Challenges Faced by Travel Startups

Travel Portals has entirely overtake the texture for travelling from past a decade! And the credits for them is to be  given to the digital services which smartphones are providing these days. Previously, the trips were organised by booking the vehicle’s, hotels, calculating the expenses managing the expenses but for now, all they have to do is book a travel package provided by the travel portals.

Travel Application Development Companies are providing travel applications to their smartphone users, which is giving the power to use a phone for more than just calling purposes. Travelers across the world are fascinated with the idea of travelling with the travel applications which helps them to make planning with few minutes planning and concentration.

After researching over the travel startups, I have came across several problems which have been mentioned by the startup owners. Some of the Major Challenges faced by them are :

1. Assignment

  • Maintaining and managing the contacts of the travel owners and the travel companies is  a tedious task for owners
  • Maintaining the sheets with the details make the things ho hussely
  1. Currency Conversion
  • Currency conversion is one of the another challenge of the travel startups
  • Foreign currency becomes the main issue for the party owners which came into the travel startup owners
  1. Pricing Conversion:
  • Incapability to search the right offers , time taken by the costing team for map an itinerary based on custom requirements of startups, the pricing is the factor which suspends the itinerary for the travel startups
  • Company should have the updated knowledge about the offers and promotions provided by hotel suppliers by a tour designer and the costing team in a tour
  • Identifying and deciding between direct hotel contracts
  1. Tracking:
  • Enquiry Costing, Quote generation, quote editing, supplier follow-ups, all are time consuming process for the travel company
  • Managing the records and updating the information of the hotels, tracking offers and promotion provided by hotels need to be filed by the travel
  • Uninterrupted interactions with hotels and know about their promotions and offers are very important to travel agents for the smooth transaction of business
  1. Payment option:
  • Payment collection is comparatively slower and need manual intervention for Travel Companies
  • Time spent for the creation of invoice and vouchers, adds to the cost of operations
  • Most travelers are geographically distributed and direct payment collection is a challenge
  • International money transfers can be time consuming processes for paying party and the receiver
  1. People attrition:
  • This industry been a people oriented business and is also an asset-light business process
  • Entry level and Medium level staff seem to change jobs quite often and even startup same business ventures on their own more frequently
  1. Lack of skilled labor
  • One of the major  challenges  faced by the travel agents and the tour operators is Lack of skilled human resources
  • The knowledge level of the staff and their expertise in making use of the technology determines the success of a travel agency

The travel startups are advised to have a deep research over the trends that are going on the market these days. Many travel businesses are drifting towards initiating mobile app over web services. Mobile app is much easier gateway to connect with your users and clients anywhere in the world.