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Business Analysis: Orbitz Worldwide

1247 words - 5 pages

Introduction
Orbitz Worldwide is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan, and book a broad range of travel products. Orbitz Worldwide success is because the travel company pursues its company’s mission. Orbitz’s mission is to become one of the world’s three primary hotel distribution platforms. Specifically, to organize their activities into three functional areas: demand, supply, and retail. Orbitz has identified that airlines have struggled to survive with the struggling economy, fuel prices going up, and airline fares increasing. Orbitz has identified through their mission and combining different strategies a company can be successful.
Value Discipline
The worldwide travel industry is a large and dynamic industry that has been characterized by rapid and significant change. The global economy experienced a prolonged recession during late 2008 and throughout 2009 that significantly impacted the travel industry. Although the economy appears to have stabilized or slightly improved, there is still uncertainty surrounding the timing and sustainability of a recovery. As a result, it is limited visibility into when travel industry fundamentals will fully recover.
Orbitz overcame the 2001 terrorist attacks that crippled the airline industry. The success that contributed to Orbitz prevailing through this time was the value discipline to take advantage of operational efficiency and still maintain lower costs. Orbitz is known for its customer price assurance program, which refunds a customer the difference in their ticket if the price drops for hotel or air fare. Orbitz Worldwide has altered people’s perception of online travel booking. Every aspect of Orbitz Worldwide Inc contributes to their main mission which is to be the top online traveling agency.

Orbitz took their mission and broke it down in three phases: demand, supply, and retail. These three phases have built operational efficiency to sell their products at a low price all the time. Demand: This is sought to be generated through demand for both business and consumers. The goal of Orbitz is to increase their brand awareness and loyalty to the consumers directly through the website. Different marketing options available to their consumers is offline marketing which highlights tools and resources available, price assurance for flight and hotel booking, and valuing the consumers mental state by enforcing their motto “Book easier, Travel Happier.” Supply: Providing customers with a broad and deep range of highly competitive travel products and services on the website. For hotels, we are focused on offering our customers the ability to book the most relevant hotels at the most competitive prices. For airlines, taking actions such as pursuing direct connect strategies, limiting forward distribution of their fares to outside competitors. Retail: Orbitz is focused on ways to consistently improve...

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