Could Implementing Virtual Cards Save on Hotel Costs?
Wednesday, 14 February 2018 17:04
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Travel managers may be familiar with the benefits of virtual cards: They provide a payment solution for those who don't have corporate cards, and they reduce fraud, time filing expenses and time reconciling transactions, and that all adds up to cost savings. Hotel solutions company HRS has claimed clients that implemented virtual cards also reduced hotel costs by an average of 12 percent. Booking and traveler behavior also changed when companies implemented virtual cards, too.

In 2016 and 2017, HRS evaluated 30,000 bookings for 12 clients that implemented virtual card programs with AirPlus or American Express, both of which are HRS partners. Within the study's two-year time frame, HRS analyzed a 12-month period for each client—the start time for each based on when the client rolled out virtual cards—to capture before-and-after data for each. The bookings HRS analyzed were primarily for hotels in Europe, North America and high-volume Asia/Pacific countries like China, Japan and Singapore, an HRS spokesperson said. Clients in the study had worked with HRS for at least a year before deploying virtual cards.

Read more in Business Travel News.