TOURISM & TRANSPORTATION
Winning in, travel, tourism and transportation requires a new STRATEGIC approach and the ability to uncover UNIQUE insights about consumers, brand, technologies and operational performance.
Tourism represented something personal to people but now the entire experience is SHARED and EVALUATED publicly through digital technology.
In the travel and tourism industry there are several critical factors that will impact consumer’s behavior both the short and the long term:
- Increased connectivity during the entire travel and connection with social media platforms offer travelers more personalized, more and more valuable experiences during every phase of the journey.
- Mobile and mobile apps. Mobile Taking into account the link between mobile connectivity and the personal nature of travel, Facebook, through its large ad format became “prime digital agency” for hotels, airlines, OTAs, and other travel companies.
- The rise in mobile makes the proliferation of apps ever more critical. Digital usage is shifting consumers away from desktop and laptop to mobile—and specifically to mobile apps. When people use mobile devices, they’re using apps, decreasing the influence of the web-based searching.
Successful players are adapting faster than their competitors: they increasingly invest in digital and bring innovation—new functionalities in their mobile apps, for example—to market earlier. This usually means shifting investments from traditional marketing channels to digital.
Mergers and strategic alliances, agility on resources allocation and digitalization will generate development and profitability for transportation companies.
To develop and implement smarter strategies, transportation companies’ leaders must incorporate in their strategies the following essential requirements:
- Agility in resource allocation.. Executives can unlock the benefits of agility by overcoming common barriers that hinder flexible resource reallocation. Usually those are: lack of intent, an inadequate process, and a lack of the right skills and mind-sets.
- Resolve the asset dilemma. Flexibility provided by financial leases rarely justifies insurance primes so many companies could overcome competitors by owning a part of their fleet
- Digital transformation – a success story. Facing the pressure of digitally transportation and logistics companies must outline a digital strategy tailored on its own value drivers. Instead of just “adding” digital outside of existing structures, corporations can create much more value from digitization if they build on their existing assets using their strengths (product portfolio and product-development team, existing customer relationships, company assets, and business-building approaches).
- Strategic alliance mergers and acquisition. Using mergers and acquisition as the predominant source of growth, transportation and logistics companies will need to develop a programmatic capability to identify, and integrate attractive acquisitions. In addition, companies will to develop strategic alliances to access new markets and capabilities in a cost-effective way.
- Manage the uncertainty. A smart strategy takes into account traditional markets and company’s experience. Through a prudent approach executives must be explicit about the assessment and management of risk and uncertainty into the strategy process. Among sources of uncertainty, changes in regulation can put substantial value at risk. Mitigating the negative impact of regulatory change, and capturing the opportunities it creates, requires a company to rigorously map its stakeholder landscape, engage stakeholders with the right mind-set and fact base, and build crack external affairs capabilities and resources.
Executives who are able to combine these inputs into a compelling strategy will have a real chance to perform in the future.