The weight of indirect costs

Indirect costs to TMCs
Phone:+45 4363 2266

Travel Management Companies (TMCs) are very aware of the direct costs of doing business, however, according to eNett International, there is less focus on indirect costs and that could have extensive consequences. 

Research has shown that as many as two in five travel agencies are still using staff for tasks like processing, fraud handling or cash backs.

The research from Phocuswright has shown that this costs the global travel industry $1.5 billion a year.

By using automated solutions like ProTAS, a business can redistribute its staff and have them working in areas that will generate the company more revenue. TMCs can easily automate the majority of these processes, but automisation is still considered complicated and complex by many. 

Although it is largely unavoidable, a certain amount of this is a result of human error, which could be eradicated by using automated back-office tools.

Other factors contributing to indirect costs include foreign exchange charges and risks, as businesses still tend to use banks to perform this service instead of looking into much lower cost options that are available. has reported on this issue, saying: "Our internal estimates find that using a bank can add up to three per cent to forex costs than with some of the alternative options."

Credit and bonds can respectively make payment processes more difficult and cause money to become stuck or tied up instead of being used to generate revenue.

To limit the indirect cost issue, we urge TMCs to carefully monitor costs carefully and seek as high a degree of automation as possible with innovative systems like ProCon Solution. 

For information on the ProCon SOlution mid and back-office service and how it can help you, contact ProCon Solution now.

ProCon Solution A/S
Herstedøstervej 27-29
DK-2620 Albertslund
Phone: +45 4363 2266