The Hidden Costs of Customer Service Hold Times (And How to Eliminate Them)

When we think about the costs of running a business, especially in the travel industry, we often focus on tangible expenses: office space, employee salaries, software subscriptions, and marketing budgets. However, one of the most significant yet overlooked costs comes in the form of time spent on hold during customer service calls.

The average business professional spends approximately 45 minutes per day on hold. For travel agencies and tour operators who frequently need to contact airlines, hotels, and other service providers, this number can be significantly higher. When you multiply these hours across all employees and throughout the year, the financial impact becomes staggering.

Let's break down the true cost of hold times for a typical travel agency with 10 employees. If each employee spends just one hour per day on hold (a conservative estimate for the travel industry), that's 10 hours daily across the company. At an average hourly rate of $25 per employee, that's $250 per day or $65,000 annually just for time spent waiting on hold.

Beyond the direct salary costs, there are opportunity costs to consider. Every minute an employee spends on hold is a minute they're not serving customers, generating sales, or improving business operations. This lost productivity can have far-reaching effects on business growth and customer satisfaction.

The good news is that with advancements in AI technology, these costs can now be virtually eliminated. AI-powered call automation services like Plshold can handle the waiting process, freeing up your staff to focus on value-adding activities. The AI places calls, navigates through IVR systems, and only alerts your team when a human representative is available.

Implementing AI call automation typically results in a 90% reduction in time spent on hold. For our example travel agency, that would translate to savings of approximately $58,500 per year—not including the additional revenue generated from improved productivity.

The return on investment for AI call automation is typically realized within the first few months of implementation. As the technology continues to evolve and become more sophisticated, we can expect even greater efficiencies and cost savings in the future.

For businesses looking to stay competitive in today's fast-paced market, addressing the hidden costs of hold times isn't just a matter of convenience—it's a strategic imperative that directly impacts the bottom line.