The travel and tourism industry has never faced a shock as swift and destructive as the coronavirus pandemic. Crafting the right strategy now will enable companies to emerge stronger than ever.
If there’s a silver lining to this crisis, it’s this: travel and tourism companies have the opportunity to think much more boldly about the future—and perhaps act on a once-in-a-generation idea. Companies that move fast and remain flexible in adapting to the COVID crisis stand to gain significant market share and secure their positions.
Fundamentals still matter. Travel and tourism companies need to manage pricing and customer relationships in the short term, while retuning their revenue management systems to optimize revenues for the economic recovery. But innovation, driven by bold ambitions, will be the real key to 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, digital transformation, and pricing and revenue management. Here are just a few examples of our impact in travel and tourism and the hospitality industry.
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.
As cautious consumers resume traveling after COVID-19, hotel companies need to understand how the pandemic has altered their preferences and behaviors.
Travel companies can move beyond ticket pricing to focus on new models for customer understanding and engagement.
Travel and tourism companies will need to generate revenue from scratch when the recovery comes. They should view that as an opportunity, not a threat.
In a dynamic market with proliferating travel choices, companies must focus less on what they’re trying to sell and more on what customers hope to buy.
