Case study: Global travel technology company
Detects €25 million in revenue leakage in order-to-cash proces
Processing billions of individual transactions every day, a global travel technology company had an enormously complex data infrastructure. This complexity often led to errors and lost data in the order-to-cash process – and significant revenue leakage.
The company is one of the world’s largest travel and transportation booking companies, handling more than 40 percent of all airline bookings through its software. The company operates in 190 markets, with a worldwide team of 15,000 people. As of 2015, the company was processing 3.8 billion transactions per day and boarding 747 million passengers annually.
Errors and lost data led to revenue leakage
The company’s revenue model is based on end-customers searching for and booking travel. It receives compensation for every 1,000 travel searches, and €3 per booked event. After travelers book through third-party systems, these bookings need to be reconciled with the company’s central platform.
The billing and mediation department was struggling with massive and growing volumes of digital travel booking events through its global ecosystem of online partners. The company estimated that 8-12 percent of revenue was lost due to leakage – an enormous amount of money that was simply disappearing off the books.
Many event packages were still being handled manually, which led to frequent errors. To recapture lost revenue and prevent leakage, the company needed to automate its systems.
”The billing and mediation department was struggling with massive and growing volumes of digital travel booking events”
Capturing and analyzing all data in real time
DigitalRoute’s Usage Data Platform was implemented to accurately capture billions of digital booking events worldwide, in real time. The company collects real-time booking information encompassing hundreds of disparate sources and data types, including booking systems, inventory, partner data, web search, and pricing.
With the Usage Data Platform, the company can now correlate these events with billing information in real time. Additionally, they can now capture and analyze fine-grained historical usage data for every transaction – insights that fuel new differentiated offers and business models. Most importantly, the company now fully automates all events across its global ecosystem to ensure that revenues are accurately captured for every transaction.
€25 million detected in revenue leakage per year
DigitalRoute detected that the company was losing €25 million per year due to manual errors and lost data. With the Usage Data Platform, the company has reduced manual handling and human errors in session-handling, dramatically reduced revenue leakage, and now captures millions of euros annually that previously would have been lost.
With the ability to capture more fine-grained details about customer behavior – both historically and in real time – the company can also develop new customer-centric business models that would not have been possible before, and tap into new revenue streams.