Strategy Simplified

S17E30: Intro to Casing (3 of 10): Kearney Profitability Case – Tourism Revenue Boost

May 19, 2025
Dive into a profitability case study that focuses on enhancing tourism revenue for a West African country. Discover dynamics of travel spending and the strategies to increase average stay durations. Learn about the ambitious goal of boosting tourism revenue by $100 million through improved accommodations. Explore the Ministry of Tourism's initiatives for safety and marketing. Gain insights into effective presentation techniques and the importance of structured brainstorming for successful case analysis.
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ADVICE

Focus on Accommodation First

  • Prioritize accommodation when analyzing tourism revenue because it is a major cost driver for tourists.
  • Break down accommodation into categories like hotels, hostels, vacation rentals to capture detailed spend patterns.
INSIGHT

Length of Stay is Key Lever

  • The average length of stay in the client country is significantly lower than peer countries.
  • Increasing the length of stay could dramatically boost tourism revenue, showing a key leverage point.
ADVICE

Use All-Inclusive Packages

  • Increase average length of stay by promoting all-inclusive packages with minimum stay requirements.
  • Use incentives like bundled food and activities to encourage tourists to extend their visits.
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