Business Travel News EuropeBusiness Travel News Europe
Business Travel News Europe
  • NEWSOpen Menu
    • Accommodation
    • Air Travel
    • Ground Transport
    • Management
    • Meetings
    • On the Move
    • Payment & Expense
    • Technology
    • TMC & Distribution
    • Travel Procurement
    • Recent Issues
  • FEATURESOpen Menu
    • View All Features
  • CONVERSATIONSOpen Menu
    • Interviews
    • Q&As
    • Columnists
    • Podcasts
    • VIEW ALL CONVERSATIONS
  • RESOURCESOpen Menu
    • Business Travel Rebooted
    • Corporate Travel Index Europe
    • New Horizons – the 2022 sourcing guide
    • Online booking tools – the essential guide
    • The 2022 Hotlist
    • Safety First
    • Travel entry requirements
    • Sustaining the Future
    • Europe's Leading TMCs 2021
    • BTN Europe podcasts
    • Wheels in Motion
    • BTSEKO - CEO Interviews
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show Europe
    • Business Travel Awards Europe
    • Business Travel Accommodation Summit
    • Business Travel Tech Talk
    • Global Travel Risk Summit
    • Strategic Meetings Summit
    • VIEW ALL EVENTS
  • SUBSCRIBE
  • NEWSOpen Menu
    • Accommodation
    • Air Travel
    • Ground Transport
    • Management
    • Meetings
    • On the Move
    • Payment & Expense
    • Technology
    • TMC & Distribution
    • Travel Procurement
    • Recent Issues
  • FEATURESOpen Menu
    • View All Features
  • CONVERSATIONSOpen Menu
    • Interviews
    • Q&As
    • Columnists
    • Podcasts
    • VIEW ALL CONVERSATIONS
  • RESOURCESOpen Menu
    • Business Travel Rebooted
    • Corporate Travel Index Europe
    • New Horizons – the 2022 sourcing guide
    • Online booking tools – the essential guide
    • The 2022 Hotlist
    • Safety First
    • Travel entry requirements
    • Sustaining the Future
    • Europe's Leading TMCs 2021
    • BTN Europe podcasts
    • Wheels in Motion
    • BTSEKO - CEO Interviews
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show Europe
    • Business Travel Awards Europe
    • Business Travel Accommodation Summit
    • Business Travel Tech Talk
    • Global Travel Risk Summit
    • Strategic Meetings Summit
    • VIEW ALL EVENTS
  • SUBSCRIBE
Business Travel News Europe
  • Business Travel News Europe on Twitter
  • BTN Europe on LinkedIn
  • BTN Europe on Facebook
  • NEWS
    • Accommodation
    • Air Travel
    • Ground Transport
    • Management
    • Meetings
    • On the Move
    • Payment & Expense
    • Technology
    • TMC & Distribution
    • Travel Procurement
    • Recent Issues
    SubscribeBTN Europe NewsletterBTN Europe Magazine
  • FEATURES
    • View All Features
    credit cardsPayback on the cards?
    Fidelity takes return to travel step by stepFidelity takes return to travel step by step
    Six signs of business travel recoverySix signs of business travel recovery

  • CONVERSATIONS
    • Interviews
    • Q&As
    • Columnists
    • Podcasts
    • VIEW ALL CONVERSATIONS
    Carol Fergus FidelityTwo minutes with... Carol Fergus
    John Sturino, vice president of product and technology, EgenciaWhy 2022 will be the breakthrough year for virtual cards
    Deborah Potts Summit AdvisoryM&As: TMC takeover trend poised to continue
  • RESOURCES
    • Business Travel Rebooted
    • Corporate Travel Index Europe
    • New Horizons – the 2022 sourcing guide
    • Online booking tools – the essential guide
    • The 2022 Hotlist
    • Safety First
    • Travel entry requirements
    • Sustaining the Future
    • Europe's Leading TMCs 2021
    • BTN Europe podcasts
    • Wheels in Motion
    • BTSEKO - CEO Interviews
  • EVENTS
    • Webinars
    • Business Travel Show Europe
    • Business Travel Awards Europe
    • Business Travel Accommodation Summit
    • Business Travel Tech Talk
    • Global Travel Risk Summit
    • Strategic Meetings Summit
    • VIEW ALL EVENTS
    Business Travel Show Europe

    Business Travel Show Europe is the place where

    Business Travel Accommodation Summit Europe

    September 2022, Virtual

    Entertainment Travel Summit London

    September 29 2022, Virtual

  • SUBSCRIBE

Technology

Virtual payments lower direct hotel costs

By Molly Dyson / 8 February 2018 / Contact Reporter
Share

Data analysis from hotel solutions provider HRS reveals that virtual payments have an immediate impact on direct costs, with the average room price of booked overnight stays decreasing by an average of 12 per cent after a virtual payment solution is introduced.

