A low-cost carrier with 75% to 80% load factor had a 45% improvement in their forecasting accuracy, using BCG’s state-of-the-art Machine Learning demand forecasting approach.
As the travel and tourism industry emerges from the shock of the pandemic, companies have a clear opportunity to reset their business model and ways of working. Our tourism consulting experts help companies craft the right strategy for success.
COVID-19 challenged travel and tourism companies to think more boldly than ever. As these companies navigate continued changes to the industry, those that remain flexible and adaptive stand to gain significant market share and security. And fundamentals—like managing pricing and customer relationships—coupled with innovation will be key to a strong post-crisis performance.
We currently work with the top travel and tourism companies across the globe.
Over the past five years, we have collaborated on more than 1,100 travel and tourism initiatives, working closely with airlines, railways, the hotel industry, the cruise industry, theme parks, gaming and casinos, government tourism organizations, and more.
We treat travel and tourism as its own unique entity, not an offshoot of adjacent industry topics. Airlines and railroads look very different when seen through a travel and tourism lens versus a logistics and transportation lens. The difference is stark—and now more than ever, travel and tourism needs a highly customized approach. That’s what we offer at BCG.
Our travel and tourism consulting teams work with clients on a wide variety of topics, including strategy, people and organization, sales and distribution, post-merger integration, travel operations, digital operations, business transformation, digital transformation, pricing and revenue management, and social impact and sustainability. Here are just a few examples of our impact in travel and tourism and the hospitality industry.
A low-cost carrier with 75% to 80% load factor had a 45% improvement in their forecasting accuracy, using BCG’s state-of-the-art Machine Learning demand forecasting approach.
While working with BCG to identify and eliminate hidden costs, a US airline reduced expenses by $750 million, with no layoffs or involuntary moves.
A multibillion-dollar global hotel chain needed to enhance its loyalty program. After working with BCG to redesign the loyalty program and build up marketing capabilities, the organization achieved a 20 to 25 times return on investment over five years.
Our travel and tourism consulting team worked with an underperforming online travel agency to define a profitable growth strategy focused on specific consumer segments, creating a plan to improve profits by 20% to 25%.
In 2000, during a period of slow growth for airlines, five major US carriers—American, Continental, Delta, Northwest, and United —joined forces to create the travel portal Orbitz. BCG was involved in designing, building, and launching the startup from the beginning. Five managers from BCG oversaw operations, finance, IT, corporate development, and HR, and helped build a company that sold in 2004 for $1.25 billion. More recently, in partnership with Jeff Katz, the founding CEO of Orbitz Worldwide, BCG cofounded Journera, an industry-wide platform that provides secure, real-time data exchange to help companies create more seamless travel journeys. When it comes to big ideas, we don’t simply consult. We co-create.
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In this episode of The So What from BCG, Jason Guggenheim, BCG’s global leader of travel and tourism, explains how companies can sharpen their ability to sense shifts in demand.
The industry needs a new approach to growing revenues and meeting customer needs. Carriers that embrace offer management can achieve those goals—but transformation is needed.