Delivering widescale cost reductions

We supported a FTSE 250 travel & leisure firm to significantly reduce costs to anticipate upcoming regulator change

The challenge

Following widescale regulator change in the industry, our client (a FTSE 250 travel & leisure firm) was facing a 20% reduction in revenues from a significant portion of its business

Alongside changes to various products and propositions, the exec board identified a cost reduction target of c.£38m p.a. within 3 years in order to keep profitability and RoI at a level acceptable to the owners of the business. The scope of the challenge as directed by the CEO was ‘anything is possible’ – PEN needed to look at all cost levers in the P&L

Our approach

In this case, prior to a detailed cost diagnostic, we helped the client run a workshop with all senior executive members, producing a shopping list of various cost reduction initiatives

We then reviewed these in detail using diagnostic tools over a 4 week period, working in collaboration with Group Finance teams

A final list of initiatives was then agreed, along with a delivery plan, and sponsors assigned to each workstream. Implementation then began

The outcome

Efficiencies were delivered via the following:

  • Consolidated global footprint from 12 to 6 locations

  • Re-structured Marketing, Technology and the Group Corporate Centre to reduce costs by over £12m
  • Offshored activities to lower cost locations and introduced automation 

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