{"id":12393,"date":"2018-07-15T18:27:17","date_gmt":"2018-07-15T16:27:17","guid":{"rendered":"http:\/\/revva.net\/?p=12393"},"modified":"2024-01-12T17:29:22","modified_gmt":"2024-01-12T17:29:22","slug":"the-two-leading-causes-of-tour-operators-deaths","status":"publish","type":"post","link":"https:\/\/imssc.org\/biflix\/the-two-leading-causes-of-tour-operators-deaths\/","title":{"rendered":"The two leading causes of tour operators\u2019 deaths"},"content":{"rendered":"
\n
In the past couple of weeks, the industry saw the demise of three well-known travel companies, being Natalie Tours<\/strong>\u2019 the most spectacular<\/span><\/span>. <\/span>One can\u2019t avoid wandering why this keeps happening so often\u2026 As a provider to the Russian operator long ago, I experienced their bully stand, their managers\u2019 parvenu posse, so I\u2019m not shocked by their fall from financial grace<\/span><\/span>. We\u2019ve seen this movie again and again, didn\u2019t we? Remember Neva, Labirint? <\/span>And it\u2019s not only the Russians: Orizonia, Viaggi del Ventaglio, Lowcostholidays. Teorema\u2026 In one way or another, I had direct connections with all those companies, and <\/span><\/span>I think<\/span><\/span> I can identify a couple of common factors that might be likely causes for their death<\/span><\/span>. <\/span><\/div>\n
It wasn’t me, I swear!<\/span><\/div>\n
\u00a0<\/div>\n<\/div>\n
\n
\"two<\/span><\/div>\n
Dasvidanya, morons<\/em><\/div>\n
\u00a0<\/div>\n<\/div>\n
\n

Scientific hypothesis<\/span><\/h4>\n<\/div>\n
\n
What amazes me most is the fact that all those companies spent years developing a brand that <\/span><\/span>was recognized<\/span><\/span> and appreciated in their respective markets<\/span><\/span>. <\/span>Moreover, there was no steep decline in travel traffic, nor catastrophic market changes while those brands collapsed<\/span><\/span>. <\/span>True, the Crimea conflict was a huge blow to the Russian operators\u2026 But the downturn was to <\/span><\/span>be expected<\/span><\/span>, so why on earth would they keep contracting larger allotments season after season<\/span><\/span>? <\/span>I got some sort of reply to this question at a recent trade show, when I asked a Natalie Tours\u2019 pompous sales executive how their analytics <\/span><\/span>were managed<\/span><\/span>. \u201c<\/span>We have the most advanced technology in the world<\/em>\u201d, she said, <\/span>obviously<\/span><\/span> without a clue. \u201c<\/span>So our boss has a tight control of the market<\/em>\u201d, she proudly concluded. <\/span><\/div>\n
Well, there you go. \u041f\u043e\u0437\u0434\u0440\u0430\u0432\u043b\u0435\u043d\u0438\u044f! I guess you’re back to tea and borsch now, dear.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
In my not so humble opinion, these are the main reasons big operators go bust\u2026<\/span><\/div>\n
\u00a0<\/div>\n<\/div>\n
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1 – Lousy management<\/span><\/h5>\n<\/div>\n
\n
Can anybody argue against this? <\/span>As much as they try to put the blame in macroeconomics, unfair competitors or alien invasion, CEOs get top dollar to run the show, so the responsibility is all theirs<\/span><\/span>. I should split this category in two distinct types: <\/span>know-it-all<\/span> and <\/span>movie baddie<\/span>. The first one is in good faith: a smart, hard worker that very often owns the company and went from zero to hero. <\/span>For that very reason, they think nobody can teach them anything, nobody knows their business better<\/span><\/span>. <\/span>While the market shifts at light-speed and competitors shape it with their claws, the <\/span>know-it-all <\/span>is adamant: my ship, my rules<\/span><\/span>. Full steam ahead, Captain Ahab! I know this type very well: <\/span>once upon a time, I was one of them.<\/div>\n
The movie villain is the typical white-collar shark. No need to describe the character, we all faced one of them sooner than later. <\/span>Usually they jump the sinking ship holding tight a money-made lifejacket; sometimes they even find a new vessel to commandeer towards destruction<\/span><\/span>.<\/span><\/div>\n<\/div>\n
\n
2 – No analytics<\/span><\/h5>\n<\/div>\n
\n
I have no idea how product managers were successful up to the nineties. I guess it was pure instinct and decades-long knowledge of their target customers. But I cannot comprehend, for the life of me, how can they do their job today without data analysis. And that is <\/span>just<\/span><\/span> a single aspect of the tour operating business! What about the rest of contracting, plus revenue management, logistics, distribution, marketing? <\/span>Maybe<\/span><\/span> they think that Excel jockeys instantly qualify as data analysts…<\/span><\/div>\n<\/div>\n
\n
In 2016, while prospecting for REVVA<\/a>, it surprised me to learn that even large travel corporations would not put to good use their data, preferring the very scientific method of sucking their finger and placing it above their heads, to check where the wind blows from<\/span><\/span>. <\/span>Two years later, those companies are starting to consider data-driven decision making, but are still far from implementation<\/span><\/span>. Or, even worse, they’d do it backwards. Holding wet fingers to the wind still is mainstream, apparently.
Read a complementary areticle about the lack of data mindset here >><\/a><\/span><\/div>\n
\u00a0<\/div>\n<\/div>\n
\n

