value and opportunity

This is part 2 of the Flight Centre analysis after the book review last week.

The “old” business model

The Australian based company is a classic “travel agency”, both, running physical agencies as well as offering airline tickets and tours over web sites.

A traditional travel agency usually works like this: They offer flights from preferred airline partners and hotels or packages also mostly from certain partner companies. Traditionally you would go into a travel agency and ask if they can recommend you a destination, then you would be offered some colorful catalogues where they list the offered hotels (with prices mostly depending on the official “star system”) and then gladly sell you the “Bundle”.

Read more