Flevy Management Insights Case Study
Sustainability Strategy for Hospitality Chain in Eco-Tourism
     David Tang    |    Customer Journey


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Customer Journey to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A leading eco-tourism hospitality chain saw a 20% rise in operational costs and a 15% drop in customer satisfaction due to outdated tech and inefficient practices. Implementing digital innovations and Lean Management resulted in a 25% boost in customer satisfaction and a 30% cut in costs, driving increased direct bookings. This underscores the need to integrate sustainability with customer experience.

Reading time: 8 minutes

Consider this scenario: A renowned hospitality chain specializing in eco-tourism faces challenges in enhancing the customer journey amid increasing environmental concerns.

Internally, the organization struggles with a 20% increase in operational costs due to inefficient sustainable practices and outdated technology. Externally, a 15% decline in customer satisfaction scores highlights the urgency to innovate the customer experience while adhering to sustainability standards. The primary strategic objective of the organization is to redefine the customer journey by integrating advanced sustainable practices, thereby improving customer satisfaction and operational efficiency.



The hospitality industry, especially within the eco-tourism sector, is at a crucial juncture where sustainability is not just a value-add but a fundamental expectation from consumers. The pressing need to innovate while embedding sustainable practices poses a unique challenge for traditional hospitality chains.

Environmental Analysis

  • Internal Rivalry: High, with established eco-tourism destinations and new entrants vying for the environmentally conscious traveler, driving up marketing costs and putting pressure on prices.
  • Supplier Power: Moderate, as the unique nature of eco-tourism requires specialized services and products, but alternatives are emerging.
  • Buyer Power: High, due to the availability of information and alternatives, making customer loyalty harder to maintain.
  • Threat of New Entrants: Medium, as barriers to entry vary by region but brand reputation and customer experience become key differentiators.
  • Threat of Substitutes: High, with travelers increasingly considering other forms of sustainable travel and accommodation.

  • Increasing demand for authentic and sustainable travel experiences presents an opportunity to innovate the customer journey, but requires significant investment in sustainable practices and technologies.
  • The rise of digital platforms for travel planning and booking poses a risk of disintermediation but also offers a channel to enhance customer engagement and loyalty.
  • Regulatory pressures for sustainability in the hospitality industry are intensifying, presenting both compliance challenges and opportunities to differentiate through leadership in sustainability.

A PESTLE analysis reveals that political and environmental factors are increasingly influencing the hospitality industry, with regulations around sustainability becoming stricter. Technological advancements offer opportunities to improve operational efficiency and the customer experience, but also require significant investment. Social trends towards sustainable living are shaping consumer expectations, while economic factors such as fluctuating travel costs can impact demand.

For a deeper analysis, take a look at these Environmental Analysis best practices:

Strategic Analysis Model (Excel workbook)
Porter's Five Forces (26-slide PowerPoint deck)
Consolidation-Endgame Curve Framework (29-slide PowerPoint deck)
Strategic Foresight and Uncertainty (51-slide PowerPoint deck)
PEST Analysis (11-slide PowerPoint deck)
View additional Customer Journey best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Internal Assessment

The organization is recognized for its commitment to eco-tourism but faces challenges in operational efficiency and technology adoption, impacting its ability to meet evolving customer expectations for sustainability and experience.

SWOT Analysis

Strengths include a strong brand in eco-tourism and a loyal customer base. Opportunities lie in leveraging technology to enhance the customer journey and operational efficiency. Weaknesses are seen in the current operational inefficiencies and lagging technology adoption. Threats include increasing competition and changing regulatory landscapes around sustainability.

Distinctive Capabilities Analysis

Success in eco-tourism requires a blend of sustainability, customer experience, and operational efficiency. The company has a strong foundation in sustainability and customer loyalty but needs to enhance its technology and operational processes to maintain competitiveness and capitalize on market opportunities.

Strategic Initiatives

  • Enhance Customer Journey through Digital Innovation: Implement a digital platform to personalize the guest experience, from booking to post-stay. The intended impact is to increase customer satisfaction and loyalty. The source of value creation comes from leveraging technology to meet the high expectations of eco-tourists, expected to result in increased repeat business and positive word-of-mouth. This initiative requires investment in digital technologies and training for staff.
  • Sustainable Operational Efficiency: Adopt green technologies and practices across all operations to reduce costs and environmental impact. The intended impact is streamlined operations and reduced carbon footprint, creating value through cost savings and enhanced brand reputation. This will require investment in sustainable technologies and process redesign.
  • Customer-Centric Sustainability Innovations: Develop new services and experiences that align with the sustainability values of the organization and its customers, aiming to differentiate and capture market share. The source of value creation is in offering unique, sustainable travel experiences that cannot be easily replicated. Requires investment in research and development, marketing, and partnership development.

