3/16/2023 0 Comments Hotel folio![]() As a TMC, imagine having a conversation with your CFO where you try to defend the practice of using what little free cash flow you might have as a line of credit to corporate customers for bill-back.Įven if the CFO is on your side and your TMC has a stronger balance sheet than most, the risk of providing credit in this environment might simply be too high. In an era where cash flow is critical to business survival, it just isn't sensible to operate settlement schemes like bill-back that take 30 days or more to apportion payment. It works and has yielded incremental revenue for TMCs as a value-added service, so why rock the boat? But the global shock to our industry caused by the Covid-19 pandemic means people are now challenging these established norms. Bill-back is a prime example of this phenomenon. We have carried on doing things the way they've always been done because, with consistent growth, there just hasn't been an impetus for change. Our industry has suffered from inertia, and we're often guilty of failing to challenge established processes. ![]() Nevertheless, somehow, bill-back is still going strong today. It is extremely inefficient for the travel management company, with outrageously long settlement cycles and high overall cost for the industry. ![]() ![]() With cash flow now critical to business survival, hotel bill-back policies have become anachronistic, argues Conferma’s David Wood.īill-back is a convenient system for the corporate client and the traveler, but in payment innovation terms it's the equivalent of a traditional airline serving meals on a half-full 747, flying a short-haul route. ![]()
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