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Success for a travel agency doesn’t hinge simply on booking flights and developing itineraries. It also relies on tedious and resource-intensive administrative processes that often divert its focus from what matters: creating personalized travel experiences.
Business process outsourcing (BPO) can help travel agencies reduce the burdens of back-office tasks. Service vendors leverage specialized expertise and resources to manage various administrative processes, from travel management support to customer service.
If you’re considering travel BPO for back-office efficiency, then this article is for you. It explores the different benefits of leveraging outsourcing services and touches on some of the processes BPO teams cover.
1. Significant cost savings through economies of scale
One of the most prominent benefits of outsourcing is cost savings. To better understand how it can help you achieve significant savings, let’s first answer the question: What is BPO?
Business process outsourcing is the practice of delegating non-core tasks to an external team. For the travel industry, it involves offloading content, travel, and client loyalty management tasks, administrative support, and customer service.
But how exactly does this lead to cost reduction and savings? BPO providers leverage economies of scale, which are expense advantages from efficient production. This allows you to enjoy the following benefits:
Lower labor costs
By outsourcing your travel agency’s back-office tasks, you essentially delegate the entire employment process for those specific roles. This decision reduces recruitment and human resource (HR) management costs.
Additionally, outsourcing to countries with lower costs of living translates to less expensive salaries. Outsource Accelerator, a global marketplace for outsourcing, revealed that businesses that partner with Philippine BPO providers save up to 70% on labor costs.
For example, a data entry specialist’s salary in the United States is around $42,000 annually. Meanwhile, their wage range in the Philippines is at most $11,000 per year.
Fewer technology investments
Outsourcing providers carry the latest tools and infrastructure that can streamline back-office tasks necessary for a positive customer experience. Examples include:
- Cloud-based systems and technologies for secure and centralized data storage
- Artificial intelligence (AI) for automation of routine tasks
- Global distribution systems (GDS) for flight and hotel booking integration
- Customer relationship management (CRM) systems for tracking of client interactions and preferences
- Big data analytics for personalization of travel and customer experiences through identifying patterns and trends
Partnering with a BPO provider that leverages these technologies means you won’t have to invest in or buy your own. That’s how outsourcing works. It also means you can save on costs associated with their integration and maintenance.
Minimized overhead
Outsourcing often entails remote work, especially for travel agency back-office tasks. This setup eliminates the need to invest in the following:
- Office space (commercial rent for physical spaces to accommodate in-house staff)
- Work equipment (e.g., computers, printers, and other hardware needed for in-house operations)
- Office utilities (e.g., electricity, internet, heating, ventilation, and air conditioning systems)
Reducing the expenses needed to support your travel agency reallocates your resources to other high-value activities and improves your profitability.
2. Better access to specialized expertise
While outsourcing helps you enjoy lower labor costs, it doesn’t compromise talent quality. BPO in travel and tourism lets you tap into a global pool of back-office support specialists who might not be available in your local market.
Outsourcing providers screen and train these professionals to determine whether they qualify to manage your travel agency’s back-office tasks.
Here are the typical processes BPO teams specializing in the tourism industry cover:
Travel management support
Travel management involves complex tasks, from crafting customized itineraries to handling reservations and ensuring seamless logistics. Travel BPO providers house teams of specialists well-versed in the industry’s intricacies.
