1. Travel Market

Why read this section? Like any market, the travel industry has divided itself into different sectors and has different types of companies. The first section introduces you to the travel market and it's lingo. It then helps you think about what your business will do for its customers. 

What you need to know before you read this section: Nothing! 

Travel Market Sectors - The travel market is divided into the following market sectors. Hopefully these are self explanatory.
 
  • Luxury
  • Business travel
  • Mass market
  • Cruise
  • Rail
  • Speciality/ Activity/ Sports
  • Ski
  • Niche markets
 
Types of Travel Company: The travel market categorises companies into -

So what is it that your business will do for your customers? 

The term customer proposition used to mean what you do for the customer at what price and place. This section asks some searching questions to help you clearly define the customer proposition. While this is primarily written for end consumer propositions, it also applies where your customer is another business. 

Before we get into that make sure that you are aware of the three types of business that exist- scale, niche or tailored. Your start-up business will have to compete with the established large companies. Much of the established market will be catered for by scale companies like TUI and Thomas Cook. While you can compete head on, having a niche or tailored proposition can help you compete more effectively.

To become clear about your business proposition, ask yourself whether your idea is a copy of what other business can provide now, also known as a me too business. If your idea would be a me too business then it may be harder to succeed. Also keep in mind how simple the differentiation can be. For example, I like businesses run by people who are passionate and interested in what the business does. For me, that alone can differentiate a business, and it is incredibly rare in large businesses.

Finally, describe the business proposition in a few statements that explain what it is and hopefully brings out any differentiation. As an example: 

  • Provides very challenging skiing for those bored with a black run
  • Tours are run by ex competitive skiers
  • Provides sports massage as part of the standard package at the accommodation venues

Hopefully, by now you will have a clearer idea of what your business will do for your customers and what type of differences there are from the established travel companies.