The analysis took into account 30,000 hotel bookings by companies, which were equally divided into bookings made before and after the introduction of a virtual payment solution.

With virtual payments, companies receive and settle hotel invoices centrally and with no need for paper. A credit card number generated at the time of booking settles the invoice, meaning travellers don’t have to pay ahead themselves or figure out travel expense reports. HRS says this gives companies full transparency on lodging spend down to the item line level.

According to HRS, there are various direct advantages to virtual payments, including:

  • The average rate of rooms booked fell 12 per cent after virtual payments were introduced, from €112.30 to €98.60
  • The no-show rate – the proportion of bookings for which the traveller does not turn up at the hotel – also fell from 4.1 per cent to 3.5 per cent, which HRS says benefits businesses with lower additional costs and helps hotels better manage their inventory
  • And travellers booked their stay 2.5 days earlier than before – 11 days before travelling as opposed to 8.5.

HRS says the cost reduction can be explained by two factors. First, earlier bookings make room rates rise at the time of trade exhibitions, so those who book sooner have access to lower rates. Second, the data shows a shift from global chains toward regional and local hotels. Previous HRS data analysis shows options outside of global chains can often present less expensive rooms of a similar quality, as such properties do not have to factor in franchise fees and other overhead expenses.

Christian Gall, vice president of payment solutions at 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.”

Download the full analysis in the HRS white paper here.

More Technology
Related
Amadeus techAmadeus launches 'smart audit' tool with AppZen
CDS Groupe online bookingCDS Groupe acquires Rydoo travel tool
Mobile phoneBlue Cube Travel becomes latest PSNGR1 partner in the UK

SPONSORED CONTENT

Don't let NDC take a backseat in 2022
Don't let NDC take a backseat in 2022By FCM Travel Solutions

Does New Distribution Capability have the power to deliver on new corporate travel priorities and... KEEP READING

More Technology

Amadeus launches 'smart audit' tool with AppZen
CDS Groupe acquires Rydoo travel tool
Blue Cube Travel becomes latest PSNGR1 partner in the UK
FOD Mobility Group drives EU expansion

VIEW ALL
  • Most Read
  • Most Shared
  1. Israel drops on-arrival Covid tests for passengers
  2. Study identifies the corporates best tackling air travel emissions
  3. European hotel prices exceed pre-pandemic levels
  4. Air France announces new business class cabin
  5. Gray Dawes adds PSNGR1 to booking tool options
  1. European hotel prices exceed pre-pandemic levels
  2. EU to remove mask mandate advice for air travel
  3. Global airline capacity back to 83 per cent of pre-Covid seats
  4. Traveldoo put up for sale by Expedia Group
  5. Air France announces new business class cabin
Business Travel News EuropeBusiness Travel News Europe
  • About us
  • Contact us
  • Advertise
  • EDITORIAL CALENDAR
  • Business Travel Show Europe
  • Business Travel News Europe on Twitter
  • BTN Europe on LinkedIn
  • BTN Europe on Facebook
BUSINESS TRAVEL NEWS EUROPE
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About us
  • Contact us
  • Advertise
  • Editorial calendar
  • Editorial guidelines
  • Subscribe to BTN Europe
  • Subscribe to BTN U.S.
  • Subscribe to Travel Procurement
  • Privacy policy
  • Terms & conditions
Northstar Travel Group
  • Corporate travel
  • Business Travel Show
  • Business Travel Awards
  • BTN U.S.
  • The Beat
  • Travel Procurement

  • Travel Technology
  • Travel Tech Show
  • Phocuswire
  • Phocuswright
  • Intelliguide
  • Meetings & incentives
  • M&IT
  • AMI
  • ConventionSource
  • M&IT Awards

  • Retail travel
  • Travel Weekly
  • Travel Pulse

  • Northstar Travel Group
  • View all Northstar brands
BTNGroup
Business Travel News EuropeBusiness Travel NewsTravel ProcurementThe BeatBusiness Travel Show Europe
Northstar Travel Group
Copyright ©2022, Northstar Travel Media Ltd, The Epworth, 25 City Road, London EC1Y 1AA, UK
RRManagement rrtestprocurement