Smart businesses won’t drastically cut prices:
Australian travel and tourism businesses have been advised to protect their cash cows to avoid the impact of the global economic crisis.
Ravi Ravinder, Senior Lecturer Tourism Management University of Technology and Sydney-based tourism management and marketing expert presented ‘A Snapshot of World Tourism’ at the Australasian Economic Travel and Tourism Resilience Forum held last Saturday at the International College of Management, Sydney.
Mr Ravinder agreed with the Forum’s previous academic and financial speakers that smart businesses should not cut prices but rather maintain the value of their product.
“There is no point in dropping prices. Businesses should protect and reinforce the value of their product by targeting toward particular niche marketsâ€, said Mr Ravinder.
He added that businesses should protect their short-haul markets as well as protect product positioning.
Mr Rvainder’s tips for “smart business†to weather the crisis included, protecting “cash cow†products from competitors, add value to their existing offerings, cutting non-customer related costs, as well as considering non-traditional avenues for additional revenue.
Additionally, in his analysis of world tourism, Ravinder pointed noted that freight downturn started earlier in regards to a chart sourced from CAPA (Centre for Asia Pacific Aviation) on Asia Pacific international freight traffic growth and freight capacity growth from Nov-07 to Oct-08.
This reflected the slowing of GDP and trade and a possible indication that business travel would slow down. Thus, freight traffic was a lead indicator of when tourism would drop and diversely, whether recovery would happen.
A Report by The Mole from Forum media partner eTravelBlackboard
John Alwyn-Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports