The paper "Strategic Management at Jetset Travel World Group " is a perfect example of a management case study. Jetset travel world group is a merged group involved in the travel business. It recently merged with Stella travel services holding to offer wholesale travel business, retail urgency networks, air ticket consolidation, and airline representation and travel Management services. Jetset Travelworld Group operates in the United States of America, South Africa, Asia, Fiji, New Zealand, the United Kingdom, and Australia. Jetset TravelWorld Group has various groups which include: Jetset, Harvey World Travel, TravelWorld, Qantas Holidays, Viva Holidays, Travel 2, Travelescene Holidays, Newmans Holidays, Travel Indochina, ReadyRooms. com, Travelscene American Express, JTG Business select, Concorde Agency Network, and Harvey TravelWorld in South Africa among many others.
The Jetset TravelWorld group is in the business of tourism and travel. As it is indicated by the Jetset TravelWorld Group (2011), travel agent services and airlines are provided with international airfare and tickets; this is done through ticketing technology which is available 24 hours a day. Jetset TravelWorld group offers retail, air, wholesale, and travel management services.
Retail services include the Travelscene America Express; an Australian travel brand. The Harvey World Travel; comprised of dealership-owned stores and some Jetset TravelWorld Group-owned stores. Jetset a dealership and an associate travel agent; this provides customers with products related to travel including Air, cruise, and leisure; the main target for Jetset is customers of the middle-income group. TravelWorld is also a dealership offering air, land and cruise services to young couples. A web-based fares database gives agents a chance to search for airfares online. Other retail services include Smart Tickets, Concorde Agency Network, World Aviation Systems, and Global Aviation Services.
The wholesale services offered by the Jetset TravelWorld Group include Qantas Holidays which sources land and air travel services. The Viva Holidays provides airline flights. The other wholesale services include the Travelscene Holidays, Travel 2, and Travel Indochina. The travel management services offered by the Jetset TravelWorld Group involve flight arrangements for customers, car hire, visa facilitation, and travel plan management. These services are offered by the QTB, Travelscene Corporate, Atlantic Pacific Travel, and JTG business select. Strategy and Challenges Faced According to Steve (2011), the pre-tax of Jetset Travelworld was $6.4 million earnings before interest, tax, and reduction of its assets of $23.3 million.
It has a transactional value rising about 8% to $2.8 billion. It is also difficult to compare with previous years mainly because of the merger of Jetset Travelworld with Stella. This has been the major strategy for the group together with the strategy of positive growth; this is in order to position the company in a competitive market and be able to explore growth opportunities that are readily available in Australia, New Zealand, and the vast international market.
This will naturally provide future benefits to the Jetset TravelWorld group Limited. This saw some of its directors quit their jobs in efforts to change the management of the group. The operating environment of the group has been Improving. The Company is likely to be affected by the Queensland flood, Christchurch earthquake and cyclones. These are natural disasters that are likely to affect the confidence of the consumers, consequently, affecting the revenues of the group. The merger process has been a challenge to the group though according to the managing director.
There is an estimate of $10 million cost-saving to be realized at least by 30 June 2012. As identified by Holloway (2006), there is an increase in online competition and this is likely to have a negative impact on the performance of the group; the Jetset Travelworld group has to come up with the right strategies to manage this. The declining commissions from the airline are also a threat to this group. Despite getting an assurance that the merger will not cause a threat to consumers, there is a challenge of a battle between the merged Jetset Travelworld groups to have other agents switch to SmartFares, though their most preferred is the Quickfares.
The main strategy of the group is to merge with the Stella which is proofing to be effective as no major challenges have been mentioned by the directors of the group.