Helping Companies Save on Travel Expenses

Q: How is Argo Solutions developing its business model amid COVID-19?

A: We invest in automation to make travel arrangements easier for corporations. Mexico has really low technology adoption related to travel processes, especially with corporate travel. The entire process is manual and there is room to simplify these processes. All our investment is geared toward the user interacting with an automated, online process that takes very little of their time. Rather than exchanging several e-mails with an executive assistant, we want our clients to focus on their core business. We are changing our mobile app this year to create a corporate travel process that is a touchless as possible.

During the pandemic, we are adapting several elements of our business. Apart from home office strategies, we are trying to understand the financial issues our customers are facing as a result of COVID-19. We are adjusting our financial relief strategies, which implies adjusting our prices to meet our customers’ temporary needs over the next three to four months. We continue to listen to our customers and we are learning that what they valued the most a month ago has really changed. We are asking what their priorities are now and it usually is automation to save costs. We are adapting our product strategy to adapt to our customers’ needs.

Q: How do you help companies save on costs?

A: Corporate travelers require greater diversity and information regarding available products and services. More transparency is also desirable as we are about to see airlines offering sales and discounts but the fine print may hide other costs. As a result, customers need more information to realize potential savings, which we provide. We also help companies get reimbursements from airlines, which are going to change the way they process these requests since their call centers have collapsed. Most of the process will be automated and that is where we can help companies. In Brazil, we are already seeing this and in a two to three-month period we are going to see the same thing in Mexico.

Q: How does automation take place in your business model?

A: Hotel bookings are still done manually since corporations do not normally use technology for this and most handle reservations over the phone or through travel agencies. Argo’s technology does not eliminate travel agencies, it presents the service online directly to the traveler. We enable corporate travel agencies to deliver the control of the process to the traveler without intermediaries.

Q: How do you compete with airline and other travel apps?

A: Competition with airline apps depends on the company. In Mexico, direct ticket sales are greater than in Colombia or Brazil. Many companies here purchase directly. We offer two main products: Argo Travel and Argo Expense. Potential Argo clients can go directly to any app and make a purchase but they still need to generate an expense report. Using Argo Expense, the expense report for the purchase can be done through our platform.

Q: How have you grown Argo Expense in Mexico?

A: In Mexico, we grew Argo Expense by more than 50 percent in 2019 and we achieved a similar figure in 1Q20. One element that we have introduced in Mexico is CFDI (Mexico’s electronic billing scheme for tax filings) and all the elements needed for accountability purposes required by the Mexican government when reporting taxes. That has been our competitive advantage.

Another element is visibility. When a process is on paper, managers do not have strong visibility on it. Our process prevents frauds. Automated processes through different apps issue different receipts that prevent the dissemination of misinformation, which also increases savings. Our systems are integrated into companies’ ERP systems through Oracle, SAP or any other management tool.

Q: How have you assured data security and privacy?

A: We have strong global players in our portfolio, and as a result, data protection and security are vital for us. We have implemented successful data management strategies. We also comply with all relevant laws when implementing these strategies. For example, we issue several warnings when people start sharing information that they are not supposed to.

We have four areas that are subject to data protection: Argo, travel agencies, the individual user and corporate information. Each player in this process has a different responsibility regarding data. We are fully transparent in this regard so our customers know who is responsible in each step of the process. By disclosing this, we provide an added value to our customers. Even though we are not a consultancy, we are willing to share our best practices with our final customers.

Argo Solutions is a Brazilian company focused on corporate travel management solutions for global companies. The company uses API and automated processes to assure cost and time efficiency