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Strategies for reducing spoilage How managing unused airline tickets can impact your corporate travel program's bottom line

Changing plans is inevitable. Unfortunately, in today’s fast paced business environment, unused, nonrefundable tickets can sometimes be easily forgotten. When considering changing travel plans, it’s important to keep this loss to a minimum to reduce high expenses. One common expense incurred due to changing travel plans results from ticket spoilage. Spoilage occurs when a nonrefundable airline ticket is cancelled and the resulting unused ticket credit reaches its expiration without being used.

Properly managing your unused tickets helps eliminate spoilage and reduce costs.

This can be achieved through automatic notification of nonrefundable tickets prior to their expiration. For Travel and Transport, check-in alerts allow travel advisors to cancel trips when a traveler hasn’t checked in for the flight. This allows the client’s corporate hierarchy to make name changes for unused tickets, essentially eliminating spoilage.

Travel and Transport’s proprietary Banx system utilizes automated tracking, management and reporting of unused tickets to drastically reduce spoilage.

Travel and Transport’s proprietary Banx system utilizes automated tracking, management and reporting of unused tickets to drastically reduce spoilage. While other TMCs boast a 10% spoilage rate, Banx has resulted in Travel and Transport achieving a significantly lower rate than the industry average, and this rate continues to decrease over the years. In 2016 Travel and Transport achieved a 7.79% rate, followed by a 5.38% rate in 2017, and a 5.02% spoilage rate in 2018.

Properly managing your unused tickets helps eliminate spoilage and reduce costs.

Travel and Transport has achieved these reductions because tickets are automatically opened up for a name change at 60 days, presented to the travel advisor in their automated desktop system (BARTT), and advisors accept or decline usage, which is reported monthly in the advisor units report.

It may be difficult to understand the impact a small reduction in the spoilage rate has on company savings - Travel and Transport’s 5.02% rate compared to the promoted 10% of many other TMCs introduces a $49,800 difference per million in air spend.

There are many benefits to reducing, and hopefully eliminating, ticket spoilage. Contact us today to learn more about how Travel and Transport can help you eliminate your ticket spoilage and increase your cost savings. Click here for more information about how Travel and Transport can help you reduce ticket spoilage.

© 2019 Travel and Transport, Inc.

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