Business Travel Executive, July 2017

SPECIAL REPORT Pick Pay 48Business Travel Executive JULY 2017 trains she says In some regions some of those cards under low dollar amounts are also being issued as contactless cards for quick convenient payments when getting on trains in London for example For the foreseeable future card plastics will still play an active role for business travelers but we will continue to see an evolutionary process to make those payments easier and faster Meanwhile virtual accounts Petty notes have traditionally been focused on airline spend But virtual accounts and the associated technology will help expand usage to other key travel categories such as hotel and car rental allowing organizations to more efficiently manage travel spend centrally she says The industry is moving toward a single use environment for booking hotels to a corporate travel account to facilitate easier reconciliation back to the employee or employee ID Petty says Going forward virtual accounts will begin to intersect with other technologies such as mobile wallets enabling a client to easily send an account to anyone they need to for any business travel or purchasing transaction all with the proper controls and flexibility necessary Saving Time Money Businesses have more options than ever when it comes to corporate travel payments so they are looking for solutions that provide seamless expense management mobile tools rewards to re invest in their business or their employees and importantly service and support both for program administrators and their companys business travelers adds Brendan Walsh executive vice president US sales and account development American Express Global Commercial Payments Its important for travel buyers to evaluate and understand the specifics of their companys travel needs he notes An assessment of the business travel function can help make sure the card program and its affiliated reporting tools services and benefits are the right fit for the companys overall priorities An evaluation of the current travel program can also help identify and measure potential business travel savings opportunities from card program rebates process efficiencies and working capital benefits In this vein Walsh says American Express has added several new travel benefits to its Business Platinum Card as well as providing services around cross border payments global currency solutions and business financing Walsh also advises travel managers to secure buy in from senior leaders and key business stakeholders on the role and importance of business travel for the company and how the card program and technology will support underlying business objectives Additionally travel buyers should ensure theres a clear plan to communicate within the company about the scope and benefits of the card program and technology so that employees know what services and support are available to them he says For the best results travel managers need to understand which payment solutions work best in different situations says Peg Yankovich large market product and marketing manager for U S Bank Its about being able to offer various solutions to meet program needs she explains Youll probably use traditional plastic for a frequent traveler and a virtual account for someone with infrequent purchasing needs Businesses should pick an issuer who has multiple solutions to fit their needs and is offering things like airline or lodging deals Finding a payments solution that offers these kind of deals is especially important as travel buyers look to manage budgets while travel costs keep going up According to consultancy firm Advitos 2017 Industry Forecast for Corporate Travel global hotel rates are expected to increase worldwide as much as 5 percent in 2017 The rates will increase in all regions led by North America according to Advito Rates in the US and Canada are expected to climb by 3 percent to 5 percent with slightly smaller increases for hotels in Mexico The Southwest Pacific and the Middle East also will see a rise in hotel rates due to insufficient supply and strong demand In Europe a modest economic recovery and little new supply will push up rates by up to 2 percent the firm says With the pace of innovation in the consumer payments space U S Banks Yankovich notes that this same trend is making its way to the corporate payments arena U S Bank for example has recent When you can incorporate expense reporting into a mobile app it becomes very appealing for the business traveler