Strategic partnerships in the tourism sector may increase as demand returns, says GlobalData
“Strategic partnerships are effective if company partners with a brand that specializes in an area where they may be lacking, in order to bolster their own offering.
Companies in a range of industries within the tourism sector are doing everything possible to decrease their recovery periods without parting with large sums of cash. Through increasing exposure and reaching new markets, strategic partnerships may be able to assist. Without the financial risk associated with that of a merger or acquisition, this affordable alternative will be likely to grow in popularity as companies in the tourism sector look for cost-efficient ways to expand in the ‘new normal’, says GlobalData, a leading data and analytics company.
Ralph Hollister, Travel & Tourism Analyst at GlobalData, comments: “Strategic partnerships allow for new customer bases to be gained. It is especially effective if a company partners with a brand that specializes in an area where they may be lacking, in order to bolster their own offering. This means a company can further its competitive edge – or catch up with competition – without incurring the financial burden of recruiting and paying staff.
“These alliances also allow providers to instantly build valuable intellectual capital. Both parties involved in the partnership will benefit from an exchange of ideas, information and expertise that could benefit them both mutually long after the official partnership has actually ended.
“This trend is already starting to grow, Booking.com customers will eventually have direct access to a product portfolio of more than 70,000 tours and attractions globally through TUI subsidiary Musement, launching on Booking.com over the coming months.
“Through this strategic partnership, both companies will increase their chances of improved recovery periods as they both benefit from increased exposure to new markets, without the involvement of any M&A activity.”