![]() |
|||
![]() ![]() |
![]() |
![]() |
Français | ![]() |
Contact Us | ![]() |
Help | ![]() |
Search | ![]() |
Canada Site |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
Home | ![]() |
Site Map | ![]() |
What's New | ![]() |
About Us | ![]() |
Registration |
![]() |
![]() ![]() ![]() ![]() |
|
|
![]() |
![]() Colibri Tours – E-Business Case StudyPublication Date: June 2004
IntroductionColibri Tours was founded in 1988. From the outset, the travel agency has made it a company policy to offer personalized service to individual customers and groups. As the company's reputation has grown, it has successfully entered several European markets, offering a variety of tours to satisfy the tastes and interests of the most demanding travellers. The head office for Colibri Tours is located in Calgary, Alberta. It is a small travel agency with annual sales under $1 million. During the past year, the company saved $40 000 by servicing its customers through its Web site. This has enabled the travel agency to be in direct contact with its customers, and in so doing, to realize considerable savings on European tour wholesalers' fees. The programs that Colibri Tours offers cover western Canada. All groups are accompanied by experienced guides which allows travellers to discover (with complete peace of mind) the marvels of western Canada, and such American sights as Yellowstone Park, the Grand Canyon, Zion National Park, Bryce Canyon National Park, and Alaska. Colibri Tours operates year round offering programs that are geared to the seasons. In addition to its regular tours, Colibri Tours offers visitors:
Context and Favourable Conditions
Development PhasesMs. Jacob, the President and founder of Colibri Tours, developed the agency's Web site. She personally undertook to learn the basics of Web site design to facilitate development and updating activities. One crucial step was the search for a server. The first server chosen did not specialize in tourism and was not a suitable choice. The second server selected specialized in the tourism sector and was satisfactory choice, making it possible to promote Colibri Tours' Web site at an annual cost of $1 800. Strategic Scope1. Scope of Functionalities and ServicesMs. Jacob regards the Internet as a transaction accelerator. More specifically, several functionalities provide services superior to those obtained through traditional means:
2. Market ScopeOne of the key changes stemming from direct reliance on a Web site is that the travel agency deals directly with consumers instead of wholesalers. This has significantly changed Colibri Tours' positioning in the market by opening up the direct market. Formerly, Colibri Tours' clientele was made up entirely of groups, whereas today 80 percent of its customers are individuals. This represents a radical shift in its customer profile. Paradoxically, the travel agency's Web site has also enabled it, to a lesser extent, to attract new customers, including wholesalers. For example, a Belgian wholesaler recently confirmed a reservation for 48 people in September 2004 and the transaction was completed using the Internet. 3. Geographic ScopeColibri Tours' clientele comes mainly from the United States, Europe and Canada. The proportion of American customers is important because it represents tourists who are familiar with the Internet and who make more purchases online than Europeans and Canadians. 4. Scope of SkillsThe Colibri Tours Web site was developed and implemented almost exclusively in-house. The only outside expertise required was the use of a specialized server. Ms. Jacob, the travel agency's owner, designed the site and updates it regularly. Key Success Factors
Barriers to Adoption
Creating Value1. NoveltyAccess to a Web-based travel reservation form considerably enhances the travel agency's efficiency, and enables it to conduct lower cost transactions with travellers. The value created from e-business initiatives is found in large part in the cost savings, especially the cost of promoting Colibri Tours' services. 2. ComplementaritiesValue is also created, although to a lesser extent, from the impact of scale between the travel agency's traditional operations and its Web-based operations. Indeed, personalized telephone service and a personal welcome at the airport round out the services offered on the Internet (such as photographs of the tours offered and the possibility of filling out an online reservation form). Some 80 percent of reservations are now handled using the Internet and only 20 percent, by telephone. Performance MeasurementsColibri Tours now serves over 80 percent of its customers using the Internet. This technology also enables the travel agency to reach customers the world over. The Internet allows the travel agency to communicate at lower cost with its customers. The Internet has greatly altered the way Colibri Tours establishes contact with its clientele. Previously, it obtained 80 percent of its clientele through promotions conducted in conjunction with wholesalers' trade fairs. At present, such trade fairs account for only 20 percent of its clientele. Telephone contact with customers helps mitigate the risk that consumers perceive in making reservations using the Internet. Only a minority of buyers need to be reassured by telephone. The Internet has also enabled Colibri Tours to achieve 30 percent productivity gains. Its Web site allows it to save a great deal of time with regard to customer contact and follow-up. Future ProspectsColibri Tours hopes to pursue its growth while at the same time striking
a balance between the company's objectives and its president's quality
of life objectives. The travel agency's key mission is to maintain a balance
between professional life and personal life. As noted earlier, offering
service on a The energy and effort devoted over the past five years to this process mean that e-business is now an integral part of the operations of Colibri Tours, a small travel agency that has been in business for 15 years. Implications for E-business DevelopmentMs. Jacob has some advice to offer future entrepreneurs who wish to engage in e-business.
Published in PartnershipThis case study was prepared by CEFRIO as part of the project
The research team included Mrs. Louise Côté, Professor from HEC Montréal, Mr. Vincent Sabourin, Professor from the Université du Québec à Montréal, and Mr. Michel Vézina, Professor from HEC Montréal. The research team completed this case study at the end of January 2004. The opinions expressed in this case study do not necessarily reflect those of Industry Canada and/or Canadian Heritage. For more information, please go to the CEFRIO Web site — The Authority
on Information Technology Appropriation — at: www.cefrio.qc.ca/english/indexAccueil.cfm. |
![]() |
![]() |
|||
Created: 2004-04-05 Updated: 2004-10-19 ![]() |
![]() Top of Page ![]() |
Important Notices![]() |