Travel companies face many problems every year. Below are 4 that can really affect a business unless an accounts payable automation software is used.
1. Payment Fraud
There are many cases of payment fraud that travel companies encounter every year. One of the major contributors to these: check frauds. If you operate a travel company, you have to expect that you are going to be expected to fraud. You also have to be prepared for traditional credit cards being stolen and used for transactions.
When you use an accounts payable automation software, you are greatly reducing the amount of income loss from payment fraud since there are many stopgaps in place to ensure that the payments that you are getting are verified and authentic. Accepting virtual payments is the most secure route when it comes to preventing payment fraud.
2. International Payment Fees
Processing payment is costly on its own. Processing international payments is even more costly due to the many fees that you will have to face. Although processing payments virtually does soften the blow that comes from international payments, you will still see a sizeable chunk of funds going to paying international payment fees.
In order for you to reduce the amount of money loss due to these fees, you can partner with the most common companies that you do business with. Most successful travel companies have preferred partners and even share the reduced fees with the customer. This gives the customer an incentive to take a route that requires them to pay less which also reduces fees for the travel company.
3. Time Spent Between Reports
As a travel company, you have to wait for progress reports from different departments. Just because a customer has reportedly paid does not mean that their payment will reflect into the archives immediately. There are several factors that you will have to pay when it comes to operating a travel company.
When you use accounts payable automation software, you are able to input the records that you already have. It will be easier to search through these records and find out what is not yet reported which includes the reason why. When the information is available, the automation software is also capable of updating these records with little to no human interference required.
4. Manual Follow-ups
Manual follow-ups bring travel company employees the most headache. The lack of communication is indeed an issue with travel companies. Whether it’s due to the lack of accessible contact information provided by the customer or a barrier due to the language, a travel company has to be prepared to take the extra step to make manual follow-ups.
There are also different international laws that are put in place which could prevent a travel company from storing the data of a customer beyond a specific amount of time. These privacy laws make it tougher and tougher for travel companies to maintain a retainable avenue of communication for customers. Fortunately, accounts payable automation software can also be used to give the customers access which gives the travel company a direct line to them.
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