TOURISM IN THE MIDST OF TURMOIL CORPORATE OPPORTUNITIES THREATS VERSUS - HOW TO DEAL WITH IT?

Four persons in the tourism industry: the portfolio manager, the owner of the resort, the head of hospitality and travel company are coming to share their views on the current economic turmoil. Some elements seem to be unanimous: do not reduce prices, not decrease the quality of service and product, review the ways of innovating, identify opportunities and to face the fact that, in this context, cash is King!

This conference was held on January 26, during a special edition of the tourist Gueuletons Transat Chair in Tourism ESG-UQAM in Montreal Bistro Beaver Hall.

JACQUES MARCHAND, CORPORATE DIRECTOR, BUSINESS DEVELOPMENT, AT TRANSAT
Mr. Marchand identifies three major themes that might explain why Transat AT is able to get through this crisis.

The resilience of international tourism. Figures from the World Tourism Organization (UNWTO) show that over the past 50 years or so, the number of international tourist arrivals has grown steadily, with the exception of 2001 alone Many other adverse conditions could have affected the overall growth of tourism over the years, but this was never the case.

Traditional markets Transat less affected. According to the Conference Board of Canada, traveling expeditious approval from Canada to the United States are expected to experience declines of 4.9% and 1.8% in 2009 and 2010, while those to other countries should increase of 4.3% and 5.1% for the same years. In comparison, these trips to the United States for the year 2008 increased by 8.7% and 9.2% to other countries.

Built to cope with crises. Almost every year experiencing a crisis: in September 2001, SARS, Iraq war, hurricane, tsunami, skyrocketing oil barrel, etc.

Mr. Marchand believes that a crisis presents opportunities for performers who have sufficiently deep pockets, as is the case of Transat AT are three positive aspects holds:

It forces companies to rethink their business model to reassess the ways and become more efficient.
Those going through will emerge stronger.
It creates opportunities for acquisition.
CHARLES DESOURDY PRESIDENT SKI BROMONT
Mr. Désourdy evoked the crisis and the effect of "spiral" of the spectrum of the recession caused by the media. This is in fact the subject receiving the most media coverage, even ahead of Barak Obama. Thus, the fear of a recession and its impact generates a real slowdown. Some are reluctant to eat, while in Quebec the real effects of this crisis are still being felt little.

The pricing of season tickets leads to heated debates year after year. In a context where the economy is pretty bad, it may appear bold to predict increases in some rates. Yet this is what was decided by the team at Ski Bromont for its subscriptions 2009-2010. Maintenance or lower tariffs could lead to staff reductions, a decline in the quality of service, customer dissatisfaction, a negative perception of the product, and can do more harm minimal but steady rise. Mr. Désourdy, one should never give regular price displayed. It is better to offer discounts that consumers may obtain on the Web site, for example, and apply to the purchase of a ticket. Thus, discounts are available for the client sensitive to price, but it must make the effort to get them. And at the same time, it keeps the customer willing to pay full price.

Finally, he added that the attractions close to major centers such Granby Zoo or Safari Park, probably not derive their game, since most of travelers should choose destinations nearby.

LOUIS-ROBERT HANDFIELD, VICE PRESIDENT OF QUEBEC SILVERBIRCH HOTELS & RESORTS AND CEO OF HILTON MONTREAL BONAVENTURE
First, Mr. Handfield recalls the base. In anticipation of adverse economic conditions, two types of behavior are distinguished: one can react or be ready because we are proactive. In the first case, we talk about possible short-term options are more limited measures. They often enter through cuts that affect the quality of service. In the case of proactive behavior, suggesting a long-term, the company will be better prepared for a peak period and will be able to put a positive outlook on the situation in order to identifying opportunities.

This is possible by adopting an open attitude. You have to be flexible, creative, agile and determined to cope with change. Internally, the opportunities for innovation and opportunities arise in terms of technology (10%), methods (30%) and processes (60%). Thus, targeting to eliminate wasted time and addressing the lack of tools and training, we can make many improvements to the business. A gloomier period is the perfect time to review how we do things and innovate to make them more effective. A mistake to avoid at all costs: cut which could affect the perception of the product.

LOUIS AUBUCHON, DIRECTOR OF THE PORTFOLIO récréotouristique SOLIDARITY FUND QFL
Shareholders of the Solidarity Fund QFL intended business sustainability and growth. Thus, the company wishes to obtain financing must be able to demonstrate the sustainability of its activities despite a rather unfavorable context. You have to have money to get money!

An economic downturn is ripe to revise its business plan. An efficient company, which has a good track record, obviously has an edge over other less well provided. In this environment, cash is King! This force will be determined by:

the financial ability of shareholders;
the financial capacity of the company;
access to financing (now versus later);
the cost of financing;
the impact on performance.
Moreover, better prepare developing budgets accordingly. Of course, all this should be done before a real crisis occurs. When the company is well organized and powerful enough to cope with declines in income, the crisis may lead to acquisition opportunities, the ability to enter new markets and adapt to change through innovation, while re-evaluating its ways.

AND SUSTAINABLE DEVELOPMENT?
Sustainable tourism in times of crisis it still fits in the concerns of business? Jacques Marchand argues that sustainability has become a distinctive element for Transat AT and creates even employee engagement. There is therefore no question of reducing the efforts in this direction. For Mr. Désourdy Ski Bromont, measures for sustainable development will likely set aside short term, but in his opinion it is important not to lose sight of. As for Mr. Handfield, the Hilton Montreal Bonaventure, he rather believes that this should in no way diminish the efforts that reflect the values ​​of Generation X, Y and beyond.

Finally, after each crisis is entering a new growth cycle. Signs to watch for: the situation in the air transport, accommodation occupancy rate, the cost of financing and ... a drop in media coverage of the recession!

source : http://veilletourisme.ca/2009/02/17/les-entreprises-touristiques-au-milieu-de-la-tourmente-menaces-versus-opportunites-comment-y-faire-face-compte-rendu-de-conference/