Travel management company CWT has announced the launch of a
new subscription fee model that will see customers receive a single, recurring
monthly invoice for all the products and services they procure from the firm.
CWT said the fee is based on several criteria, including a
company’s forecasted transaction volume and any additional products and
services they may require. The company said the fee can be revised if a
customer needs to change the scope of what’s included in their subscription.
This is a big change from the traditional transaction-based
model, where customers are billed per transaction. Brady Jensen, CWT’s VP of
finance and head of global pricing, said a subscription fee simplifies the
invoicing process for clients and makes it easier for them to forecast their
business travel spend.
The company has piloted the subscription model with a group
of clients over the past year. According to CWT, feedback from those who took
part in the pilot said the monthly fee reduced the time their finance teams
spent reconciling TMC invoices. They also said the model eliminated hidden
fees.
Jensen added: “…this new fee structure will not only
streamline our customers’ pricing and billing process but afford them built-in
volume discounts that are not inherent to the transaction fee model.”