Leakage

In travel and hospitality, leakage refers to money that a travel business earns but never actually receives. It’s like having a bucket with holes: No matter how much revenue flows in, some of it slips away before it reaches the bottom line.

For travel agencies, airlines, and other companies operating on slim margins, even small leaks can significantly impact profitability.

Preventing leakage involves systematic tracking, stronger internal revenue controls, and technology integration. Travel businesses often outsource commission management to third parties or use commission engines integrated into booking platforms to automate fee application.