travel solutions introduction gtmc industry affairs strategy group tom kelly / tim chambers 19 th...
TRANSCRIPT
Travel Solutions IntroductionGTMC Industry Affairs Strategy Group
Tom Kelly / Tim Chambers19th February 2014
• About WEX• Payment solutions for travel industry• Global growth of virtual cards• Global acceptance of virtual cards• Virtual card deployment options• Sample process• Virtual card benefits• Our clients
Content
WEX is a leading global provider of virtual and physical commercial payment solutions
Our focus is on improving profitability for clients by reducing costs through process efficiencies
Our clients range from global leaders to small / medium sized UK based travel specialists
OTAs, TMCs, HBAs and wholesalers use our virtual cards to pay their suppliers
About WEX
Fast Facts:
• Publicly traded (NYSE: WEX)
• Market capitalisation of US$3.5B
• Over 1,400 global employees
• Operations in Europe, USA, Australia and New Zealand
• US$31B in annual commercial payments
• Fleet, prepaid & virtual card payments specialist
Payment solutions for travel industry
Product Variation Use Cases Industry
Virtual Payme
nts
Credit / Prepaid Paying Hotel /Airline suppliers - improving efficiency TMCs / HBAs
OTAs / Travel AgentsTour Operators
Debit Paying Low Cost Carriers – avoiding surcharges
Physical
Prepaid Cards
Per Diem Card Per trip related expenses removing need for cash / credit cards
AirlinesTour Operators
T & E Card Centrally controlled expenses removing need for cash / credit cards
SMEs Corporate Travellers
Global growth of virtual cards
Global leader with strong and growing presence across Europe
Fast Facts
Wex Virtual card payments 43% 10-year growth
Providing payment solutions to 4 of 5 world’s largest OTA’s
First WEX virtual card transaction took place in 2000
Region No of Merchants
Global > 127,000
North America & Caribbean > 57,000
Europe > 31,000
- UK > 4,500
Asia Pacific > 24,500
- Australia 4,558
- Thailand 4,674
- Hong Kong 598
- Singapore 385
- Indonesia 2,466
- New Zealand 1,205
Africa & Middle East >4,000
[ 6 ]
Global acceptance of virtual cards
15 billing currencies supported
Settled with hotels in 169 countries
Virtual card deployment - Option 1Virtual Card deployed during the booking process
Description Unique one time use virtual card number issued to hotels at the time of booking, streamlining processes and enabling easier reconciliation
Implementation Options
3rd Party Integration – integrated with 3rd party booking solution Direct Integration – fully integrated to agent’s own booking platform WEX portal – enter user defined fields to generate virtual card number
Key Benefits Increased profitability through reduced costs and volume based rebates
Partners Integrated with Conferma.Strategic approach to integrate with more partners in line with market demand
USPs • Single use reservation specific card number with 100% reconciliation • Settled with hotels in 169 countries / 15 currencies• Credit and prepaid options• Ability to control the date that the card can be charged• Usage restricted by value and not individual charges of the cards
Deployment during booking process
Reservation Request
1
TMC
Reservation
2
Request Single Use
CCN
3
Check In
Payment to Hotel with
CCN
5
Reconciliation
7
Hotel processes CCN through their POS and is paid through credit
card network
6
Virtual Payments Platform
Issue Single Use CCN
4
HOTELTravellers
Invoice
Invoice
Hotel Invoices
TMCTMC
Invoices Corporate
Virtual card deployment - Option 2Virtual Card deployed to pay invoices
Description Unique one time virtual card number used to settle uploaded post stay invoices streamlining processes and enabling easier reconciliation
Implementation Options
Hotel Level Settlement – group suppliers invoices & settle with virtual card Invoice Level Settlement – single virtual card number per invoice WEX portal – generate virtual card number to use as required
Key Benefits Increased profitability - reduced costs + new revenue
Partners Integration is via upload of files from agent finance system direct to WEX platform
USPs • Turns supplier payment from cost to revenue stream• Easier reconciliation vs. BACS / Swift / Cheque• Only card provider offering virtual cards to settle post stay invoices• Ability to control the date that the card can be charged
Virtual card benefitsCurrent challenges Virtual card benefits
Reconciling invoices to reservations & rates with limited data causes mismatch with suppliers
Improve reconciliation with booking data appended to transaction data
Cost of bank fees and managing FX No fees and all FX managed through the standard MasterCard process with no user intervention
Administration of Accounts Payable including supplier bank information
No need to hold supplier bank details or be chased by suppliers for payment
Little or no protection from supplier default Protection offered through the MasterCard programme
Supplier tracking reservations to generate invoices to send to TMC and then chasing payment
Payments are made automatically either at time of booking or post stay with booking reference data
Supplier’s cost of receiving international payments Only fee is the merchant service charge that the supplier’s merchant acquirer charges
Our clients
Thank you
Contact:Ian JohnsonHead of Business PaymentsWEX [email protected]: +44 (0) 208 080 9385M: +44 (0) 7817 673229
Contact:Tim ChambersBusiness Development ManagerWEX [email protected]: +44 (0) 208 080 9355M: +44 (0) 7867 398180