Post on 08-May-2015
description
Success Stories for ePaymentsin Travel Booking
WebinarJanuary 30, 2013
K
Kevin MayEditor & Moderator
Gene QuinnCEO & Producer
Panelists
Monica FalloDirectorWEX Bank
Nicole TackettManager, Payment SolutionsWEX Bank
Chris RichterSr Project ManagerExpedia
Jared SimonCOOHotelTonight
Poll no. 1
©2012 WEX Inc. Confidential and proprietary.
January 30th, 2013
Success Stories for ePayments in Travel Booking
Agenda
Recent trends in ePayments Single Use ePayment: How it works Case study: Expedia Case study: HotelTonight Best practices and implementation considerations
Travel Industry and ePayments
’30s ’00s’70s ’80s ’90s ’10s’60s
UATP
GPCC emerge as default for business travelers
ATC, IATA, SITA, ARC
SWIFT SUGAs
Percent B2B Payments Electronic
* 2012 RPMG Benchmark Survey** WEX internal estimates
…Ahead of the curve Percent B2B Payments Electronic
All Sec-tors*
Travel**
44%
80%
ePayment Adoption
…Moving mainstream
Source: “Electronic Accounts Payable Benchmark Survey," Palmer & Gupta, 2012.
2007 2009 2011 2012 20140
10
20
30
40
50
60
Percent of Organizations Using
ePayment Global
©2012 WEX Inc. Confidential and proprietary.
…International portfolio growth
2012 versus 2011 Growth
What Is a Single Use ePayment?
No physical plastic (It’s virtual!)Transaction-specific, one-to-one paymentEach authorization request is evaluated against a range of controls (transaction and user level)A secure payment method that is accepted globally by all suppliers via existing card terminalsCaptures a range of user defined data associated with each paymentAutomated reconciliation reducing incidences of payment fraud and disputes
Travel Booking, Early Adoption Drivers
Volume of transactionsPaying broad, disaggregated supplier baseGlobal marketplaceComfort level with new technologies (particularly OTAs)Card accounts existing role in travel bookingBroad acceptance of cards in the travel supplier market
©2012 WEX Inc. Confidential and proprietary.
How Does It Work for Travel Booking?
©2012 WEX Inc. Confidential and proprietary.
How Can It Benefit Your Suppliers?
No need to invoice travel companies – push notificationbased on contracted ratesAbility for faster receipt of payments for their AR teamReduce fee associated with international paymentsSimple and intuitive for staff to process paymentsNo hardware or software installation for those already accepting MasterCard
Poll no. 2
©2012 WEX Inc. Confidential and proprietary.
Case Study
Case Study: Expedia
• Expedia Fast Facts– Around 55M annual transactions – Pay over 111K vendors
• Payment Needs– Improve control– Automate accounting reconciliation with true single use
solution– Support growing international transactions
• Solutions Leveraged– WEX Purchase Log with Web Services– Proprietary electronic invoicing – Expedia Pay
Case Study: Expedia
• Implementation– First run in 2008; broader rollout in 2010– Launched Expedia Pay in late 2005
• Results– Reduced headcount by 3% while also processing a 61%
increase in booking volume – Reduction in paper payments– Significantly improve vendor relationships
Case Study: Expedia Insight
• Keys to Success– Focused industry experience & knowledge– Identifying a true single use product– Ongoing relationship with a committed partner
Poll no. 3
Case Study
©2012 WEX Inc. Confidential and proprietary.
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– WEX Purchase Log with Web services
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
Case Study: HotelTonight Insight
• Keys to Success– Understanding implications of single-use for both internal
team and accepting hotel partners– Quick integration and ramp-up
©2012 WEX Inc. Confidential and proprietary.
©2012 WEX Inc. Confidential and proprietary.
Best Practices & Considerations
Four Critical Success Factors
1. Executive sponsorship
2. Consultative partner and engagement
3. Customization Optimization
4. Portfolio approach
1. Executive Sponsorship
• Payments are a strategic initiative• Empower the organization to welcome “what is possible”
2. Consultative Partner
• Whiteboard sessions• Lead business process mapping• Proactive versus reactive orientation• Align stakeholders: – “Mr. VP Finance, meet Ms. VP Operations”
3. Customization & Optimization
• Direct access to product, sales engineers and IT experts • Flexible payments technology that interfaces with existing
processes• Speed to market; nimble development
4. Portfolio Approach
Card-less/VirtualCredit limits for exact payment amounts
Append data
1 REAL TIME
o Transaction-specifico Vendors process through card terminalso Can leverage approval workflowso One-time use, secure account number
1 BULK, OR BATCH A/P+
o Require vendor enrollmento Buyer-initiated, direct deposito Interfaces directly with ERP; approval workflows from ERPo One -time use, secure account number
Thank You!
Monica Fallomonica_fallo@wexinc.com
Q & A
Thank You!
Replay and presentation from today’s webinar will be available at www.tnooz.com
Please send your questions to kevin@tnooz.com