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Growth and revenue for tourism, hospitality & leisure

While the current market crisis affects each segment of the THL industry in different ways, it would be a terrible mistake to forget about the growth opportunities and the importance of revenue protection. There are unique opportunities for M&A, you can capitalize on the vulnerability of others and steal market share. At the same token you need to make sure protecting your own customers and talent.

With the economic confidence being at historical low and scarcity of resources it is essential to understand and own your revenue and profit pools.

How can Deloitte help you navigate

1. Choosing where to play: Deloitte value compass

To provide a solid basis for decision making and to channel precious investment capacity, THL companies need more dynamic and relevant models and data analysis to segment, understand and track the evolution of their markets.

Probing questions from the business:

  • Where should we prioritize our investments in brands, channels and key accounts?
  • How big are the current revenue and profit pools and how are they changing?
  • How do these revenue and profit pools break down between geographies, channels, consumer segments, occasions and product formats?
  • How are we performing in terms of value capture relative to competitors and to our strategy

Please contact Koen De Staercke for more information

2. Put your customer first

With economic conditions becoming more challenging by the day, building brand value is more important than ever. The competition for customers and market share is expected to intensify in the coming months; therefore, the ability of a hotel, restaurant and cruise line or vacation destination to crisply define and consistently deliver on a distinct brand promise can help to increase demand and build customer loyalty. The hotel sector, particularly high-end properties, generally has been effective at building brand value, although companies still could make an effort to learn more about their visitors’ needs and preferences and, thus, deliver an even better customer experience.

Deloitte supports THL companies in defining a highly effective Customer Relationship Management strategy allowing a constant monitoring, measuring and managing consumers and their changing behavior and expectations. We help you defining a customer strategy that balances both short-term revenue and long-term growth.

Contact us for more information on this subject

Please contact Koen De Staercke for more information

3. Pricing and Profitability Management

At the onset of an economic downturn, a company’s traditional reaction is to focus on controlling costs, retaining their largest customers, and hoping to ride out the storm. At best, this is half a strategy. Companies that focus on revenue, pricing and overall profitability can survive and even thrive during a recession, but only if they go about it in an effective way. A foundational understanding of the business and visibility into transaction level margin performance are required to make the right decisions.

Deloitte can help building sustainable cross-functional capabilities to effectively set and capture prices. Elements of pricing for value include: developing the optimal pricing strategy, executing effectively the pricing policies, measuring and controlling at the transactional level and aligning technology with pricing processes.

Some suggestions for the THL industry:

  • By establishing controls and metrics THL companies are able to monitor progress toward achieving revenue growth what justifies their marketing, advertising, promotion and sales budgets.
  • Similarly, linking marketing and sales budgets to the top-down corporate strategy goals can narrow the gap between marketing and sales budget allocation decisions and targeted growth expectations.
  • Finally, measuring return on investment (ROI) against marketing spend can help to identify the effectiveness of the multitude of available options, such as multichannel marketing, digital media channels, Internet marketing programs and consumer collaborations.

Please contact Yvo Vandeweyer for more information