Business Analysis: Orbitz Worldwide

1328 Words3 Pages

Introduction

Orbitz Worldwide is a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan, and book a broad range of travel products. Orbitz Worldwide success is because the travel company pursues its company’s mission. Orbitz’s mission is to become one of the world’s three primary hotel distribution platforms. Specifically, to organize their activities into three functional areas: demand, supply, and retail. Orbitz has identified that airlines have struggled to survive with the struggling economy, fuel prices going up, and airline fares increasing. Orbitz has identified through their mission and combining different strategies a company can be successful.

Value Discipline

The worldwide travel industry is a large and dynamic industry that has been characterized by rapid and significant change. The global economy experienced a prolonged recession during late 2008 and throughout 2009 that significantly impacted the travel industry. Although the economy appears to have stabilized or slightly improved, there is still uncertainty surrounding the timing and sustainability of a recovery. As a result, it is limited visibility into when travel industry fundamentals will fully recover.

Orbitz overcame the 2001 terrorist attacks that crippled the airline industry. The success that contributed to Orbitz prevailing through this time was the value discipline to take advantage of operational efficiency and still maintain lower costs. Orbitz is known for its customer price assurance program, which refunds a customer the difference in their ticket if the price drops for hotel or air fare. Orbitz Worldwide has altered people’s perception of online travel booking. Ev...

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...hotel, airfare, and vacation packages are why Orbitz is the leader in the industry. Recently, acquiring a contract with Trump International & Tower Las Vegas and with the Marriot has increased their marketability to lower costs at these various destinations. If Orbitz continues to acquire contracts with more hotels, vacation resorts, airlines, and car rental companies they can increase their profits and be the leader in lower costs for travel.

References

Charney, Chad. (2011). The Travel Industry: Competitive Strategy. http://thetravelindustry.wikidot.com/competitive-strategy Retrieved March 7, 2011.

Orbitz Worldwide, Inc. http://www.faqs.org/sec-filings/110301/Orbitz-Worldwide-Inc_10-K/ Retrieved March 7, 2011.

Pearce, J.A., II, Robinson, R.B. (2011). Strategic management: Formulation, implementation, and control (12th ed.) Boston, MA: McGraw-Hill/Irwin

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