Ever wondered what would be the contribution of the travel industry to the global economy? The travel and hospitality industry combined have a direct and indirect impact of 6.5 trillion US dollars on the world economy. As a matter of fact, the hospitality industry alone produces annual revenue of around 500 billion US dollars. Additionally, the JLL has reported that the market was even higher for some countries like the United States.
This increased demand for travel, vacations, lodgings, and entertainment is indicative of the fact that there has been an increase in the spending made by the consumer. As purchaser spending rises, so does rivalry among organizations in the tours and travel industry. Therefore, it is extremely important to use cost-effective processes. Businesses need to make use of the advancement in technology and utilize the most recent innovations in order to further develop customer relationships and be able to survive in this competitive world.
How Outsourcing Can Help?
Analyst firm Information Services Group says that regardless of fluctuating oil costs and different difficulties, major and territorial aircraft have effectively raised prices by outsourcing as many services as they could. The Travel Industry is an industry that requires a huge amount of capital expenditure. In such an industry, getting services outsourced to avail cheaper manpower can give genuinely necessary adaptability, assist with diminishing expenses and give an upper hand in this competitive world.
Organizations in the travel industry area have been outsourcing travel services back offices for a long time now. This is important for them to capture clients in the higher positions of the service value chain. Although there are a lot of services that can be outsourced, the main services which can be outsourced are finance and accounting, customer service, and research and analytics. These services prove to be the most helpful when they are outsourced from other service providers, as they allow businesses to scale themselves while the day-to-day operational needs are taken care of.
The Challenges Faced By Travel Businesses And Agencies
Fierce competition, tight investment restrictions, shrinking margins, and uncertain customer loyalties are only a portion of the issues that assail the organizations in the tours and travel industry. Organizations are eager to provide fantastic client care while minimizing expenses. Here are some of the challenges faced by Travel Businesses:
- Maintaining the loyalty of the Customers
Clients are the core of the travel industry. In fact, gaining the loyalty of a Client is an incorporating metric that penetrates all industry administrations. Firms unendingly battle to further develop consumer loyalty and want to provide them with high levels of satisfaction so that they prescribe their business to loved ones.
- Meeting the technological demands
The features like booking hotel rooms, flights, tours, or concert tickets by making use of multiple devices along with the influence of social media on the purchasing decisions of the consumer are increasing the requirement for expanded IT support day by day. Huge information, social business, versatility, and cloud administrations are impacting the manner in which travel organizations carry on with work. However, the manpower, infrastructure, and capital expenditure expected to help proficiency in these technological requirements might overpower little and medium-sized undertakings.
- Formulating Strategies
Using technological Innovation and formulating strategies are the differentiator between organizations offering similar services. However, it can become difficult to focus on making strategies when you are already bombarded with loads of day-to-day administrative activities.
Solutions By Outsourcing Services For Travel Businesses
By working with service providers who excel in providing services to businesses and agencies in the travel industry, organizations get close enough to minimal expense as well as top-tier client-driven arrangements. As the main job of the travel company should be to offer good core values, the day-to-day activities can be handled by a specialist who has the resources and technology to deal with them. This can help the company get a better value and be ahead of its competitors. Here is how outsourcing can help you and what you keep in mind while choosing a service provider:
- Expanded intensity
A good outsourced service provider helps with catching more revenue through different techniques: making appropriate initiatives for cross-selling and up-selling in booking air travel, making car reservations, hotel and entertainment booking, etc. Apart from this, it also includes sophisticated and streamlined methods for accounting and managing finance, handling data, and analytics which is very helpful to make strategic decisions. When choosing a partner for outsourcing make sure that you keep in mind that they are capable of handling all of these tasks efficiently.
- Excellent client assistance
As per Morrison and Foerster’s Global Sourcing Trends Report, the travel industry ought to further develop client satisfaction and should focus more on retaining the present clients. An outsourcing partner should provide good support to your clients by attaining a high-quality and seamless process that will secure the loyalty of the customers. Make sure that your outsourcing partner is highly skilled in this area.
- Further developed focus on core tasks
An outsourcing service provider should take care of all the back-office work which includes maintaining accounts, processing orders, analyzing data, and researching the market. Ensure that your outsourcing service provider takes care of all these issues and you are able to concentrate more on core tasks like developing new products.
- Cost control
By working with service providers overseas, your costs get significantly reduced, and hence your savings rise. In fact, by making use of outsourcing you can reduce your costs by 40-70%. So take care that your service provider is economical.
Travel Outsourcing By ePrime Travel
It’s ideal to consider outsourcing services for your travel business from India. ePrime Travels is an excellent solution for outsourcing and will take care of all your needs. Here, are some of the features of ePrime Travels:
- Emergency Travel Desk Customer Support Outsourcing India
- 24/7 After Hours Support for US travel company India
- TMC Operations outsourcing India
Contact ePrime Travels now to get in touch and get your outsourcing needs sorted!