CWT (No. 5 on Travel Weekly's 2021 Power List) is giving corporate clients the option to pay for its services via a subscription fee instead of a transaction fee.
The subscription model simplifies billing and budgeting, CWT said, and makes the process more transparent.
Each month, companies who opt into the subscription model will receive a single recurring invoice for the products and services they get from the travel management company. The fee is based on forecasted transaction volume and products and services they require; if the products and services required need to be changed, the fee will be adjusted accordingly.
CWT has spent the past year piloting the new model. Feedback "has been overwhelmingly positive," CWT said, with testers reporting that it saves time in reconciling invoices and providing clarity on spending.
"As part of our ongoing commitment to simplify business travel for all, this new fee structure will not only streamline our customers' pricing and billing processes, but afford them built-in volume discounts that are not inherent to the transaction fee model," said Brady Jensen, CWT's vice president of finance and head of global pricing.
"Different than transaction fee models," Jensen added, "this new billing model issues just one simple, comprehensive monthly invoice as opposed to multitudes, making monitoring and managing business travel spend and forecasting that much easier for corporate travel managers."