to ensuring project success will be a customer-firstfocus. This will be enabled primarily through the detailed analysis of customercontact points. In order to better understand the distinct needs of different cus-tomer segments, it is useful to closely examine the anatomy of a trip by high-speed rail. This is completed from a customer’s perspective through the devel-opment of a Transaction Chain - an inventory of all the potential contact pointsbetween customers and the service.

Each of these customer contact points is then examined from four distinct per-spectives, summarized as follows:

Understand the customers’ needs at the contact point

Design the service and experience to deliver service quality at the contact point

Deliver the service and experience effectively and efficiently

Discover from the feedback and responses

Application of this detailed and thorough methodology ensures that customerneeds at each contact point of a customer's travel experience (pre-trip, trip andpost-trip) are understood; infrastructure, service, policies & procedures aredesigned in response to identified needs and appropriately delivered by staffand other applicable delivery mechanisms in a consistent manner; and customerresponse and feedback monitored to ensure continuous improvement and keeppace with evolving needs and expectations.

Perhaps as critically, the focus on the customer facilitated by this process alsofunctions as the basis for coordinating and integrating the efforts of all of the

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Champ Car driver Mika Salo welcomes theBombardier JetTrainFlorida 2003 Tour

High Speed Rail Servicedelivers what customerswant

various disciplines and activities involved in the project. Architects, engineers,accountants, planners, front-line and security staff, among others, develop anunderstanding of the interdependency and impact of their respective roles inshaping the customer experience at any given contact point, and ultimately theirinfluence on ridership and revenue.

A customer trip on the Florida High Speed Rail Service can be broken downinto three constituent phases:

• Pre-Trip Phase - During this phase, the need to travel is generated by a precipitating event or planned activity. Customers may consider and evaluate arange of transportation options, either on their own (websites, call centers,printed materials) or through a third party (travel agent, tour operators, resort orhotel). Ensuring that Florida High Speed Rail Service is included in a cus-tomer's consideration set is a critical requirement at this stage.

At this stage, typically customer needs are for information on attributes such asservice levels, fares, schedules, required transfers and trip times. Assuming thatHigh Speed Rail Service provides a good match with the criteria set by the cus-tomer, a reservation/ticket purchase transaction is completed and the next phaseof the trip is ready to be initiated.

• Trip Phase - A trip by High Speed Rail will require the customer use a com-plimentary mode of transportation to access a rail station and, in most cases,then travel from a station to their ultimate destination. While the customerexperience on the High Speed Rail Service itself is important, a poor experiencewith a connecting mode could negatively influence the customer's perception oftheir subsequent High Speed Rail trip - underscoring the need to ensure thedevelopment of a seamless, integrated network of transportation services.

While using the High Speed Rail system, customers' safety and security, infor-mation and creature comfort needs will have to be addressed through a combi-nation of elements including, courteous, knowledgeable and trained staff, direc-tional and instructional signage, and station and train amenities.

• Post-trip Phase - The successful completion of the journey does not auto-matically signal the end of the customer experience with the service. In someinstances, there may be the need to follow up on credit card billings, processrefunds, locate and return lost property and manage customer feedback (bothpositive and negative).

8.3 End to End Service - Baggage Handling

A significant number of passengers will travel with luggage, which will affectthe customer experience and could have an impact on station dwell times andschedule adherence. A Baggage Handling Plan will be developed to ensure thatbaggage handling procedures support customer satisfaction and minimize thetime required for loading and removing luggage. The latest in automated andtechnology-enabled handling systems will be investigated in the developmentof this Plan.

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8.4 Employee – Support and Training

Employees are the foundation of service success. Great employees can workaround equipment deficiencies, inevitable system shortcomings and a diversecustomer base – great employees make great companies.

Front-line employees will play a key role in assisting, directing and providinginformation to customers, while ensuring consistent and reliable service delivery.However, in order to effectively do so they must be equipped with the appro-priate tools, policies and processes and given support for their efforts to satisfythe needs of customers and deliver customer service. In a market where Disneysets the bar for customer expectations, the importance of well-trained, knowledgeable and efficient staff cannot be overstated.

8.5 Advertising & Promotion

Working from the foundation of a compelling and memorable brand HighSpeed Rail will be marketed using a variety of online, print and partner mar-keting programs.

8.6 Customer Information

8.6.1 Signage

Directional and information signage, that delivers a mix of static and dynamicreal-time data, will compliment the efforts of front-line staff and help customerseffectively and efficiently access and use the system.

