Cash-potential assessment in a turmoil situation

CONTEXT

• Client is a leading leisure company (hotel accommodation in theme parks)
• Recent decline in profits, mainly due to lower occupancy rates, leading to a sudden and serious cash crisis

OBJECTIVES

• To save at least €10m over the coming 12 months, and €15m on a full-year basis

TASKS

• Redefinition of the value proposition (through management interviews, focus groups, research & analysis)
  • Phase 1: customer segmentation, understanding of drivers of declining occupancy rates, assessment of cost per service: different clientele structure and cost profile identified depending on type of journey
  • Phase 2: quantified long list of potential adjustments to the value proposition (per customer segment), outline of pricing and channel strategy (per type of journey)
• Review of the organization & processes (through interviews, workshops, analyses) in line with new value proposition
  • Personnel optimization – overlap, span of control, efficiency
  • Third-party cost optimization Handover of recommendations to the internal teams

OUTCOME

• €25m additional EBITDAR