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 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025