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

GUEST BLOG: The rise of the digital airport experience

Airports in the 21^st Century have become some of the most technologically advanced buildings in the world. It wasn’t too long ago that robotics and artificial intelligence (AI) were seen as wildly futuristic, but such has been the rapid pace of advancement, that these technologies have now become commonplace. In Geneva and Auckland they are today guiding passengers through foreign airports in a language of their choosing, and even recognising, reading and reacting to their emotions.

From the very moment a passenger enters the terminal doors, to the second their feet touch foreign soil, digital tools and technologies are playing an increasingly important role. Biometric enabled self-service check-in facilities and bespoke mobile phone applications, designed to help navigate through airport processes, from check-in to boarding, and bag drop to shopping, are testament to this. The potential of big data and data science is also helping airlines and airports alike to get closer to customers than ever before, establishing patterns in passenger behaviour and better tailoring services to accommodate this.

Functionality from door to plane

This of course isn’t just innovation for the sake of innovation. One of the fundamental catalysts driving change in airports is the rise of the digital traveller. With a smartphone in every pocket, contactless payments at most stores, and access to the internet from almost any location on earth, travellers have come to expect a level of digital experience in every aspect of their lives - airports are no exception.

It is this context that inspired us at Priority Pass to carry out research designed to uncover just how technically savvy today’s businesses travellers are. We found that there is a clear demand for digital technologies that enable a seamless travel experience through the various stages of the airport. When travellers were asked to discuss the innovations that they view as important to the airports of the future, 46% said that they expect to see high levels of automation across areas such as kiosks and check ins. We would expect these numbers to continue to rise over the coming years as airport features like the robots who greet passengers at Tokyo Airport and the airport luggage check-in robot at Geneva Airport, become more commonplace.

The research also found that 50% of European travellers believe that digital boarding passes and e-tickets make the airport experience much easier, with 41% of frequent business fliers regularly using airport mobile apps when passing through an airport. The findings of our study confirm the strong appetite that we know frequent flyers have for digital. Since our brand refresh, we have seen a dramatic increase in the use of our new Priority Pass app across all platforms - iOS up over 50%, Android up by 10% and downloads of our BlackBerry app up by over 1,000%. We also polled our members in a recent Digital Pulse Survey and saw a 90% rating on digital initiatives such as the Digital Membership Card and new mobile app (86%).

There is clearly a growing impetus to deliver a seamless digital experience at airports, driving new levels of 21^st Century customer service, while taking the stress out of travel and providing a more personalised and intuitive passenger experience. The beautiful thing with technology is that there is no limit to what can be achieved, so it will be exciting to see what new developments 2017 brings.

This post was written by Stephen Simpson, Global Marketing Director, Priority Pass. Priority Pass will be exhibiting at the Business Travel Show and look forward to discussing business travel trends and how you can support your business travellers at stand B422.