Outsourcing Travel business processes
Outsourcing Travel business processes

Travel business Process outsourcing

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The travel industry in recent years saw horrible times. Small and big travel businesses had to survive without any income in 2020. Many got closed and others survived this terrible wave of covid 19. However, the travel business has gained its velocity in 2022. But are companies still being able to be profitable and recover their losses. Might be or might not. To get into the recovery mode, companies will have to reduce their expenses part and will have to focus on increasing revenue. Travel business process outsourcing is the solution to this problem of reducing the expenses of your business.

Travel business Process outsourcing

Also, read- Why VC hate travel startups

Need of Travel business Process outsourcing

The travel business is quite complex and not only the process of sale and purchase. Every process in this industry is important and cannot be left ignored. One small mistake, be it at the time of sales, operations, finance or communication with clients, vendors or suppliers can lead to a huge mess. It is very important for a travel company to segment its business processes. Once the business is segmented into different processes, it becomes easier to focus on improvisation of every small aspect. Also here comes the possibility of travel business process outsourcing for companies that are based in Europe, America, Canada or Singapore. Usually, companies reduce their expenditure on onshore employees and infrastructure and outsource their processes to travel outsourcing companies that are based in developing nations.

Benefits of Travel business Process outsourcing

  • Salary expenditure gets reduced by more than 60%
  • Infrastructure & Equipment expenditure gets reduced by 70%
  • English speaking domain Professionals work on the process
  • Skilled workforce
  • Daily Reporting and data optimization
  • Increase in productivity
  • Founders will not be burdened with everything in the company

What Processes can be outsourced in a travel business

As we have already mentioned travel business is a heck of a complex process. There can be many little steps that if ignored can lead to a huge mess. Let us discuss the core business processes in a travel business that can be outsourced.

Sales

Companies backbone is the “Sales” process. When someone sells only then do other processes come in to picture. In a travel company selling, be via online medium or off line, is very important. In the sales process, there are different sub-processes like –

  • Air ticketing sales
  • Hotel Sales
  • Customised Holiday itineraries
  • Day tours

All these processes can be segmented and each process can be outsourced for better business optimization.

Air Ticketing Operations

Air ticketing is one of the most important processes in a travel business that demands skill, training, consciousness and time. There are different platforms which are being used by travel companies to book tickets like Amadeus, Galileo etc. The air ticketing process can be easily outsourced within a span of a few months by hiring and training properly skilled professionals. There are sub-processes in ticketing which can further be outsourced –

  1. Modification
  2. Voucher Booking Process
  3. Cancellation
  4. Refund

Hotel Operations

The hotel operation alike air ticketing is also huge and required segmentation. The Hotel booking platforms, contact management, and contract renewals also require a professional skilled approach. The other subcategories of hotel operations are –

  • Voucher Booking Process
  • Modification
  • Cancellation
  • Refund

Customised itinerary operations

Customised itineraries can prove to be quite complex if multiple vendors are being used. Making sure that each and every service has been given on time is very important. Proper cut off date management, client enquiry management system, and on tour customer support to clients, are some important aspects of customised itinerary operations.

Finance & Accounting

When business is growing, it is very important to keep a hold on accounting and financing. it gets very difficult to handle this later. Especially when there are multiple of DMCs, hotels, Airlines, and vendors you are working with. It is very important to keep a track of each and every transaction.

Marketing

In countries like India, it is not very difficult to find skilled online marketing agencies and that too is 30% of the cost. Marketing can be outsourced so founders can keep focusing on revenues.

IT infrastructure

IT professionals in India are becoming world-famous. It is the main sector which is being majorly outsourced from western countries to India. These companies in western countries have seen the potential of outsourcing IT . Outsourcing Information technology can save you a huge chunk of money that can be invested in other business segments.

This Post Has One Comment

  1. Jarshad

    Good article. After the pandemic many travel companies started understanding about the volatility of the industry and focused on core area of revenue generation & expense reduction.

    After the pandemic, companies like Skybook Global emerged duly understanding the need of this industry and focus purely on the outsourcing for Travel & tourism companies.

    Great read

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