5 secrets to a more efficient travel agency
TRANSCRIPT
5 secrets you may be missing…
Agenda...
-Whyshouldyoulistentome-MarketLandscape-Trends-5Secrets-DigitalPublicationApp-PanelDiscussion
Why should you listen to me…
OurmissionImproveyouragency’sbottomlinethroughworkflowmappingandtechnologyanalysis
Ourpeople…– Innovative– Engineers– 6Sigma– Developers
People
Ourindustryknowledge spans…
-Travelagents-Airlineemployees-Hotelemployees-Caremployees-Developers-Scripters-Managementconsultants-Engineers
Ourexperience…
Over350totalon-siteengagements-155corporate- 85leisure- 40consolidators- 24online Helping Agencies
Since 2005
Ourexperience…
Wherewehavebeen…
Market Landscape
Marketlandscape…
1. Traveliscomplex…
2. Agencybusinessischallenging…
3. Moneytobemadeandvaluetobeadded…
Traveliscomplex…
-Themarketsarefragmented-Changeisconstant
Travelvaluechain…
TravelDemand
TravelSupply
Fragmentation…
Fragmentation…
Total Cost Per Transaction = $13.44
Marketlandscape…
1. Traveliscomplex…
2. AgencyBusinessischallenging…
3. Moneytobemadeandvaluetobeadded…
Agencybusiness ischallenging….
-Clientsaredemanding-Competitionfierce-Increasinglythinmargins
Agencytrends…
Fiercecompetition…
Fiercecompetition…
Marketlandscape…
1. Traveliscomplex…
2. AgencyBusinessischallenging…
3. Moneytobemadeandvaluetobeadded…
Moneytobemadeandvaluetobeadded…
-Enternewmarkets-Sellnewproducts-Costsavings-Travelersecurity-Serviceandconvenience
Travelontherise…
Travelontherise…
Valueaddareas….
Source:CWT2013
Travelvaluechain…
TravelDemand
TravelSupply
Trends: Cost ManagementRevenue OptimizationDemographic Shift
Trends:costmanagement…
-Onlinebookingtool-Scripting-Automation
Costmanagement…
TravelDemand
TravelSupply
Onlinebookingtool…
Trends:revenueoptimization…
-Standardcontracting-Supplierrelations
Revenueoptimization…
TravelDemand
TravelSupply
ContractOptimizationServices…
Trends:demographic shift…
-ShoppingMethods-AgencyPopulation
Demographic shift…
TravelDemand
TravelSupply
Demographics…
~75%use1-4websites
Demographics…
Areyoutargetingtherightgroup?
Agentlearning…
5 Secrets…
… how your KPIs compare to your peers/competitors
… If tools you invested in are helping or hindering agents’ productivity
… what does your profitability look like across customer tiers
… where are your hidden costs
… if servicing certain customers may be undermining your profitability
… how to view true transaction-level data to tell you what’s really going on
Doyouknow…
SowheredoIstart?
-Timedworkflowanalysis-Technologyassessment-Reportingbreakdown-Employeeculturetest-Customersnapshot-Datasecurityscan-Malwareprotectionupdate-Financialintegrityevaluation
Bit.ly/5SecretsToSuccess
5Secrets…
1. Wheredoyouspendyoutime?
2. Automationcreation
3. KPIbasedinfrastructureandreporting
4. CustomerManagement
5. EmployeeCulture
Secret1:Wheredoyouspendyourtime?…
change
42%AHT:500s
28%AHT:177s
AHT:395s
30%AHT:388s
0 200 400 600
EmailPhone
Walk-InWebsite
0 200 400 600
EmailPhone
Walk-InWebsite
0 200 400 600
EmailPhone
Walk-InWebsite
Front Office Disposition SummarySabre
Average Handle Time
Whereisyourtimespent…
ABC Agency
5Secrets…
1. Wheredoyouspendyoutime?
2. Automationcreation
3. KPIbasedinfrastructureandreporting
4. CustomerManagement
5. EmployeeCulture
Secret2:Automationcreation…
Secret2:AutomationCreation…
PNR CreationShopping
Document Delivery
Update Notifications
Quality Control
Pricing
5Secrets…
1. Wheredoyouspendyoutime?
2. Automationcreation
3. KPIbasedinfrastructureandreporting
4. CustomerManagement
5. EmployeeCulture
Functional Area KeyIndicator SuggestedMethods
Salesandmarketing•Customerprofitability analysis
•Customerservice mix•Service feeprofitability
•Build aPNLforeachcustomer•Analyzeeachcustomeronapertransactionbasis
Accountmanagement•Customer retentioneffectiveness
•Service leveleffectiveness•Consultativemanagement
•Analyze pipeline success•Understandcustomerworth
•Completequarterly reviewswithkeycustomers
Operationsmanagement
• Resource andstaffing•Peopledevelopment
•Technologydeployment•Integrationandoptimization
•Process optimizationandcontrol•Measurestaffutilization
Transaction processing•Front-officeeffectiveness
•Mid-officefulfillmenteffectiveness•Back-officeaccounting
•Measure call-handle timeandafter-callwork•Trackerrorsandexceptions
Reportingandanalysis•Agency performance•Supplierperformance•Customerreporting
•Benchmarking
•Measure•Analyze
Secret3:Keyperformanceindicators…
Average Premier Agency Time Spend
Process Group Corporate Leisure
Initialize 11% 10%
Shop/Price/Sell 28% 49%
Recap/File Finish 17% 18%
QC/Ticketing 18% 6%
Other 26% 17%
Total 100% 100%
Front Office Operational BenchmarkingPremierBenchmarking…
Average Premier Agency Characteristics
Bookings Range 100K-1M
Revenue Range $1M-$15M
Cost savings range $50K- $750K
Hours of observations 10 hrs –50 hrs
Time Period taken 2005-2013
Value of our services $10K-$75K
5Secrets…
1. Wheredoyouspendyoutime?
2. Automationcreation
3. KPIbasedinfrastructureandreporting
4. CustomerManagement
5. EmployeeCulture
Secret4:Customermanagement…
Businessmodelshift…
5Secrets…
1. Wheredoyouspendyoutime?
2. Automationcreation
3. KPIbasedinfrastructureandreporting
4. CustomerManagement
5. EmployeeCulture
Secret5:Employeeculture…