Background
Our client, the premier consumer luxury travel consortia that targets ultra-affluent consumers, needed to develop a five year strategic plan to ramp up revenue growth ten times the company’s current revenue of $50 million.
Analysis
Given the company’s aggressive growth target, we sought to identify the most logical and scalable plan for international expansion. We began by analyzing the entire business model and recommending key strategies to assist the client in developing new revenue opportunities while increasing the effectiveness of existing product distribution channels. We conducted a “deep dive” business review, followed by extensive discussions with the firm’s international suppliers of luxury travel products. We then began negotiating a strategic alliance agreement with MasterCard International and their newest card, MasterCard World Elite.
Results
We successfully negotiated the industry’s first travel card services with MasterCard and the World Elite program which generated a new sales opportunity and a greater than $70 million revenue stream. Our international market entry strategy helped our client develop a plan to launch in Europe and Japan within their five-year goal. We were able to secure cruise line contracts which provided extended product amenities for the client’s exclusive customer base. Overall we were able to increase our client’s net margin by 17% over the previous year while providing them with a strategic business plan outlining strategies and operational requirements to ramp up future growth.