Our Transportation, Travel and Tourism Competencies

Although the transportation, travel, and tourism industry is undergoing continuous transformation, players are still enjoying many degrees of strategic freedom and inherent growth rates. Deregulation, consolidation, and privatization are opening new opportunities—for growth, cooperation, or alignment with other players—while simultaneously raising the bar for operational performance and profitability.

DC Group’s deep experience can provide valuable insight to companies operating in all three sectors.

Industry Challenges: Transportation

The transportation (or logistics) sector, a very large and growing market, includes these three areas:

• Pure modal transportation- road, rail, sea, and air cargo;
• Intermodal connections- ports, airports, terminal operations;
• Special networks- such as mail,. parcel or express delivery and
• Sector networks for automotive spare parts and fashion.

At first glance, the sector seems highly fragmented, with many players aiming to be number one. But in what area? A closer look shows many ways to segment the market: by region, modality, weight, speed, shared versus dedicated network, industry sector, value- chain step, or business model.
Because nobody can be number one in the total logistics business, most companies strgulle to carve out the right segment in order to be successful. But building competitive advantages requires more. Having decided on where and how to play, a company faces many operational questions;

• How do we reengineer processes to meet customers’ needs at the lowest costs?
• How can we ensure that the work force is engaged to do what cannot be defined, even in the best process blue print?
• What is the optimal pricing strategy, and how do we ensure that price realization is enforced in a dispersed sales organization?

In addition, megatrends- such as demographic changes and sustainability- require companies to continuously transform themselves, and every subsegment faces its own specific trends.

DC Group Competencies

DC Group has spearheaded major efforts in land transport, mail, and parcel and express delivery. Here, we have significant experience in all management agenda issues- portfolio and business strategy, sales and marketing, operations, and supporting processes. Our ability to take a fresh “outside-in” look has proved valuable in cracking these complex strategic issues. Additionally, we have worked on numerous projects in sea and air transportation, ports, and third party logistics.
The “how” has become as important as the “what”, particularly in the labour-intensive transportation sector. To ensure that proper processes can be put into operation, we have developed industry specific capabilities;

• Process-design methodologies for optimal workforce engagement;
• The ability to navigate in complex managerial and stakeholder environments;
• Market and client-specific tool kits and experience, rather than standard solutions;
• A method of working closely with our clients as equal partners, provding organizational momentum- not just reports;
• Top- down targets, complemented with solid road maps for implementation.

Our senior DC Group people enjoy spending time on the shop floor to understand what really matters operationally.

Industry Challenges: Travel

Travel providers, such as airlines, railways, and ferries, face a separation of business models in which the key success factors are almost conflicting- short haul vs long haul,point-to-point vs hubbing, single-mode vs inter-modal operation, low cost vs full service. To achieve greater competitive advantage in this environment, these companies must confront many questions as to how they can transform and survive, and then thrive and grow;
Transform and survive:

• How do we transform from a legacy company to face the new realities of global competition and low-cost business models?;
• How should we align our organization to ensure profitability under privatization?;
• How do we realise the minimum yearly efficiency gain to survive ?;
• How do we leverage or manage the impact of “Green” regulation- or do both?;
• What is the role of the adjacent business in our portfolio , and what is the right degree of integration across the value?;

Thrive and grow:

• What role should airlines and railways play  in consolidation as it changes the competitive landscape? How do we secure synergies from acquisitions?
• How do we identify and mobilise pockets of efficiency potential?
• How should regulators balance the tradeoffs of risks and competitiveness for key infrastructure?;
• How do we manage short term volatility in oil prices and demand while exploiting long temr growth opportunities?;
• How do we secure our customers’ loyalty?

DC Group Competencies

DC Group’s transportation, travel and tourism sector ensures that our clients have the total tools to balance a focus on operational excellence with a strong orientation towards customers’ needs. We have extensive experience working with all forms of passenger transport providers – from airlines and railways to ferry companies and cargo operators- across all modes.
As one of the most internationally focussed groups within DC Group, the sector brings teams from around the globe together, drawing on close links with other functional, consumer and industrial goods sectors.

Industry Challenges: Tourism

The rising affluence of emerging markets and the increased competitiveness of travel providers are intensifying the fight for the tourist dollar among countries and destinations.  Megatrends such as the aging of the population and concerns about the security and the environment are producing demands for different types of tourism.  New segments of tourism- such as medical tourism and visiting friends and family- are emerging as opportunities for growth.
As travel providers and government seek to differentiate themselves in this market, they face some simple questions;

• How do we take advantage of evolving consumer patterns in the coming years?;
• How do we increase our share of the tourists’ wallets? Where will an extra investment be covered by the willingness of my customers to pay more?
• How can we achieve a price premium over the competition with the right product portfolio mix and branding?
• How can we position ourselves to take advantage of continued disintermediation, as more people assemble their holidays themselves?
• How do we leverage the changing distribution of profitability along the value chain?
• How do we secure advantages of scale despite proliferating product needs ?
• How can we achieve online penetration to reduce distribution costs?
• How do we turn green or sustainable travel into a competitive advantage?

DC Group Competencies

DC Group’s transportation, travel and tourism sector is closely aligned with its other consumer oriented sectors to share international best practices for generating deep customer insights and operational excellence.
We work with the various stakeholders of the tourism industry- hotels, theme parks, and cruise lines as well as governments, regional authorities and industry associations. From engaging frontline staff to designing strategies for destination tourism, we help our private and public sector clients differentiate themselves in an increasingly competitive environment.