*GUEST BLOG* Flexibility is key to succeed in the business travel industry

Being the CEO of a hotel booking platform has the added benefit of staying in the loop of current and developing trends in the business travel industry. Collating the data of how people use Arbitrip to book their accommodation often has the same appeal as people watching. It gives me insight into the habits of my users and, as a data enthusiast with a deep love for the business travel industry, we have found some interesting trends that travel booking companies need to be aware of.

The quote ‘the only constant in life is change’ is never truer than in the business travel industry. The requirement for more flexibility in the sector comes from the need for individuals and companies to change their travel plans. Reasons to change plans are usually relatively simple. The names of travellers might need to be changed, the dates of the trip or even the trip’s duration. Sometimes these changes might be last minute!

A real spanner is thrown in the works when travellers want to make these changes, but are faced with amendment fees or 48-hour cancellation policies. Traditional travel management companies often do not do a lot to circumvent this. The speed of modern life means that most people demand quick and immediate changes to their travel plans, which requires enormously flexible booking options. At Arbitrip, we wanted to take this to heart when we abolished amendment fees, but the companies in the industry who refuse to be flexible will most likely find themselves left behind.

Another trend is the correlation between booking time, the traveller’s industry and their individual role. The ‘booking window’ (the time between booking and check-in) for some industries reflect their culture. For instance, high-speed, high-stakes cyber security companies will often have a very short gap between making their booking and their hotel check-in date. Conversely, financial institutions will often have booking windows of over a week. For the latter, they might prefer to benefit from the discounts that booking in advance brings and the stability of planning early. But in cyber security, the ability to travel on a moment’s notice might outweigh the increased cost of last-minute booking.

Once again, this calls for wider flexibility in the travel industry.

Certain events also have a trend of dictating travel habits. The most likely reason for a business traveller to book well in advance are conferences. For popular big-name conferences like CES in Vegas – the largest Consumer Electronics conference – we often see accommodation being booked as far as a year in advance! These bookings are unlikely to change, but when they do, it is usually to change the traveller’s name.

Finally, the week is a trend in and of itself. As people are reluctant to take time out of their weekends to travel for business, Saturday and Sunday are slow for business travel. Interestingly, the busiest days for travel are Tuesday and Wednesday, whereas the most popular days for booking are Thursdays and Fridays. When I see trends like this I always wonder: are people giving themselves something exciting to look forward to over the weekend when they book at the end of the week, whilst maximising their time abroad when they travel at the beginning?

The one theme that unites all these trends is flexibility and how necessary it is in the future of business travel. Travellers are demanding options that allow for the flexibility to make spontaneous, adaptable plans and long-term rigid ones.

This blog was posted by Benny Yonovich, CEO of Arbitrip, who are exhibiting at the Business Travel Show next month. Please register for your free visitor pass at www.businesstravelshow.com

GUEST BLOG: Prepay versus postpay

The problem with business travel – particularly hotel stays – is that there’s too much choice. Not just concerning the inclusion of breakfast, airport transfers, and proximity to company offices/conference venues – but how the darn thing gets paid for.

We can pay online, in person, on arrival, at checkout, or have someone else handle it completely. Actually, when you think about it, you can group these into two primary transaction types: Pre-Pay and Post Pay.

There are many differences between the two types: in terms of the cancellation policy, changes flexibility, cost, and operational process. Let’s take a closer look…

Post Pay

When the business traveller pays at the hotel at the end of their stay. The company or travel agent just put a credit card up as a guarantee.

Main Advantages

• You can usually cancel post pay bookings at the last minute.
• Post-pay bookings are usually more flexible: so if a traveller needs to shorten his stay while he’s already there, it’s usually not an issue.
• Payment isn’t taken until the visit, which can be easier on companies’ cash flow.
• Employees can use their travel credit card and earn points as part of a hotel loyalty program.
• Reclaim VAT. The invoice is issued from the hotel directly to the business: meaning the company can claim for a VAT refund

Main Disadvantages

• The employee uses a company credit card or submits the cost via expense report.
• Some employees might not be crazy about having a £2,000 charge on their credit card bill.
• Post-pay rates tend to be more a more expensive option

Pre-Pay

The company pays for the hotel before the traveller arrives. A voucher is issued which the traveller shows during at check-in.

Main Advantages

• Employees don’t pay at the hotel (company pays directly).
• Usually more competitive rates than Post Pay.
• No need to reimburse or issue a credit card to employees.

Main Disadvantages

• Usually more restricted cancellation policy: you can cancel up to 48/72 hours before the check-in date.
• Less flexible in terms of changes: some rates even prevent a guest name change and most won’t let you shorten your stay (though often this depends on the hotel booked and the rate paid).
• Sometimes employees have problems claiming their loyalty points. Since the room was booked through a 3rd party and not directly with the hotel, some hotels will not consider their stay as valid.

While different companies and individuals will have their own preferences, Arbitrip offers the benefits of both: the flexibility of Post Pay with the cost savings of Pre-Pay. You simply set a budget and our matching algorithm finds the right kind of hotel for your stay and re-books it when a better deal becomes available.

This blog was posted by Assaf Haski, VP Business Development, Arbitrip, who are exhibiting at the Business Travel Show next week. Please register for your free visitor pass at https://www.businesstravelshow.com