June 19, 2019
Hotels and their travel agency partners can experience significant friction and costs when using invoice driven payments in intermediated distribution models. In fact, eNett’s latest proprietary research found that hotels specifically incur costs amounting to around 7% of the value of a $500 invoice from process complexity, payment delays, labour costs, invoice mistakes, and dispute management. Many of these costs are due to the friction that is inherent to an invoice driven process.
In our latest “Virtues of VANs for Hotels” report, we’ve outlined the following top pain points that hotels are experiencing as a result of payment complexity when using invoices:
These are just some of the key invoicing pain points that are outlined in our report. However, hotels can reduce or eliminate them by moving to eNett Virtual Account Numbers (VANs). As well as offering simpler, faster processes and quicker payment cycles, eNett VANs can also help hotels significantly reduce the likelihood of fraud and chargebacks.
Additionally, Online Travel Agencies (OTAs) are usually best placed to accept the preferred payment methods of end consumers, especially where those payment methods are not accepted at the hotels where they wish to stay. OTAs can then make the payment to the hotels with an eNett VAN, which can be accepted anywhere that a Mastercard is accepted online. This helps improve traveller experience, increase hotel occupancy, and saves costs for hotels that may otherwise need to develop their own payment acceptance capabilities. A win-win for travel agencies and hotels.