It is currently 24 Jun 2017, 09:18

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Like many other industries, the travel industry is under

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
User avatar
Status: keep walking. ...re-taking ..
Joined: 23 Apr 2012
Posts: 35
Location: India
Concentration: Finance, Strategy
GMAT 1: 680 Q49 V34
GPA: 3.76
WE: Consulting (Computer Software)
Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 03 Aug 2012, 07:32
1
This post was
BOOKMARKED
Question 1
00:00
A
B
C
D
E

Question Stats:

54% (01:54) correct 46% (01:23) wrong based on 119

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

Question Stats:

85% (01:16) correct 15% (00:13) wrong based on 105

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

Question Stats:

85% (01:43) correct 15% (00:30) wrong based on 103

HideShow timer Statistics

Like many other industries, the travel industry is under increasing pressure to expand globally in order to keep pace with its corporate customers, who have globalized their operations in response to market pressure, competitor actions, and changing supplier relations. But it is difficult for service organizations to globalize. Global expansion through acquisition is usually expensive, and expansion through internal growth is time-consuming and sometimes impossible in markets that are not actively growing. Some service
industry companies, in fact, regard these traditional routes to global expansion as inappropriate for service industries because of their special need to preserve local responsiveness through local presence and expertise. One travel agency has eschewed the traditional route altogether. A survivor of the changes that swept the travel industry as a result of the
deregulation of the airlines in 1978—changes that included dramatic growth in the corporate demand for travel services, as well as extensive restructuring and consolidation within the travel industry—this agency adopted a unique structure for globalization. Rather than expand by attempting to develop its own offices abroad, which would require the development of local travel management expertise sufficient to capture foreign markets, the company solved its globalization dilemma effectively by forging alliances with the best foreign partners it could find. The resulting cooperative alliance of independent agencies now comprises 32 partners spanning 37 countries.
The passage suggests that one of the effects of the deregulation of the airlines was
A. a decline in the services available to noncommercial travelers
B. a decrease in the size of the corporate travel market
C. a sharp increase in the number of cooperative alliances among travel agencies
D. increased competition in a number of different service industries
E. the merging of some companies within the travel industry

[Reveal] Spoiler:
E


The author discusses a particular travel agency in the passage most likely in order to
(A) provide evidence of the pressures on the travel industry to globalize
(B) provide evidence of the pressures on the travel industry to globalize
(C) illustrate an unusual approach to globalizing a service organization
(D) highlight the difficulties confronting travel agencies that attempt to globalize
(E) underscore the differences between the service industry and other industries

[Reveal] Spoiler:
C


According to the passage, which of the following is true of the traditional routes to global expansion?
(A) They have been supplanted in most service industries by alternative routes.
(B) They are less attractive to travel agencies since deregulation of the airlines.
(C) They may represent the most cost-effective means for a travel agency to globalize.
(D) They may be unsuitable for service agencies that are attempting to globalize.
(E) They are most likely to succeed in markets that are not actively growing.

[Reveal] Spoiler:
D

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA

_________________

Only those who will risk going too far can possibly find out how far one can go. ... T.S. Eliot

1 KUDOS received
Director
Director
User avatar
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 537
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Re: Like many other industries, the travel industry is under inc [#permalink]

Show Tags

New post 03 Aug 2012, 07:47
1
This post received
KUDOS
Let's magnify;

"..... the company solved its globalization
dilemma effectively by forging alliances with the best
foreign partners it could find."


Best foreign partners-belongs to industries in same industry AND few companies those are the best.

Hold (E)


(C) a sharp increase in the number of cooperative alliances among travel agencies
not all companies are best so merger can not be sharp
its is talking about "travel agency " travel agencies are / can be local bodies and doesn't have much impact to such a vast level of deregulations.


Hope this helps !
_________________

" Make more efforts "
Press Kudos if you liked my post

1 KUDOS received
Manager
Manager
avatar
Joined: 07 Feb 2008
Posts: 63
Location: United States
WE: Consulting (Computer Software)
Re: Like many other industries, the travel industry is under inc [#permalink]

Show Tags

New post 07 Aug 2012, 19:17
1
This post received
KUDOS
as the question asks for effects of deregulation, went and read this:

A survivor of the changes
that swept the travel industry
as a result of the
deregulation of the airlines in 1978—changes that
included dramatic growth in the corporate demand for
travel services
, as well as extensive restructuring and
consolidation within the travel industry
—this agency
adopted a unique structure for globalization

the bold portions were the effects as per the para. consolidation within the travel industry was taken by me to mean some company bought other companies or companies merged. So, I chose E
1 KUDOS received
Intern
Intern
avatar
Joined: 15 Nov 2014
Posts: 22
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 03 Mar 2015, 12:09
1
This post received
KUDOS
Hi All, Can any body explain why D is the answer for the third question :

3)According to the passage, which of the following is
true of the traditional routes to global expansion?
A. They have been supplanted in most service
industries by alternative routes.
B. They are less attractive to travel agencies since
deregulation of the airlines.
C. They may represent the most cost-effective means
for a travel agency to globalize.
D. They may be unsuitable for service agencies that
are attempting to globalize.

