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PrepLounge

Online travel booking

Difficulty: Intermediate
Candidate-led
400+ Ratings
Times solved: 6.0k

Case Prompt:

An online travel agency earns a 10% commission on all of its bookings. Currently, their profits before taxes are $1 m, while the industry average is around $2.5 m. The client wants to know why they're making less than the industry average?

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I. Background

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II. Analysis

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III. Solution

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Further Questions

  • What are some quick-win & short-term solutions the client can implement to increase profit margins?
  • Do you think airlines would offer lower transaction costs to business travellers? How can the agency make that pitch strong?
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Practice makes the difference
Practicing alone helps – with a partner it’s even better. Solve this case in a realistic mock interview.
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