Huella Hong Kong Online travel is a Malaysian-based travel portal that targets customers in Asia and Asia Pacific. Huella Hong Kong’s revenue growth is decreasing and their market share is declining. Huella Hong Kong has a state-of-the-art technology and business model. The people at Huella need to know what else they need to have or do in order to get out of this downward spiral.
This case analysis will cover the problems Huella Hong Kong is facing, the different stakeholders and their effect on the problem, the alternatives solution, and the recommended solution.
The key players: * Huella Hong Kong: the online booking company. Regardless of their state-of-the-art technology and their creative business models, their revenue growth
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Huella Hong Kong can go even further and offer a combination of both offers above.
The problem with this solution is that existing travel agencies are already making huge profits and controlling most of the market. They won’t be easily persuaded to help a potentially big competitor enter their market. The reason for that is that it’s obvious that Huella Hong Kong would go solo as soon as they get enough recognition in the market. If this happens, it’s going to be hard for the traditional travel agencies to compete against them. The second alternative is for Huella Hong Kong to open its own offices in Hong Kong following a “Click-and-mortar” model. That will make them appear as any traditional travel agency. Through that, they will be able to attract customers more easily. After acquiring a customer base, they can start educating people more and more about online booking and then inform them about Huella Hong Kong’s website and how that it is in fact more convenient for customers to use the website than to come to the physical office. Then, they can phase out the traditional physical offices gradually until they go back to the original model completely.
The problem with that is that this solution will require new business models in order to facilitate the opening of the physical spots. Also, at a certain point of time they will have to get rid of all the tangible assets they acquired when they
Senior management at Outrigger is aiming towards entering management agreements with large brands and third part owners. Online agencies such as Expedia, TripAdvisor, and Orbitz are threatening Outrigger’s ability to provide consumers information through human travel agents (Piccoli). I would recommend implementing more functionality into their web services to handle all kinds of travel requests so no revenue is lost to competitors. This would also eliminate the need for travel agents, instead replacing them with the occasional, cheap customer service employee, cutting costs as
2) Compare the articles with the contract services account information. Do you notice anything that might lend credence to your theory that Syntech could be a shell company?
Travel Agency, Inc. ultimately wants to move to a leaner and smaller footprint to save costs and to help service their customer base. However, to do this, Travel Agency, Inc. will need to overhaul their network to meet the requirements of a telecommuting business model. This business model will ultimately serve to help Travel Agency, Inc. grow and thrive in this highly aggressive and competitive market.
It was developed to strengthen the company’s marketing and financial position. JAL is known for its aggressive global marketing and application of new technology in hotel operations, the company is determined to establish a worldwide network of hotels comparable in number to Hilton, Sheraton, and inter-Continental.
Alternative 1, comparing all other 4, gets the least revenue (32,540,428). Although it is feasible in short-term and might drive FunTour out of the market, it does not concern with the obsolete of travel agents. Giving the negative revenue for the base segment (see Exhibt 2), it is not long-term sustainable. Moreover, even if the competitor is eventually driven out the market, Paradise will have to raise the price again in order to get back on its previous profitability; Paradise runs into the risk that the customers will feel cheated and uncomfortable with
“A Tale of Two Airlines” is an article written by Christopher Elliott to educate to economy on travel planning. He was born on May 31, 1960. He is a journalist and consumer advocate who writes for people who want to become more informed travelers (www.nbcnews.com/id/10912488/ns/travel/t/Christopher-elliott/#.Vc_RIO9RGM8). He is known for his many articles with the National Geographic Traveler Magazine and being a travel columnist with the Washington Post and USA Today. A Tale of Two Airlines or is Good Vs Evil in the air; Southwest Airline vs Spirit Airlines.
In April 1992, American Airlines launched "Value Pricing" -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. The critical issue raised is: Would American's bold initiative work?
àAs a result, the number of user-oriented travel tools on airlines’ direct Web sites increased dramatically in just a few short years. Aggregator Web sites : Such as Expedia.com, Orbitz.com, and Priceline.com A pseudo-competitive position relative to the airlines' own direct Web sites but also offered services beyond flight purchase, including hotel and vacation packages. The airline paid a fee to the
The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.
American airlines is a corporation that exhibits all of the characteristics of a firm in an industry where good tactical management is the key to success. This company and its regional airline partner American eagle serve almost 250 cities around the world and operate more than 3600 daily flights. Its goal is to provide safe, dependable and friendly air transportation along with related services, making a great effort to transform any experience into a positive one. All of the services that this company has and the image that they are trying to keep in every day activities make each day an inevitable challenge for its employees.
There are many recommendations that it has to consider for the next three years. For instance, it has to reduce its cost to the customers. This will facilitate in ensuring satisfaction of customers as a result of affordable prices. Second it should establish other travel branches in different parts of the world the organization may use $3000 for the expansion. This will facilitate in attraction of a large market share which will result to increased profit. The organization should also ensure that it advertise all its services through various media services that will meet many customers with an aim of convincing them to prefer their services as compared to those if other organizations.
The global hotels issue is that the cost on hotel spending is high. The annual total spending in 2003 was €70M. Although Betapharm has a global travel agent, employees are acting as independent agents when making hotel reservations. Each employee has his own set of preferences and criteria. The company has a large supply base of over 1,500 hotels currently being used. If Betapharm changes to
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2. The London based Airline could have verified their passenger list and should have identified Prof. McPherson as a Gold card member and a loyal customer and should have taken any one of these actions based on the situation:
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