Flight Centre said it will close 40% of its network as a result of the impact of Covid-19 coronavirus on its business, a
Posted: Mon May 30, 2022 6:30 am
Flight Centre said it will close 40% of its network as a result
of the impact of Covid-19 coronavirus on its business, and the
tourism sector in general. Flight Centre said it owns over 235
businesses throughout the country, incorporating both leisure,
corporate, wholesale and support. “Over the past five years we have
consistently seen our results increase year on year with a current
annual turnover of R5.5 billion in sales and over 1,200 employees,”
it said. In a note to clients, Andrew Stark, managing director,
Middle East Africa, Flight Centre Travel Group, said: “It is
indisputable that the global spread of Covid-19 has had a
significant impact on many industries. Few have been as profoundly
impacted as the tourism and travel sector, with government travel
bans, grounded aircraft and non-essential business lockdowns
preventing the free movement of our customers, whether travelling
for business or leisure. While we deal with these unimaginable
circumstances, we – and other businesses – are taking some very
difficult decisions.”
Based on the extract above discuss the decisions and
subsequent strategies under each decision that Flight Centre should
consider.
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99 answers
The devastating news about the outbreak of Covid-19 across the
world brought every sector down to its knees, resulting in a major
loss across all spheres. The tourism industry was no exception as
it took one of the biggest hits economically. Flight Centre Travel
Group which is one of the world’s largest travel agency groups
operating in 90+ countries decided to shut down 40 percent of its
network.
Few challenges and the solutions that could help them to
navigate through this conundrum are –
1) They are using this time to deploy 77 implementation projects
around the world, Majorly in their investment in the K2 cloud which
would make the process of collecting travel information of
customers automated and transparent. This showed better results
already with the second and third wave
2) Another challenge that Flight Centre faced during these tough
times was a spike in high cancellations, Especially when the US and
Canada closed its border, We knew we had to come up with some
solution said – Kimberly of Flight Centre, ECR. They worked on the
Nintex K2 cloud-based solution which provided an internal customer
cancellation form that allowed their team to call customers
beforehand.
3) Workplace Safety – Along with the safety of customers it was
also important to maintain the safety of the workplace where
customers were working day in and day out selflessly. So they
launched and devised an application called Healthcheck which was an
easy front-end user application that asked questions concerning
covid.
PLEASE highlight on
Liquidation,divestiture,harvesting, retrenchment,turn around
strategies etc.
of the impact of Covid-19 coronavirus on its business, and the
tourism sector in general. Flight Centre said it owns over 235
businesses throughout the country, incorporating both leisure,
corporate, wholesale and support. “Over the past five years we have
consistently seen our results increase year on year with a current
annual turnover of R5.5 billion in sales and over 1,200 employees,”
it said. In a note to clients, Andrew Stark, managing director,
Middle East Africa, Flight Centre Travel Group, said: “It is
indisputable that the global spread of Covid-19 has had a
significant impact on many industries. Few have been as profoundly
impacted as the tourism and travel sector, with government travel
bans, grounded aircraft and non-essential business lockdowns
preventing the free movement of our customers, whether travelling
for business or leisure. While we deal with these unimaginable
circumstances, we – and other businesses – are taking some very
difficult decisions.”
Based on the extract above discuss the decisions and
subsequent strategies under each decision that Flight Centre should
consider.
Expert Answer
Was this answer helpful?
99 answers
The devastating news about the outbreak of Covid-19 across the
world brought every sector down to its knees, resulting in a major
loss across all spheres. The tourism industry was no exception as
it took one of the biggest hits economically. Flight Centre Travel
Group which is one of the world’s largest travel agency groups
operating in 90+ countries decided to shut down 40 percent of its
network.
Few challenges and the solutions that could help them to
navigate through this conundrum are –
1) They are using this time to deploy 77 implementation projects
around the world, Majorly in their investment in the K2 cloud which
would make the process of collecting travel information of
customers automated and transparent. This showed better results
already with the second and third wave
2) Another challenge that Flight Centre faced during these tough
times was a spike in high cancellations, Especially when the US and
Canada closed its border, We knew we had to come up with some
solution said – Kimberly of Flight Centre, ECR. They worked on the
Nintex K2 cloud-based solution which provided an internal customer
cancellation form that allowed their team to call customers
beforehand.
3) Workplace Safety – Along with the safety of customers it was
also important to maintain the safety of the workplace where
customers were working day in and day out selflessly. So they
launched and devised an application called Healthcheck which was an
easy front-end user application that asked questions concerning
covid.
PLEASE highlight on
Liquidation,divestiture,harvesting, retrenchment,turn around
strategies etc.