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Bhutan Case

In: Business and Management

Submitted By squally14
Words 457
Pages 2
Summary:
The Bhutan country was an emerging market. They strived to instill innovative leaders who wanted to open up to foreign markets. The main industrial strive to increase its growing tourism business was in the form of Royal Bhutan Airlines. They experienced industry growth. This caused them to rethink their strategy of high value low volume. This was due to wanting to preserve the culture and geography of the small nation of under 700 thousand people. Royal Bhutan Airlines was contemplating how to increase size and lower costs by online booking, increased domestic travel, and alliance partnerships.
Issues:
The major issues that interfered with growth was corporate culture, tariffs, seasonal traffic, and logistical burdens. For starters, Royal Bhutan Airlines was a direct extension from the government since it was designed as a taxi service for Indian officials. They were set on preserving the pristine nature of the Bhutan culture, religious and geographically. Hence why they set small limits on tourists coming in and out of the country. Tariffs caused higher prices on people traveling to the country due to having to go through specific travel agents. Season trends were a large portion of the problem for Royal Bhutan Airlines. To solve this problem, consider buying smaller more economical planes that are only used during slower seasons. It would help with the load percentage. During peak seasons bring out the larger aircrafts. This would also reduce wear and tear on the planes. Logistical burdens were probably the largest issue. Opening up the online booking sector for tourists will significantly decrease difficulty and increase interest for tourists. It will also allow for increased accuracy of numbers in and out of the country. The less time spent booking travel, the more time spent in Bhutan. Another logistical issue was whether or not to utilize its current infrastructure to increase domestic flights. The problem with the geographical area of Bhutan was that such a small percentage of the tourists actually visiting the eastern part of Bhutan due to the difficult 3 day vehicle commute. If they purchased smaller planes for the non-peak seasons, they could also utilize those planes for smaller quantity domestic flights for tourists.

Takeaway:
I had no idea Bhutan was a country for starters, let alone one with such attractive geographically. It also seems to have a rich cultural atmosphere with an emphasis on religious ceremonies. I can understand why it’s a growing tourist destination. I also could see how much of an inconvenience traveling to and from would be. It is definitely a demerit to traveling there. That isn’t even including traveling once inside the country. If the same taxi services remain in place, it would be a small fortune to spend a week there!

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