MGMT20143: Travelport Locomote Business Model Canvas Report Analysis

This report provides a detailed analysis of Travelport Locomote's business model using the Business Model Canvas framework. The report begins with an executive summary and table of contents, followed by an introduction to Travelport Locomote, a platform for corporate travelers. The core of th...Read More

Running head: BUSINESS MODEL CANVAS
BUSINESS MODEL CANVAS
Name of the Student
Name of the University
Author Note

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BUSINESS MODEL CANVAS
Executive Summary
The report is related to the detailed study of business model canvas of a major innovative
firm named Travelport Locomote. The business mode canvas of the organization has been
deconstructed for the purpose of conducting the analysis in a detailed manner. The
interrelationships that have been formed between the various building blocks of the canvas
have also been discussed in the report in detail. The risks that the organization can face in the
future and changes that can be applied in the business model canvas is a major part of the
report.

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BUSINESS MODEL CANVAS
Table of Contents
I. Introduction.................................................................................................................3
II. Business model..........................................................................................................3
A. Building blocks.........................................................................................................3
1. Customer segments................................................................................................3
2. Key partners...........................................................................................................4
3. Value proposition...................................................................................................4
4. Key activities..........................................................................................................4
5. Channels.................................................................................................................5
6. Revenue streams.....................................................................................................5
7. Cost structure.........................................................................................................5
8. Key resources.........................................................................................................5
9. Customer relationships...........................................................................................6
B. Interrelationships.......................................................................................................6
C. Critical success factors..............................................................................................6
D. Downside risks..........................................................................................................7
E. Business model changes............................................................................................7
III. Conclusion................................................................................................................7
IV. Recommendations....................................................................................................8
References......................................................................................................................9
Appendices...................................................................................................................11
Appendix 1 – Table 1 – Business model canvas of Travelport Locomote..............11

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I. Introduction
Travelport Locomote is mainly a travel based platform which can be used by the
corporate travellers in the country. The travel managers of the firms are thereby able to drive
changes in corporate travel based activities and can also enhance the efficiency levels of
different programs. The workflows and app-powered features are considered to be major
features that are offered by the website of Travelport along with the online booking based
facilities. The travel plans that are made by the organization are also managed in an effective
manner by the services that are offered by Travelport Locomote (Locomote.com. 2019).
II. Business model
The vision which has been formed by the FIRM named Travelport Locomote is
mainly related to the business model of the organization that can also offer experiences that
are offered to corporate travellers. The company offers the services in such a manner that can
take the experiences of business or corporate travellers to a new level altogether. The
management team and employees of the organization are also highly passionate about the
service quality offered to the consumers. Agile operations of the firm also able to support its
growth in the industry (Antikainen & Valkokari, 2016).
A. Building blocks
1. Customer segments
Customers segments of Travelport Locomote who are provided with high quality
services of the company include corporate travellers and the various hotels as well. Travellers
on the other hand are divided into various segments that are related to the different
organizations of which they are a part. The service levels offered by various hotels are
thereby based on income levels of the corporate travellers (Bekhradi, Yannou & Cluzel,
2016).

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2. Key partners
The website users of Travelport Locomote who offer the reviews are a vital aspect
related to the operations that are developed within the industry. The hotels and restaurants on
the other hand have become important part of the partnerships that are formed in order to
offer services to the various corporate travellers. The companies that are considered to be
responsible for the travel management of corporate consumers are also key partners of the
organization. Travel agencies are also able to expand the processes with the help of platform
developed by Travalport Locomote (do Rosário Cabrita et al., 2016).
3. Value proposition
The vision which has been developed by Travelport Locomote is mainly related to the
experiences that can be offered to the corporate travellers in order to improve their
experiences. Passionate employees of the firm have been able to gain major levels of
importance for development of services that are provided to the consumers. Value
proposition of Travelport Locomote has also been able to offer importance to value
proposition of the organization based on its operations in hospitality industry (Hruska &
Maresova, 2019).
4. Key activities
The indirect networks are mainly developed with support offered by reviews of the
travellers who are related to different corporate organizations. The experiences gained by
consumers have improved the interaction between the employees of Travelport Locomote.
The levels of innovation in technology is also a major aspect of various activities performed
by the organization. The company has thereby enhanced its number of platforms and partners
in order to improve the reach towards consumers (Matusiak, 2016).

