How can virtual payment solutions deliver direct savings for travellers?

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Phone:+45 4363 2266

Travel Management Companies (TMCs) that introduce virtual payment technologies could be able to deliver substantial direct savings for business travellers.

This is according to a new report from the global hotel solutions company HRS, which has analysed data from 30,000 corporate hotel bookings to assess the impact that centralised virtual payment solutions can provide within the sector.

It was found that the average cost of rooms booked fell by 12 per cent after the introduction of a virtual payment solution, while the no-show rate - which generates additional costs for the company - also fell from 4.1 per cent to 3.5 per cent. This trend also benefits preferred hotel partners, so they can better manage their inventory.

Moreover, hotels using virtual payment solutions also tended to see travellers book their overnight stays 11 days prior to arrival, instead of 8.5 days, with this earlier booking trend generally resulting in higher booking revenues around the time of trade exhibitions.

The findings further underline the proven benefits of virtual payment solutions, which allow companies to receive and settle invoices centrally without the need for paperwork, advance payments or manual expense calculations. This gives companies full transparency over their spending, which - in addition to the savings highlighted by this new study - has made virtual payment highly desirable among business travellers.

Christian Gall, vice president of payment solutions for HRS, said: "The study shows that the transparency created by virtual payment solutions appears to steer travellers towards less expensive hotels.

"In effect, their behaviour is changing and money is being saved… without them even noticing. This adds a new dimension to the conversation around the benefits of virtual payment, as the focus has been mainly on indirect savings so far."

For information on how ProTAS can help your TMC to update its mid and back-office systems to support new business models, contact ProCon Solution now.

ProCon Solution A/S
Herstedøstervej 27-29
DK-2620 Albertslund
Phone: +45 4363 2266