The McKinsey Quarterly

close Visitor Edition

McKinsey Quarterly is the business journal of McKinsey & Company.

trouble with travel distribution article, industry incumbents must move away from low costs and toward serving customer needs, Sectors

February 2012 

The trouble with travel distribution

It’s among the biggest e-commerce markets, and maybe its most turbulent. To compete, players must define their place in travel’s next wave.

Includes: Interactive
Recent Thinking

The Archive

2006

2005

2003

2002

  • November 2002 

    Hyped hopes for Europe's low-cost airlines

    Europe’s most successful no-frills carriers are making a lot of money. But as they mature, they will have problems expanding.

  • August 2002 

    CRM in the air

    Airlines can capture more value and hang on to more of their customers by focusing, once again, on their CRM programs.

  • June 2002 

    Rethinking the aviation industry

    New strategies could help the business recover—but will also put more pressure on established players.

  • May 2002 

    Freight expectations

    Freight transportation companies have moved slowly to keep up with modern business practices. Risk and revenue management could provide the boost the industry needs.

2000

  • December 2000 

    Getting India’s railways on track

    To sustain India’s rapid growth, the country’s railroads must become more efficient—and the best way could be restructuring, not privatization.

  • August 2000 

    Best practice in logistics

    IT systems are as common as forklifts in modern logistics. “Best practice in logistics” describes a report showing that the best logistics services providers and their customers, going beyond the tracking of shipments by computer, are investing in highly integrated systems across internal and external supply chains.

1998

  • May 1998 

    European freight forwarders: Which way to turn?

    So far, deregulation has destroyed profits in this essential sector. But markets are growing and three distinct customer needs are emerging. Here’s a plan for turning around incumbents.

1997

1996

  • November 1996 

    Trends in the US airline ticket distribution

    Cost pressures, changing customer demands, and new technology could herald a dramatic change in the way airline tickets are distributed in the next three to five years. Travel agents have most to lose given their market dominance and reliance on ticket sales for much of their revenue.

1995

  • November 1995 

    Facing low-cost competitors: Lessons from US Airlines

    First understand sources of advantage: input costs, product and process design. Then ask, will they sustain growth in new markets? Four options: withdraw, compete, co-exist, or cooperate.

  • August 1995 

    Can Russian aerospace rise again?

    How bad is it? Some companies are making razor blades. One million, mostly unpaid, engineers. But an emerging commercial market offers hope. Can the players work with Western suppliers?

1994

New In:
Embed E-mail