According to the HRS study "Savings Through Transparency" virtual payment solutions reduce the direct hotel costs of businesses
Virtual payment solutions for business travel are not only useful to travelers and simplify accounting processes, but they also have an immediate impact on direct costs. The new HRS white paper, "Savings Through Transparency", reveals that the average rate of hotel rooms for reserved overnight stays decreases on average by twelve percent following the introduction of a payment solution centralized virtualization .
With virtual payment solutions, the reception and settlement of hotel invoices by companies takes place centrally and without any exchange of paper documents. The hotel bill is paid with a credit card generated at the time of booking and the traveler does not have to pay in advance or process travel expenses. In this way, total transparency is obtained on all subsistence expenses and on each individual item of expenditure . In addition to the process benefits (indirect savings) that companies have been aware of for some time, there are also several direct benefits:
- Following the introduction of a virtual payment solution, the average rate for booking of a room fell from 112.3 euros to 98.6 euros, equivalent to a decline of twelve percent
- The percentage of no-show decreased precisely from 4.1 percent to 3.5 percent. In addition to the benefits of operational efficiency, the lower percentage of no-show benefits partner hotels that can more effectively manage inventory
- Travelers have booked an overnight stay with 2 , 5 days in advance compared to before, ie 11 days before arrival rather than 8.5 days before
The significant reduction in costs on the average fare is determined by two factors
Firstly, early booking causes tariffs to increase in conjunction with events such as fairs. Secondly, the data show a trend reversal, with more frequent bookings in hotels and local chains compared to global chains. If these hotels included only 30 percent of bookings before the introduction of the virtual payment solution, the proportion rose to 40 percent following the implementation of the solution.
As further analysis of the HRS data is shown, Non-global hotel hotels often offer cheaper rates for rooms of similar quality, due to the fact that these properties do not incur costs for franchising and other related general expenses.
Christian Gall, Vice President Payment Solutions at HRS, explains : "The study shows that transparency achieved through virtual payment solutions seems to drive travelers to less expensive hotels. In fact, travelers are changing their behavior and saving money … without even realizing it. This opens up a new scenario on the subject of the advantages of virtual payment, since until now the focus has been on indirect savings. "
The analysis was conducted on 30,000 hotel reservations, divided equally between bookings made before and after the introduction of a virtual payment solution
The white paper can be downloaded free of charge at https://corporate.hrs.com/en/solutions/risparmi-con-trasparenza.
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