FOCUS ON…
WHAT’S THE LATEST IN TOUR OPERATING ?
Paolo Bertozzi
Associate Professor IULM
A.D. TradeLab
IULM University
Milano, 27th March 2009

What’s up, TO ?
(a short introduction)
First comes the Client
The Travel Industry Changes
The Questions
Who answers

First comes the Client
Consumption behaviour
Income uncertainity is pressing on consumers
Needs and wants, what’s changing
Consumer knowledge is rising
Brand power (awareness, orientation, preference, loyalty) is under fire
Searching for (really) new products
Buying behaviour
Information is multichannel
Buying is … mono-multichannel
Where do the market share is building up
One market, many segments

Crisis and consumer’s behaviour:
risks and opportunities for the travel industry and specific brands
High Cost –
High impact on consumer’s expenditures
Lowering consumptions Rising consumptions
Premium brands and premium High potential for leader
channels loose market share in brands and leading retailers
favour of low price brands, retailers
and channels
Category Brand and
Brand and
Low Benefit – High Benefit –
Switch Retailer
Retailer
Switch
Switch
Low impact on High impact on
perceived perceived
quality of life quality of life
“Anti-crisis” Categories
Unsignificant and
Rising consumptions
unpredictable
effects Premium brands and
channels gain market
Low Cost –
Low impact on consumer’s expenditures

The Travel Industry Changes
High fragmentation, low control
Internationalization
Changing structure of retail and channels
OLTA are rising
Concentration (multiples, franchising, buying groups, network
groups)
Different formats
Vertical Integration (top down and bottom up)
The finance entrance (and influence) in the travel industry
(No way but ?) Price competition

The Questions:
how to face change?
Consumption crisis and financial crisis: it won’t rain for ever, but which changes will
leave permanent effects on business models and competitive balance?
Differentiation strategies can be applied to the market as a whole or market
segmentation is unavoidable? In this case which segmentation criteria are You adopting?
Innovation: is it a way to give consumers more value and escape from price competition?
which is the more urgent area for innovation strategies: products and/or processes?
How to manage the tradeoff between consumers’ request for flexibility and less
standardization and the need to reduce costs while defending margins?
Multi-channel retailers and consumers: is it absolutely necessary for today’s tour
operators to be also online and sell directly to consumers ?
How to manage a multi-channel world? (different prices, products, promotion and
communication)

Who answers
Anna Schuepbach
Direttore Generale Hotelplan Italia
Michele Serra
President Quality Group
Cristina Tasselli
Marketing, Sales and Development Director
Kuoni Italia
… and, of course, all of You in the Audience