CASE 5-5 : AAA

WASHINGTON

Presented By:
Amit Kumar Yadav : ##8
Hitesh Dutt : #20
Kuntal Datta : #25
Poorva Bhardwaj : #32
Saurabh Savant : #45
Vijay Gopal : 57
 About AAA Washington Club
2

 Regional automobile club affiliated with

AAA in Washington with 69%
membership
 AAA a national association services its
affiliated members through the clubs
 Association sets a minimum number of
standards for club to comply to retain
the association
 Club is free to decide its own products
and services to offer and the pricing
 AAA Washington 02/15/10
 Contd…
3

 Founded in 1904 – 26 Washington counties as

service territory
 Benefits to members :
 Emergency road services
 Rating-service for lodging
 Restaurants
 Automotive repair shop
 Expanded protection plans
 Financial services – affinity credit cards,
personal line of credit, checking and
saving account, time deposits, traveler's
cheque etc.

 All the services through network of offices located in
Bellevue,
 Bellingham, Bremerton, Lynnwood, Olympia, Renton,
Seattle, Tacoma, AAA Washington 02/15/10
 Tri-cities, Vancouver, Yakima
 Membership types: AAA
4

 Basic :
5 miles of towing from point of disability
 AAA plus
 100 miles
 AAA plus RV
 100 miles to owners of recreational vehicles
in addition to passenger cars and light
trucks

Estimates of delivering road services : $9.5
million,
37% of club’s annual budget
AAA Washington 02/15/10
§
 Ways of delivering road
5
services
 AAA Washington services fleet
 Disabled in Seattle downtown area
 Contracting companies
 Within AAA Washington service
areas but outside Seattle
 Reciprocal reimbursement
 Payment made to local club
contacted by the vehicle owner
 Direct reimbursement
 Paid actual cost or $50 whichever is
less to the member who chooses
to arrange for own emergency
services
AAA Washington 02/15/10

 Analyzing increase in cost
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 Mr. DeCoria : VP operations opinion:



 Increase in emergency road

service


 Contemplates if this increase is

due to increased number of
memberships


 Determines that average number

of emergency road service per
member has increased from .61
AAA Washington 02/15/10
 ANALYSIS
7

LINK

AAA Washington 02/15/10

Questions ??
8

 THANK YOU !

AAA Washington 02/15/10