Industry Challenges
A growth in global trade, a drive toward economic growth, and a continuing diversification of the economy pose great challenges to transportation and infrastructure in CIS. Streamlining supply chains, shortening lead times, and supporting new areas of growth and trade will require decisive action on the part of policy makers. This is true also for key players in the transportation and infrastructure sectors. Airlines, railways, ports, and transportation service companies must adopt business models in which key success factors might be in conflict: short haul versus long haul; point-to-point versus using hubs; single mode operation versus intermodal operation; and low-cost versus full service. And all this must be dealt with in context of a dynamic environment while new market models—rail, for instance—are introduced.
On the consumer side, rising affluence in emerging markets and increased competition among travel providers is intensifying the fight for tourist dollars. Megatrends, such as an aging of population, or concerns about security and the environment, are creating demand for new types of tourism. Emerging segments, such as medical tourism or visiting friends and family, are providing opportunities for growth.
To achieve competitive advantage in these complex environments, transportation, travel, and tourism companies must be ready to:
Transform from legacy companies to face the realities of global competition and low-cost business models
Prioritize infrastructure investment
Help customers optimize their transportation and logistics strategies
Achieve price premiums over the competition with the right product-portfolio mix and branding
Leverage the changing distribution of profitability along the value chain
Secure customer loyalty
Reengineer processes to meet customer needs at the lowest cost
Ensure that the workforce is engaged to do that which cannot be defined, even in the best-process blueprints
BCG competencies
The Boston Consulting Group’s Transportation, Travel, and Tourism sector ensures that our clients have the tools to balance a focus on operational excellence with a strong orientation toward customers’ needs. As one of the most internationally-focused groups within BCG, this sector brings together teams from around the globe, drawing on close ties with our other functional, consumer, and industrial goods sectors.
We work with the various stakeholders of the travel, tourism, and transportation industries, such as airlines, railways, ports, ferry companies, cargo operators, postal operators, hotels, theme parks, and cruise lines. We also work with logistics companies, ports, governments, regional authorities, and industry associations. Globally, we help our private- and public-sector clients differentiate themselves in an increasingly competitive environment.