Tourism, Travel, Leisure & Catering

Tourism, Travel, Leisure & Catering conseil

Secteur Tourism, Travel, Leisure & Catering Eurogroup Consulting

OVERALL VIEW

The French Tourism sector (travel agents, transport companies, hotels and restaurants, etc.) is facing complex challenges…

Despite growth prospects – especially due to foreign tourism – many operators are unable to profitably develop their business.

Indeed, the sector has to manage many new challenges.

  • Fierce competition due to:

- the emergence of new players and businesses in the value chain (online pure players, brokers, search-engine administrators, volume retailing, etc.),
- the increasing share of online purchasing: 66% of purchases in the tourism sector are done online. 

  • The repositioning of players in the sector and changes in their economic models to reduce the number of intermediaries, diversify their business (vertical integration) or consolidate their position in the marketplace (horizontal integration). The lines between the traditional occupations of travel supplier, producer and retailer are becoming blurred.
     
  • Changes in modes of consumption (as in the volume-retailing and clothing sectors), with a disaffection for the mid-range that benefits low-cost and premium and/or customised products (personalised or ‘tailored’ travel is growing by more than 10% each year).

… So economic models must be redesigned…

In this respect, players in the sector must create new economic models to produce offers that are better suited to customer expectations in order to increase their profitability.
Consequently, the sector will tend to be structured around two economic models:

  • the first based on a volume strategy requiring a large critical size, 
  • the second based on a value strategy for smaller organizations (niche offers).

Moreover, players must rely on every kind of lever: cooperation between operators or networks; sharing strategies (purchasing, information systems, etc.); reconfiguration of retailing modes of distribution (points of sale, pricing rationales, etc.); remodelling of customer relations and awareness and loyalty-enhancement tools (partnerships, sponsoring, etc.).

… And the appeal of France must be enhanced 

While France is the prime destination for foreign tourists, it is only the 3rd country in terms of average revenue per tourist.

So the sector must meet the challenge of increasing generated value per tourist.

The improvement of France’s tourist offer (capacity and quality of reception in terms of infrastructure, services, etc.) and the development of initiatives to promote French tourism are core issues in the loyalty enhancement and development of a national and international clientele.

This was the objective of the annual tourism conference held in October 2015, which anticipated a series of measures that will require support, revolving around:
- Reception
- Digital technology: the set-up of major online reservation platforms, development of a national portal for French destinations, etc.
- Training
- Investment
- Diversification of offer: wine tourism, ecotourism, gourmet travel, etc.

So the development of Tourist Reception & Activities appears to be a lever of growth for a certain number of French operators in the Tourism sector, who should focus especially on offers aimed at a foreign clientele. 

Eurogroup Consulting works with tourism institutions, travel-agency networks, tour operators, leisure professionals, restaurateurs and hotel chains to provide support related to all their challenges.

L'offre Eurogroup Consulting - Tourism, Travel, Leisure & Catering Eurogroup Consulting

YOUR CONCERNS

Working on your positioning in the marketplace

- Developing your strategic ambition.
- Conducting a strategic diagnosis of your business and providing you with support in the implementation of recommendations.
- Supplying assistance for your merger or cooperation projects.
- Aiding your international development.
- Drawing up an offer strategy.
- Increasing your visibility and awareness.

Improving your management and optimising your costs

- Identification of a target organization, support-function productivity, process optimisation, Lean approach, optimisation of your points of sale and retailing networks / channels, support for the development of a new property strategy, etc. 

Innovating in your customer-relations approach

- Reshaping offline and online customer relations. Working on new loyalty-enhancement tools (local marketing, innovative practices in terms of awareness, etc.) and more ‘traditional’ steering operations (process optimisation, complaints management, loyalty-enhancement levers, etc.). 

Expanding the key skills of your teams

- Providing support for new responsibilities.
- Anticipating skills and job-mobility requirements.
- Creating a tailored training policy.
- Strengthening managerial practices.
- Enhancing staff loyalty and developing your employer brand.
- Improving customer posture.

Mobilizing all stakeholders

- Taking staff and all stakeholders into account when preparing strategic plans. Ensuring the successful deployment and operational espousal of the orientations chosen.

Experts
Tourism, Travel, Leisure & Catering Eurogroup Consulting