8.6.2 Real time information

In an increasingly wired, and wireless, society there is growing expectation thatservice providers will have the capability to assemble and disseminate real-timeschedule information. The proliferation of cell phones, PDAs, laptops andother mobile communication devices provide an opportunity for the High SpeedRail Service to deliver real time service information (delays, cancellations etc.)and for customers to elect to receive information through a preferred, or multi-ple devices.

8.7 Enhanced Amenity Package

There are a wide range of amenities that could be considered both on-board thetrains and at stations that will enhance the customer experience. For businesstravelers, wireless internet capability, business service centers and stress-relievingmassage and spa services would take service beyond the boundaries of standardrail service offerings. Vacationing families could choose from a variety of on-board entertainment options (games, movies, designated play areas and closeencounters with resort characters) to keep their young charges occupied for theduration of their trip. On-line grocery services would allow arriving visitors tocomplete their shopping and be met at their holiday accommodation property

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A customer centricservice design andoperating environment

Assessing customer needsand identifying the keydrivers of customers' satisfaction

with the groceries. The nature and extent of offerings should be determinedthrough research, consultation and customer feedback.

8.8 Research & Monitoring

Achieving ongoing customer satisfaction and loyalty requires a range of activitiesincluding an in-depth understanding of customers, an alignment of businessprocesses around the customer, and the creation of innovative tools and systemsto support employees in the provision of high quality service delivery.

Research provides an objective foundation for assessing customer needs andidentifying the key drivers of customers' satisfaction. It facilitates the estab-lishment of performance benchmarks and standards, which then provides abasis for continuously monitoring and charting progress and assessing the effectiveness of initiatives and activities undertaken.

Customers will be the primary source for gathering information on key attributessuch as service reliability, personal safety, employee presentation and helpful-ness, condition of equipment and facilities, and quality and availability of cus-tomer information. Operating statistics including on time performance, caravailability, fare compliance etc. will be standardized and aggregated into regularreports. Once performance standards are established, all personnel will havethe responsibility of operating to standard, and in the case of non-conformancedeveloping action plans to remedy the deficiencies.

8.9 Community Consultation

High Speed Rail will represent a significant asset to the communities it serves.As such, it should reflect the character, values and aspirations of its host com-munities. There is significant value in encouraging public participation throughconsultative processes in several components of the project, including brandingand identity. This will facilitate community engagement and foster a sense ofownership of the system, which will impact pre-disposition to use, trial and sustained use by residents.

Similar consultative processes should be undertaken with respect to the designand construction of stations and other project infrastructure. The impact of newfacilities on the face of a community and in particular the negative impactsassociated with construction (noise, traffic etc.) are often a significant source ofconcern and conflict for local residents. A complete community consultationplan will be completed to identify and address community and stakeholder concerns and generate mutually agreeable solutions.

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9 Tactics & Execution

There are four critical success factors in meeting the Florida High Speed RailAuthority’s ridership and revenue projections.

9.1 Intermodal Coordination

9.1.1 Traditional Services

A trip on Florida High Speed Rail will typically represent just one segment ofa customer journey, which will be initiated and possibly completed on anothermode of transportation. In order to ensure that the High Speed Rail Service pro-vides a seamless customer experience, a range of intermodal services that cus-tomers can transfer to/from at the stations will be established. Taxi or shuttleservice, public transit, rental or privately owned vehicle and bicycles representsome of the travel options that will considered for integration at the stations.

9.1.2 Innovative Services

There is also the opportunity to consider the development of new products andservices such as Station Cars. For example, a family that arrives at the OrlandoAirport for vacation would typically rent a conventional car for their sole use.A station car program would locate vehicles at “stations" (station car facilities)at all major attractions, the airport, Florida High Speed Rail stations, and themajor hotels. The family would rent a station car (four/five seat cars and mini-vans) only when they need travel to a destination not immediately accessiblefrom a Florida High Speed Rail station. When they are not using a vehicle,other families could be using it, thereby reducing the cost of use for an individ-ual family, while helping to reduce the number of vehicles on the road. Thesame shared-use principle could just as easily be applied to residents travelingfor business or other purposes along the Tampa to Orlando corridor.

9.1.3 Schedule and Fare Integration

In addition to ensuring that customers have a range of intermodal connections to choosefrom, it is equally as important that their travel experience is integrated and seamless.

Air/rail code sharing is emerging as a new practice in the United States and Europe.Code sharing is a commercial agreement between two operators that allows one toput its two-letter identification code on the flights or trips of the other as they appearin computerized reservations systems and in the Official Airline Guide. Customerswill be able to fly on an airplane from their home town to a city served by HighSpeed Rail and then continue on the train to their final destination using the air car-rier’s ticket designator. This will allow customers to have the benefits of a singleticket to destinations not previously available on their airlines network. Companiesthat share codes typically coordinate schedules to minimize connection times aswell as provide additional customer services, such as one-stop check-in and baggage checked through to the final destination. Potential code share partners willbe identified as one of the means of addressing this success factor.

