Choice Hotels, which operates a franchise of 7,100 locations worldwide, spends a lot of time managing transactions. A new system developed with TreviPay could reduce that friction by allowing the chain to integrate directly with employers of U.S. business travelers.
Direct Pay allows businesses to consolidate all of their employees’ hotel stays onto one weekly bill so business travelers can check in and out without making a payment or submitting an expense report. It also slightly reduces Choice Hotels’ transaction expenses by consolidating multiple payments into one.
The move capitalizes on the pandemic-induced acceleration of in-app payments and growing pressure on businesses to accelerate cash flow and reduce the risk of transaction fraud as business travel slowly recovers, according to Brandon Spear, CEO of TreviPay, who designed the solution with Choice. Hotels.
“We wanted B2B payments to be more like Uber by enrolling employers in Choice so that when employees check in and out, the payment is essentially already registered,” Spear said.
The setup ensures that Choice Hotels franchisees are paid within 14 days via TreviPay, dramatically speeding up accounts payable cycles at a time when cash flow is still tight for independent hotel owners waiting for travel business fully recover. The system also reduces the risk of fraud associated with employees using personal or corporate cards for travel.
Global business travel spending is steadily recovering, up 34% this year compared to last year. But business travel is not expected to reach pre-pandemic levels until 2026, when it is expected to hit $1.4 trillion, according to the Global Business Travel Association.
U.S. hotel occupancy is hovering around 65%, with just under half of business travelers planning work-related trips over the next 12 months, according to STR, a research firm. travel data based in Hendersonville, Tennessee.
“Direct Pay guarantees our [franchise] owners speed up checkout and allow them to spend less time manually invoicing, managing credit card authorization forms and tracking payments,” said Chad Fletcher, vice president of global sales, Choice Hotels International . The concept also allows franchisees to potentially generate more bookings, it Approximately 70% of Choice Hotels properties are in the United States
Direct payment from Choice Hotels demonstrates how much business-to-business payments can be further streamlined, said Nathan Hilt, chief executive of consulting firm Protiviti.
“The streamlined digital payments movement that we’ve seen in recent years on the consumer side really hasn’t happened in commercial payments yet, but I think we’re about to see a lot more progress like this. soon,” Hilton said.
Choice Hotels, of Rockville, Maryland, laid the groundwork for the product in 2018 by launching a virtual payment system allowing corporate travel managers to secure hotel room reservations for employees without the traveler having to provide a card. credit. Choice extended these capabilities to group bookings in 2019.
Working as an intermediary, TreviPay combines these features which a business can access through a dashboard to upload and manage their billing data, track bill status and resolve any disputes over charges.
Employees of participating companies may make reservations through Choice’s website, mobile app or call center for any location permitted by their employer. When checking in, employees only present a driver’s license or other ID. Employees can edit the dates of existing bookings and employers can add notes, including project budgets and department codes, to further streamline the reconciliation process.
Choice announced its alliance with TreviPay in April. The first batch of employers — whose names the companies did not disclose — are in the process of signing up, according to Spear.
TreviPay, a long-standing global business-to-business payments technology company, formerly known as MSTS before rebranding last year, sees opportunities to expand the direct payment concept to other travel agencies and other business areas, Spear said.
“Choice is the first enterprise-wide company to launch this solution, and it’s a great first use case,” Spear said.