VANs Pave the way for Travel Start-Ups With Modest Budgets
October 2, 2014
Singapore, 2 Oct 2014: Mobile travel agency start-up, HotelQuickly, likens access to eNett Virtual Account Numbers (VANs) to that of a gift to start-ups building their businesses.
HotelQuickly Co-Founder and CFO, Mario Peng, said that when HotelQuickly launched in March 2013, each hotel it signed up asked for a deposit of about US$5000.
Imagine having to deposit US$750,000 for just 150 hotels. It was not something we could afford at that time, he said.
Now, more than one year down the track, we know we could not have grown as quickly as we have, or built the trust hotels have in us now, without VANs.
eNett International a joint venture between Travelport and PSP International offers an innovative payment solution called Virtual Account Numbers (VANs) to make supplier payments safer and faster. Operating on a prepaid model where unique MasterCard numbers are generated for each booking, VANs free up agencies from having to pay significant collateral to start accounts with suppliers such as hotels.
Mr Peng explained that their funds were better used to pre-fund VANs rather than sit idle as deposits in hundreds of hotel accounts.
And besides enjoying the benefit of greater cash flow, Mr Peng said that automated payment and reconciliation helped save costs from large staffing allocations otherwise needed to take care of hotel payments each month.
With VANs automatically matching each booking with payment, the administrative burden is reduced. We even save on foreign exchange by paying the hotel in their local currency because VANs can be settled in 15 local currencies.
eNett Managing Director and CEO, Anthony Hynes said: When we launched VANs three years ago, our goal was to redefine travel payments for the entire travel industry, allowing companies of all sizes to access innovative and integrated payments technology to improve overall business performance.
HotelQuickly’s success is a testament to our commitment, helping travel companies perform better by managing their costs and streamlining their business practices.î
VANs offer less risk and more reward for agencies and suppliers of all sizes.
About eNett International
eNett International is a global provider of payment solutions tailored to the travel industry. Majority owned by Travelport a travel commerce platform providing distribution, technology, payment and other solutions and PSP International, eNett uniquely connects the travel industry with payments expertise to offer an innovative payments platform that reduces risk, improves reconciliation and delivers financial, data and efficiency rewards.
eNett's core offering is a Virtual Account Number (VAN) payment solution that automatically generates unique MasterCard numbers used to facilitate global payments between travel agencies and travel providers. Its exclusive, long-term partnership with MasterCard provides access to the world’s fastest payments processing network and more than 35.9 million locations worldwide.