Case Study Client Situation
Our Client, a publicly listed company operating in the Australian travel industry, has a wholesale ticketing business which has been under threat from:
- Airlines cutting distribution costs and going direct to customers;
- Consolidation amongst branded agent groups who are developing in-house ticketing centres; and
- A loss of share from independent agents, a key customer group.
Pacific Strategy were asked to develop a five year strategy to combat these threats with specific analysis focusing on a number of initiatives already underway as well as new initiatives.
Approach
- We developed a market forecast for the Australian international air travel market and used this to understand the impact of various market changes on revenue and profit
- This enabled the CEO and Board to understand the value of the business under a variety of market scenarios, including the potential for M&A.
- In addition, we developed or reviewed a number of operational improvement projects that could deliver profit improvements.
- The overall strategy was approved by the Board and had a high level of buy-in from the management team.
Impact
Within 12 months of our strategic review, our Client and its possible M&A targets were rolled up into a consortium, which has subsequently sold a majority share to private equity firm.
