Are You Looking Beyond the Downturn? Understand and Develop the Growing Sustainable Tourism Market 3

“We are currently going through one of the biggest crises our economies have ever seen.” Said a major global management consultancy this week

“But, while almost all (our survey) respondents are taking the unavoidable short-term cost-reduction measures to cope with the collapse in demand, a large number are simultaneously taking actions to prepare for the new world to come beyond the downturn.”

“For example, in the midst of the downturn close to 60 per cent of respondents are giving very high or high priority to rethinking the company’s medium-term business vision. Likewise, more than 40 per cent of respondents are still giving very high or high priority to preparing for the low-carbon economy. And more than 70 per cent are giving very high or high priority to improving their company’s risk-management capabilities.” See ADL.com

Obviously, now we’re skittering toward the bottom of the economic cycle, we need to look up at the next peak – at least to keep our balance – potentially to get there before the rest.

So this is an opportunity? YES – if you don’t think so just listen to Bain & Co, another highly regarded player:

A recent study by Bains found that twice as many companies made the leap from laggards to leaders during the last recession as during surrounding periods of economic calm.

Case in point: Walgreens, the Chicago-based drugstore chain. In the midst of this last recession, the company focused on expanding its lower cost, generic drug business. Earnings and sales for the fourth quarter of 2001 grew by 10.7% compared with the same period in 2000. Not only has Walgreens gained market share on its key competitors, but at a time when many drug retailers face capital constraints and a shortage of pharmacists, it plans to build 475 new stores and two new distribution centers this year

Bain & Co

And there are many other advantages, not least of which is that gains made during a recession are much more sustainable than those made at any other time

But how do we take advantage of the current situation?

Simple – here’s a possible plan –

1. Take time to understand the overall (ie see beyond the money) situation and how you think it will develop over the next few years. A good start is the World Bank website Worldbank.org
2. Get a few basic facts that you think you can depend on and make some assumptions.

3. Reduce your costs – the main cost you face is marketing. After all what is the travel and tourism industry if it isn’t marketing? If you set up your marketing when you paid for space/time you’re behind the curve both in terms of spend and result. Go to: http: Masters of Marketing – DDB to learn a few new tricks and enjoy playing them.

4. Recognise your outputs. For a long time countries and NGO’s have calibrated their successes in terms of outputs – not necessarily profits. You can too, particularly if those outputs can be converted into cash at a later stage. You want to know what outputs are? OECD Definition

5. Gradually improve your product and stick it out – it will change and you will be stronger!

Valere Tjolle

For further information and questions – email [email protected]