United Kingdom
United States
Asia Pacific
Automating service fee management can increase revenue, says Amadeus survey
Agents can increase service fee revenue and productivity by 28% and 67% respectively by automating the management of service fees, according to research commissioned by Amadeus.
The independent study was conducted in five European countries by Dr. Fried and Partner, a German consultancy.
It compared agencies calculating fees manually with agencies using an automated solution.
Automating service fee management was found to allow travel agencies to adopt more sophisticated fee schemes, increasing service fee revenue by as much as 28%.
According to Amadeus, agencies using an automated solution can, on average, increase productivity by 67% for service fee application activities and by 12% for the overall booking process.
According to earlier research, published by Amadeus in July this year, 34% of travel agencies see falling commissions as the biggest challenge their business faces.
In Scandinavia, 73% of business travel agencies’ total revenue now comes from service and transaction fees.
“Amadeus commissioned this study to help our customers as they move to a service fee-based business model. Our close relationship with thousands of travel agencies around the globe allows us to compare trends in service fees and how they are managed by agencies,” says Claude Giafferri, VP, Travel Office Products & Solutions, Amadeus.
“We are convinced that there are strong revenue opportunities to be uncovered by travel agencies and this study demonstrates that automated processes are a key enabler to making the most of the service fee revenue opportunity.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike