Problems Faced by TMCs and Agencies: Uncovering the Seen and Unseen
For TMC and travel agency operations, the challenges faced can sometimes extend far beyond the surface. While some hurdles are readily apparent—such as cost management, data integration, data quality and accuracy, and technology integration—there exists a host of unseen complexities lurking beneath the surface. These hidden challenges, often overshadowed by more visible issues, can significantly impact the efficiency, effectiveness, and innovation capabilities of travel managers and agencies alike.
In this blog, we discuss issues and pain points encountered in the world of travel management. From the seen challenges that demand attention to the subtle and often unseen, yet impactful, issues that often evade detection, we explore the full spectrum of challenges faced by travel professionals. By shedding light on these seen and unseen issues, we aim to provide insight, guidance, and actionable solutions to empower travel managers and agencies to navigate the complexities of the industry with confidence and resilience.
Common Issues Faced by TMCs and Travel Agencies
Travel Management Companies (TMCs) and travel agencies encounter various challenges and it is often related to data management and business operations. Here are some of the most common ones:
Data Integration
TMCs and travel agencies typically deal with a vast amount of data from various sources, including booking platforms, customer databases, supplier systems, and financial records. Integrating and consolidating this data to provide comprehensive reporting and analysis can be complex, especially if the systems used by different providers are not interoperable. Or if they are, there are timing issues or discrepancies between the systems.
Data Quality and Accuracy
Ensuring the accuracy and reliability of travel data is crucial for making informed decisions and providing high-quality service to clients. However, data quality issues such as incomplete or outdated information, duplicate records, and discrepancies between systems can undermine the effectiveness of operations and reporting.
Operational Efficiency
Streamlining business operations to improve efficiency and reduce costs is a constant challenge for TMCs and travel agencies. This includes optimizing processes such as booking management, itinerary planning, invoicing, and supplier management to minimize manual effort and maximize productivity.
Technology Adoption and Integration
Keeping pace with advancements in technology and integrating new tools and systems into existing workflows can be challenging for TMCs and travel agencies. From implementing booking automation and self-service portals to adopting AI-powered analytics and chatbots, selecting and deploying the right technologies requires careful planning and investment.
Supplier Relationship Management
Establishing and maintaining relationships with travel suppliers such as airlines, hotels, and car rental companies is crucial for negotiating favorable rates and ensuring availability for clients. Effective supplier relationship management involves regular communication, contract negotiation, and performance monitoring.
But you’ve heard this all before, especially if you have read articles from Grasp. There’s tools and solutions out there that are proven to help with all of the issues discussed above. We’re more interested in the issues that TMCs and travel agencies may not know of.
Unseen, Unnoticed and Unaddressed Issues
Time-Consuming Administrative Tasks at Travel Agencies
How much time is your accounting team spending calculating commissions, producing and distributing agent statements and responding to inquiries involving commissions? The fact is most either wouldn’t be able to accurately answer that question or have never even asked themselves that question.
This is where technology investment can help to boost the efficiency of your business as well as allow your travel agents to focus on what is most important, your clients. The best travel agent commission management systems should allow you to automate time-consuming administrative tasks and give your agents a view into their business via a portal featuring dashboards and reports.
Want to see a demo of Grasp’s agent commission management solution?
ARC Reconciliation
Speaking of “time-consuming administrative tasks”, let’s talk about ARC Reconciliation. If you hear “ARC Reconciliation” and you feel nothing, then that is wonderful. But for some, it may make their heart skip a beat or two.
Most of us know why ARC Reconciliation is important. It helps to ensure the accuracy of financial transactions between airlines and TMCs, CTDs, and travel agencies. It helps maintain data integrity, compliance with industry regulations and standards, and trust and transparency between airlines and TMCs/CTDs/travel agencies. It also enhances overall operational efficiency, controlling cost by minimizing financial errors and reducing the need for extensive audits or investigations.
So why would the mere mention of it startle so many? Because it is notoriously complex and time-consuming. Reconciliation in the travel industry, especially for TMCs, CTDs, and travel agencies, can be challenging due to many complexities such as exchanges, taxes, MCOs, etc. To add to the complexities that make ARC reconciliation difficult, it is also very time-consuming. The whole process can take anywhere from a few hours to having one FTE (or more) to accomplish,depending on your number of air transactions.
The good news is that we have the perfect thing to help settle your nerves. For a limited time, our current customers can get a free 45-day trial of graspTUESDAY, our ARC Reconciliation solution. Follow this link to read more about this offer!
Unclaimed Hotel Commissions
Did you know on average $59 of hotel commission is missed per booking? That is a lot of missed revenue, especially considering that hotel commissions are a significant source of income for travel agencies. At Grasp, we have graspHOPR which actively rates the hotel properties on if they pay, and if they do, how quickly they pay. It gives corporate and leisure agencies as well as CTDs the insight to book hotel reservations that support their business, to select hotel properties that will pay and pay faster. But what most don’t know is that it is dependent on accurate and timely commission logging from the agents themselves. Implementing commission logging practices can streamline commission tracking, improve accuracy, and ultimately enhance profitability by ensuring that agencies capture and reconcile all commissions owed. By leveraging technology to automate commission logging processes, travel agencies and TMCs can optimize revenue streams, strengthen supplier relationships, and achieve greater financial transparency and efficiency in hotel booking management.
Click here to learn more about some common misconceptions about hotel booking commissions.
Dependency on Legacy Systems
TMCs and travel agencies that rely on legacy IT systems may face hidden challenges related to system limitations, outdated technology, and interoperability issues. Legacy systems may lack the flexibility and scalability needed to support evolving business requirements, hindering innovation and agility in responding to market changes. And to make matters worse, many travel teams are still facing issues with outdated equipment, where access to the back office still has to be done through a single desktop located in an office. And similarly for the GDS print manager/module, that it resides on a single desktop that might be standalone or part of an existing agent’s desktop.
If any of this sounds at all familiar to you, the solution is simple. Cloud hosting is a popular option for those who are looking to outsource their infrastructure while cutting down on the costs and effort associated with maintaining servers. It allows access into the back office from anywhere, any time and also includes technologies such as GDS, CRM, Microsoft Office, and more. And to top it off, cloud hosting technologies designed by travel technology professionals ensure that your data is protected and recoverable in case of disaster. It is the very definition of getting more for less.
Treating pain points, both seen and unseen
At Grasp, we see ourselves not just as providers of solutions, but as doctors diagnosing and treating the pain points that afflict TMCs and travel agencies. While many issues are visible and acknowledged, it's the unseen complexities that often go undetected, exacerbating operational inefficiencies and hindering growth. By shedding light on these hidden challenges and offering innovative solutions, we aim to empower travel professionals to overcome obstacles with confidence and resilience. Through strategic partnerships and cutting-edge technology, Grasp is committed to driving positive change in the travel industry, ensuring that our clients thrive in an ever-evolving landscape. Let us be your partner in transforming unseen obstacles into opportunities for success.
