Travel & Transportation
Perhaps no other industry understands the cost of doing business more than the travel industry. Fuel costs have forever changed the way consumers travel. For more than 94 years airlines flew passenger bags for free. In 2008 one airline began to charge $15 for each checked bag. The history of the airline industry is interesting in that over 50 years the industry generated about $11 trillion dollars in revenue but only $30 billion in profits. With an average margin for the entire industry at less than 0.4% and debt 6 times the reported profit you can understand the baggage fee.
Smart business leaders recognized that airlines had to figure out how to control costs in areas other than fuel. This approach requires an internal examination of business processes and people. Unfortunately, many travel companies reacted to rising margin pressures and reduced staff to such a point that their new “Lean” organizations ran so lean they lack the time to focus on back end process.
The consolidation of management roles and responsibilities has left leaders with an inability to connect with the frontline forces of their organizations. This has impacted management’s ability to see day to day operations at a granular level. The multi-million dollar business process improvement industry has emerged to claim credit for capturing low hanging fruit that should’ve been captured by the business’ leadership team. If your business could use a partner that understands how simple tactics can improve your business operations. Step outside the box with Rosewood Partners, operational excellence simplified.