Running a service providing company like a Travel Agency is always a tricky job and if the organization sells something as invisible as 'experience', the complexity shoots up even more. Moreover, with 'financial aims' and 'market share' expectations remaining high the task at hand becomes even more challenging. Moving on, the issues of internal environment and employee management do crop up, like in every team work. The way out is the formation of a Balanced Scorecard to display the perspectives via apt number of measures.Quantification of Financial aspect can be measured using the parameters like 'operating profit', '% increase in planned sales', 'actual sales step-up ratio' and '% increase in travel and entertainment cost'. Internal Operations can be known with number of booking channels, abroad to local bookings ratio, packaged to independent bookings ratio and green index. Customer Services and satisfaction can be taken care of by employing metrics 'number of ancillary facilities', 'favourable review index', '% increase in customer base' and 'look/book index'. Business planning and growth perspective can be gathered by assigning values to ticked delivery standards, disaster recovery planning effectiveness, % increase in number of tour packages sold and number of staff retention initiatives taken.
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
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A Travel Agency is involved in arranging for 'travel trips' for people who ask them to do so. This spans a wide range of tasks and therefore makes it important for the travel organization to bring in a 'quantifiable strategy'. This in turn, often takes the shape of a Balanced Scorecard (BSC) with relevant set of metrics on it. By calculating and assigning values to these indicators, one can easily get over with the task of imposing a 'monitoring tool' and moving logically.
There are a number of aspects that need to be taken care of when one is in the business of running a travel agency. However, one can successfully get along well with all of these by using the mentioned management strategy.
The strength of BSC route is the 'measurable approach' it follows for tackling things. This has helped it create place for itself in a number of industries and sectors, travel sector being one such user.
Consequently, organizations trying to make it big in travel field have an option of going with such approaches and achieving their pre-set aims and objectives.
This is the actual scorecard with Travel Agency Indicators and performance indicators. The performance indicators include: financial perspective, operating profit, % increase in planned sales, actual sales step-up ratio, % increase in travel and entertainment cost, customer services and satisfaction perspective, number of ancillary facilities, favourable review index, look/book index, % increase in customer base, internal operations perspective, number of booking channels, abroad to local bookings ratio, packaged to independent bookings ratio, green index, business planning and growth perspective, ticket delivery standards, disaster recovery planning effectiveness, % increase in number of tour packages sold, number of staff retention initiatives taken.
Download a trial version of Travel Agency Evaluation Balanced Scorecard or purchase a full version online.
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