Ivey Publishing
Royal Bhutan Airlines — Drukair
Product Number:
9B12A030
Publication Date:
08/10/2012
Revised Date:
08/08/2012
Length:
14 pages (6 pages of text)
Product Type:
Case (Field)
Source:
Ivey
The chief executive officer of Royal Bhutan Airlines (Drukair) is concerned about growth and the seasonality of demand for Bhutan’s national airline. The Kingdom of Bhutan, with a population of approximately 700,000, is located east of Nepal between India and China (Tibet). It has recently embarked on a program of modernization, including a move to democracy and promotion of tourism.



The tourism initiative is described as “high value, low volume,” meaning that tourists must contract with a local tourist operator and pay minimum daily tariffs. Drukair has witnessed a steady growth in passengers, which is correlated closely with tourist visits, mostly from the West and Japan. Tourist tickets are booked by in-country tour operators; there are no Internet bookings at the time of the case.

The CEO is wondering what can be done to improve overall business. He is considering interlining, the practice of joining with other airlines, in order to give passengers the opportunity to book tickets from their home countries. Marketing for growth is also a concern, and as Drukair is the only carrier in Bhutan, the CEO wonders if he should be promoting tourism in the country as part of his marketing plan.
Learning Objective:
  • Provide a history and background of Bhutan and explore international marketing and development.
  • Allow students to assume the role of CEO and make recommendations.
  • Explore international marketing, tourism, international business, and segmentation with the aid of detailed financial statements.
Issues:
Disciplines:
Marketing,  International
Industries:
Transportation and Warehousing
Setting:
Bhutan, 2009
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Translations: Simplified Chinese (16 pages)
You Might Also Like...

Save In: