LONDON, 25 June 2014: The continuing downward pressure on profit margins and the cost of manual processes are driving the uptake of eNett VANs which reduce risk, improve reconciliation and produce financial rewards; Italian travel agencies learnt today at a Travelport and eNett seminar held at Hotel Eden in Rome.
Data from PhoCusWright’s survey* into the global travel payments marketplace found that 40% were already using or planning to use virtual card payments. It also found that 40% of respondents listed fraud as the top payment concern, followed by credit card fees at 35%. Other key concerns included invoice reconciliation (25%), chargebacks (24%) and currency conversion (22%).
eNett International - a joint venture between Travelport and PSP International - is introducing its innovative Virtual Account Numbers (VANs) to agencies of all sizes in Italy. Following phenomenal growth in Europe since launching in 2011, eNett VANs allow greater access to cutting-edge payment solutions traditionally only available to larger players.
A VAN is an automatically generated 16-digit MasterCard number for each booking transaction, making reconciliation simple for everybody in the value chain.
eNett Managing Director and CEO, Anthony Hynes, a keynote speaker at the seminar, said that EUR1.1 billion was wasted on labour-intensive and time-consuming manual payments handling and reconciliation each year*.
“For an average agency with about €20 to €75 million turnover, up to 110 hours each week or €65,000 a year will be spent on resources to manually manage reconciliation, process chargebacks and other related functions*,” he said.
“VANs help you eradicate this huge cost, simplifying your work flow through integration and automated reconciliation in real-time.”
eNett client, BCD Travel, uses VANs to improve its work flows and cut costs through increased efficiencies, including manual charge-back processing.
BCD Travel Chief Financial Officer, Roberto Bettinelli, said “This is the best solution that we have seen. Reconciliation is fast, simple and transparent. Automation allows us to immediately recover the money from hotels that often charge twice or for incorrect amounts.”
Mr Hynes said VANs are driven by the emerging needs of agencies, including the growing demand by agencies for best dynamic rates or net-commission rates that require immediate payment.
“Traditional payment methods such as cash or cheque may limit your access to more dynamic content or net-commission rates that allow travel retailers to earn immediate commissions. Or, if you pay by corporate cards or store cards, you might incur significant reconciliation issues which can leave you vulnerable to fraudulent use,” he said. “Add opaque foreign exchange and international transaction fees, and it’s not hard to see why VANs are continuing to gain traction in Europe.”
VAN payments are immediate and available in 27 currencies, 15 of which can be settled locally, including EUR. eNett’s partners provide transparent and competitive foreign exchange rates in real-time, providing price certainty at the time of booking.
*PhoCusWright’s Payments Unsettled Report 2013
About eNett Virtual Account Number (VAN)
A VAN is an automatically generated 16-digit MasterCard number. A unique number is generated at every booking to ensure supplier payments are processed quickly and safely, enabling automated reconciliation at point of sale. It is safer, more secure and seamlessly integrated within all Travelport GDS and points of sale.
About eNett International
eNett International is a global provider of dedicated payment solutions for the travel industry. A joint venture between Travelport and PSP International, eNett uniquely connects travel industry specialisation with payments expertise through a payments platform that reduces risk, improves reconciliation and produces financial, data and efficiency rewards. Our partnerships with Travelport – a travel commerce marketplace providing distribution, technology, payment and other solutions for the $7 trillion global travel and tourism industry – and MasterCard Worldwide, supply us with unparalleled reach across the travel industry.