Payment experts from Wright Express, Expedia and HotelTonight discuss how single-use virtual accounts can help drive efficiencies in the payment and settlement process.
Tips – and potential traps to avoid – when evaluating the landscape of electronic payment solutions for travel booking.
Presenters:
* Jim Pratt, Wright Express, VP, corporate payment solutions
* Chris Richter, Expedia, Senior Project Manager, financial operations
* Jared Simon, HotelTonight, chief operating officer
* Marc DeVallette, Wright Express, product manager
2. Today’s Presenters
Jim Pratt Jared Simon
Vice President C.O.O.
Wright Express HotelTonight
Chris Richter Marc DeVallette
Sr Project Manager Product Manager
Expedia Wright Express
4. Agenda
Recent trends in ePayments
The case for payment efficiencies in travel booking
Single-Use Ghost Accounts: How they work in travel booking
Case study: Expedia
Case study: Hotel Tonight
Best practices and implementation considerations
5. Travel Industry and Electronic Payments …
…Ahead of the curve Percent B2B Payments
Electronic
GPCC
emerge as
default for
business
UATP travelers SWIFT SUGAs
’30s ’60s ’70s ’80s ’90s ’00s ’10s
ATC, IATA, SITA, ARC
*2011 Paystream Advisors
** WEX internal estimates
6. Travel Booking, Early Adopters
Volumes of transactions
Paying broad, disaggregated supplier base
Global marketplace
Comfort level with new technologies (particularly OTAs)
Card accounts existing role in travel booking
Broad acceptance of cards in the travel supplier market
7. Recent Trends in ePayments
Web services banking technology: “SaaS” for Payments extends
existing functionality of native systems
Payment methods with lower processing costs will continue to lag
the rates of new innovation
Mobile and implications for payments
Pre-paid
New payment networks – e.g., Dwolla, PayPal
8. Single-Use Ghost Accounts
No physical plastic exchanged
Transaction-specific, used just once
Each purchase request evaluated against
controls
Append data
Vendors (e.g. hotels) process payment
through existing card terminals
10. SUGAs in Travel Booking
Process
1. Reserve and pay
2. Real-time credit card request
3. Real-time credit card Traveler
issuance
1
4. Apply unique card to
reservation
5. Traveler stay
Travel
6. Charge single-use card 7
Agency Auto- Recon-
7. Forward reconciliation detail ciliation
4 Float 2
5 3 Control
WEX
6 SUGA
2-Day Funds System
Hotel
11. Case Study: Expedia
Expedia Fast Facts
Over 13.8 million annual payments
Pay over 42k vendors
Payment Needs
Improve control
Automate accounting reconciliation with true single use solution
Support growing international transactions
Solutions Leveraged
WEX’s Purchase Log with Web Services
Proprietary electronic invoicing-ExpediaPay
12. Case Study: Expedia Results
Implementation
First run in 2008; broader
rollout in 2010
ExpediaPay in 2003
Reduced
Reduced Reduced Manual
Overcharges Paper Reconciliation
Results
Improved auto-reconciliation
to 99%+
Redeployed 3 headcount
Reduction in overcharges Nearly 700K
Annual
Reduction in paper payments Transactions
Significantly improve vendor
relationships
13. Case Study: Expedia
Rollout and Other Considerations
Differences in dispute rules between MasterCard and Visa;
MasterCard deeper understanding of Travel and Single-use cards
With hotels, talk through ease of doing business and savings
14. Case Study: HotelTonight
HotelTonight Fast Facts
Mobile app launched in 2010
Same-day mobile booking of distressed hotel inventory
Payment Needs
Solution that is scalable, and low-cost
Eliminate inefficiencies of paper payments
Seamless, real-time presentment of payments
Solutions Leveraged
Wright Express Purchase Log with Web services
15. Case Study: HotelTonight
Implementation
Very quick implementation, including internal training
Technology team wrote to WEX API in a couple of days
Results
Nearly all payments are electronic
Met scalability objectives
Key Learning
Implications of single-use for both internal team and
accepting hotel partners
16. Additional Considerations
Appending data
Advantage over other payment methods
Importance of globalization; issuance, settle in multiple currencies
True single-use
Acceptance
Look for travel-savvy partners, given travel industry nuances
17. Working with Hotel Partners
Credit Card preference for ease of use
Communication plan for regular vendors
Consider controls, and setting reservation amounts
18. Opportunities Beyond Hotel
Travel management companies
Group events and group event vendors
Supplemental travel, e.g. shuttles, charter bus
20. Thank You!
Jim Pratt
Vice President
Wright Express
U.S. 1 207-523-7530
jim_pratt@wrightexpress.com
Webinar replay will be available at www.tnooz.com
Please send questions and comments to Kevin May
kevin@tnooz.com
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Hinweis der Redaktion
The Travel Industry Has Always Been Ahead of the Curve with Electronic Payments, with multiple options for a breadth of situations
Tell story as to why OTAs, TMCs, Tour operators were quick to see value
Credit card networks have generally introduced innovations at a faster rate.