This summer, there has been a record-breaking increase in the demand for travel. In addition to leisure travel, corporate travel is also on the rise during this season of sunny escapism.
But when over one-fourth of American customers make travel arrangements, the financial and decision-making teams working around the clock to support the travel sector have their hands full. It’s challenging to balance meeting the expectations of a record-breaking number of clients with thwarting rivalry and investing in innovative offerings to foster distinction.
“Technology is really driving the travel industry at unprecedented rates, whether it’s how you and I search for our travel, how we book our travel, the experiences we have when we’re traveling, and more — but that takes investment to keep up,” Chandler said.
Every spike has an equal and opposite reaction, and excessive demand can result in unforeseen costs for travel companies such as travel delays, cancellations, refunds, and conflicts.
Travel CFOs, particularly those at online travel companies, must ensure that they are adequately prepared for any occurrence while also maintaining sufficient working capital flexibility to invest in long-term development engines smartly and strategically.