LEISURE & ENTERTAINMENT

TRAVEL & LEISURE

What challenge(s) do our clients face?

Across the value chain the drivers affecting organizations differ, but a universal challenge in this crowded and competitive market is understanding, reaching and converting your target customers with a unique value proposition.

Travel and leisure is something most of us as customers get to enjoy. However, for those running businesses in this sector, it is a highly competitive environment where every day organizations are under increasing pressure to deliver quality, value and innovation.

The industry is made up a broad range of players extending from accommodation services and experience providers through to transportation services, wholesalers and retail agencies. Across the value chain, the drivers affecting these companies differ, whether that’s client expectations, access to capital, technology innovation, price competition etc. Regardless though, organizations must find a unique value proposition and a way to penetrate a crowded market to reach their target customers.

Challenge Impact High upfront investments and long payback periods. Pressure on asset utilization and occupancy rates. Wholesalers & Distributors Service Providers Retailers New market entrants with alternative business models disrupting the industry (e.g. AirBnB) and less capital intensive businesses leveraging their cost-structure to undercut market prices. Business must reconsider their value proposition and achieve scale to improve their unit economics. Pressure on supply as service providers consolidate and ‘cut out the middle man’ increasing their direct reach to customers. Need for strong negotiating powers and access to a large or unique audience of buyers. Pressure on demand side as retailers verticalize and create their own package offerings. Relationships drive value, as does unique access to offers. Pressure to control cost of sales and deliver good margins. Standing out from the crowd in an increasingly congested and value drive market. Organizations must understand their customers deeply and organize their GTM strategy and structure based on their needs and behaviours. Customer attention span is low and windows to sell are slim. Sellers need to ensure traffic converts to sales through strong multichannel sales and marketing strategies. The value proposition needs to be clear and delivered at the right point in a customer journey. Customers are informed and empowered and loyalty is low. Whilst margins are being squeezed, companies must find ways to keep costs low and differentiate their offering through creative bundles or partnerships. Navigating the omnichannel landscape. Whilst some businesses were born digital, others are catching up. Organizations must adapt everything from their workforce capabilities, systems, GTM and ways of working and culture to the digital ways of working needed to succeed in this market. The industry is cyclic/seasonal and strongly effected by economic downturns. Organizations must be resilient and diversify their offerings and customer base to maintain cashflow and protect against economic swings.

How do we help?

We help organizations to reach their customers, convert them efficiently and protect margins and market share

Integration has supported clients across the value chain, but in particular on the retail end of the spectrum with solutions such as:

  • Customer targeting: Identifying the right customer, generating traffic and building value proposition

In the shifting omnichannel landscape, we help organizations undertake advanced Consumer Segmentation to define behavioral and market clusters to enable targeted and effective consumer-centric strategies which can be activated on both digital and offline channels.

To help our clients achieve their sales targets across channels, we support them in the development of commercial policies, team structures, governance routines, KPIs and continuous improvement systems which clarify current performance and identify levers of improvement.

We support our clients to achieve efficiencies and increase profitability through improvements in organizational structures, processes and technology application. In the digital space our TechLab provides expertise in advanced analytics and data management, helping our clients augment their business intelligence capabilities to drive focused action.

We help our clients on their digital transformation journey – developing a clear and pragmatic roadmap of actions across structure, processes, governance, technology and people which will sustain their business strategy and meet market needs.

Depending on our clients starting point, moment or context, we are able to support with a wide range challenges or ambitions; whether that is lowering the cost base, increasing suppliers’ service level, improving supply resilience, or achieving sustainability goals.

In order to adjust and adapt to competitive landscape, many companies must pass through an organizational change. We help our clients navigate this transformation smoothly, managing the human aspects and increasing the likelihood of individuals, teams and organizations contributing positively to change.

Clients

We have worked with clients in different categories, geographies and positions along the value chain:

SUCCESS STORIES

CHALLENGE

One of the largest tourism operators in America had a strong brick-and-mortar retail arm but a weaker digital presence. Hard-pressed by born-digital competitors, margins were dropping year after year and there was a lack of consensus on the strategic north for the company.

APPROACH

Working with the leadership we outlined how to move towards a customer centric agenda, identifying its core customers and defining the value proposition for each customer segment. By segmenting the tourism market, we were able to identify customers that had good fit with their value proposition and that represented a relevant portion of the market.

We then evaluated the key aspects that had to be redesigned inside the company´s channels, products and touchpoints to enhance customer experience and transform the company´s culture.

RESULT

As a result, we designed a complete roadmap for the company’s digital transformation encompassing 4 main streams:

  • Protection of the core business – we looked for synergies in the operational model that would protect commercial margins and adjusted the business model/GTM accordingly.
  • Value proposition reset – we reformulated the entire value proposition for the selected customer segments along their journey, placing the customer’s experience at the forefront;
  • Enablers – we redesigned the organizational structure and branding according to the necessary change and new capabilities required;
  • Digital disruption – here we explored with the client levers to instill digital innovation, investigating startup ecosystems, investment in venture capital, among other alternatives.

CHALLENGE

A market leader in the rental car industry was expanding internationally with consistent double-digit growth. Simultaneously, it had undergone a rapid transition with its leadership team, with 8 of the 10 board members being new entrants, including the HR director.

Upon entering the company, the HR director became aware of the highly operational nature of the HR area, with low employee satisfaction and a lack of credibility. They asked for Integration’s support in strengthening the area, its tools, systems and processes, by using innovation and new technologies.

APPROACH

As part of a wider HR transformation project, the review of the Employee Journey started with understanding and prioritizing what should be the focus – both in terms of the short-term initiatives to be redesigned and the long-term creation of a roadmap for the area. This step was taken not only with the HR area, but with the company’s Executive Board.

After this, we formalized the role of the area, defining a 3-year strategic plan and selecting 12 initiatives to be redesigned – from strategic processes like speed recruiting for sustaining growth to mandatory processes like payroll for ensuring credibility.

To execute the redesign, we used the HR Index® for the selected initiatives and involved more than 50 professionals of all areas and levels in workshops and interviews. We defined the best solutions for adjusting the employee journey, evaluating all touchpoints between the employee and the company and defining KPIs for each one. We mapped opportunities and strengthening actions and then prioritized these considering processes, technology and people.

RESULT

  • Creation of a strategic roadmap for the HR area, considering the 45 initiatives mapped, connected with the business strategy and with the area’s ambition for the next 3 years.
  • Definition of 12 key initiatives, prioritized and redesigned together with internal clients
  • Implementation of new systems and technologies to boost key processes, sustain growth and generate credibility
  • Definition of one sponsor per initiative from each internal client area, guaranteeing a user perspective and the right prioritization
  • Nomination in 2020 for the HR area and CEO for the most admired Brazilian of the year award by the “Grupo Gestão de RH” (“HR Management Group”).