Customer Journey Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Efficiency is doing better what is already being done.
     – Peter Drucker

  • Customer Satisfaction Score: Measures the effectiveness of the new customer journey initiatives.
  • Operational Cost Reduction Percentage: Gauges the financial impact of sustainable operational efficiencies.
  • Carbon Footprint Reduction: Tracks the environmental impact of the organization's sustainability efforts.

These KPIs provide insights into the success of strategic initiatives in enhancing customer satisfaction, operational efficiency, and sustainability. Tracking these metrics will enable timely adjustments to strategies and operations, ensuring alignment with organizational objectives and market demands.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Customer Journey Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Customer Journey. These resources below were developed by management consulting firms and Customer Journey subject matter experts.

Customer Journey Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Customer Journey Enhancement Plan (PPT)
  • Sustainable Operational Efficiency Framework (PPT)
  • Technology Adoption Roadmap (PPT)
  • Sustainability Innovation Portfolio (PPT)

Explore more Customer Journey deliverables

Enhance Customer Journey through Digital Innovation

The Value Proposition Canvas (VPC) was one of the key frameworks utilized to enhance the customer journey through digital innovation. The VPC is instrumental in ensuring that the products and services a company offers match the customer's wants and needs. It was particularly beneficial in this strategic initiative as it helped to align the new digital offerings with the specific expectations and sustainability values of eco-tourists. The organization proceeded by:

  • Mapping out customer profiles for different segments within the eco-tourism market to understand their specific needs, pains, and gains.
  • Identifying how the new digital platform could alleviate pains and create gains for these customer segments.
  • Adjusting the features of the digital platform to better align with the identified customer profiles, ensuring a seamless and personalized customer journey.

Additionally, the Customer Journey Mapping (CJM) technique was applied to visualize the end-to-end experience of customers. This method allowed the organization to see the customer's journey from initial awareness to post-stay engagement through the lens of the customer, identifying key touchpoints for enhancement through digital innovation. The team implemented this by:

  • Identifying all the touchpoints customers have with the brand, from online research and booking to on-site experiences and post-visit communication.
  • Analyzing feedback and data at each touchpoint to identify areas for improvement.
  • Implementing digital solutions at critical touchpoints to enhance the overall customer experience, such as mobile check-in/out, personalized travel guides, and digital feedback mechanisms.

The results from implementing the Value Proposition Canvas and Customer Journey Mapping frameworks were transformative. The organization saw a 25% increase in customer satisfaction scores within the first year, alongside a notable increase in direct bookings through the newly enhanced digital platform. These frameworks enabled the company to systematically identify and address the specific needs and expectations of their eco-tourist clientele, leading to a more engaging and satisfying customer journey.

Sustainable Operational Efficiency

For improving sustainable operational efficiency, the organization adopted the Lean Management framework. Lean Management focuses on reducing waste and improving processes, which was crucial for enhancing the company's sustainability and operational efficiency. This framework proved beneficial in identifying non-value-added activities and streamlining operations to reduce costs and environmental impact. The implementation process included:

  • Conducting a thorough analysis of current operational processes to identify waste in the form of excess resources, overproduction, and underutilized staff.
  • Implementing lean strategies such as just-in-time inventory, energy-efficient technologies, and cross-training staff to enhance flexibility and reduce waste.
  • Establishing continuous improvement teams to maintain lean processes and ensure ongoing efficiency gains.

The Circular Economy Model was also applied to transform the organization's approach to resource usage and waste. This model emphasizes the reuse and recycling of materials to minimize environmental impact and support sustainability goals. The organization accomplished this by:

  • Assessing all input materials for their recyclability and sustainability, opting for those with lower environmental impacts.
  • Redesigning processes to facilitate the reuse of water and waste materials in operations.
  • Partnering with local communities and businesses to develop a circular supply chain that supports local economies and reduces waste.

The application of Lean Management and the Circular Economy Model led to a 30% reduction in operational costs and a 40% decrease in waste generation within the first two years. These frameworks not only improved the organization's sustainability profile but also demonstrated a commitment to operational excellence, enhancing the brand's appeal to eco-conscious travelers.

Customer Journey Case Studies

Here are additional case studies related to Customer Journey.

Customer Journey Mapping for Cosmetics Brand in Competitive Market

Scenario: The organization in focus is a mid-sized cosmetics brand that operates in a highly competitive sector.

Read Full Case Study

Transforming the Fashion Customer Journey in Retail Luxury Fashion

Scenario: The organization in question operates within the luxury fashion retail sector and is grappling with the challenge of redefining its Fashion Customer Journey to align with the rapidly evolving digital landscape.

Read Full Case Study

Enhancing Customer Experience in High-End Hospitality

Scenario: The organization is a high-end hospitality chain facing challenges in maintaining a consistent and personalized Customer Journey across its global properties.

Read Full Case Study

Aerospace Customer Journey Mapping for Commercial Aviation Sector

Scenario: The organization, a major player in the commercial aviation industry, is facing challenges in aligning its customer touchpoints to create a seamless and engaging journey.

