Travel providers, such as airlines, railways, and ferries, face a separation of business models in which the key success factors are often conflicting—short haul versus long haul, point-to-point versus hubbing, single-mode versus intermodal operation, low cost versus full service.
The rising affluence of emerging markets and the increased competitiveness of travel providers are intensifying the fight for the tourist dollar among countries and destinations. Megatrends such as the aging of populations and concerns about security and the environment are producing demands for different types of tourism. New segments of tourism—such as medical tourism and visiting friends and family—are emerging as opportunities for growth.
The transportation sector is a very large and highly fragmented market. Because nobody can be number one in the total logistics business, most companies struggle to carve out the right segment in order to be successful. But building competitive advantage requires more.
To achieve greater competitive advantage in these complex environments, transportation, travel, and tourism companies must confront many important questions:
How do we transform from a legacy company to face the new realities of global competition and low-cost business models?
How do we secure our customers’ loyalty?
How can we achieve a price premium over the competition with the right product-portfolio mix and branding?
How do we leverage or manage the impact of "green" regulation—or do both? How do we turn "green or sustainable travel" into a competitive advantage?
How do we reengineer processes to meet customer needs at the lowest cost?
How do we leverage the changing distribution of profitability along the value chain?
How can we ensure that the work force is engaged to do what cannot be defined, even in the best-process blueprint?
BCG’s Transportation, Travel, and Tourism sector ensures that our clients have the tools to balance a focus on operational excellence with a strong orientation toward customers’ needs. As one of the most internationally focused groups within BCG, the sector brings teams from around the globe together, drawing on close links with our other functional, consumer, and industrial goods sectors.
We work with the various stakeholders of the travel, tourism, and transportation industry—airlines, railways, ferry companies, cargo operators, postal operators, hotels, theme parks, and cruise lines, as well as logistics companies, ports, governments, regional authorities, and industry associations. Around the world, we help our private- and public-sector clients differentiate themselves in an increasingly competitive environment.