Efficiency & Engagement Case Study Solution
Top Challenges
When it comes to volatile industries, many people remember the tourism which is certainly one of them. First, the tourism industry is far free from economic, political and social changes.
Now people agree that most of these factors are not controlled by the travel agents such as the Thomas Cook. However, vigilance can contribute in making tourism more proactive and in the rapid development of adaptive strategies.
These are the five main challenges, faced by the Thomas Cook's-tourism sector, which needs to be addressed.
Globalization
For most of us, reservation of a vacation is very costly and it is also an activity that a tourist looks forward to throughout the entire year. Anything that jeopardizes at this point, can provoke a strong emotional reaction.
Whether it was a flight delay, poor service from the travel agency of Thomas Cook or unsatisfactory hotel services;the travelers had to wait to get back from the vacation and send the responsible authority's-complaint regarding their distasteful experiences via email.
Those bad days are gone when the customer flipped through pamphlets and used travel agency words like the gospel. With globalization, travelling has become easier for tourists whether it is decision-making, flight booking and hotel bookings.
Taxation
Tourism is one of the most intensive industries. The Thomas Cook just needs to look at the taxes paid on airline tickets and hotel rooms, to understand how taxes last significant affect over tourism industry. It is therefore necessary for the Thomas Cook to supply products at competitive prices in order to balance the equation.
The government should also be aware of the fact that the tourists have contributed to the local economy through shopping, retail travel and other travel expenses.
Infrastructure
Tourism infrastructure of Thomas Cook is outdated and underdeveloped in many places. The government, travel agencies and marketing organizations need to see a vision to improve the current infrastructure.( Elite Asia Marketing Team, 2017).
With the Thomas Cook relentless efforts for digitization; the street travel agency brought a drastic change. A local data management company reported that 700 street travel agencies closed in the year 2017 due to the online competition. This is supported in a survey conducted by the RSM Group, which found that in the year 2017, only one in five people booked his holiday through physical travel agencies.
The continuing popularity of travel between the shared economy. The shared economy has almost ruined the travel and hospitality industry, and the advent of the internet has almost affected the operations of airlines and travel agencies.
The sharing economy is also called the exchange of experiences, which refers to the use of point-to-point services for the joint consumption of goods. It is usually much cheaper than buying similar products / services from well-known companies.
Voice Search
Digital marketers have pulled such statistics deep into the minds of anyone who wants to listen to the surveys rather than reading them,i.e. by the year 2020; at least 50% of surveys will be voice-based.
For example: Travelport’s 2018 Digital Traveler Survey found that 36% of travelers in the US, use voice search to find trips. Similarly, Microsoft says travelers in the US are increasingly looking for accommodation on mobile devices using the Cortland Digital Assistant. In fact, they found that the volume of hotel searches increased by 343% in the year 2018 as compared to the previous year, and that the volume of flight searches increased by 277%.
Given the above situation, if travel agents are not prepared for voice search, it can adversely affect their online performance. There are many things that travel agents can do to thrive instead of fighting.
First, it is important to understand that the way people search by voice is different from entering data. Common search types are usually limited to a few keywords, while voice search engines usually use multiple words or entire sentences, usually in the form of questions.
In addition, given that young people are considered to be most likely to use voice search, online travel companies may force them to focus. For example: online travel agencies can optimize content for young solo travelers and couples.
Google Monopoly
Most importantly, however, Google Flights is usually at the top of the SERP, so travel companies,such as: Thomas Cook which has similar services, can save less space on its website.The company has made rigorous reviews and criticisms in this regard.
Transformation Roadmap
The transformation road of the suitable technologies for the company is described below:(Navvia, 2017):
- The company wants to move towards the top position in the world of tourism industry. For this purpose, the company uses additional features, such as: the transformational change through the market evolution in its business process. The company uses many options to adopt, such as: the big data, cyber security to articulate its aim to reach on the top of the industry.
- The strategy of the company to get the highest market share in the industry is that it has decided to install cyber security system in its data base, to avoid the technological theft of the information.
- The key change that will occur during this transformation, is an increase in the loyalty of the customers, which will lead towards higher revenue generation.Higher loyalty increases the customer base,hence profiting the company in getting higher market share in the tourism industry.
- The challenges that the company is expected to face during the implementation of the transformational changes in it, pertains to the higher cost, chances of failure, sunken costs, negative ROI, which will demotivate the stakeholders and the most important will be maintaining the company’s financial position.................
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