From Backlogs to Business Growth: How Finance Support Builds Trust in Travel
The travel industry is one of the most complex and fast-moving sectors. Yet behind the scenes, finance and administration teams face a unique set of challenges that can directly impact supplier relationships and business growth.
Open Destinations’ Arif Khan, Senior Vice President of Business Support Services, shares his insights into the unique challenges travel businesses face, where external support can make the difference, and the strategic lessons finance leaders can take into the year ahead.
The unique challenges of finance in travel
Finance teams in the travel industry don’t simply process numbers; they manage the critical lifeline between operators and their suppliers. One of the most persistent challenges is the backlog of unpaid commissions:
“The biggest challenge is always a long-pending list of payments that frustrates suppliers and damages relationships. It all starts with the long tail of pending commissions. Once suppliers are chasing you, the whole relationship suffers.” – Arif Khan
The pressure peaks at year-end. Across 2019 and 2023, data show that December accounts for just 5.8% of annual room nights, the lowest of the year. Yet despite lower demand, it is also when commission backlogs are at their highest.
Throughout the first half of the year, unpaid commissions typically stay below 2% week by week, but from June onward they climb steadily, exceeding 3% in November and December. This pattern is particularly pronounced in Asia-Pacific markets, compared with Europe and North America.
The result: hotels and operators often scramble to clear payments in late December, when operational bandwidth finally opens. By then, the damage to supplier trust may already be done
How external support keeps payments on track
For many operators, outsourcing parts of their financial admin functions has become a way to overcome these pressures. The benefits go well beyond cost savings:
Efficiency and accuracy at scale
Outsourced support can reduce average payment days significantly, in some cases by nearly 40% when centralised funding structures are adopted.
Specialist knowledge of the travel lifecycle
Understanding bookings, rates, offers, amendments, and ancillary services allows outsourced teams to identify and fix issues quickly.
Supplier relationship management
Professional handling of queries and discrepancies reassures suppliers and strengthens long-term partnerships.
Technology enablement
Business intelligence tools provide real-time visibility into owed commissions and benchmarks. Combined with outsourced expertise, they help travel companies prevent backlogs before they build up.
As Arif explains:
“Since we understand the entire booking lifecycle, from contract loading to reconciliation, we can resolve problems far more efficiently. That context is what positions outsourced teams as trusted partners, not just back-office processors.”
Key takeaways for travel finance leaders
As businesses look ahead, finance leaders in travel can take several lessons from the patterns seen across the industry:
Clear backlogs early: Establish structured cycles (monthly or quarterly, aligned with supplier contracts) to reduce supplier frustration and improve predictability.
Choose partners with the right expertise: Industry knowledge matters. Outsourced providers who understand the travel sector can adapt quickly to seasonal peaks, promotions, and surges in bookings.
Leverage technology and outsourcing together: Business intelligence tools like analytics platforms are powerful, but only when paired with the agility of outsourced teams who can act on insights quickly.
In an industry where relationships drive future growth, outsourcing financial administration support can provide the consistency, flexibility, and expertise needed to deliver that trust.
“At the end of the day, if everyone gets paid on time, that’s the key for the travel business. It strengthens relationships, builds trust, and allows good things to happen.” – Arif Khan
