Payment experts from Wright Express, Expedia and HotelTonight discuss how single-use virtual accounts can help drive efficiencies in the payment and settlement process. Tips – and potential traps to avoid – when evaluating the landscape of electronic payment solutions for travel booking. Presenters: * Jim Pratt, Wright Express, VP, corporate payment solutions * Chris Richter, Expedia, Senior Project Manager, financial operations * Jared Simon, HotelTonight, chief operating officer * Marc DeVallette, Wright Express, product manager

1. Practical ePayment
Applications for Travel Booking
February 23, 2012

2. Today’s Presenters
Jim Pratt Jared Simon
Vice President C.O.O.
Wright Express HotelTonight
Chris Richter Marc DeVallette
Sr Project Manager Product Manager
Expedia Wright Express

3. Poll no. 1

4. Agenda
 Recent trends in ePayments
 The case for payment efficiencies in travel booking
 Single-Use Ghost Accounts: How they work in travel booking
 Case study: Expedia
 Case study: Hotel Tonight
 Best practices and implementation considerations

5. Travel Industry and Electronic Payments …
…Ahead of the curve Percent B2B Payments
Electronic
GPCC
emerge as
default for
business
UATP travelers SWIFT SUGAs
’30s ’60s ’70s ’80s ’90s ’00s ’10s
ATC, IATA, SITA, ARC
*2011 Paystream Advisors
** WEX internal estimates

6. Travel Booking, Early Adopters
 Volumes of transactions
 Paying broad, disaggregated supplier base
 Global marketplace
 Comfort level with new technologies (particularly OTAs)
 Card accounts existing role in travel booking
 Broad acceptance of cards in the travel supplier market

7. Recent Trends in ePayments
 Web services banking technology: “SaaS” for Payments extends
existing functionality of native systems
 Payment methods with lower processing costs will continue to lag
the rates of new innovation
 Mobile and implications for payments
 Pre-paid
 New payment networks – e.g., Dwolla, PayPal

8. Single-Use Ghost Accounts
 No physical plastic exchanged
 Transaction-specific, used just once
 Each purchase request evaluated against
controls
 Append data
 Vendors (e.g. hotels) process payment
through existing card terminals

9. Poll no. 2

10. SUGAs in Travel Booking
Process
1. Reserve and pay
2. Real-time credit card request
3. Real-time credit card Traveler
issuance
1
4. Apply unique card to
reservation
5. Traveler stay
Travel
6. Charge single-use card 7
Agency Auto- Recon-
7. Forward reconciliation detail ciliation
4 Float 2
5 3 Control
WEX
6 SUGA
2-Day Funds System
Hotel

11. Case Study: Expedia
Expedia Fast Facts
 Over 13.8 million annual payments
 Pay over 42k vendors
Payment Needs
 Improve control
 Automate accounting reconciliation with true single use solution
 Support growing international transactions
Solutions Leveraged
 WEX’s Purchase Log with Web Services
 Proprietary electronic invoicing-ExpediaPay

12. Case Study: Expedia Results
Implementation
 First run in 2008; broader
rollout in 2010
 ExpediaPay in 2003
Reduced
Reduced Reduced Manual
Overcharges Paper Reconciliation
Results
 Improved auto-reconciliation
to 99%+
 Redeployed 3 headcount
 Reduction in overcharges Nearly 700K
Annual
 Reduction in paper payments Transactions
 Significantly improve vendor
relationships

13. Case Study: Expedia
Rollout and Other Considerations
 Differences in dispute rules between MasterCard and Visa;
MasterCard deeper understanding of Travel and Single-use cards
 With hotels, talk through ease of doing business and savings

14. Case Study: HotelTonight
HotelTonight Fast Facts
 Mobile app launched in 2010
 Same-day mobile booking of distressed hotel inventory
Payment Needs
 Solution that is scalable, and low-cost
 Eliminate inefficiencies of paper payments
 Seamless, real-time presentment of payments
Solutions Leveraged
 Wright Express Purchase Log with Web services

15. Case Study: HotelTonight
Implementation
 Very quick implementation, including internal training
 Technology team wrote to WEX API in a couple of days
Results
 Nearly all payments are electronic
 Met scalability objectives
Key Learning
 Implications of single-use for both internal team and
accepting hotel partners

16. Additional Considerations
 Appending data
 Advantage over other payment methods
 Importance of globalization; issuance, settle in multiple currencies
 True single-use
 Acceptance
 Look for travel-savvy partners, given travel industry nuances

17. Working with Hotel Partners
 Credit Card preference for ease of use
 Communication plan for regular vendors
 Consider controls, and setting reservation amounts

18. Opportunities Beyond Hotel
 Travel management companies
 Group events and group event vendors
 Supplemental travel, e.g. shuttles, charter bus

19. Questions?

20. Thank You!
Jim Pratt
Vice President
Wright Express
U.S. 1 207-523-7530
jim_pratt@wrightexpress.com
Webinar replay will be available at www.tnooz.com
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kevin@tnooz.com
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