Every fortnight we’ll answer one of our most frequently asked questions, to save you time in finding the answers you want. This week, we’ll look at:

“What are Click Travel’s payment terms?”

 

We, and the industry as a whole, are bound by vendor/supplier payment terms, which are varied, but typically range from 14 – 30 days maximum. Our standard payment terms are weekly invoicing, 14-day terms and payment by Direct Debit.

The longest payment terms Click Travel are able to offer is a monthly invoice frequency with 30-days payment terms. Invoices are issued on the last day of the month and payment is due 30-days from the invoice date.

BACs

Whilst we can also accept payment by BACs, our preferred method of Direct Debit payments delivers a number of benefits to both ourselves and the Customer, including:

  • Ensuring that administration costs are kept to a minimum for both us and the customer;
  • Ensuring payment is automatically processed within the payment terms, resulting in limiting the cash flow requirement between when we pay suppliers and when the customer pays us.

Hotel bills

Not only is Click subject to the IATA payment term for airlines, but also settles hotel bills in an average of 14-days from date of stay, meaning we are funding a significant amount of cash for both air and hotels for customers on these terms. It is easier for some TMCs to offer longer terms because they push customers to big hotel chains where they have credit accounts on 30-day terms and then process those invoices, which is high in administration cost which is then passed onto customers.

Bill back

Click, on the other hand, offers bill back at the vast majority of hotels right around the world to give more choice to our customers, resulting in more cost-saving potential. We also utilise virtual cards to streamline administration costs and reduce fees, so although payment is on a faster cycle, the monetary savings far outweigh this.

 

If you’d like to find out how to use expert insider knowledge to select the perfect TMC for your organisation, download our totally free comprehensive guide below:

About the Author:

Gemma is Click's Head of Bids and has been with Click since the very beginning. There’s no part of the procurement process that she’s not familiar with and as a result, Gemma is able to offer in-depth, practical advice about how to find the best travel management supplier for your organisation.