Demonstration<\/span><\/h4>\n<\/div>\n
\n
Do me a favour: check the fastest and\/or steady growing companies these days. You’ll notice they are\u00a0<\/span><\/span>all\u00a0championing business intelligence and data analytics<\/span><\/span>. <\/span>Destinia<\/span><\/a>, <\/span><\/span>Almundo.com<\/span><\/a>, <\/span><\/span>BestDay<\/span><\/a>, <\/span><\/span>Logitravel<\/span><\/a>\u2026 If you\u2019re about to contend that those are OTAs so they have it easy, I\u2019ll reply that traditional TOs like Rocky Mountaineer<\/a> and Jet2Holidays<\/a> became market leaders in part because they saw <\/span>monetary<\/span> value in their data<\/span><\/span>. But mostly because they do things right management-wise, I’d bet.<\/span><\/div>\n<\/div>\n
\n
On the other hand<\/span><\/span>, ask former employees of deceased operators, and they\u2019ll confirm that the same shortcomings doomed their jobs<\/span><\/span>. Incompetent or inert management, as well as lack of analytics. It\u2019s heartbreaking, to think that it was easier to keep those brands alive than to kill them! <\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Sure, there were other negative factors involved in TOs bankruptcies. But still!\u00a0<\/span>Do those vain arseholes expect us to believe their multi-million companies became insolvent overnight<\/span><\/span>? <\/span>Excuse me for oversimplifying here, but if at the helm there\u2019s somebody so <\/span><\/span>arrogantly<\/span><\/span> confident in their brilliance,\u00a0<\/span><\/span>inevitable are\u00a0bad decisions and worse planification<\/span><\/span>. Which could have <\/span>been avoided<\/span><\/span> with analytics, if only the egomaniacs listened. <\/span>There would have been no need to request financing operations from hoteliers, DMCs and airlines, no use for external funds<\/span><\/span>.<\/span><\/div>\n
And, above all<\/span><\/span>, no increased holidaymakers’ distrust in the whole industry, due to the shenanigans brought courtesy of a bunch of C-Level twats with delusions of grandeur<\/span><\/span>.<\/span><\/div>\n
\u00a0<\/div>\n<\/div>\n
Thanks for reading and sharing!<\/div>\n
Marcello Bresin<\/em><\/div>\n\n\n
\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"

A personal and unconventional opinion on travel companies demises <\/p>\n","protected":false},"author":1,"featured_media":12397,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[70],"tags":[71,76,82,72],"class_list":["post-12393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights","tag-bi","tag-data-analysis","tag-fun","tag-rm"],"acf":[],"yoast_head":"\nThe two leading causes of tour operators\u2019 deaths - BIFLIX<\/title>\n<meta name=\"description\" content=\"The two leading causes of tour operators\u2019 deaths: a personal and unconventional opinion on travel companies demises\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/imssc.org\/biflix\/the-two-leading-causes-of-tour-operators-deaths\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The two leading causes of tour operators\u2019 deaths - 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