E. They are most likely to succeed in markets that are
not actively growing.

Thanks.
1 KUDOS received
Intern
Intern
avatar
Joined: 08 Jun 2013
Posts: 35
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 24 Sep 2016, 04:46
1
This post received
KUDOS
1)A. a decline in the services available to non-commercial travellers … non-commercial
travellers is not a part of the passage and thus not verified … ‘decline in services’ is
not inferable.
B. a decrease in the size of the corporate travel market … the passage makes no comment
on changes (if any) in the travel market size.
C. a sharp increase in the number of cooperative alliances among travel agencies … sharp
increase is a bit on the extreme side … the dramatic growth mentioned in line 19 is of
the demand for travel services … the cooperative alliance stated in the passage
pertains to ONE single agency … it is unwarranted to conclude that all agencies
followed suit.
D. increased competition in a number of different service industries … the deregulation is
linked with the travel industry … this answer choice goes general to say competition
(also something NOT mentioned) increased in a number of service industries …
specific to general error.
E. the merging of some companies within the travel industry … lines 26 – 29 confirm that
this is exactly what happened … it is by way of mergers and co-operative alliances
that the ONE agency survived … CORRECT

2)A. provide evidence of the pressures on the travel industry to globalize … the author’s
primary purpose in the passage is to bring to light the scenario adopted by the ONE
travel agency not to prove that there indeed were pressures … the pressures are
mentioned only as a factor leading to the need to globalize.
B. demonstrate the limitations of the traditional routes to global expansion … to
demonstrate means to illustrate with examples … the limitations of the traditional
route to globalization are never illustrated upon in the passage.
C. illustrate an unusual approach to globalizing a service organization … the answer
matches exactly with what lines 19 – 20 have to say … CORRECT.
D. highlight the difficulties confronting travel agencies that attempt to globalize … the
difficulties confronting the travel agency are mentioned in the passage, however, the
author never highlights them.
E. underscore the differences between the service industry and other industries …
services industries are never compared with the rest of the industries in the passage
… they’re only both mentioned to be under the pressure to globalize … the word
differences is not verified.

3)A. They have been supplanted in most (Avoid Superlatives) service industries by
alternative routes … the only alternative route mentioned is the one in the example in
the end … routes is not verified.
B. They are less attractive to travel agencies since deregulation of the airlines … the
passage never mentions anything about the appeal having gone down after the
deregulation happened
C. They may represent the most (Avoid Superlatives) cost-effective means for a travel
agency to globalize … traditional routes were something service industries (including
the travel) were avoiding … 180 degrees answer.
D. They may be unsuitable for service agencies that are attempting to globalize … this is an
exact word to word match of what is said in lines 10 – 15 … CORRECT.
E. They are most (Avoid Superlatives) likely to succeed in markets that are not actively
growing … markets that are not actively growing make it impossible for internal
growth (one of the traditional routes) – lines 7 – 10 … 180 degrees answer.
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 199
Concentration: General Management, Operations
Schools: HBS '19 (S)
GMAT 1: 740 Q49 V42
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 20 Jan 2013, 00:12
I chose C initially ... but E seems better ... thanks for the explanation ..
Director
Director
avatar
Joined: 03 Aug 2012
Posts: 893
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
WE: Information Technology (Investment Banking)
Premium Member
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 02 Jul 2014, 23:04
Can any one shower light on how to prefer (E) over (C) in Q1

C. a sharp increase in the number of cooperative alliances among travel agencies

E. the merging of some companies within the travel industry
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Chat Moderator
User avatar
Joined: 19 Apr 2013
Posts: 697
Concentration: Strategy, Healthcare
Schools: Sloan '18 (A)
GMAT 1: 730 Q48 V41
GPA: 4
GMAT ToolKit User Premium Member
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 15 Mar 2015, 04:26
E C D. Very easy passage. Took me 4 minutes.
_________________

If my post was helpful, press Kudos. If not, then just press Kudos !!!

Manager
Manager
avatar
Joined: 26 May 2013
Posts: 65
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 18 Apr 2015, 18:33
E talks about consolidation within travel industry. C is the outcome of the alternative approach which a survivor applied to overcome deregulation consequences. C is basically a trap as it uses same language as in the paragraph. We find E not relevant because consolidation is addressed as merging.


TGC wrote:
Can any one shower light on how to prefer (E) over (C) in Q1

C. a sharp increase in the number of cooperative alliances among travel agencies

E. the merging of some companies within the travel industry
Math Forum Moderator
User avatar
P
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 1246
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Like many other industries, the travel industry is under [#permalink]

Show Tags

New post 23 Nov 2016, 06:09
Took 1 min 40 seconds to read and 4 mins 50 seconds in total
-The author talks about the challenges faced by travel agencies to globalize
-The author then gives the example of one travel agency that chose a non traditional method of making itself global

1. "as well as extensive restructuring and consolidation within the travel industry"
Answer E

2."One travel agency has eschewed the traditional route altogether."
Answer C

3."But it is difficult for service organizations to globalize."

Answer D
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Re: Like many other industries, the travel industry is under   [#permalink] 23 Nov 2016, 06:09
    Similar topics Author Replies Last post
Similar
Topics:
Founded at the dawn of the industrial SajjadAhmad 5 15 Feb 2017, 23:29
12 Experts publish their posts in the topic In the seventeenth-century Florentine textile industry, betterscore 13 07 May 2016, 19:12
4 Although the industrial union organizations that emerged budablasta 8 13 Apr 2016, 12:04
4 In the 1930's and 1940's, African American industrial bupbebeo 12 31 Jul 2016, 06:15
1 Although the United States steel industry faces widely nitya34 7 12 Sep 2016, 03:04
Display posts from previous: Sort by

Like many other industries, the travel industry is under

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.