Ease working capital stress
Praveen Chugh, Vice President, TAFI highlighted the need to address the working capital needs of travel agents at TAFI-NI meet, who after all are professionals not financers.
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the ongoing difficult economic scenario with wafer thin margins and weekly payments regime that is scheduled to set in shortly, the working capital strains have started to show up. Here, the Travel
“Travel agents should function like professionals and not as financers in a rapidly changing business environment. Further, agents are bound to face pressures on the working capital front, as margins continue to get thinner, corporates continue to search for credit and the payment cycle changes stare us in our face. had made few representations to the leading credit card companies, whom we have presented a strong case of various possibilities of working together on profitable terms. We are hopeful it will resolve several agents credit pass issues and also create avenues to increase business for both the credit card companies and travel agents. We are also working out a mechanism similar to a joint bank guarantee to do business with our partners as a collective body,” he added.