The Client:
Headquartered in Linz, Reisewelt is one of Austria’s largest travel agencies with 28 offices, two event divisions (individual and group travel) and a flight division. Sales in 2017 were € 79 million, and the market share was 37% in Upper Austria in the agency. Reisewelt is a subsidiary of RLB Upper Austria and employs 140 people.
The Project:
The Turkey crisis led to sharp declines in sales and earnings across the European travel industry in 2016. Austrian travel agencies were also squeezed due to the high intensity of competition in Austria (one office per 3,200 inhabitants, in Germany one office per 7,900 inhabitants) and because of growing online competition. Last but not least, the crisis at Linz Airport resulted in 36% fewer charter flights and 25% fewer scheduled flights in Upper Austria in 2017. A manager from Management Factory took over the management of Reisewelt from February to October 2017 and then accompanied the company as a consultant until October 2018. The main focus was the return to profitability, the reorganization of the company and the implementation of a multi-channel approach in sales.
Highlights:
- Sustainable cost reduction
- Simplification of the organizational structure with flat hierarchies
- Reorganization of the branch network Reduction of the brands from four to one and increase of brand awareness
- Bundling of tour operator and flight expertise
- Promotion of active sales in stationary distribution
- Expansion of internet activities and online distribution
- Implementation of a new corporate strategy
- Return to profitability in the 2018 financial year