p14 comment Feb12 10/2/10 11:11 Page 14
news comment
ttglive.com
Chris Lee Barclays Commercial
“If your competition is doing
the same things as you are,
your company’s unique
selling point is not unique”
S
ome of the conversations we have world has moved on and the new system which
with travel companies concern what was going to be brought in is out of date.
they view as their unique selling In travel, last year’s passenger numbers
point. We often hear the same few were about 15% down on 2008, but most of
answers from the many such conversations. our customers in the industry have seen year-
Sales staff specialising in specific destinations, on-year numbers in January/early February
the best contracting and market-leading website improve nicely, in some cases significantly,
technology are generally mentioned. These are albeit from the low base of 2009.
obviously important, but if the competition is But it is well known that over the past year or
doing the same thing, they aren't unique. so, the depressed economic climate, increased
But where a company does find a great uncertainty, higher unemployment and the
niche, then the potential for growth is huge. strong euro have led to a fall in sales of “second-
For example, Southall Travel grew its ary” holidays such as city breaks or ski trips.
turnover from £10m to nearly £200m A ski operator recently told me that despite
and multimillion-pound profits in five cutting prices dramatically in an attempt to
or six years. Travel Republic achieved pick up late bookings, and its prices comparing
something similar. favourably with the competition, some holidays
Some of the best companies plan for certain weeks this season remained unsold.
well in the medium to long term. It can Ski trips can incur a lot of add-on costs,
be easy in any business to concentrate such as ski passes and equipment, as
on current issues without “seeing the well as more expensive food and drink
wood from the trees” and looking for the costs on the slopes. The trend
“helicopter view”. If you have identified towards all-inclusive summer
what your ultimate aims are, then it is holidays has shown that many
clearly a much easier route to get there. consumers prefer a more
We frequently hear companies say there predictable total price.
isn't time to implement cost savings, changes The trend towards later book-
of systems, procedures or even professional ings is also showing little sign of
advisors that will save money and improve abating, which has a consequences for
service and margins. Such changes will be companies’ credit balances. Some bed banks
implemented when “we are less busy”. report that at least 80% of bookings are made
I can't remember the last time I came across within six weeks of departure, so customers’
a company that wasn't always busy, so those funds are being held for shorter periods.
opportunities for progress are often missed
altogether. It is not uncommon that by the time
a company is ready to carry out the change, the Chris Lee is head of travel at Barclays Commercial
14 12.02.2010
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