Cracker Barrel, a restaurant and retail chain operating across the United States with over 650 locations, faced significant challenges in managing hotel billing and payments for its travel projects. The manual coordination of hotel charges resulted in numerous issues such as increased indirect costs, delayed reporting, and halted fee allocation to stores. This led to a substantial amount of time spent by both the travel team and accounting/finance teams.
In collaboration with World Travel Service and BCD Travel, Cracker Barrel implemented Virtual Payment Automation (VPA) and VPA+, which allowed travelers to easily book hotels using virtual cards or the combined service. This innovation streamlined the process of collecting hotel invoices, correcting errors, and providing robust data reports. By adopting VPA and VPA+, Cracker Barrel now has an automated reconciliation process for their hotel plans, offering visibility into spending and control over expenses, combating credit risk and fraud, and providing a simple method for travelers to pay for their hotel stays.
The implementation of VPA led to several notable benefits:
- Time Savings: The travel team reduced the monthly hours spent on manual reconciliation from over 40 to less than two, resulting in annual savings of $15,000 on processing costs.
- Elimination of Paperwork: The shift towards digital processes eliminated the need for the team to physically be present to complete their reconciliation tasks.
- Fighting Credit Card Fraud: Since implementing virtual cards, Cracker Barrel has not experienced any credit card fraud related to hotel payments.
- Enhanced Traveler Satisfaction: With redundant hotel bookings minimized, fewer travelers encounter difficulties at check-in. Additionally, through mobile applications, travelers can self-service if needed, leading to improved hotel configurations.
- Improved Expense Visibility and Control: The automation provided by VPA enables better expense visibility and control, reducing risks associated with credit card fraud.
Cracker Barrel's travel manager, Vicki Sanders, expressed gratitude for the partnership with BCD Travel, stating that they are knowledgeable and trustworthy partners who can make informed decisions for the team and travelers alike.
In summary, Cracker Barrel's adoption of virtual payment automation solutions has significantly improved operational efficiency, enhanced traveler satisfaction, and strengthened financial controls, demonstrating a successful transformation in managing hotel payments and reconciliations.