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BUSINESS MODEL CANVAS
5. Channels
The app and the webpage of an organization like Travelport Locomote is considered
to be a key channel that helps in proper development of communication with the consumers.
Sales team that is managed by Travelport has played a key part in increasing customer base
of the firm. The organization has also used search engines for the purpose of developing
effective channels that help in attracting the consumers (Micieta et al., 2020).
6. Revenue streams
The various revenues stream that have been formed by Travelport Locomote have
been related to profit levels of the firm that are gained through the app. The revenues gained
by Travelport Locomote are also supported by the advertisements that are placed on the
website of the firm based on services offered by different hotels. Subscriptions made by the
corporate travellers can also enhance the revenue levels of the firm (Rosa, Sassanelli & Terzi,
2019).
7. Cost structure
Travelport Locomote has incurred huge costs with respect to the proper of formation
of the apps and various services that are offered as well. The investments made on the
promotional activities of the firm can also influence the cost structure that has been formed
by Travelport Locomote. Travelport also aims at the formation of partnerships with the
various restaurants and hotels for meeting needs of consumers (Pereira et al., 2016).
8. Key resources
The ratings and reviews of the consumers or the travellers of the firm have to be
important resources that improve the operations of Travelport Locomote. Partners of the
organization have also proved to be major resources of the firm and they are also able to
improve the services which are offered to the corporate travellers.

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BUSINESS MODEL CANVAS
9. Customer relationships
The corporate travellers have trusted the organization with respect to the services that
are offered to them. The trust of the travellers have been able to enhance relationships that the
firm has developed with the customers. The reviews offered by travellers have also been able
to influence the relationships formed with consumers of Travelport Locomote. The policies
implemented by the organization have also been able to influence relationships with the
consumers or corporate travellers (Sohl, Vroom & Fitza, 2020).
B. Interrelationships
The relationships that have been formed between nine building blocks have been able
to enhance the profitability levels and revenues of the organization. Various activities
performed by Travelport Locomote play a key part in enhancing operations of the firm in
service industry. Locomote has gained the resources that are able to enhance the levels of
goodwill and reputation in the industry (Locomote.com. 2019). Travelport Locomote can
enhance its consumer base by offering effective levels of services that are based on the needs
and demands. The costs that have been incurred by Travelport can also affect the resources
that are gained by the firm. Formation of effective relationships have been able to play a key
part in enhancing the operations of Locomote in the industry (Sundah, Langi & Maramis,
2018).
C. Critical success factors
Travelport Locomote has been providing personalized services to the consumers that
has been able to ensure its success in the industry. The image that has been formed by
Travelport Locomote with the help of its website is able to play a key role in attracting
consumers towards the organization. The data of Travelport is maintained with respect to the
travel habits and the services that are provided to the consumers as well. The service quality

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of the firm will be maintained in an effective way by the organization with support that is
offered by the restaurants and the partner hotels as well (Woo et al., 2016).
D. Downside risks
Travelport Locomote has faced major risks with respect to the lack of proper support
that can be offered to the travellers. The employees who are a part of the travel desk of the
organization play the most important in development of proper communication between the
employees and the senior officials as well. Different packages are also offered to the
travellers through the app of Travelport Locomote. The app has also been able to start the
operations in the hospitality and service based industry (Sundah, Langi & Maramis, 2018).
E. Business model changes
Travelport Locomote can also plan for the implementation of changes in current
business model that is implemented for development of the large network of the partners in
hospitality industry. The company thereby has to develop the packages in such a manner that
can help the organization to attract travellers towards services that are offered by Travelport
Locomote. The promotional and advertising activities of the organization also have to be
enhanced for the purpose of enhancing awareness related to the products that are offered to
the customers (Pereira et al., 2016).
III. Conclusion
The report can thereby be settled by stating that the business model of a firm is able to
support the processes and customizing the services to various corporate travellers. The
enhancement of levels of communication can also play an important role in enhancing and
developing a consumer base in the industry. Successful operations in travel industry can be
maintained with the effective development and implementation of the business model of the
company.

