Mar 27, 2012

Always focus on the chain of value

Actions that your company or tourism destination takes are important BUT it’s impossible to be competitive if you don’t focus on your chains of value.
As Thomas Friedman said “It created a global platform that allowed more people to plug and play, collaborate and compete, share knowledge and share work, than anything we have ever seen in the history of the world” If you don’t make the most of this global platform others will do.
Long time ago, I don’t remember the place neither the hotel (well as a matter of fact I remember but I’m here to create bounds not barriers with my fellow Touristologists!!!), a hotel manager said to me “Jordi instead of all this bunch of theories like Servuction, 1,2,3 theory, Strategy Triangle, Bermuda Triangle, “Homus Organizativus”... Can you bring something as useful as the big tour-operator that I had at the beginning of my career? With it I sold all the rooms, to a good price and the only think that I had to worry about was to provide the service”.
Well, I’m just a Touristologist not a miracle worker!  Furthermore… this business model is gone.. forever! For Better or For Worse…
The fact of the matter is that rely on big intermediaries can be a partial solution if (and only if)
1) You are using them as a way to complement your own actions.  I mean, your own 1,2,3 theory!
2) You try to seduce these new customers that big intermediaries bring in a way that next time price won’t be the most important thing.
But habits are hard to die… First tour-operators bring to us the tourist, after that Google and now group buying and flash sales sites.
I’m not saying that they are a bad option. I only repeat what makes sense to me. I mean, 1,2,3 theory.
As always you have two business models and you have to forecast the possible effect of using each one of the possible middleman.
You are thinking in a segment price oriented (number 1) then group buying and flash sales sites can be an option BUT only for occasional promotions. To think that people willing to catch the new offer will become a loyalty customer is a good example of oxymoron.
You are thinking in a segment value oriented (number 1) well, group buying and flash sales sites are a good way to destroy your positioning
I think it is better if you use your knowledge, attitude and contacts to create your own 1,2,3 NOT because group buying and flash sales sites are a bad option BUT because is time that you get the knowledge, the attitude and contacts to carry on this kind of activities.
Of course, at the end of the day it’s up to you. You can wait to others bring the tourist to you. It doesn’t matter if it’s a big tour-operator, the new search engine, the new SnS or the new group buying and flash sales sites ,BUT remember if others do the hard work, they will keep customer’s trust, earn a good commission and, usually, force you to put your prices down.
On the other hand, you can begin to think as a Touristologist does and make the most of a flat world! If you decide the last…
Welcome to the club of the brightest science of XXI century!!!!

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