WHO BENEFITS FROM YOUR 30-DAY TRAVEL ACCOUNT?

08 November 2018

There has been quite a stir around the topic of travel procurement, following a recent Global Business Travel Association (GBTA) Conference. With Government finally on-board in terms of international standards, your TMC should be too. If not, ask ‘why not’. Is there more behind your 30-day account?

Read more – Is your Travel Management Company pulling the wool over your eyes?

Industry publication, TNW (Travel News Weekly) uncovers this topic below.

GOVERNMENT PLANS MANDATORY LODGE CARDS

TNW Issue 2519-7 November 2018 – Savannah Freemantle

Lodge cards will become the mandatory method of payment for government travel. Phale Naake, deputy director of strategic procurement at National Treasury, said this at the recent GBTA conference.

While the proposed move has been met with approval as a method to help TMCs manage cash flow and also open government business to smaller agencies, not all TMCs want corporate to follow suit.

Rian Potgieter, Flight Centre Business Travel gm, said that FCBT (Flight Centre Business Travel) prefer to receive payment in the form of 30-day billback accounts and hope corporates aren’t influenced by government’s decision. “We believe 30-day accounts provide better value for the corporate client as they do not have to cover the cost of the travel lodge card in order to secure travel management services.”

Read the full article here

DEATH TO THE 30-DAY ACCOUNT!

TNW Issue 2519-7 November 2018

Although new innovations in the payment and reporting space seem to be coming at a fast and furious pace, many agencies are stuck using archaic systems. Sue van Winsen finds out if change is in store.

While 30-day accounts tend to be the payment method of choice by corporates in South Africa, it seems that there may be hope on the horizon that this practice may eventually come to an end with technology offering viable alternatives.

At a recent Global Business Travel Association (GBTA) South Africa conference with an audience of corporate travel buyers, the topic came under discussion. During a TMC panel discussion moderated by founder of Just Saying, Robyn Christie, it was raised that the widespread practice of 30-day accounts was a barrier to entry for new entrants who are unable to sustain the capital required for 30 days of credit.

Also participating in the panel discussion, Sallesh Parbhu, md of XL Nexus Travel said, “Globally, the trend is that certain countries have legislated that travel must be paid for upfront,” he added, also stating that government’s move to gear itself up to provide payment platforms was a step in the right direction.

The panel agreed that there were many alternatives available to the 30-day account, including lodge, prepaid and single-use virtual cards, and stated that technology was expected to play a major role in alleviating the financial burden currently being placed on the local TMCs.

Read the full article here

GOVT TO GET THE BALL ROLLING

TNW Issue 2519-7 November 2018

Phale Naake, deputy director of strategic procurement at National Treasury, and member of the GBTA board, announced during the GBTA Conference that travel lodge cards would be the mandatory method of payment for government travel, although no date had been set for when it would happen.

Phale admitted that some institutions preferred full billbacks, and issued an apology on behalf of government, to TMCs. “We are sorry, as government, for turning TMCs into financial institutions, sorry that we have been unfair to you. But now, with the new system, travel lodge cards will be made mandatory.”

Phale explained that government had been doing work with colleagues who provided travel lodge and virtual cards, and said he felt comfortable with the solution.

Read the full article here

Read more – Is your Travel Management Company pulling the wool over your eyes?