Insights

EBITDA Improvement and SG&A Analysis for a Global Travel Organization

EBITDA improvement

 

Use Case 

When one of the world’s largest travel organizations was aiming to improve earnings before interest, taxes, depreciation, and amortization (EBITDA), it needed the support of a firm that could identify and execute short- and mid-term opportunities. 

CrossCountry Consulting was engaged for a four-week project at the end of Q3 to identify cost reduction opportunities across all categories of selling, general, and administrative (SG&A) expenses with an aggressive implementation target of year-end.  

Our Approach 

CrossCountry deployed a team of cross-functional enterprise cost improvement experts to the task, beginning with dividing up the scope of work into two workstreams, which included: 

  1. Overall SG&A analysis.  
  2. Sales optimization analysis.  

In addition to the wholesale evaluation of SG&A, the CrossCountry team assessed the Incentive Plan Simplification & Alignment, redefining incentive compensation plans to promote cross-selling activities across the product lines. 

Our Impact 

Throughout the engagement, CrossCountry collaborated closely with the cross-functional client-side stakeholders to provide benchmarking against industry standards, identify opportunities for cost savings and technology improvements, and build a proposed implementation plan. 

Through these efforts the team was able to deliver cost reduction recommendations to achieve: 

  • $18.5 million annual cost savings. 
  • 3% EBITDA margin improvement. 
  • A new HR operating model. 
  • A cost takeout proposal for account management and operations teams. 

CrossCountry also developed a future-state commissions plan landscape including plan harmonization and a high-level future-state roadmap identifying recommendations for short-term process changes and longer-term technology solutions. 

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