Ensuring timely payments from customers is a real challenge for a Travel business. Not getting timely payments from customers can choke off cash flow and can be really frustrating for any business. According to surveys, 40% payments do not get paid on time from customers.
Not getting payments on time can happen if
- Customers forgot to make payment on scheduled time
- You did not send the reminder on time
- You are hesitating to ask for payment out of fear of being greedy and unprofessional
With these in mind, let’s see how Sembark Travel software helps you in improving the success rate of on-time payments and what you could have done with your money by improving this process.
Clearly state your payment terms in writing
Verbal agreement with clients might be of worth but nothing beats the agreement when done properly in writing or documented. Do not hesitate to write down clear payment terms which have every tiny detail to cover every possible scenario.
Payment terms and policies should be defined in a clear way so that customers don’t get confused about the terms or, if you are using a specific travel software, you can do this by including the payment terms at the end of itinerary, invoice or other documents created by the software.
Assessing due payment of customers
DMC or Travel company is converting no. of queries (for Trip, Hotel, Cabs) from B2B and B2C customers on a daily basis. These converted queries or bookings require lots of reservations to confirm and invoices to raise.
Every booking might have different payment terms and policies agreed with the customer. Higher the volume of bookings means more numbers of payments has to be made by customers which require more time to track all the payments. If you are using Excel spreadsheets or CRM systems to keep track of all the payments, this will be more time consuming due to several manual steps involved in the process. Firstly, someone would have to manually check all the bookings to find out bookings which have due payments or overdue payments. Then, They would manually send the payment reminders to customers to get paid.
Frustrated doing everything manually??
Improve on time payment rate with Sembark Travel Software
Sembark Travel software enables a simple and accurate way to keep track of payment status for the DMCs and Travel companies.
The software keeps track of all the payments and It is very easy to filter out bookings which have due payments. It takes another click to send the gentle payment reminders to customers over Email, WhatsApp or text.
Also, the software generates financial reports that can help in to predict future cash flow based on your past bookings, revenue and expenses of your Travel business. Travel businesses can make future invested decisions confidently based on these reports.
Benefits of healthy cash flow
Managing healthy cash flow allows you to have clear projections of your payables and receivables of your business by which you can expand your business, more focus on branding your business and much more. To know more about the benefits, please read this article