A Mythical, An Authentic Destination

The tourism industry is in the midst of a vast transformation. As with many sectors, several factors are in play. Advances in technology are creating new opportunities for communication and sales. Customers are picking up on these quickly, thereby generating new demand patterns. At the same time, deregulation is paving the way for new competition. These factors are forcing the tourism companies—from travel agencies to tour operators, hotels, and airlines—to review their business models. Flexibility and a clearly differentiated offering are keys to success.

A decade after the Internet spurred airlines, hotels, and other travel players to sell directly to customers, the sector’s ecosystem is fracturing. Companies are abandoning the systems that are supposed to provide consumers with one-stop shops to book flights, accommodations, and other services, and the very people whose interests should be paramount—customers—are being caught in the cross fire. That’s giving newcomers a chance to swoop into a sector that today boasts annual online sales of almost $100 billion, around one-third of all global e-commerce activity.

This turbulence isn’t a bad thing: the travel sector has reached the next phase in its evolution, and some creative destruction is necessary. In fact, companies are already investing billions of dollars in the next wave of travel e-commerce, from revamping Web sites to changing the technology infrastructure. Consolidation is also creating opportunities that previously didn’t exist. But the critical question is whether the sector’s players can find a sustainable path forward before new rivals blaze the trail for them.

The bottom line is that travel suppliers, aggregators, and service providers each need to define the sector’s next wave quickly. We suggest that industry incumbents move away from a model focused almost exclusively on reducing channel costs and toward one that seeks to maximize returns by best serving customer needs. The incumbents must understand that the customer experience not only begins before the time of sale—and even before the time of search—but also extends well after purchase and travel. The changes we recommend don’t require reinventing the wheel: many solutions already exist, but the sector’s myopic focus on costs rather than returns prevents their implementation.

What We Do

We understand the challenges that hotel, resort, and gaming developers face in assembling land, obtaining gaming approval, and creating projects that will stand out in fiercely competitive global markets.

Our deep expertise enables us to assist clients in developing programs. We use innovative approaches to tailor offers precisely to customer requirements and to align process flows and organization structures with new strategies. We also support regional projects aimed at developing tourism. Our work spans the globe and touches on topics such as planning and investing in infrastructure, designing products, and branding.

Our Project Management Practice serves both owner teams and contractors. Supported by our broad network of external experts, our global team of consultants constantly tests and refines its proprietary tools and solutions. To ensure the long-term success of a project, we work closely with clients to build their capabilities at every stage. Our on-the-ground experience in and deep knowledge of functional topics, such as organizational effectiveness, lean execution, procurement, supply chain management, and risk management, uniquely position us to support both project owners and contractors.


Featured Capabilities

We help our clients decide what to build, how to do it more affordably and quickly, and how to enhance the existing infrastructure.