In February 2008, the President of the vouchers Inc. Paradis (Paradise) evaluating its options for the competitive position of the company’s strategy for the future was. Paradise was a Quebec leader in the tour operating industry, but faced a major challenge: Funtours Holidays (Funtours) had stolen a considerable part of the Ontario market share in just two years and was on the conquest of the Quebec market plans for the fiscal year 2008/09 winter season. Funtours’ aggressive strategy was to offer large capacit … Read more »

In February 2008, the President of the vouchers Inc. Paradis (Paradise) evaluating its options for the competitive position of the company’s strategy for the future was. Paradise was a Quebec leader in the tour operating industry, but faced a major challenge: Funtours Holidays (Funtours) had stolen a considerable part of the Ontario market share in just two years and was on the conquest of the Quebec market plans for the fiscal year 2008/09 winter season. Funtours’ aggressive strategy to offer high capacity at low prices was thus creates a price war and declining profit margins. The president had to consider how Funtours’ threat in the face of several challenges: the tour industry has changed fundamentally constrained due to the shift from traditional travel agents towards internet sales, limited differentiation in product supply price competition and a growing customer base, as more people could afford to travel. Price was developed as the dominant criteria for travelers and a huge consideration for tour operators. The President asked what strategy would be best for the company in the short and long-term profitability.
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from
Jonathan Michel,
Mark Vandenbosch
Source: Ivey Publishing
10 pages.
Release Date: 26 June 2009. Prod #: 908A09-PDF-ENG
Paradise holiday HBR case solution

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