A Blue Ocean Strategy calls for the creation of business models that depart from

traditional models based on competition and standardisation. It enhances value

creation, through product differentiation and diversification, which will allow our
destination open up new markets and create new demand in a unique and
uncontested space.

Over the long term, a vital component of the Blue Ocean Strategy will be to
strengthen the systems for travel zoning and theming, so that the unique
characteristics of each destination area will be preserved and enhanced to support
their own distinct brand appeal.

Blue Ocean Strategy

 Create uncontested markets

 Make competition irrelevant
 Create and capture new demand
 Break the value-cost trade-off
 Simultaneous pursuit strategy of differentiation and low cost

Disruptive innovation is part of the Blue Ocean strategy. It is focusing on changing the way
people think about certain basic processes or services.

Travel Industry

Same applies for accommodation providers. A hotelier might think that his
hotel is very different and falls in the Blue Ocean but at the end of the day, it is
still focusing on providing a room to the guest. Meaning, that it is focusing on
the basic service or product of the hotel. Hotels, who are seeking to fall in the
Blue Ocean, must take over the roles of teachers and educators. They need to
spread the ideology they are working for. They need to educate people about
their operating principles and show, how they are different and how this
affects the local ecosystem. It is really challenging to be different, but some
hotels in the world managed to move from the Red Ocean to the Blue one.

Four Action Framework

The four-action framework points out four key actions to take into account to refine existing
products. Those are: raise, reduce, eliminate, and create. 
Eliminate: Eliminate language barriers between domestic and global countries. In
hotels, Some basic features, that can be found at most of the hotels: front desk,
concierge, doormen, lobby, room service. Those are the services that we are used
to seeing at most of the hotels. But hotels can successfully function without them
as well.

Raise: Maximum length of vacations. Sleeping quality and environment. That's

something, that every single person is looking for when staying at the hotel. 

Reduce: Travel planning Complexity. Minimum length of vacations. The number of

different room types by unifying them and transforming into comfortable and cozy
smaller living spaces.

Create: Additional destinations. Bundled Vacations. New and cheaper innovations

such as check-in kiosk, communal living environment, pantry, and multi-tasking
"ambassadors" (people, who can help with check-in give advice about the city or
mix a cocktail).

In Airlines

Eliminate:

Seating choices; Hub Connectivity; Lounges; Classes (first, economy, business)

Raise:

Speed; Friendly service

Reduce:

Meals; Price

Create:

Frequent Departures; Secondary Airports/Cities Connected; Add-ons

3 Tiers of Noncustomers.
Why do people get on a plane?

In essence, for one simple reason: they need to go from point A to point B.

What’s another industry that serves people who want to go from A to B?

Right, cars.

Car industry was a different type of business though, meaning airline

companies did not consider car users as their prospective customers.

1. 1st Level of Non-Customers: “Soon-to-be” noncustomers, on the edge of

the market, just waiting for better options.
2. 2nd Level of Non-Customers: “Refusing” noncustomers who
intentionally choose to stay away from the market.
3. 3rd Level of Non-Customers: “Unexplored” noncustomers who are in
totally different markets.

Why did car drivers use cars to go from A to B, instead of flying?

 Airlines too expensive.

 Poor or non-existent connections with secondary cities.
 Low flight-frequency.

This is the 2nd-level of non-customers 

Example of Strategy canvas of South west airlines with

other airlines and cars
Commercial viability of blue ocean idea:
The most important characteristics of blue ocean strategy is a new way of
solving users’ pains, which means creating the solution no one expected to
exist, but that everyone needed. This is called value innovation. The Blue
Ocean Strategy introduces a new product in the market that is never heard of
before, thereby generating new demand and rendering competition irrelevant
as there is no other company to compete with. As a result, the product can be
as steeply-priced as the creator wishes.