Virtual cards cut process costs by eliminating paper invoices and manual data entries – this is already common knowledge. Beyond these widely-accepted savings avenues, a closer look at the data reveals a new reality: virtual cards can drive direct cost savings. Turns out widespread use of virtual cards can alter traveler behavior… without employees realizing it.
A detailed analysis of 30,000 corporate hotel bookings across multiple clients, evenly split by bookings before the introduction of a virtual payment solution and after, unveiled a remarkable finding. HRS found that central payment solutions not only minimize process costs, but drive direct savings by gently steering travelers to book more lower-priced rooms .
Average room rate & no show rate both decline
The study revealed that the average rate of booked hotel rooms goes down by a considerable 12 percent after a virtual payment solution has been introduced. No-show rates... which hoteliers often cite as a challenge when virtual payment is used... also went down. Lastly, advance booking also improved, giving greater visibility to both hoteliers and travel managers for upcoming hotel stays.