Business travel audits identify 5 top malpractices that add 10%++ indirect travel costs!
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!
Note:
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.
Creative Ticketing
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.
For More Information:- business travel consultant
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