Naveen Kundu
Rising Costs and Longer Payment Cycles:
The increasing costs of organizing events and longer payment cycles have resulted in a credit crunch. This affects not only the planners and organizers but also the vendors and suppliers who provide essential services.
Delayed Payments:
Delayed payments have become a norm in the industry, causing cash flow problems and impacting business operations. This delay can range from a few weeks to several months, making it challenging for companies to manage their finances effectively.
Lack of Standardization:
The absence of standardized payment processes and credit policies has exacerbated the issue. Different companies have different payment terms, making it difficult for vendors and suppliers to manage their credit exposure.
Consequences:
The credit challenge has severe consequences for the industry, including:
– Cash flow problems
– Reduced profitability
– Strained relationships between planners, vendors, and suppliers
– Impact on the overall quality of events
Solutions:
To address this challenge, industry stakeholders must work together to:
– Establish clear credit policies and payment terms
– Implement efficient payment systems, such as online payment gateways
– Foster collaboration and open communication among planners, vendors, and suppliers
– Explore alternative payment models, such as escrow servi
By tackling the credit challenge, India’s business travel and meetings and events sector can ensure sustainable growth and continued success and maintain its position as a hub for global events.”
Follow BOTT on LinkedIn, Facebook, Twitter & Instagram
Subscribe BOTT Channels on WhatsApp & Telegram to receive real time updates
