Making travel arrangements and bookings for your employees travelling for business can be both costly and time-consuming (two of the reasons why companies may use a Travel Management Company (TMC) in the first place). One of the most time demanding tasks is paying for business travel services, and if you’re managing this yourself, this may involve the reconciliation of dozens of invoices and expense receipts before you can even begin to make sense of who’s owed what.
Of course, you may be happy as you are, perhaps paying by BACS or cheque, as invoices become due and reimbursing travel expenses to out of pocket corporate travellers. You “know where you are” with these tried and tested methods. However, you should consider some smarter options to streamline the process and a corporate travel agency can help you with that.
Most corporate travel management companies will offer you some or all of the following options and you should be able to mix and match these methods for different booking types to meet your requirements.
Variable Direct Debit
This is when payment is taken directly from your bank usually a set number of days after the end of the month, in which the booking is made (twice per month for air bookings). This payment method is convenient, automatic and can improve your credit score by making you a consistent payer. This method will also provide you with between 15 and 45 days credit.
Credit Cards
Paying on your company credit card is still low-cost, the TMC will typically charge you between 1.7-3%, and you will automatically extend your credit terms beyond those offered by the TMC. However, you’ve still got to settle-up monthly to avoid interest charges. But with this the real cost is the time it takes you to pay for each booking with your card.
Debit Cards
This offers much the same as above Credit Card solution. However, you are only receiving the credit terms provided by your TMC.
Corporate Charge Cards/Lodge Cards
Both solutions are generally the same, the difference being that the Charge Card is a plastic card whereas the Lodge Card is a virtual card.
Each time you make a booking, the value of the booking is charged to your Charge Card or Lodge Card number without you having to do anything. You settle-up each month rather like a credit card but you must pay the full value.
Merchant fees are relatively low (below 2%), and they offer a range of benefits:
- All your billing is centralised in one place.
- Access to your account is online
- Your travel spend can be analysed in detail by you and your Account Manager
- You no longer need to reconcile receipts to your invoice
- You get free comprehensive travel insurance
- You get Reward Points and complimentary items such as concierge services or airport lounge access.
There are several providers in the market, AirPlus, American Express Global Business Travel and Diners International being the market leaders. They offer different credit terms, but you should expect to get between 40 and 60 days.
In the travel industry, effective management of business trips is crucial for maximizing your return on investment. Partnering with a Travel Management Company (TMC) like GTM can streamline your travel processes, offering special rates and ensuring adherence to your corporate travel policy. By collaborating with GTM, you can uncover opportunities for improvement that may reduce booking fees and additional costs associated with business travel. GTM provides expert advice tailored to your unique needs, helping you navigate the complexities of corporate travel management.
To further enhance efficiency and cost-effectiveness, it’s essential to have up-to-date payment solutions. An outdated system can impact your travel management efforts, so consulting with GTM will allow you to explore the best options for your corporate travel needs. With their support, you can be rest assured that all aspects of your business travel are handled professionally and efficiently.