Business travel audits identify 5 top malpractices that add 10%++ indirect travel costs!
by Emily Rose Refund on Cash App?
Does the business travel program work in India and emerging markets?
1. Does your travel agency normally prefer?
2. Performed by e-mail / "call for reservation" or "transplant"?
3. Manual operations to technology-based operations?
Offer you a free implant/s + extended payments facility + free reporting + free account management staff + low transaction fees + a “beck & call” service ?
This article talks about bad industry practices that are often seen in emerging markets like India. This is inherent in old commercial travel operations that implement limited technology in self-reservation, payment automation, and expense management. We will only cover those items that increase direct customer costs ... additional indirect costs!
This article is not intended to make the general circulation of the entire market. In India and in many emerging markets, there are high-quality ethical and professional management (TMC) companies with very successful operations both nationally and internationally.
In our experience as an independent business travel consultant specializing in emerging markets like India, there are 4 major bad practices that occur frequently. These appeared in repeated cases when we conducted business travel audits, for the operations of local and global clients in these markets.
The issuance of creative tickets refers to an industry practice in which travel agency employees cite an atmosphere higher than the lowest actual, reasonable rates. This situation may have multiple manifestations in practice.
Situation 1 -Delayed ticketing approval
The customer requests the travel agency to book an airline ticket. The fare is priced in X USD. Then it takes the customer a few hours or days to give final approval.
the airfare now is modified from US$X to US$ Z.
(Original Fare $X + Markup $Y = Final Fare $Z ).
Situation 2 - Intentional upselling by the travel agency
However, since there is no customer vision, there is nothing to prevent the travel agency from adding arbitrary tags because there is a valid operational reason that could justify the increase.
Case 2: Intentional Additional Sale by Travel Agency
1. The travel agency intentionally pays the highest rate level. In general, this is the incentive to issue tickets at the point of sale provided by the airline to the travel agency. Or simply to secure a higher commission if the airline offers one.
2. The fare is available at the price of US $ X. On the other hand, agency staff adds an additional fee of $ Y USD and sells it to the customer at $ Z (Z = X + Y). Actual ticket masks for an additional cost. There have been cases when travel agency staff and supervisors were actually encouraged to promote such sales.
3. The customer prefers airline A. The travel agency responds to the customer that airline A is unavailable (although in reality) and asks the customer to switch to airline B. Airlines B promotes to airline B when it receives a point of sales incentives and associated rewards Productivity based on goals achieved
Such cases often occur in international travel now, compared to national air travel, which has now somewhat moved to self-reservation. If you are considering a travel program for small companies that produce around 1,000 international tickets per year, then 5% of national malpractices can dramatically increase your direct costs.
In the inherited commercial travel program, there is almost no way for a customer to discover such bad practices. Most contracts are incorrectly regulated and do not protect customer interests. Consequently, the customer does not have the ability to review supplier operations or punish them for negligence, should such a situation arise. Most companies do not review their service provider, so bad practices continue without being discovered for years!
B. Misuse of negotiated company price agreements.
Most companies today generally secure negotiated company price agreements. This is done with the intention of ensuring discounts on bonuses associated with employment/productivity in general. These contracts also include exemptions to fees and fines that may arise. Additional benefits of the luggage / fast food / frequent flyer program are some of the additional benefits arising from such agreements
For More Information:- business travel consultant
Created on Mar 2nd 2020 02:36. Viewed 192 times.