In the complex world of corporate travel, companies and travelers often find themselves at odds. On one hand, companies are laser-focused on reducing travel expenses, implementing stringent policies to control costs.
On the other hand, travelers prioritize comfort and convenience, especially when business demands long hours in transit. This tension creates a persistent friction in the travel management market, where both sides strive for a compromise that often feels elusive.
At AllFly, we’ve been observing this dynamic closely. Online booking tools (OBTs) like Quest are designed to enforce company travel policies, sending out-of-policy bookings to company admins for approval.
In some cases, up to 35% of reservations are flagged for approval, yet an astonishing 90-95% of these out-of-policy requests are eventually approved. This approval rate suggests a disconnect between rigid travel policies and the practical needs of travelers.
Recognizing this gap, we saw an opportunity to innovate.
The result? Split Pay—a revolutionary feature that bridges the gap between corporate cost-saving measures and traveler comfort, offering a “win-win” solution for both parties.
What is Split Pay?
At its core, Split Pay allows companies to cover a portion of travel expenses, while giving travelers the flexibility to pay for any overages or upgrades they desire. This innovative feature empowers travelers to personalize their travel experience without burdening the company’s budget.
How Split Pay Works
Split Pay comes in several forms, each designed to address common scenarios in corporate travel:
1. Paying the Overage (In the Correct Cabin Class, but Over Budget)
Imagine your company has set a maximum fare of $600 for an economy or main cabin ticket. However, you find a flight priced at $717. With Split Pay, your company is charged $600, and you, the traveler, are responsible for covering the difference at checkout. This ensures the company stays within budget, while you get the flight that suits your schedule.
2. Upgrading Your Cabin Class
Long flights, can be taxing, especially when confined to the main cabin. If your company policy restricts you to economy but you prefer the extra comfort of Premium Economy, or First Class, Split Pay has you covered.
In this scenario, if the economy fare is $416 and the First Class fare is $1,036, your company will be billed the $416, and you cover the difference in price between the approved (in budget) economy class and the first class fare.
Special circumstance: Let's say your company's budget for economy class is $600. The flight that you wish to purchase has an economy option that is over budget. In these instances, the traveler will be paying the difference in fare versus the budgeted amount.
In the above instance, the traveler will be paying the difference between the first class fare and the max budget of the highest approved class they are able to travel in.
3. Purchasing Paid Seat Upgrades
Airlines are continually finding new ways to charge for added amenities, including “preferred seats” with extra legroom or better locations. With Split Pay, you can select these preferred seats in Quest, and the company will be billed for the base fare, leaving you to pay for the seat upgrade at checkout. This gives you the freedom to choose the seating experience you want, without impacting your company’s bottom line.
4. Paying for your guest
For some flavors of event travel, the company will NOT be paying for a guest. With Quest, travelers can add their guest to their reservation and will be presented with the ability to pay for their guest separately at checkout.
Select the right option at checkout
At Checkout, simply select the option to pay for the upgrade by entering your credit card.
The Benefits of Split Pay
Split Pay is more than just a feature—it’s a game-changer in corporate travel management. By accommodating the needs of both companies and travelers, it reduces the friction that often arises from rigid travel policies. Companies maintain control over travel costs, while travelers gain the flexibility to enhance their travel experience.
In a market where the balance between cost-saving and traveler satisfaction has been difficult to achieve, Split Pay offers a practical, innovative solution.