Worked scenario
Dates moved and the penalty was absorbed
Change costs in travel are real, immediate and frequently absorbed, and a business that does not record them cannot tell which clients cost it money.
3 min read
A client changes dates after tickets are issued. The airline charges a fee and a fare difference. The agent handles it, and often does not pass the full cost on.
Absorbing is a decision made under pressure
It is made in the moment, by whoever takes the call, to protect a relationship. That may be correct — it is impossible to judge without knowing how often it happens.
Per client, over a year
Recorded, absorbed change costs usually concentrate on a small number of clients. That is a repricing or a conversation, and it is available to any agency willing to record a number it currently writes off.
What changes
- Change requests recorded against the booking with their cost
- Absorbed costs visible per client and per period
- Terms on changes stated at booking
- Clients whose changes are habitual identified
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