Using MICE

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Using MICE Corporate Travel Card Program to
Manage Cost

• Rennis LiAssociate Vice PresidentGlobal
  Commercial PaymentsMasterCard Worldwide

2
MICE Card Program

• Managing Meetings, Incentives, Conventions
  Exhibitions (MICE) today requires companies to
  constantly look for opportunities to reduce costs
  and streamline processes
• An integrated card issued, with a budget limit,
  for any specific MICE event
• Its Convenient, Flexible, Secure and
  Comprehensive

3
MICE Planners Challenges

• No matter if its a small seminar or big global
  conference, MICE organizers are dealing with
• Manual
• Time consuming
• Error ridden processes
• They deal with over 100 payments per event
• upfront payments
• pre-event payments
• Post-event payments to suppliers and third
  parties

4
How the Solution Works

• A pre-paid card or credit card (charge card)
  based system to settle any expenses related to
  organizing a conference
• Used typically for non-travel, non-entertainment
  of employees but specific events
• Conference Centre
• Hotel Accommodation
• Air transport
• Ground Transport
• Foods/ Meals
• Equipment Hire
• Entertainment
• Temp Support Staff etc

5
MICE Card Program

• For MICE Planners
• Simplicity of summary billing on Card statement
  vs multiple paper invoices
• Simplify payment processes with consolidated
  statement
• Reduce costs and time related with administration
  and paperwork
• Simplify credit application processes with MICE
  suppliers
• Focus on MICE planning execution

6
MICE Card Program

• Benefits for the Customers
• Separate MICE expenses for accurate analysis and
  tracking
• Increase control accountability through
  consolidation of reports
• Enhance negotiations with suppliers using
  complete accurate data
• Implement company MICE policies to improve
  expense monitoring
• Automate and streamline supplier billings and
  payments

7
MICE Card Program

• Benefits to MICE Suppliers
• Enhanced cash management (48 hours)
• Reduce banking and cash handling costs
• Eliminates Accounts Receivable Cash Sale
• Reduces follow-up time on outstanding invoices
• Improve supplier/buyer relationship

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Corporate Travel Card Program

• It is a kind of Purchasing Card while designed
  specifically for air-ticket purchases (or with
  hotels) for a department or business unit of
  company hierarchy.
• It is generally managed by Travel Manager,
  department secretaries or company administrators
• It has consolidated billing payment and
  operated in company liability

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Corporate Travel Card Program

• Benefits to the Customer
• Reduce current processing costs
• No data entry of invoices
• One monthly payment to the bank replaces
  thousands
• Simplified Bank reconciliation
• Reduction in petty cash floats
• Improved cash flow estimates
• Monthly Management Reports that track Company and
  individual spending
• Monthly limit control
• Up to 56 days interest-free payment period

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Hundreds of Payments to 1 .
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Corporate Travel Card Program

• Benefits for the Travel Management Company
• Guaranteed payments
• Faster payment terms average 3 days
• Reduce administrative/collection costs
• Outsourced Account Receivables
• Concentrate on what we do best as a TMC

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Case Study HOLIDAY TOURS TRAVEL

• Incorporated in 1972
• Head Office Kuala Lumpur
• Branch Offices Penang, Kuantan, Johor Bharu and
  KL Sentral
• Team of 250
• Turnover in 2006 was US90 million
• Corporate Travel 53
• Leisure Travel 37
• MICE 10

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Case Study HOLIDAY TOURS TRAVEL

• YR2003
• Turnover US37.8 million
• Credit card 15 (US5.67m)
• Credit terms 45 60 days
• Nett earning 0.9

• YR2006
• Turnover US 90.0 million
• Credit card 42 (US37.8m)
• Credit terms 15 days
• Nett earning 1.36

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Thank You