Reference no: EM133615520

Question 

Charge a more premium price which can boost profit margins. However, in order to make New Frontiers Travel more price inelastic, a differentiated product range is required increasing the risks of a problem child, but with the redundancies there will be more profit to put into rising stars. Therefore overall, in the short term, the closing of branches and redundancies will have an instantaneous effect on the cutting of costs and the boosting of profits but in the long term, the success of New Frontiers will be heavily reliant on the success of movement into new markets and the product launches. Adding to this, the success of the new extension strategies will be dependent on whether the different payment conditions of the hotel rooms by New Frontier Travel can be negotiated but also whether 'pick n' mix' service will be considered a more appealing process to the personal service offered by the sales assistants in store, increasing consumer retention.