Logo of AgencyAuto - The No #1 Travel Agency Software

How to reduce travel agency costs?


In a booming industry, travel agents strive hard to be abreast with client expectation without burning a hole in their pockets. Rightfully, terms like ‘Cost Reduction’, ‘Profit Enhancement’, are some of the hottest topics under discussion in the travel industry. Some travel agencies do good business but aren’t exactly able to convert all of that into profits. So, where are they losing out? What is it that impacts their bottom-line so bad? What can be done to ensure that good business becomes a good profit making business? Read on for answers.

Understanding the currency drainers

An extensive & tiring manual process

From record-keeping to sending out emails, an agency that survives on manual process, takes more time to facilitate one travel booking leave alone handling bulk bookings.

Multiple hands at work

An extensive manual process needs more hands at work. When there are bulk bookings there could be more than one person needed for a process or for one particular client account. This increases workforce cost. It becomes difficult to hire and fire people when the need is more, leading to the agency hiring excess staff and spending more even during the lean period.

Mistakes in manual paperwork

Manual paperwork are prone to mistakes. Since the impact of a manual workflow error is realized much later, it becomes very difficult to spot it – this is the case of a travel agency that has its workflows mapped effectively. Without a proper system in place, it becomes virtually impossible to trace any mistake and eventually would end up losing a hefty amount.

Using multiple software for different process

Managing multiple platforms such as booking, back office management, payments follow-ups will not solve the purpose. It may actually push agencies to spend more time and money on transferring information between these platforms.

Analyzing opportunities to curb costs

While analyzing costs its imperative to differentiate between strategic costs and tactical costs. Strategic costs are those that put the agency ahead of its competition. These are expenses incurred for the upkeep of the agency’s brand value, luring new customers, and promote customer loyalty. Tactical costs are those that can be reduced to the greatest extent possible such as payroll processing, manual activities and quality checks. Either these can be outsourced or an alternate solution could be found.

A one-stop solution for exercising cost control & increasing profitability

Outsourcing processes may actually put the agency at a risk, as they know their trade better than anyone else does. It is good news though, there is a solution that will ensure you eat the cake and keep it too! A travel agency automatoin software system that has integrated operation management software with a self-booking tool offers the best solution there is for all travel agencies alike. It helps ease out processes, reduces manual labor & thereby errors.

Share This Post

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore