Stop wasting money
Operations! This is the name of the game in the travel industry. There are other important aspects, such as sales. However, the core product that a typical tour operator provides, relies on operations. Thus, when you make your operation efficient, it has a wide impact on your profitability, customer satisfaction and more. One of the first problems that we solved is invoice mismanagement. As it turns out, there is a huge amount of money that is wasted because of invoice mismanagement.
Where is the money?
Due to operational complexity, invoices often do not match the actual services that you received. It happens mostly due to two main reasons: First, human errors. Secondly, cases in which you received a deal from your supplier, but his reservation department issued a higher invoice since they missed the special deal you were promised. In a research that we conducted in travel agencies, we found errors in nearly 10% of the invoices, costing about 0.5% of the reservation turnover.
Let’s assume that you have a travel business that sells $10M each year. Additionally, let us assume that the reservation cost is $6.5M each year. This means that your marginal profit is ~35%. In this case you lose about $32,500 each year ($6.5M*0.5%).
So what should you do?
Efficient invoice management begins with great communication between all your departments and employees. Your reservation department and your accounting department should be synchronized in real time. Any change that is made in the reservation, must create a record in your database. When the accounting departments receive the invoice they would have the ability the check the actual cost vs the planned cost. In case of deviation, they can investigate it. This is exactly what Apex does: manage all the records in a shared database so that you will stop wasting your money on incorrect invoices.
How much money can you save on invoices? Ask us and we will answer.