The price of liberty

With travel and Covid in the blood, which one will win, and at what cost?

The late management guru Peter Drucker, who presciently advocated “back room” outsourcing and corporate decentralisation at a time when these smart cost-saving techniques were anathema to produce-everything-hire-everyone mega corporations, had a few more tricks up his sleeve.

One of his key mantras — price-led costing — often overlooked even today yet something profoundly relevant to all businesses, especially those connected with travel, is worth re-examining in a dysfunctional Covid world.
 

The central argument is simple. Most companies tend to create a product they feel the market wants and outspend each other to produce it, subsequently passing on the entire cost