Modern Debt International (MDI) is since many years the trusted collections partner for several large international travel agents and hotel booking websites. We collect the unpaid commission invoices from those hotels all around the world which time after time fail to (timely) pay for the guests provisioned at them. In time we have built an extensive database of delinquent hotels and gathered direct contact details of those people in the hotels responsible for payments, i.e. hotel managers, accountants, and finance managers.
Why our clients need us?
The average hotel booking company signs up to over 200.000 hotels to its online bookings portal. Guest are making new reservations for their stay at these hotels via the bookings portal. For each new reservation the travel agent earns a commission fee from the hotel for which they issue an invoice. Not all hotels however are properly regulated and don’t always comply with branch payment standards (WPS, Pegasus etc.). Payment of the commission Invoices are being delayed or entirely overlooked. The travel agent simply doesn’t want to waste too many resources constantly chasing all these hotels. Our no-cure-no-pay collection services perfectly suit their needs.
- We can address the specificities of the sector i.e. variety of (relatively small) clients/hotels, the many languages, and located everywhere(!) in the world.
- We can process and accept daily assignments of any amount, in any language, for collection in any country.
- We take up a tailored approach with understanding of the delicate nature of the sector. The travel agents and the hotel need each other.
- We enable you to total centralisation of receivables management, so the TA does not have to deal with different DCAs in different countries.
- We carry a certain enforcement authority. The Travel Agents are constantly faced with the same delinquent hotels. We know them, they know us!
Why Modern Debt?
MDI has years of experience with situations as described above and we have the experience to properly anticipate them. As said, we mostly witness the same hotels which consistently fail to pay to their bills to our client. Until we will knock their doors.
The hotels will receive up to four registered dunning letters from us. These are sent by email, fax and postal service. In addition they will be contacted over the phone several times per week by our native agents. In case a hotel has special requests as e.g. invoice corrections, we will not just push for the invoice amount but will attempt to mediate and reconcile differences.
In addition the majority of the hotels does already know our organisation and we perfectly know how to set the right tone and how to convince them why it is in their best interest to pay their commission dues. Spelling out the incentives for paying (i.e. reconnect hotel profile to bookings portal, new online bookings.) or the disincentives for not paying (i.e. increasing extra costs, enlist on our delinquent list etc.) is very instructive to move them into directly paying.
We realise that collecting invoices from hotels can be a delicate matter. From the one hand our clients need the hotels for future business. From the other hand the hotels need the bookings agencies to attract new online bookings. The latter have become a great share of the hotel revenue, which the hotels cannot just do without. So the hotels mistakenly believe that it is the booking agent which needs them and not the other way around. We attend them to the fact they are just one out of thousands of hotels worldwide, and that potential bookings will most likely just go to a competitor hotel in the same city showing active on the bookings portal.
- Hotel Collections Specialist