OVERVIEW
that was the case but, given the use of expense management tools, it is very hard to do it. You’d have to be very diligent in your fraud to get it through the process.” The data collection on cards
would very quickly point the finger at any individual misusing a card. Visibility offers buyers control as they have never had before. Another buyer says: “We have just implemented an update in our travel policy to cancel the card if someone uses it for personal purchases.” Some of the fear of misuse has no doubt been exacerbated by the media coverage of MPs committing fraud on their expenses – but most people do have a moral compass. Airplus’s Klein points out: “With misuse, some travellers simply don’t know the policy or often there is a simple explanation – perhaps they are stuck somewhere and their other card didn’t work.” Another buyer concern is global
acceptance. With a traveller’s safety and comfort a major concern, being able to use a card in the remotest parts of the world is key. Klein adds: “Acceptance is a huge issue – certain card schemes are more accepted than others throughout world. What if you are Timbuktu, for example?”
DATA AND VISIBILITY Having access to data on transactions and traveller movements is another big plus for buyers, and becomes one of the main focuses when choosing a corporate card programme. One travel buyer agrees the process of choosing a card is complex and often rests on data and visibility over benefits for the traveller. “I want to know how a corporate card can give me data to feed into my systems and where people are not following policy. I want to see every carrier booked that is not in the programme,” says the buyer. Mastercard’s Stynen thinks that
travel buyers wanting access to their data is at the very core of corporate card trends. After all, it is what buyers do with the data from the card that is important, rather than how it is used as a payment tool. “Wherever a traveller
In association with
is in the world, it’s about accessing that data immediately and importing and tracking transactions – that is a very powerful tool,” says Stynen. Card data can be integrated with different company systems, and formatted to fit with expense management tools and reporting systems, so that buyers can see where they are spending, which department is spending and what individuals are doing. This helps them to negotiate with suppliers and consolidate spend. But Andrew Fish, director of business development at travel software company TRX, believes buyers also need to watch behaviour and focus on the culture within their business. “Travel programme management and the search for savings is often about looking to change behaviour – the problem is knowing what behaviour needs changing in the first place,” he says. It is the ability to converge different
data sources – from corporate card programme, expense management and travel management company data – that helps travel buyers identify leakage and any changes that need to be made. It comes back to looking at the issue from a different angle. Often, even with all of this information, the problem can lie within an organisation’s ability to communicate: travellers may not know why they are out of policy or how they could save money unless a buyer makes them aware. n
GAMIFICATION AND CORPORATE CARDS
A KEY CONCERN FOR BUYERS who adopt a corporate card programme is compliance: how can you ensure your travellers use their corporate cards within policy? One answer is through gamification – rewarding travellers for their good behaviour. In the corporate card world, this translates as rewards and rebates. With rewards, the more travellers put through on their corporate card, the more they are rewarded, with access to airport lounges and discounts on goods and services. The buyer is also rewarded with the collection of transaction data and traveller tracking.
Another option is the rebate – this provides cash back
to organisations based on how much they spend and how swiftly they pay, on an annual basis. But how much emphasis should buyers put on rebates when choosing their corporate card programme? Helen Mason at Bank of America Merrill Lynch says: “If the spend is significant enough, we do look at that for our clients, but we ask them to examine at the processing behind that arrangement.” Yael Klein at Airplus adds: “Rebates only get interesting when it is a good-sized programme – until there is spend of around £10 million. Optimising and cost-saving is of more worth than having £5,000-£10,000 back at the end of the year. Smaller companies are looking at their overseas spend and what charges there are – that is more important.” If you are considering the rebate route, then look at whether you have individual cardholders making payments, or the company. Rebates can be hugely affected by how quickly payments are made, so a centrally-controlled payment system often works in your favour and offers more control.
2013 Buying Business Travel • 9
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