Failed Transactions Cause $11.5 Million Loss in Travel Industry Every Year
Technology has helped to boost the business of travel and related industries in many ways. However, there is a downside to the story too. A recent survey has showed that Ninety-eight percent of travel firms have lost, on average, revenue of $11.5 million a year because of failure in transactions. The various transactions include failure of reservations, bookings, check-ins and so on. This eye-opening research by Progress Software Corporation has found that 67% of the 149 global travel businesses have noticed that their transaction failures have soared by almost a third. On the other hand, the number of transactions has only increased by 12%.
The whole process is a complex cycle. With the tough economic conditions, most companies have begun to opt for newer and more cost-effective channels like kiosks. But by doing this, the companies are actually increasing the IT complexity, thereby reducing the customer interactions, leading to transaction failure. The survey makes it clear that due to transaction failure, the companies are not only losing customers, but also chances of repeat business with those customers, because they are leaving dissatisfied.
In fact, 54% of the respondents believe that transaction failure is causing them to disappoint or even lose customers. The survey also demonstrated that there are extra costs involved when it comes to dealing with the losses of transaction failures. 85% of the companies revealed that they had to dispatch an average of eight staffs to rectify the lost or stalled transactions. This causes a severe loss of manpower, money and work hours, with each transaction taking almost two hours to fix.
Thus, the bottom-line is, the travel companies need to take a more streamlined approach when it comes to monitoring the transaction flow, across their IT environments, so that they can reduce the risk of adversely affecting the customer experience, thereby reducing the losses incurred.
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