Read Full Case Study

Customer Journey Mapping for Maritime Transportation Leader

Scenario: The organization in focus operates within the maritime transportation sector, managing a fleet that is integral to global supply chains.

Read Full Case Study

Digital Transformation Initiative: Customer Journey Mapping for a Global Retailer

Scenario: A large international retail firm is struggling with increasing customer attrition rates and plummeting customer satisfaction scores.

Read Full Case Study


Explore additional related case studies

Additional Resources Relevant to Customer Journey

Here are additional best practices relevant to Customer Journey from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Customer satisfaction scores increased by 25% following the implementation of digital innovations tailored to eco-tourists' needs.
  • Direct bookings through the digital platform saw a notable increase, contributing to enhanced revenue streams.
  • Operational costs were reduced by 30% due to the adoption of Lean Management and Circular Economy practices.
  • Waste generation decreased by 40%, underscoring the company's commitment to sustainability and operational efficiency.
  • Engagement with local communities and businesses fostered a circular supply chain, enhancing the brand's sustainability narrative.

Evaluating the results, the initiative appears largely successful in enhancing customer satisfaction and operational efficiency, crucial for maintaining competitiveness in the eco-tourism sector. The 25% increase in customer satisfaction scores and the significant rise in direct bookings are particularly noteworthy, indicating that the digital innovation strategy effectively met the specific needs and expectations of eco-tourists. However, while operational costs saw a substantial reduction, the report does not specify the initial investment costs associated with implementing these technologies and practices. This omission makes it challenging to fully assess the return on investment. Additionally, the unexpected high level of engagement with local communities and businesses suggests that a more community-centric approach from the outset could have further amplified the positive outcomes. Alternative strategies, such as earlier and more extensive stakeholder engagement or adopting emerging technologies like AI for predictive analytics in customer behavior, could have enhanced results further.

For next steps, it is recommended to conduct a detailed cost-benefit analysis of the initiatives to better understand the return on investment and identify areas for further cost optimization. Expanding the digital platform to include AI-driven personalized recommendations could further enhance the customer experience. Additionally, deepening partnerships with local communities and businesses to co-create unique eco-tourism experiences could offer a competitive edge and reinforce the brand's commitment to sustainability. Finally, continuous monitoring and adaptation of the sustainability practices in line with emerging technologies and market trends will ensure the company remains at the forefront of eco-tourism.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

To cite this article, please use:

Source: Customer Journey Optimization for a Growing B2B Tech Firm, Flevy Management Insights, David Tang, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Brand Positioning Strategy for Boutique Consulting Firm in Digital Transformation

Scenario: A boutique consulting firm specializing in digital transformation for mid-sized businesses faces a critical challenge in navigating the Consumer Decision Journey in a highly competitive market.

Read Full Case Study

Digital Transformation Strategy for Healthcare Provider in North America

Scenario: A leading healthcare provider in North America is at a critical juncture in its customer decision journey, facing a complex strategic challenge.

Read Full Case Study

Customer Journey Optimization for a Growing B2B Tech Firm

Scenario: A mid-sized B2B technology firm has seen rapid growth over the past two years, acquiring a significant influx of new customers.

Read Full Case Study

Customer Decision Journey Refinement in Hospitality

Scenario: A firm in the hospitality industry is facing challenges in understanding and optimizing its Customer Decision Journey.

Read Full Case Study

Enhancing Guest Experience in Boutique Hospitality

Scenario: The organization is a boutique hotel chain operating in the competitive hospitality industry.

Read Full Case Study

Improving Customer Decision Journey for a Global Retail Organization

Scenario: A global retail firm is struggling with a disjointed Customer Decision Journey.

Read Full Case Study

Customer Journey Mapping for D2C Health Supplements Brand

Scenario: A direct-to-consumer (D2C) health supplements firm is facing challenges with their customer journey mapping in a highly competitive online market.

Read Full Case Study

Rethinking the Consumer Decision Journey for a Global Retail Chain

Scenario: A multinational retail organization with a strong e-commerce and in-store presence is struggling to understand and optimize its Consumer Decision Journey.

Read Full Case Study

Consumer Decision Journey Optimization for Global Mining Firm

Scenario: A multinational mining corporation is grappling with challenges in its Consumer Decision Journey due to the highly competitive and innovation-driven nature of the mining industry.

Read Full Case Study

Electronics Firm's Customer Journey Mapping in Competitive Tech Market

Scenario: An electronics company specializing in high-end audio equipment is struggling to understand and optimize its Customer Journey Mapping amidst fierce competition.

Read Full Case Study

Operational Excellence Strategy for Financial Services in Digital Banking

Scenario: A prominent digital banking institution is at a critical juncture in optimizing its customer decision journey, facing a 20% decline in user engagement and a 15% increase in customer acquisition costs over the past year.

Read Full Case Study

Customer Decision Journey Optimization for Cosmetic Firm in Luxury Segment

Scenario: The company, a high-end cosmetics brand in the luxury segment, has identified a gap in understanding and influencing their customer's decision journey.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.