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IV. Recommendations
The major recommendations that will be offered to an organization like Travelport
Locomote for maintaining its operations in the future are as follows,
 The application of advertising and promotional activities can lead to the
improvement of communication with the various corporate travellers.
 The information related to demands and requirements of the consumers can be
gained by offering access of consumer data to the officials.

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BUSINESS MODEL CANVAS
References
Antikainen, M., & Valkokari, K. (2016). A framework for sustainable circular business
model innovation. Technology Innovation Management Review, 6(7).
Bekhradi, A., Yannou, B., & Cluzel, F. (2016). Importance of problem setting before
developing a business model canvas. In DS 84: Proceedings of the DESIGN 2016
14th International Design Conference (pp. 907-916).
do Rosário Cabrita, M., Duarte, S., Carvalho, H., & Cruz-Machado, V. (2016). Integration of
lean, agile, resilient and green paradigms in a business model perspective: theoretical
foundations. IFAC-PapersOnLine, 49(12), 1306-1311.
Hruska, J., & Maresova, P. (2019). Design of business canvas model for social media.
In Emerging Technologies in Data Mining and Information Security (pp. 63-69).
Springer, Singapore.
Locomote.com. (2019). Corporate Travel Management - Locomote. Retrieved from
https://www.locomote.com/
Matusiak, B. E. (2016). Local balancing system from the business model canvas perspective.
In E3S Web of Conferences (Vol. 10, p. 00055). EDP Sciences.
Micieta, B., Fusko, M., Binasova, V., & Furmannova, B. (2020). Business model canvas in
global enterprises. In SHS Web of Conferences (Vol. 74, p. 02010). EDP Sciences.
Pereira, S. G. M., dos Santos Medina, F. A., Gonçalves, R. F., & da Silva, M. T. (2016,
September). System thinking and business model canvas for collaborative business
models design. In IFIP International Conference on Advances in Production
Management Systems (pp. 461-468). Springer, Cham.

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Rosa, P., Sassanelli, C., & Terzi, S. (2019). Towards Circular Business Models: A systematic
literature review on classification frameworks and archetypes. Journal of Cleaner
Production, 117696.
Sohl, T., Vroom, G., & Fitza, M. A. (2020). How much does business model matter for firm
performance? A variance decomposition analysis. Academy of Management
Discoveries, 6(1), 61-80.
Sundah, D. I. E., Langi, C., & Maramis, D. R. S. (2018, January). Developing entrepreneurial
competencies for successful business model canvas. In Journal of Physics:
Conference Series (Vol. 953, No. 1, p. 012040). IOP Publishing.
Woo, C. R., Cho, M. J., Choi, H. R., Lee, K. B., & Kim, D. H. (2016). The Business Model
for the Sharing Economy between SMEs based on Business Model Canvas. Journal of
the Korea Industrial Information Systems Research, 21(5), 41-54.

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Appendices
Appendix 1 – Table 1 – Business model canvas of Travelport Locomote
Key Partners
 Efficient
team.
 Technology
providers.
Key Activities
 Promotional
activities.
 Development
of effective
teams.
Value Proposition
 Providing
customer
satisfaction.
Customer
Relationships
 Social
media
communica
tion.
Customer
Segments
 Corporate
travellers.
Key Resources
 Availability
of
technologies.
Channels
 Presence on
the web.
 Advertisem
ents.
Cost Structure
 Compensation costs.
 Costs related to development of high end app.
Revenue Streams
 Product sales.
 Financials provided.
Source – Created by Author