Huella Airlines

Topics: Marketing, Hong Kong, Travel agency Pages: 5 (1948 words) Published: November 16, 2010
Huella Hong Kong Online travel is a Malaysian-based travel portal that targets customers in Asia and Asia Pacific. Huella Hong Kong’s revenue growth is decreasing and their market share is declining. Huella Hong Kong has a state-of-the-art technology and business model. The people at Huella need to know what else they need to have or do in order to get out of this downward spiral. This case analysis will cover the problems Huella Hong Kong is facing, the different stakeholders and their effect on the problem, the alternatives solution, and the recommended solution. The key players:

* Huella Hong Kong: the online booking company. Regardless of their state-of-the-art technology and their creative business models, their revenue growth has been less than expected in Hong Kong (4%) And their market share for air travel there is very low (2%). Their goal is to increase their market share and grow their revenue. * Brick-and -Mortar agencies: the traditional travel agencies. They have been there for a long time now and they have a huge share of the market, almost all of it. They don’t want the people to shift to online booking taking away their market in the process. They are assuming that online booking websites, like Huella Hong Kong, are trying to replace them in the market. And that they and online booking companies are in a zero-sum game. They want to maintain their market share if not increase it. * Customers: The target market. Regardless of their comfortableness with technology and their high internet usage penetration, they don’t use online websites like Huella Hong Kong to make flight reservations. They are assuming that those websites are risky, less practical, and unreliable. They need to be introduced to the idea of online booking and to the benefits of that.

The problem:
Citizens of Hong Kong aren’t comfortable with reserving tickets online. Most of them know nothing about Huella Hong Kong or online booking websites. They believe those websites are not as convenient as traditional travel agencies. They can seek assistance from traditional travel agents on how and when to book their tickets whereas in the case of online booking, they think that they don’t have that luxury. They also believe that those websites are not secure and that they may get scammed. Internet, according to them, isn’t a secure environment for shopping since it’s easy for hackers to steal critical information from online shoppers. Moreover, they believe those websites are not reliable. They think that the reservation they make online aren’t as solid as the ones made through traditional travel agents and that their reservations might disappear if made online. The alternative solutions:

In my opinion, there are two possible solutions for this problem: The first alternative is to establish a partnership with the existing travel agencies. Those agencies have been in the market for a long time. They know the market very well; they have the customers’ loyalty. It’s going to be hard to compete against them especially when the customers don’t consider online booking to be option. On the other hand, joining sides with these agencies will make them allies. They will provide Huella Hong Kong an easier entrance to the market since they will capitalize on the customer’s loyalty to them. People will feel more positive about Huella Hong Kong and will be more willing to use their system if they see a name like “Hong Thai & Huella Hong Kong” instead of only “Huella Hong Kong”. To do so, Huella Hong Kong can offer those travel agencies a percentage of their revenues in return. That should be enticing for the traditional agencies since they will not have to invest any money in it. On the opposite, they will be getting money for that. Moreover, Huella Hong Kong can provide these companies access to its booking system in exchange for the name recognition. That would be very beneficial for the traditional travel agencies because by using...
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