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Tnooz-WEX webinar - ePayments in travel
The webinar on January 30, 2013, discusses success stories related to electronic payments (epayments) in travel booking, featuring case studies from Expedia and HotelTonight. It highlights the growing adoption of epayments in the travel industry, their benefits, and best practices for implementation, including customized solutions and executive sponsorship. Key findings indicate that single-use epayments improve transaction control and vendor relationships while reducing inefficiencies and errors.
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Tnooz-WEX webinar - ePayments in travel
- 1. Success Stories forePayments in Travel Booking Webinar January 30, 2013
- 2. K Kevin May Gene Quinn Editor & Moderator CEO & Producer
- 3. Panelists Monica Fallo Nicole Tackett Chris Richter Jared Simon Director Manager, Sr Project Manager COO WEX Bank Payment Solutions Expedia HotelTonight WEX Bank
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- 5. Success Stories forePayments in Travel Booking January 30th, 2013 ©2012 WEX Inc. Confidential and proprietary.
- 6. Agenda Recent trendsin ePayments Single Use ePayment: How it works Case study: Expedia Case study: HotelTonight Best practices and implementation considerations
- 7. Travel Industry andePayments …Ahead of the curve Percent B2B Payments Electronic 80% 44% GPCC emerge as default for business UATP travelers SWIFT SUGAs All Sectors* Travel** ’30s ’60s ’70s ’80s ’90s ’00s ’10s ATC, IATA, SITA, ARC * 2012 RPMG Benchmark Survey ** WEX internal estimates
- 8. ePayment Adoption …Moving mainstream Percent of Organizations Using 60 50 40 30 20 10 0 2007 2009 2011 2012 2014 Source: “Electronic Accounts Payable Benchmark Survey," Palmer & Gupta, 2012.
- 9. ePayment Global …International portfolio growth 2012 versus 2011 Growth 50% 40% 30% 32% Interna onal US 30% 20% 10% 0% ©2012 WEX Inc. Confidential and proprietary.
- 10. What Is aSingle Use ePayment? No physical plastic (It’s virtual!) Transaction-specific, one-to-one payment Each 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 terminals Captures a range of user defined data associated with each payment Automated reconciliation reducing incidences of payment fraud and disputes
- 11. Travel Booking, EarlyAdoption Drivers Volume 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
- 12. How Does ItWork for Travel Booking? ©2012 WEX Inc. Confidential and proprietary.
- 13. How Can ItBenefit Your Suppliers? No need to invoice travel companies – push notificationbased on contracted rates Ability for faster receipt of payments for their AR team Reduce fee associated with international payments Simple and intuitive for staff to process payments No hardware or software installation for those already accepting MasterCard ©2012 WEX Inc. Confidential and proprietary.
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- 15. Case Study ©2012 WEX Inc. Confidential and proprietary.
- 16. 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
- 17. 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
- 18. Case Study: ExpediaInsight • Keys to Success – Focused industry experience & knowledge – Identifying a true single use product – Ongoing relationship with a committed partner
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- 20. Case Study ©2012 WEX Inc. Confidential and proprietary.
- 21. 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
- 22. 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
- 23. Case Study: HotelTonightInsight • 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.
- 24. Best Practices &Considerations ©2012 WEX Inc. Confidential and proprietary.
- 25. Four Critical SuccessFactors 1. Executive sponsorship 2. Consultative partner and engagement 3. Customization Optimization 4. Portfolio approach
- 26. 1. Executive Sponsorship •Payments are a strategic initiative • Empower the organization to welcome “what is possible”
- 27. 2. Consultative Partner • Whiteboard sessions • Lead business process mapping • Proactive versus reactive orientation • Align stakeholders: – “Mr. VP Finance, meet Ms. VP Operations”
- 28. 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
- 29. 4. Portfolio Approach Card-less/Virtual Credit limits for exact payment amounts Append data 1 REAL TIME 1+ BULK, OR BATCH A/P o Transaction-specific o Require vendor enrollment o Vendors process through card terminals o Buyer-initiated, direct deposit o Can leverage approval workflows o Interfaces directly with ERP; approval workflows from ERP o One-time use, secure account number o One -time use, secure account number
- 30. Thank You! Monica Fallo monica_fallo@wexinc.com
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- 32. Thank You! Replay andpresentation from today’s webinar will be available at www.tnooz.com Please send your questions to kevin@tnooz.com
Editor's Notes
- #6 WEX stats: - Formerly Wright ExpressExclusively commercial paymentsGlobal presence with offices in North America, United Kingdom, Australia, New Zealand, Brazil$25+ billion annual payments; 350,000 business customersBoth proprietary and open loop network solutionsPioneered single-use payment technology to address the complexity of reconciling payments in the online travel industryFour of the top five U.S. online travel agencies are WEX customers
- #8 The Travel Industry has always been ahead of the curve with Electronic Payments, with multiple options for a breadth of situations… bringing Buyers and Sellers together in the travel space from a payments perspective.Continue to evolve and innovate.
- #9 Although the Travel segment has led the way…From a comparison perspective we are seeing a consistent strong adoption across all industries. Trending at a 20%+ annual growth rate over the past few years. Looking back just a few years to 2009 as compared to projected 2014 adoption we see a projected 350% (enormous) increase in the number of organizations using epayments.Adoption data specifics:2007 14.5 2009 16.1 2011 34.9 2012 43.6 2014 56
- #12 Tell story as to why OTAs, TMCs, Tour operators were quick to see value
- #27 Add’l points:Ownership of payments can be tenuous. Many disciplines can be involved and take a leadership role:Treasury, Finance, or Procurement?
- #28 Whiteboard session-- thorough needs assessments-- demonstrate mapping to their processes; not re-engineering to fit our frameworkAlign stakeholders-- In some situations, we find ourselves building bridges across organization where collaboration is not traditionally deeply entrenched.-- Success requires cross-discipline collaboration and commitment.
- #30 Ensure multiple options for your vendors to maximize enrollmentPush-pay (direct deposit into supplier’s account)Pull-pay (supplier runs a credit card transaction upon notice)Avoid situation of A/P clerks becoming reconciliation clerksFor B.I.P., card acceptance rates can make a difference