6 key enablers revealed
Amadeus recently published a research study that identifies 6 ways US consolidators can improve their market position in an increasingly-challenging travel environment.
Conducted by Hermes Management Consulting, the study outlines six “leverage points” consolidators can harness to boost sales, reduce costs, improve productivity, enhance customer relationships, and position their companies for future growth.
According to the study, US consolidators are facing increased competition on two fronts:
• Airlines’ direct distribution channel: For the past few years, market and technology conditions have propelled airlines to shift part of their business toward the direct channel. This is a “catch 22,” as airlines are consolidators’ main suppliers.
• Online Travel Agencies (OLTAs): When consolidators came online, they started competing in OLTAs’ territory. As a result, OLTAs started expanding to a business-to-business (B2B) model, gaining clients such as small agencies that were once part of the consolidators’ domain.
Despite the competitive challenges, the Amadeus study says consolidators are uniquely positioned to improve their business in six key areas:
1) Increase automation levels
2) Explore multi-channel distribution
3) Focus on customers
4) Explore new lines of business
5) Build core competencies
6) Improve negotiation with suppliers, especially airlines
The first of its kind in the industry, the Amadeus study was commissioned in mid-2008 to identify current cost drivers and “leverage points” to help consolidators improve revenue and customer value.
The study concluded that consolidators are uniquely positioned to create win-win business partnerships with key suppliers and customers (primarily travel agencies) by harnessing the power of automation.
To download your FREE copy of the report, visit our Web site.
Next month, we’ll explore these six opportunities, and review how Amadeus is helping consolidators leverage technology to improve their overall business performance.
Want to comment on this story? Send us an e-mail!