How to make sure On-Time Payments from your customers

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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

20 Nov, 2020
By: Rajat Sharma
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