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How Can Travel Management Companies Use The 80/20 Rule For Profit Optimization?


The 80/20 rule is optimizing 20% of the top revenue-generating sources that leads to 80% of revenue. This will result in better business outcomes – increased revenue, accurate decision-making, and reduced costs leading to a profitable business strategy. Travel Management Companies (TMCs) might struggle to track and apply the Pareto principle without access to real-time data. This is easier when you use a corporate booking tool that offers real-time data analytics to filter the sources of repeat business.

So, how can TMCs apply the 80/20 rule? With the help of a smart reporting package!

The reports are generated instantly unlike the manual process which ideally takes 1 hour a day to collect and use the data.

The business owners can easily strategize with the RIGHT metrics to apply the 80/20 rule – 

1. Missing Revenue Opportunities In The Existing Customers

The top 20% of money-making existing customers can be easily filtered by pulling out data from the report engine. 

Business owners can download the highest-spending companies and the most-demanding travel products. The team can identify the revenue gaps easily with the market demand. This real-time data can be used to bring a particular set of travel products or services that enhance 80% of the revenue.

Example – The TMCs can identify the number of transfers after a flight booking and the total number of accommodated hotel nights for comparison to understand the missed revenue.

2. Identifying Where To Find New Customers

There are a lot of hidden customer patterns indicating the high demand for a travel product. Marketing efforts can be directed towards these areas in order to attract potential customers and generate new revenue streams.

Example – If one demographic is giving more revenue, then their surrounding areas may also get new revenues. Business owners can plan to expand their services to get access to new customers.

3. Offering Personalized Services With Customer Profiling

Serving personalized travel products or services will make more loyal customers and they will be willing to pay more or give repeat business. This is best done with a corporate booking engine where customer profiling is much easier and it will give a shopping experience to feed their preferences or needs. All their travel needs can be easily added to the shopping cart giving a smoother booking experience.

Travel admins can add customer policies for each type of customer making it easier to maintain a flow of things. 

Example – If all the managers of an ABC company always prefer veg meals, the ancillary template can be added.

In any instance, the key to growth is to remember the 80% and not to ignore them or their interests. They are already in your growth basket and optimizing them will result in possible sales. It may sound hard, but managing these is easier with a corporate booking tool


If you woke up today and were determined to apply the 80/20 rule for your business, a smart solution like AgencyAuto is a perfect fit. This strategy can be applied even in your manual process but with a travel management system like AgencyAuto, you can skip days of work to just minutes. Our corporate booking tool allows you to flexibly configure the setting at the admin level resulting in a smoother travel business process.

Our team would be happy to help you optimize your corporates – Schedule a demo now.

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