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Electric powered 'Station Cars' encourageenvironmentally friendlystation access solutions

The future is easy.Direct-to-hotel conciergeservices, direct-to-airlinebaggage check in systemsand web-enabled vacation package booking

9.1.4 Baggage Handling

Given that many customers will be traveling with luggage, baggage handlingprocedures and protocols will be established to reduce the level of passengereffort in transferring luggage to/from the train. Options under considerationinclude direct-to-hotel concierge services and direct-to-airline baggage check-in systems such as those in current use by Disney properties, Cruise ShipOperators and the Hong Kong rapid transit system to the airport. This has beenan area of significant development in the past ten years with a range of testedand supported technology solutions now available that deliver authentication,security and tracking of pieces.

9.2 Partnerships

In addition to the need for partnerships with other transportation service providersas described above, there is significant opportunity to develop relationships withorganizations in the travel and hospitality industry that will generate awareness,induce trial and facilitate sustained use of the High Speed Rail Service.

Joint sales and marketing programs, including reciprocal ticket sales, websitelinks and special packages that include High Speed Rail tickets and/or passeswill be pursued with local area resorts, hotels and attractions.

Similar relationships will be fostered with convention planners and the newconvention centre. Discounts for the bulk purchase of tickets and passes for visiting convention delegates, or preferably the development of an integratedconvention participants’ ID that also functions as a pass to use the service couldserve this niche market.

Many of the visitors to area resorts and attractions use the services of tour operators,travel agencies and increasingly internet brokers, such as Expedia.com, to planand purchase their vacation packages. Most of these packages consist of airtravel and hotel accommodations, but may also include "ground transfers".Where possible and applicable, negotiations will be pursued to include HighSpeed Rail transfers in these packages.

9.3 Service Reliability – Passenger Guarantee

The largest potential market segment and target for High Speed Rail Servicecomprises local residents traveling the Orlando/Tampa Bay corridor for com-mute, business and other purposes. Whether the need is to catch a connectingflight, attend a scheduled business meeting or start a day's work, time sensitivitywill characterize many customer trips. Service and travel reliability will be keyto successfully addressing these customers' needs. There are several factors thatwill contribute to and have an impact on service reliability and consistency.

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9.3.1 Safety & Security Policies and Procedures

In the post 9-11 environment, there is a heightened awareness of the need forsafety and security protocols, particularly in the transportation sector. A directimpact has been an increase in check-in and security requirements at all air-ports. This has resulted in increased travel time for air customers. A plan toensure passenger security on Florida High Speed Rail with the least impact onboarding times will be developed.

9.3.2 Service Recovery

No matter how good, or how well planned a service is, mistakes will happen.The great companies are those that know what to do when service failures occur– and how to turn them into opportunities to increase customer satisfaction andloyalty. A detailed Service Recovery Plan that includes provisions for alterna-tive travel arrangements and customer compensation, and that is well under-stood by staff and can be deployed with minimal delay will be developed for theFlorida High Speed Rail Service. The three fundamental elements of the planare:

• Develop listening posts to find out customers’ problems with the service.

• Train, empower and give employees tools to accept and respond to complaints.

• Implement systems that lead to speedy recovery and prevent problemsfrom reoccurring in the future.

Service failures provide a unique opportunity to demonstrate a commitment tocustomer service. As evidence, it has been shown that of customers that expe-rience a service related problem, if it is solved promptly, 95 percent will comeback.

9.4 Customer Driven Service Design

A key strategy in ensuring project success will be a customer first focus. Thiswill be enabled using a detailed analysis of customer contact points and in thestructure and focus of the system facilities, operating company and operationsphilosophy. Customer research will be a key input to service design and to service delivery.

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Great companies turn mistakes into opportunities to 'wow' the customer

10 Budget Envelope & Master Schedule

10.1 Budget Envelope

A budget envelope is contemplated for pre-build stages. The operating systemwill be supported with an annual marketing budget of approximately 20 percentto 25 percent of operating expenses. Marketing budgets may be adjusted subjectto prevailing market conditions and as needed to achieve ridership and revenuetargets.

10.2 Schedule Milestones

Community Consultation Program

Branding

Market Research Design and implementation

Ground Breaking

Service Design Inputs

Technology Plan

Customer Information Plan

Baggage Handling Plan

Partner Program [packaging and reciprocal programs]

Signage and Wayfinding

Service Recovery Program

Customer Care Training

Amenity Package

Launch Campaign – Advertising & Promotion

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