Travel management companies (TMCs) across Europe are missing out on savings available through technology, according to new research by Amadeus.
The surveys cover TMCs in the UK, Ireland, Poland and Italy.
The UK/Ireland research found that the total operating cost of each ticket sold was £32.40, but 92.2% of that went on administration and only 7.8% (£2.80) was profit.
The survey, in which six TMCS were quizzed, is the second part of a major survey called Show Me The Value, which Amadeus has been conducting this year into agency and consolidator costs.
The first part, published in January, showed that the average price of a business agency transaction was £32.4 compared with £29 for a consolidator.
The latest UK/I research shows the breakdown of the £32.40 cost. The highest segment is the £5.40 spent on bookings and sales, followed by the £5.20 spent on search proposals and negotiations.
But TMCs are also spending £4.40, 13.5% of the total, on invoicing, collection and payment preparation.
In Poland, research carried out for Amadeus by a company called Hermes Management Consulting, found that 45% of the total cost per ticket was spent on the reservation process while administrative expenses accounted for 13%.
The study in Italy found that the booking process accounted for 48% of TMC costs per ticket.
Hernán Goyanes, a partner with Hermes, said the Polish and Italian studies both showed that TMCs were not taking full advantage of the technology available to them.
He said of the Polish research: "By offering a single source of content and increasing the use of technology with a single front office solution, the cost of core reservation process would be significantly reduced."
Ms Elaine Seeto, Amadeus' director of marketing UK, said: "The £4.40 cost for invoicing and payment preparation is quite significant and far higher for that of leisure agents or consolidators.
"It is high because the agencies are having to duplicate the process from front to back office. “Agencies can improve by looking at how they can integrate front, mid and back office and automate the process."
* Full details of the studies are available on request from www.amadeus.com/showmethevalue
* see BTE's recruitment site www.businesstraveljobs.com
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