Authentrex: Technology Meets Tourism in an Entrepreneurial Venture

Abstract

Authentrex S.A. is an online travel agency, with multiple online sales channels, based in Huelva, a city in Southwestern Spain, close to the border with Portugal. The company was established in 2005 by two partners, Mark Walker and Carmelo Ferrer neither of whom had any experience with internet technology before the launch of the company. The case focuses on the conceptualization and setting-up of a fully developed destination travel web, and the design of its strategy.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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Resources

Appendix: The Province of Huelva as a Tourism Destination

The Province of Huelva (pop. 518,081 in 2010) is the western-most province in the autonomous region of Andalusia. Its capital, Huelva (pop. 149,310, in the same year), sits on the Gulf of Cadiz, equidistant between the international airports of Faro (Portugal) and Seville (Spain) (see Figure 1). Huelva is known for the mines of Rio Tinto, known to be amongst the oldest in the world, having attracted the interest of many other Mediterranean peoples including Phoenicians, Greeks, Carthaginians and Romans, from about 3000 BC onwards. Most recently, the mining company, Rio Tinto, originally mainly British managed, developed large scale open-cast mining and ore processing operations in the area, from the 1870s. This activity, in turn, contributed much to the Province’s modern economic development through to the middle of the twentieth century.

A panel on top of the image shows scenery in the background and label “HUELVA LA LUZ” in the foreground.

Below the panel, the text on the left side of the image reads:

Huelva, near by

  • At the extreme southwest of Europe.
  • No more than 3 hours by plane from any European capital.
  • Close to two international airports:
    • Faro and Seville less than 1 hour away.
    • Transfers to beaches.
  • Connections to Madrid by:
    • High-speed train.
    • Dual carriageway.

Below the panel, a map of Europe is seen on the top right side. Oslo, London, Berlin, Paris, Rome, Province of Huelva (shown as dotted circle) are marked on the map.

Beneath the map of Europe is an image of an airplane flying below clouds in the background and a map of Huelva province in the foreground is seen on the left side of the image. Two small flight icons, labeled Faro and Sevilla, with two arrows pointing toward Huelva.

Figure 1

An image shows a map of Europe, an airplane, the location of Huelva, and details of transportation facilities available to other destinations.

Source: Provincial Tourism Board.

Table 2: Indicators of tourism growth in the Province of Huelva

1986

2008

No. of Establishments

Capacity (nº)

No. of Establishments

Capacity (nº)

Hotel 5 stars

-

-

3

840

Hotel 4 stars

1

201

26

13.488

Hotel 3 stars

7

1,185

11

1.206

Hotel 2 stars

9

498

37

1.935

Hotel 1 star

7

308

10

451

Total Hotel

24

2,192

87

17,920

Hotel-Apartment 5 stars

-

-

-

-

Hotel-Apartment 4 stars

-

-

4

2.219

Hotel-Apartment 3 stars

2

1,634

8

1.691

Hotel-Apartment 2 stars

-

-

1

33

Hotel-Apartment 1 star

-

-

1

34

Total Hotels-Apartments

2

1,634

14

3,977

Apartments 4 keys

-

-

-

-

Apartments 3 keys

-

-

8

2,411

Apartments 2 keys

2

616

24

1,731

Apartments 1 key

1

144

6

248

Total Apartments

3

760

38

4,390

Campings

8

15,930

13

22,980

Restaurants 5 forks

-

-

-

-

Restaurants 4 forks

1

178

-

-

Restaurants 3 forks

2

116

2

140

Restaurants 2 forks

117

8,607

222

24.870

Restaurants 1 fork

194

8.688

539

36.289

Total Restaurants

314

17.589

763

61.299

Cafes 2 cups

4

214

4

283

Cafes 1 cup

25

1,622

64

3,555

Total Cafes

29

1,836

68

3,838

Travel Agencies

11

-

86

-

Source: Regional Government.

Commencing around the middle of the twentieth century, Spain, like much of the industrial world, has undergone a process of de-industrialization and economic restructuring that has brought periods of stagnation and high unemployment. The Province of Huelva, being dominated by agriculture, fishing, mining and associated industries, such as chemical manufacturing, and having high levels of unskilled migrant workers in the primary sector, has faced considerable social and economic challenges as a result of this de-industrialization. Whilst tourism has also been subject to significant pressures due to shifts in market demands, and overdevelopment in some areas, it was nonetheless seen as a motor for driving economic development and diversification. By the 1990s tourism residential development, including hotel resorts, golf courses, marinas, shopping centers, and housing complexes, grew rapidly along the coast. These developments represent a shift away from the mass tourism of the 1960s and 70s, being part of the so-called ‘quality tourism’ paradigm, and targeted higher yield markets such as European second home owners. Within this context, Huelva has been one of the last Provinces of Andalusia to experience tourism development.

The causes of this time-lag can be attributed to the lack of strategic planning, the dominance of interest in industrial development, poor transport infrastructure in outlying locations and the perceived inaccessibility of the Province. Other adverse factors include the existence of large areas of coastal marshland (once considered ‘wasteland’ but now valued and protected) and, in general, the absence of major population centers on the coast. These factors all contributed to a situation where, even at the beginning of the 1990s, the coastline of Huelva was characterized by unregulated tourism activities and construction, and dispersed second residences established within well-preserved, natural environments yet to be developed. The Province’s deficit in various infrastructures had left an area of extraordinary natural heritage almost virgin, as shown by the fact that approximately 30% of its surface area is under protected land tenure (e.g. nature reserves and national parks) and 70% of the surface area of the province (10,148 sq.km) is covered by forest. Traditionally seen as a weakness in strategic terms, its underdevelopment has been converted into a strength, based on a model of tourism development that not only respects but also encourages interest in the natural environment. This situation, together with the crisis in the previous mass tourism model, allowed hotels and other up-market services to flourish. This led to a situation where tourism became supply-led, markets were slow to develop and occupancy rates were low. Political pressure began to build on the Provincial Tourism Board whose task it was to develop stronger marketing and branding activities that would help tourism to grow.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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