Travel Destination

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Style:
Interviewer-led (McKinsey style)
Topics:
Growth strategy , Market sizing , Profitability analysis
Rating:
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Problem Definition

Your client is the government of a region in southern Spain. Situated in this region are the country’s main tourist locations, mostly beaches.

The government is not satisfied with the revenues of the tourism sector. They have contacted our company to find a solution for this problem.

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Exhibits

Case overview

For what kind of information would you ask the government?

How would you interpret the graphs provided by the government?

Change in number of tourists

Change in total revenue

Why is decreasing revenue per tourist a problem?

How could you measure the capacity on the market in this case?

What are the following figures telling you about the capacity of the region?

Capacity overview

It should be assumed that 100% of the capacity is used by tourists (there are no business activities like conferences in the region).

The government wants to invest in a new terminal for their airport in Malaga, the biggest city in the region. Please assess the feasibility of thi plan.

If you have to report to the governor right now, what would you tell him/her?

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