ESAM M1 Alternance
Case Study : Selling
A partnership agreement - How can a jet charter company stay ahead of the competition? Background
EPJS (Executive and Private Jet Service) is a jet charter company. lt arranges travel in private jets for top executives and VIPs (very important people). It provides a customised service, looking after all its customers’ requirements, from booking tickets to transporting air travellers to their ﬁnal destination.
It is currently negotiating a partnership agreement with the Megaluxe group of hotels. Based in Stuttgart, Germany, Megaluxe has ﬁve-star hotels across Europe, Asia and South America. EPJS has agreed to give Megaluxe ‘preferred partner status’. This means that EPJS will always reserve rooms for its customers in a Megaluxe hotel, providing the customer has not expressed a preference for another hotel.
EPJS is a fast-growing company, but it is facing strong competition from other charter airlines. To beat the competition, it must offer customers a very attractive package: good-value prices, special assistance at airports, superb hotel accommodation and outstanding service. EPJS and Megaluxe have met several times. They are now ready to negotiate some of the key terms of the contract.
Welcome to Megaluxe hotels !
Every modern convenience
Splendid views of the city
Elegance, luxury, relaxation
Rate per night
$4,000 per night
$1,000 per night
$850 per night
You are directors of Megaluxe.
These are the points you will need to negotiate, together with your negotiating oosition on each one. • Negotiating point
• Length of contract
• Contract lengthThree years, then...
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