These experts can provide support in various aspects, including:
- Customer loyalty management (e.g., developing and implementing loyalty programs, discounts, and bonus points; managing loyalty incentives; and analyzing customer data)
- Reservation and booking support (e.g., researching options, comparing prices, handling logistics, completing documentation, and confirming reservations)
- Omnichannel customer service (e.g., consolidating customer support channels, addressing concerns, and enhancing client satisfaction)
Digital marketing and content management
In today’s digital age, a solid online presence is vital for any travel agency. Outsourcing teams have digital marketing specialists who understand the travel industry and its target audience, helping your agency with the following back-office tasks:
- Social media management (e.g., platform selection and audience targeting, content calendar and post scheduling, community engagement, influencer marketing, and analytics and reporting)
- Content management (e.g., content creation, email marketing, and website content optimization)
- Search engine optimization (SEO) (e.g., keyword research and strategy, on-page optimization, technical optimization, backlink building, and competitor analysis)
3. Enhanced travel agency customer support
A positive customer experience is vital to increasing client satisfaction and loyalty, which are critical in any travel business. A survey conducted by Zendesk, an award-winning customer service software, shows that 61% of consumers drop a brand after just one bad experience.
But what is customer support experience? It’s the quality of a user’s journey with a company’s support team and how they feel after every interaction.
Travel agencies must be able to accommodate, address, and resolve issues promptly to ensure a positive customer experience. However, emergencies, inquiries, and last-minute trip changes can arise at any time, making excellent customer support experience challenging to achieve.
Outsourcing providers specializing in the travel industry offer tailored solutions to help your agency with its back-office customer support tasks.
Here’s how they can assist you:
Multilingual and localized support
Outsourcing teams assist your clients in their preferred language. Providers specializing in the travel industry actively recruit and hire staff with fluency in various relevant languages. They implement rigorous proficiency tests to assess their staff’s speaking, reading, writing, listening, and comprehension skills.
Additionally, travel BPO providers often have offices strategically positioned in various countries. This gives them a strong understanding of local travel trends, regulations, and cultural nuances.
24/7 customer service operations
An outsourcing provider’s global network gives them a time zone advantage, allowing them to extend their customer service hours.
Additionally, outsourcing providers typically distribute BPO teams across various shift schedules. Your travel agency has adequate staff available around the clock, allowing you to accommodate an international clientele.
Leveraging an outsourcing team’s global network, time zone advantages, and multilingual capabilities can help you deliver exceptional customer service.
4. Improve operational efficiency and productivity
With experts handling specialized tasks and technologies automating time-consuming processes, operational efficiency is significantly enhanced.
Outsourcing your travel agency’s back-office tasks lets you enjoy this benefit through:
Focus on core competencies
Delegating time-consuming tasks provides you with more time for activities that directly affect profitability and customer relationships, including the following:
- Client consultations (e.g., understanding travel preferences, budget, and expectations for a more personalized travel experience)
- Itinerary planning (e.g., researching destinations, selecting accommodation, and arranging transportation and activities based on a client’s specific needs)
- Strategic thinking (e.g., customizing itineraries, negotiating deals with travel suppliers, and anticipating issues)
When you focus on these core tasks, you can enjoy a domino effect of positive outcomes, including faster turnaround times and reduced errors.
Scalability and flexibility
Travel businesses experience fluctuations in workload throughout the year. Peak seasons, such as summer holidays or specific festivals, can overwhelm operations. Meanwhile, periods with lower demand can leave in-house staff underutilized.
Outsourcing your travel agency’s back-office tasks lets you scale your workforce and operations in the following ways:
- Flexible workforce. Outsourcing providers have a readily available pool of skilled staff trained in travel industry tasks and best practices.
- Pay-per-use model. Many travel BPO firms offer this model, so you only have to pay for the services you use.
- Peak season surges. To accommodate high work volumes, you can outsource tasks such as reservation processing, visa application, and customer support.
- Temporary project needs. Outsourcing lets you hire experts for short-term tasks, such as brochure design or website content creation.
The bottom line
Running a travel agency dedicates a lot of resources to repetitive back-office tasks.
Outsourcing lets you tap into specialized expertise that can help streamline daunting administrative processes. It also frees up valuable resources and enhances operational efficiency within budget.
These benefits improve customer experiences, satisfaction, and loyalty, giving you a competitive edge in the fierce travel industry.
Are you considering outsourcing your travel agency’s back-office tasks? Let’s connect and find the best solution for your needs.
