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Project duration |
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Services provided by Lufthansa Consulting |
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Project description |
Lufthansa Consulting supported VAO “Intourist” with a feasibility study of the current market situation to evaluate the potential of launching their own charter airline VAO “Intourist” fits the profile of a typical tour operator challenged by the naturally high seasonal tourism market in Russia and general aircraft availability. Such seasonality has caused severe management issues for European firms who have fought for decades to make money in the high season and minimize losses at other times. The emergence of LCC's and transparent internet bookings has exacerbated the challenge of seasonality. Dramatic changes have occurred in the market and although the Russian market is less mature in this respect, it can be expected that Intourist will be forced to address the opportunities and risks in the long term. In cooperation with the aircraft providers, planned destinations have been analyzed in order to define the best fleet profile for the network. A customized cost model was developed, which calculates the break even price for air services and helps Intourist to include this service in their tour packages. |