Academic journal article Review of Business & Finance Studies

Technology and Business Performance: Travel Agency Case

Academic journal article Review of Business & Finance Studies

Technology and Business Performance: Travel Agency Case

Article excerpt

CASE DESCRIPTION

This case presents a didactic tool for students that incorporates elements of analysis and decision-making in relation to the implementation, use and management of technology. This technology is applied to the performance improvement of a virtual travel agency. The student is presents information relating to the firm's business history, key characters in decision-making, evolution and innovation factors that led to organic growth in the midst of a highly competitive environment. The case raises dilemmas for the student concerning the generation of competitive advantage strategies. Students may suggest alternative courses of action and may assume a posture of consultant to the firm. The case is recommended for business undergraduate students, requiring knowledge of management and marketing. The case can be developed in two one-hour classes and requires a presentation of results and discussion at the end of the class.

JEL: M14, Ml5, M31

KEYWORDS: Business Performance, Innovation, Strategy, Technology

CASE INFORMATION

In recent years the Mexican Great Day Travel Company has excelled in the national and international market in the segment of online vacation package sales. Complex processes of innovation are reflected in its growth in the market. Constant innovations in marketing tourist services occur in a context of high competition.

The paradigm shift in tourism services marketing is associated with four categories recognized by the World Tourism Organization (UNWTO), (2009). These categories are: hospitality, leisure & entertainment industry, industry of travel and transportation. Further development in the new design and marketing processes are evident in Europe and the United States. Major tourism managers and large emitters of tourist flows are involved. We note that Mexican firms inserted in global competition through innovation, propose improved ways of meeting the needs of consumers, with a clear market focus.

Great Day Travel, is a Mexican company with 29 years of experience. The company was established in 1984 in Cancún, Quintana Roo by engineer Fabián Mercado. The concept was to offer receptive travel agency services. At inception, the dominant market model was foreign owned agencies dominated by large airlines and hotel consortia. A few years later, driven by the growth in demand and available technology, global pioneers in online travel marketing appeared. The creation of this marketing channel, coupled with a strong philosophy of service to the customer, resulted in growth in sales of the firm. This growth is expected to increase each year in a sustained manner, driven by the philosophy of innovation proposed by their managers and employees.

Evolution is in client served. Great Day Travel, has more than 60 million annual visits, which come primarily from Mexico with nearly 80%, 11% in South America and 9% of the rest of the world.

The administration of Lie Juan Villareal can be credited to an strategy of international market development, which has boosted the sales of the firm and has introduced democratization of tourism in Mexico. Under Lie. Villareal administration sales and employment have grown exponentially exceeding international companies such as despegar.com, Orbitz and Travelocity.

A number of factors have contributed to Great Day Travel's growth in recent years. Diverse capacities of the firm contribute to implementation of activities focused on creating opportunities for travel and entertainment accessible to national and foreign tourists, maintaining customer loyalty, the need for strategic alliances that add value and essence of the company developed and potentiated by the DNA of innovation in his team. Great Day developed innovative capabilities that allow it to achieve a position in the international market by significantly displacing competition.

This case begins with historical information relating to the history of the travel agency, through its origin, its founders and evolution of the business and technology. …

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