Accounting & Bookkeeping KBLI 79111 Risk Medium

Travel & Tourism Accounting

Travel and tourism businesses have accounting complexity in determining whether the company acts as an agent (only records commission) or principal (records gross revenue). Customer down payments and supplier payments before departure require careful cash flow management. Arunika Consulting helps travel agents and tour operators organize accounting according to SAK EP or SAK EMKM.

Common Challenges

Agent vs Principal

Determining whether revenue is recorded gross (principal) or net (commission only) based on control over services.

Deposits and Deferred Revenue

Customer down payments before departure must be recorded as liabilities until services are provided.

Seasonal and Cash Flow

Revenue concentrated in high season, but fixed costs run throughout the year.

Multi-Currency

Transactions with overseas suppliers require exchange difference recording.

Our Solutions

1

Agent/Principal Classification

Evaluation per service type whether travel acts as agent (commission) or principal (gross) according to PSAK 23.

  • Proper revenue
  • Accurate margin
  • Standard compliance
2

Down Payment Management

Recording of customer deposits as liabilities with amortization when services are provided (departure).

  • Accurate revenue per period
  • Cash flow tracking
  • Clear financial position
3

Seasonal Budgeting

Budget and cash flow projection preparation based on season to anticipate low season.

  • Maintained liquidity
  • Fixed costs covered
  • Promotion planning

Related Tax Regulations

SAK EP

Private Entity Financial Accounting Standards

Reporting framework for medium-scale travel agents and tour operators.

SAK EMKM

SME Accounting Standards

Alternative for small travel agents with simple reporting.

PSAK 23

Revenue

Agent revenue (commission) vs principal (gross) recognition for tour packages.

Need Help with Travel & Tourism Accounting?

Consult your bookkeeping and tax needs with our professional team. Free initial consultation.

Free Consultation via WhatsApp

Frequently Asked Questions

Does travel agent record revenue gross or commission only?

Depends on role. If travel controls services (determines price, bears risk), recorded gross. If only facilitates, recorded commission only (net).

How to record customer deposits not yet departed?

Deposits are recorded as liabilities (deferred revenue). When departure occurs, moved to revenue according to services provided.

How to record payments to hotels and airlines?

If as agent, payments to suppliers don't enter expenses (recorded as passthrough). If principal, recorded as tour package COGS.

How do accounting services improve operating cost efficiency?

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Can financial reports be accessed in real time?

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

How do you ensure reports are ready for external audits or banks?

Reports are prepared by qualified accounting professionals with clear documentation and traceable transaction data.