 |
One of the biggest headaches facing companies in today’s
highly-charged world of business travel is keeping tabs
on employees’ travel expenditure.
The reservation process may be straight-forward, authorising
an appointed business travel house to book flights,
accommodation and car rental – the three key travel
components. But it is normally the post-travel scenario
that many companies can find daunting in managing and
tracking the actual expenditure.
Waiting for invoices after each trip or waiting for
expense claims from employees to tie-up with the completed
journey can be time-consuming and frustrating.
Technology is playing an increasingly important role
in the decision-making process of business travellers
and their companies, helping cut down on a highly-intensive
paper industry.
As business travel agencies have moved away from commission-
based systems, largely due to the policies of travel
suppliers, and introduced fee-based systems, it has
paved the way for new entrants to handle the management
of payment for the actual travel.
AirPlus International, one of Europe’s leading
providers of travel management solutions working with
over 16,000 companies worldwide, has developed a portfolio
of products that help corporations manage their travel
budget more effectively and simplify the payment system
at the same time.
Earlier in October last year, AirPlus International
joined forces with British Airways in order to launch
a new product for corporate travel managers, the British
Airways AirPlus Company Account, a centralised payment
and billing system, which combines the benefits of their
previously separate payment systems.
The partnership of AirPlus and British Airways has meant
that companies can benefit from state of the art management
information systems which will enable them to create
improved customised reports for travel and entertainment
expenses. Instead of receiving numerous invoices from
their travel agent, all tickets are booked centrally
and billed to the account. Each paper or electronic
invoice, issued weekly, monthly or whatever time frame
companies choose, details each transaction from the
date of purchase and name of traveller to the name of
the travel supplier and total cost.
The scenario is simple. Travel agents carry out the
service of booking and issuing travel documents while
the British Airways AirPlus Company Account takes over
the billing, payment and invoicing. It invoices clients,
who pay them and, in turn, British Airways AirPlus Company
Account pays the travel supplier.
In Germany, where AirPlus International was launched
14 years ago, 88% of the country’s top 100 companies
have an AirPlus account card making it the market leader
in the field. And 200 of Western Europe’s 500
leading corporations have taken to AirPlus.
“The key benefit for the corporate is that they
reduce costs, save time and are able to manage their
travel budget much more effectively,” says Michael
Wessel, Director Corporate Communications for AirPlus
International.
“Most of the larger business travel agents can
provide a standard suite of Management Information reports
but we go a step further and provide software that allows
companies to analyse their own flight data and create
tailor-made reports.
 |
“Agents traditionally send invoices to clients
for every flight booked and ticketed, but we take over
that process resulting in the company receiving one
consolidated invoice and not one for every transaction.
We take charge of invoicing periodically and issue detailed
statements to help the corporate easily analyse whether
travel policies are adhered to and provide a breakdown
of the expenditure.”
The invoice is also tailored to include the cost centre
responsible for an individual traveller within a large
organisation so that centralised accounts can quickly
and accurately apportion costs to the respective department.
What’s more, a unique benefit of the new British
Airways AirPlus Company Account is that it will provide
direct access to British Airways’ flown revenue
data so that companies can track whether their tickets
have been used, thereby speeding up the refund process
and cutting down on the volume of unused tickets. In
addition the company can also request that their travel
agent bills any item of travel to this account including
the agent’s service fee.
Using this system companies are able to negotiate from
a position of strength with their travel industry suppliers,
such as airlines and hotels as they have instant access
to data on the budget spent with each partner.
Chris Vukelich, General Manager Global Distribution
at British Airways believes that the new system represents
a win-win situation for both British Airways and its
corporate customers.
“We are working with AirPlus to provide a payment
solution that makes it easier for our customers to manage
their travel but which is also cost-effective for us.
It is for this reason that we are able to provide the
unique benefits such as flown data. Our intention is
that this level of transparency with our corporate customers
will result in efficiencies on both sides.”
“It is true that the international travel industry
has faced a traumatic time recently, however at AirPlus
International we have maintained our revenue levels
over the last 12 months. We are hopeful that we will
continue to grow our business in the forthcoming year
as more corporates recognise the cost efficiencies to
be gain by using our products for their business travel
management. The co-operation with British Airways delivers
a strategic long term partnership for AirPlus and is
an excellent basis for the further growth of the company,”
ended Wessel.
As companies increasingly recognise the need for closer
management of their travel expenses, there can be no
doubt that tools of this level of sophistication which
support both supplier payment and analysis will be in
high demand.
|