unique travel case - leadership 2013

7/30/2019 Unique Travel Case - Leadership 2013

1/4

1

Unique Travel

Case - Leadership 2013

GetOut Inc. (Peter's previous employer)

Peter was previously Head of the UK branch of the international travel group GetOut Inc. Peter got his

education in the tourism industry and has on several occasions worked abroad in tourist offices, travel

agencies etc. Along the way, he has completed a bachelor degree in Innovation and Entrepreneurship and a

Master in tourism and experience economy.

GetOut is one of the leading travel companies in the UK dealing in both outgoing and incoming tourism. The

company is American owned with its European headquarters in France.

The organization in Denmark is characterized by the American owners desire for uniformity across the

globe, leading to a centralized management with strong use of specialization, as well as procedures and

rules. As shown in the attached diagram of the organization, GetOut is a hierarchical organization with clear

responsibilities and command structures.

Peter was very happy working at GetOut and had learned much about the industry and also developed a

solid network in The UK and abroad. But he also had a burning desire to stand on his own two feet and try

some of his own ideas.

He had therefore considered developments in the industry and in customer travel patterns. It was clear to

him that the competition had become much tougher and customers were not satisfied anymore with

standardized services. They demanded individual and customized services with new experiences and in

many cases also active involvement. This put significant demands on companies and not least the

requirement for innovation and competence of employees. Furthermore, the internet had allowed

customers arranged trips themselves, especially with the increase in simple travel products. This also

brought with it lower prices. If a company was to charge higher prices they would have to be a distinctive

added value for the customer.

Unique Travel

As a consequence, 3 years ago Peter started his own travel company Unique-Travel together with his wife

Anne and his brother Thomas. Anne had previously worked in a consulting company with several

international clients from the tourism and hotel industry.

Thomas was previously employed as a sales manager in a service industry, where he had been responsible

for both the new and existing customers. He had travelled a lot in connection with his job but had no


2/4

2

particular experience in the travel industry. Nonetheless he is very outgoing and excels at both creating

sales-opportunities, establish contacts and good working relations.

Unique-Travel had from the start wanted to differentiate and create a unique profile. This is evident on

their website: as well as being very informative it also uses many visual effects with innovative interactiveelements.

The one thing that makes Unique-Travel stand out though probably is their sales office in London. The

office is designed as a sort of cafe with screens, PCs, brochures, etc. So besides enjoying a cup of coffee, a

beer or small tapas-like dishes from some of the destinations on offer, customers can find information

about various destinations and experiences via video clips, presentations, fact sheets etc. This even allows

customers to put together travel suggestions, get quotes or contact one of the travel consultants, who are

dressed in clothes from different destinations or types of holiday. The destinations are also different from

the classical bureaus, because Peter had deliberately opted out of traditional mainstream locations in favor

of the more unique.

Initially it had been a somewhat primitive version of the idea, with a relatively small sales office where

besides the owners there had only been a few part-time employees. Additionally, they had been using

external companies for IT, Web Design and Accounts and a number of partners at the destinations.

Success and growth

The company was a success and grew very quickly. One year ago Unique-travel bought the neighboring cafe

and combined it with the original sales office, so the concept could be realized fully. A number of the

employees from the cafe transferred to Unique-Travel and 25 new employees were hired including

managers and a few interns. Moreover, they decided to in-source IT, Web and Accounts in tact with the

growth of the business.

They were now working in both the business and leisure segments resulting in two overall departments.

Despite this employees and managers continued to coordinate efforts across the two departments

depending on workload and competencies.

Challenges

The company had always been characterized by a high level of commitment, interaction, and helpfulness,

but it became increasingly clear to the owners that there was a need for changes in several areas. There

were problems arising as a result of using different systems, the coordination and communication between

different professional groups as well as different cultures. Managements role and the different leadership

styles made life confusing with tendencies to invent "the wheel" time and again instead of communicating.

This was also leading to the building up of silo structures and therefore also internal conflicts.


3/4

3

Peter had until now because of his resourcefulness, initiative and vigor been the driving force, supported by

Anna and Thomas dedication and skills. Strategic work filled more and more of Peters time and, Anna and

Thomas areas of work had also grown. So all in all, the three owners did not have the same perspective

and insight as before. Mistakes were beginning to show, as well as failures in communication and the

knowledge that was generated in the day-to-day work was not being shared as it had been previously.

Peter was planning to start similar offices in Birmingham and Manchester, but was very aware that the

prerequisite for success with new offices, was that he had his own house in order, so that they had a more

finished and thought through concept to reproduce.

Therefore Peter, Anna and Thomas decided to hold a one day meeting outside the company to discuss the

situation. In their summary of the meeting they made the following observations:

Tendency for errors, lower quality and efficiency, unclear leadership, declining cooperation andproblems maintaining a continued focus on innovation and commitment, resulting in:

o A need to increase motivation.o A need to develop organizational structure. To preserve the capacity for innovation and

customer intimacy, it is important to maintain an organic and flexible organization. Peter

did not want to build up an organization like GetOut, which he saw as rigid, static and

partially alienating.

o A need for an approach to leadership that will be useful in the future.o A need for a clear and unambiguous corporate culture - and common goals - based on

some common values in the company.

o A need for increased focus on more cooperation in well-functioning teams that are bothmotivating and effective.

The task

The three owners need to have a better basis for making decisions about changes in the company and have

asked an external consultancy company (you and your group) to come with a report that answers the

questions below:

1. How can Unique Travel increase motivation amongst staff in the future?

2. Which organizational structure should Unique Travel A / S use in the future? Draw an organizationchart - and briefly describe the advantages and disadvantages of this form of organization?


4/4

4

3. Which leadership style must Unique Travel use in the future? Use your knowledge of managementtheory in order to come up with a good solution (on the basis that Unique Travels owners know

nothing about management theory).

4. Which corporate culture exists in Unique Travel today and how can it be changed in the future?

A. Consider how management should work to create common values within the organization -what process would you choose?

B. And what common values the company could usefully have? Make concrete suggestions!

5. How Unique Travel can, in an appropriate way, use the theory of effective groups / teams todevelop and improve cooperation within the company in the future?

The owners expect your report to:

Be practical and reasonable with regards to implementation

Theoretically based

Not be a quick-fix

If you are in need of further information or think there are several interpretations in the case study, you are

welcome to make certain assumptions.

Prepare in groups a report (approx. 5-7 pages).

Your report is to be uploaded on Fronter no later than the 19th

March 2013 at 12-noon.

unique travel case - leadership 2013

Documents