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Five steps travel companies should take now

February 26, 2009 |

Unlike recent economic downturns, this recession is rooted in bank failures and limited access to capital for businesses and consumers. At a time when travel enterprises have no access to cash and consumer consumption is dramatically declining, surviving will in and of itself be an accomplishment.

The travel industry consulting firm Hudson Crossing is advising travel companies on the "Five Steps Travel Companies Should Take Now" to cope with the recession and credit crunch.

"Unlike recent economic downturns, this recession is rooted in bank failures and limited access to capital for businesses and consumers. At a time when travel enterprises have no access to cash and consumer consumption is dramatically declining, surviving will in and of itself be an accomplishment," said Michael W. McCormick, managing partner, Hudson Crossing.

Hudson Crossing's summary of recommendations for travel companies include:

- Secure 12 Months of Cash: Expect no white knight at the 11th hour and, when possible, capitalize on market conditions;

- Strengthen Your Brand: Think beyond the dollar;

- Streamline Operations: Cost cutting is not the only answer, but agencies should tightly focus on those services and products that best serve their customers and build their brands;

- Review All Supplier Agreements: New value-adds to explore?

- Test Your Core Value Proposition: Ask the tough questions and look for bridges to new opportunities.

"Tough times call for creative measures," added McCormick. "When a business is strapped for cash, evaluating activities to determine not only what can be done without, but also what new alternatives should be pursued, is the key to keeping an enterprise afloat."

Related Link: Hudson Crossing

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