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Case Study
Division Pre
Travel Industry

The travel industry subsidiary of a Fortune 500 company incurred operating losses for five consecutive years, prompting the company to replace its Division President.


Turnaround & Restructuring Initiatives

  • The company, with revenue of $20 million and 50,000 travel club memberships, was losing $500,000 annually.

  • The culture of fear and intimidation drove annual employee turnover to a staggering 315%.

  • Immediately changed the corporate culture to one of respect for all employees, allowing the rank-and-file to participate in open communications with management regarding operations.

  • Instituted a more aggressive bonus plan to improve online sales performance.

  • Negotiated more profitable contracts with key travel providers (cruise lines, airlines, hotels, and resorts).

  • Moved the marketing model away from mass marketing using TV advertising to generate calls toward product-specific marketing, generating a much higher rate of qualified sales leads.

  • Contractually partnered with America’s top travel club membership marketing company.


In less than 18 months:

  • Doubled annual revenue.

  • Increased the number of travel club memberships fivefold.

  • Took net operations from a $500,000 loss to annual profits of $500,000 to $1 million.

  • Reduced the employee turnover rate from 315% to 15%.

  • Became Carnival Cruise Line’s largest agency seller of cabins in the world.

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