Embracing travel payments technology: needless or necessity?

How we pay for corporate travel is changing. One key trend clearly emerging is how financial decision makers looking to book hotels and travel are switching to advanced virtual payment technologies. A recent survey of 400 these decision makers globally found pressures on these roles to drive business growth and improve operational efficiencies are leading them to turn to new solutions.

With the rapid adoption of virtual cards, the focus turns to Travel Management Companies (TMCs) and hotels to align their operations with the technological preferences of their corporate clients, in order to remain competitive and provide the best traveller experience possible.

Why payments are going virtual?

Virtual cards are very similar to their credit card counter-parts, but importantly they allow payments to be processed without handing over a physical card. A unique card number is generated for a
specific purpose, such as a hotel stay. The dynamic controls ensure that the card has a spend limit set to only to cover the cost of the purchase. This process makes life easier for the user and their
employer, allowing a much greater oversight and control over costs in real-time.

Virtual cards also significantly lower the risk of fraud, not only as cards can’t be misplaced or stolen, but also because the purchase-to-payment reconciliation reduces the risk of fraudulent activity.
Investing in payments technology as a strategic driver is nothing new. More than half (57%) of those surveyed are actively investing in payment technologies to fuel business growth. While almost a third said operational inefficiencies are a major barrier to their growth. And more than half recognise that instant payments would enhance their operational workflows.

With this in mind, it’s not surprising that the prevalence of virtual cards is high and gaining increasing traction. In fact, 88% of those surveyed are either actively using or considering using virtual cards over the next 12 months. Juniper Research’s prediction states the global value of virtual cards will increase over threefold in just five years, from $1.9 trillion in 2021 to a staggering $6.8 trillion by 2026. So how does this impact the travel space?

Virtual cards and travel

The best way for hotels to unlock the power of virtual payments is to integrate functionality into their booking platforms. Through the virtual process, there is no need for complex encryption,
downloads, links, or login processes that only serve to frustrate customers. All booking data at the time of reservation is directly matched to transaction and invoice data, meaning hotel staff just have to find the customer’s booking which will already be assigned its unique payment details. The light-touch and frictionless experience at check-in allows guests to get on with what they need to, and likewise hotel staff to focus on delivering premium customer service.

Not only do they make life easier, virtual payments provide real-time, data-rich reporting and automated invoice reconciliation that helps hotels improve cash flow management. Insights into
booking volumes and high-value customers offer opportunities to strengthen relationships and maximize bookings.

The convenience for travellers is clear, with guests being able to pay from their phones, just as they would for any personal leisure travel, avoiding the need to find an ATM in a country or area they are unfamiliar with, or worry about card acceptance when travelling abroad.

By adopting these advanced payment solutions, TMCs and hotels can not only meet the evolving demands of their corporate clients, but also streamline their own operations, leading to improved
profitability and a competitive edge in the market. Now is the time for hotels and TMCs to get ahead and adapt with the ever-evolving future of business travel.

Kelly Cleeton

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Kelly Cleeton is the Head of Sales for Corporate Hotel Payment Solutions at
Conferma, where she has been a pivotal member of the team for 11 years. With overtwo decades of experience in the industry, Kelly is responsible for managing the strategic direction, commercial conversations, and relationships with key stakeholders to deliver world leading global hotel payment solutions tailored to the needs of corporate clients. Kelly’s expertise, experience, and enthusiasm for travel technology and elaborate understanding of the client experience have been a constant catalyst for innovation in Conferma’ s product development.

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