Tuesday, July 16, 2024

Why Travel Agencies Need To Use Technology To Automate Their Back Office?

In terms of implementation, administrative operations are a key element of any organization. Travel agencies often balance and remember customers and income during the month. The identification and extraction of human activities for travel agencies and travel agencies is a daunting task due to the nature of good integration into the back-end process. Therefore, this requires identifying these manual activities from the beginning.

Here are some manual activities that the agent identifies as part of their work routine and can be replaced by the automation of the management office:

1) Accounting and reporting

It is relatively easy to distribute income through an account and always excludes it from cost. Why spend money? Because it is difficult to calculate the cost of sales for multiple accounts, depending on the workload. Consider looking up the number of hours invested in your account each month and entering it into a spreadsheet. How do you declare the exact cost and analyze the profitability of your personal account? Manually tracking payments, commissions, and reserve income is a complex and slow task that is prone to errors. Therefore, the use of efficient travel agency software to notify and calculate costs in a timely manner is a good decision without a lot of work/manpower. Here, the use of technology will reduce the necessary work and manual errors.

2) Business Intelligence related travel account service

Providing a report on the progressive travel model, in line with travel policies, etc., can increase the business value of travel agencies, but certainly involves a lot of manual labor. This further increases labor costs and leads to low competitiveness, resulting in lost revenue. Therefore, back office automation is a necessary condition to reduce labor costs and increase productivity by reducing time consumption by integrating applications.

3) Business rules and revenue management

Travel agencies work with a wide range of customers, agents and suppliers. Their type, location, size, reservation, etc. vary. And separate business rules, such as profits and profits based on predetermined criteria, are needed to achieve effective revenue management. Traditional processes require manual application of these business rules for each transaction and multiple entities.

Suppose you provide different brands for flights from flightnetwork and hotels based on the number of reservations, and provide a commission structure for subagents. When you or your subagents make an appointment, you must manually apply the appropriate logo, whether it is a scheduled flight with flightnetwork, hotel reservation or car booking. You must also calculate the commission you need to pay for the subagent, depending on your class. If you are executing b2c, you may have to apply additional tags based on the client’s category.

If you make a reservation through 5-10 months, the problem may not be that important, but if you do hundreds of odd bookings for more than a month, all this manually may take a while for each booking and accept the error. The travel agency system can automate this process, saving you a lot of time and work. You only need to configure the policy once and the system will automatically apply them in each reservation.

4) Committee of suppliers and agents

The calculation of commission agents and secondary suppliers or suppliers, such as airlines, hotels, car rental companies, etc., can confuse the total revenue generated. Advanced Travel ERP can help you calculate overdue commissions, withdraw payments, and notify your account of overdue or overdue amounts.

5) Last minute changes

Corporate travel accounts usually change their travel plans at the last minute. Therefore, each manual customization is a tedious task that makes the company’s account less flexible for travel agencies. With an automated back-end system, travel agencies have the flexibility to change travel plans without compromising timeliness. This will help you better manage your account relationships without losing the implementation of last minute changes.

How to automate back office?

Travel ERP is designed to provide integrated applications for business processes in the office and office. Most of the organization’s services or processes include payroll, human resources, and accounting.

Similarly, ERP, through their main application software, can help travel agencies have standardized processes that reduce the cost of the company to effectively represent the capabilities of these roles. Agent. Generic data structures/models and standardized processes are the most important values ​​that these ERPs can add for agent management. Manual activity is performed in a non-integrated system due to the lack of any of these aspects.

Using a common data structure, you can increase the flexibility of your process by collecting and writing information and updating or customizing the various levels of information as needed. A task that is easy every day.

Business intelligence is a time-consuming need for travel agencies to have systematic and structured workflows, such as accounting and payroll, where the flow of information must be mobile.

Travel agencies need to automate back-office work by replacing manual activities with software applications that reduce manual error frequency to understand how to simplify travel management.

Investing in dedicated automation software or travel agency ERP is a unique investment that addresses labor issues and travel agency management issues.

Given the recent developments in the tourism industry, the competitiveness of the tourism industry has increased dramatically, requiring bold investment and results-based functions to increase efficiency.


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