Where is the UK Travel Market Heading Following the Thomas Cook Bankruptcy | SpendEdge’s Take on the Strategies to Secure Stability in the Current UK Travel Industry
While the collapse of UK’s oldest travel company Thomas Cook did not yet hammer the last nail in the coffin of the UK travel market, it definitely did change the consumer outlook about the UK travel industry at least for the next few years. Such a high-profile casualty has also laid bare some disturbing fact [...]
While the collapse of UK’s oldest travel company Thomas Cook did not yet hammer the last nail in the coffin of the UK travel market, it definitely did change the consumer outlook about the UK travel industry at least for the next few years. Such a high-profile casualty has also laid bare some disturbing fact for the global travel management industry. The fact states that globe trotters are gradually shifting their preference towards online booking sites rather than travel agencies to fix their travel itineraries. This has been acting as the antagonizing force that is slowly corroding not only the UK travel market but also other associated industries and is held responsible behind the demise of Thomas Cook.
Lack of visibility on the real-time picture of the UK travel market market is resulting in misinformed business decisions that are reinstating the global apprehension of declining ROI for buyers in the UK travel industry. Get complimentary access to our procurement platform to gain immediate access to such real-time insights into the UK travel market.
Reeling under the impact, stakeholders in the UK travel market are introspecting their future growth prospects and the next course of actions to solidify their positions. However, their basic approach towards seeking growth in the future UK travel industry has started in the wrong direction. These approaches are merely upgrades of their initial business blueprint and will bring nothing revolutionary on the table. Let’s first start with some of the imposing factors that stakeholders in the UK travel market must focus on while devising action plans to avoid the repetition of the Thomas Cook fiasco.
The Might of the Media
Gone are the days when hapless consumers had to wait for an eternity to seek action on their complaints pertaining to their travel itinerary. Nowadays, all it takes is just typing a few words in the digital media which will be enough to issue the death warrant for enterprises in the UK travel market. Such enterprises should take that extra and cautious steps while partnering with travel management suppliers who can cater in accordance to consumer’s emotions in the UK travel industry.
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Get an instant access to the real-time trends and strategies you should adopt to stay competitive in the UK travel market.
Shortage of Low-cost Labor to Serve in the UK Travel Market
The UK travel industry is one of the many industrial casualties claimed by the ravages of Brexit. The uncertainties over Brexit is severely restricting import of low-cost labor from foreign countries which is creating gaping holes in the hospitality department in the associated industries in the UK travel market. The hotels and accommodation and the air charter services industries are among those affected sectors which are incurring an exponential expenditure on labor owing to the shrinking labor supply pool. Naturally, such skyrocketing expenses are demotivating enterprises from improving their hospitality which as a result is turning away a huge chunk of consumers from boutique hotels and accommodations.
Millennials are prioritising sustainability while picking their choice of travel services providers that is creating a huge impact in the demand growth in the UK travel market. While some of the air travel services providers are fortifying their fleet with fuel-efficient aircrafts, most of the companies are shying away from doing the same fearing an exponential rise in the operational expense. In the long-term, this is severely eschewing their demand among the proliferating environment-conscious millennials, thereby impacting the overall growth prospects in the UK travel industry.
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How to Deal with Factors that are Challenging the Growth Prospects in the UK Travel Market
A simple search in the internet will furnish stream of results that claim their credibility in addressing some these potential challenges in the UK travel industry which is again not false. But against the backdrop of global events such as Brexit and the recent bankruptcy of Thomas Cook, the need of the hour is a solution that is as unique as a challenge in the UK travel market. Leveraging such solutions can help to address and eradicate any business risks from its core in the UK travel industry. SpendEdge’s exhaustive repository of procurement intelligence reports has answered to challenges that are typical to the UK travel market and boast of alleviating the potential risks for some of the leading names in the UK travel industry. Some of the strategies are highlighted below:
Value-added Services Offered by Suppliers
In the UK travel market, be it a domestic or an international travel itinerary, the task does not stop at printing the ticket for the traveller. It involves other fringe services which add significant value to the overall travel experience of a travellers. In the UK travel market, buyers are advised to assess supplier’s capability to provide value-added services such as assistances on booking status, flight delay information, mobile or online check-in facilities, seat selection, assistance in lost baggage claims, travel insurance, and meal preferences.
Service Quality Assurance
Service quality assurance by category service providers is also an important KPI in the UK travel market. Quality of services is evaluated by category managers by using various parameters such as in-flight food, entertainment, and medical services; delays in flights; and responsiveness and services of the ground staff. Such suppliers are known to maintain a record of the customer sentiment in the current UK travel market and include regular improvisation in their services.
Enterprises in the UK travel market are getting ground-breaking results leveraging supplier selection strategies recommended by SpendEdge’s procurement intelligence report on the air charter services market. Download the free sample.
This procurement intelligence report provides insights to help identify key sourcing opportunities, spend dynamics, and procurement best practices for travel management services.
Buyers in the UK travel market are advised to engage with suppliers who are adopting fuel-smart initiatives focus for the conservation of fuel and exploration of alternative energy sources for aircraft. They help gather data, analyze the potential impact of fuel costs and consumption, and provide information on alternative fuels and fuel conservation techniques. Optimal scheduling of routes and the use of GPUs when parked can enhance fuel efficiency.
While strategic supplier partnership is crucial to optimize procurement spend, lack of real -time insights into current supply market scenario results in sub-optimal partnerships. Get complimentary access to our procurement platform to gain immediate access to supplier selection strategies.