Travel businesses are inherently risky enterprises. They involve large transactions with a high degree of uncertainty. Things can go wrong quickly if you aren’t careful.
That’s where this post can help. We look at some of the biggest operational risks a firm like yours faces, and some of the things you can do to mitigate that risk and get the outcomes that you want.
Here’s everything you need to know.
Traveler Safety Issues
One of the main risks is traveler safety issues. Getting from one country to another can be downright dangerous sometimes.
To deal with this problem, you need to be proactive when it comes to assessment and mitigation. Ideally, you should be implementing real-time monitoring and post-trip reviews to ensure that you are bringing down the level of risk to a minimum. Telling travelers about the likely dangers is also good practice before they arrive so they have something that they can work with once they get on the ground.
Volatile Transactions
Volatile transactions are another problem you are likely to encounter as a travel business. Last-minute cancellations and fraud can all be significant problems in this industry.
That’s why it is critical to use travel merchant accounts that work for you. These allow you to operate more flexibly and perhaps gain more leeway over services that work with retail or lower risk entities.
The impact of volatile transactions, like reduced revenue and increased operational costs can be substantial. Therefore, you want to take as much action as you can to avoid these problems and continue moving forward.
Operational Disruptions
Another issue you might face are operational disruptions to your travel business. These are more common than you might think.
For example, you could face a flight cancellation due to a pilot strike and be unable to entertain your guests. You might also experience software outages or natural disasters preventing travel.
You can improve your operational resilience by planning for disruption and using alternative transportation. Putting these plans in place can have a significant impact.
Another option is to use real-time traveler tracking. These show you where your people are at all times, so you can take action if necessary.
Reputational Risks
You may sometimes face reputational risks as a travel agent. These can creep up on you when you don’t realize it, which is why social listening is so important. A poor reputation can spread quickly online, so you have to be careful.
The way to deal with this is to monitor customer feedback and deal with issues quickly. You have to train staff to handle crises and prevent negative publicity, which takes time.
Legal Compliance
Every business needs to worry about legal compliance, and a travel business is no exception. In fact, there could be a few unique areas to focus on with this as you operate.
You could need to consider the likes of visas, Global Entry interviews, and more for the people you’re working with, for example. Make sure you’re aware of these.
Knowing exactly what it takes to maintain legal compliance – and legal travel issues your clients need to deal with – helps to keep any potential risks to a minimum.
BONUS: Secure Data and Systems
Finally, travel businesses face risks when they don’t secure their data and systems. Many leave it to chance, leading to lost sensitive customer information.
To deal with this problem, always implement robust security measures. Make sure that you use encryption and conduct regular audits. If you can train employees, that’s even better, since this helps them handle company devices while abroad.
