Case | HBS Case Collection | December 1998

Casto Travel

by Thomas J. DeLong and Susan Harmeling

Abstract

Maryles Casto had the vision to build the largest travel agency in Silicon Valley, mirroring the growth pattern of the entire area. In 1997 the travel business changed dramatically as airlines chose not to pay travel agencies the fees they once did. Simultaneously, the world of e-commerce introduced the process of ticket purchasing capability over the Internet. This changed the nature of business and the economics in the travel business for good. What should Maryles Casto do to counter these dramatic shifts in her business? Has the business model shifted to such an extent that she should leave the business? What advice do you have for Casto and her executive team?

Keywords: Entrepreneurship; Finance; Internet; Change Management; Markets; Travel Industry;

Citation:

DeLong, Thomas J., and Susan Harmeling. "Casto Travel." Harvard Business School Case 899-120, December 1998.