Babson Case Number: 180-C05 | Length: 39 Pages

Abstract

While the president of Grand Circle Corporation, a tour operator, had been pleased with its performance to date, the industry was reeling from the events of September 11. GCC was still profitable, yet customer deposits for upcoming trips were down significantly from the year before. He was unsure whether he could take GCC to the next level and reach the one billion dollar top line target. Did he have the right structures and processes in place?

1. Product Scope: How many destinations should they offer for 2002? Which product types should they focus on: GCT, OAT, Cruise, River Cruises, or VBT?
2. Customer Scope: Which segments should they focus on? How should they market to them?
3. Pricing: What pricing approach should they take for 2002?
4. Gaps: What gaps did they need to close to reach their $1 billion sales goal in 5 years.

This case includes information and background on the US Tour Operator Industry in 2001. It is targeted for use in both graduate and undergraduate classes in strategic management, but is also appropriate for courses in hospitality and marketing. For those who wish to use a separate industry note, please use “The US Tour Operator Industry in 2001,” BAB121.