Benefits of the Ctrip Idea in the Future Life - Case Study Example

Prepaid expenses will benefit travelers in that they can be able to know the right travel agency to use depending on the cost and hence help the client to budget (David & Nancy, 2012).

Packaged tours in regard to the case idea will benefit travelers in that they will be able to book a full package in that; if they are touring a region they can get all the services at one stop. Services such as the airline to use, the vehicle to use when on land, and hotels are inclusive and easily accessible.

Traveling designations will help to classify travelers as seen in exhibit 2.

Exhibit 2

In this exhibit, there will be benefits both to travelers and the travel agencies in that; the traveler can travel according to their potentials where there is a category for budget travelers who do not require using a lot of money, while the luxury travelers will require more comfort. Decision-making will be easier for the traveling agencies due to the classifications of travelers (Mohinder, 2009).

In a future life, the ideas in the case will help the travel agencies be able to broaden their client base as shown in exhibit 3.

Exhibit 3

This classification will be beneficial to the agencies in that they will be able to make decisions based on the ability of their clients and consequently treat a client fairly and thus increasing their customer base (David & Nancy, 2012).

The case idea explores the increase in income that will arise from an increase in the customer base. This is as in exhibit 4.

Exhibit 4

Recommendation

This exhibit according to the case idea demonstrates the customer base beginning from 2007 when a new CEO is hired. Considering the vertical axis as the customer base in hundreds of thousands and the horizontal axis as the years moving forward, it illustrates that in the year 2007 the customer base was at 600,000. The figure increases to 800,000 customers in 2011 resulting from the acquisition of 16 percent by Tencent Company. This figure is predicted to rise in 2017 due to the recommendations made and the figure is projected to be at one million customers. This means the customer base in the projected future life will increase accordingly (Mohinder, 2009).

As a result of an increase in the number of customers, the revenue for the travel agency will in the future increase as shown in exhibit 5 unlike when adopting the Tigerair idea.

Exhibit 5

                                                2007                            2011                            future life

Hotel reservations

53 percent

56 percent

70 percent

Packaged tour bookings

5 percent

7 percent

32 percent

Air ticketing

39 percent

39 percent

56 percent

others

N/A

N/A

N/A

Corporate travel

4 percent

4 percent

18 percent

Recommendations

Considering exhibit 5, the case idea recommends that the increase in the customer base through the methods stated earlier will lead to an increase in the profits due to an increase in the travel activities above (Harvard business review on thriving in emerging markets, 2011).