It turns out that some employees spend more when they can expense it on a corporate card.
But some companies are finding that five-star hotels and fancy dinners can add up when it’s for hundreds or thousands of workers.
Several startups have emerged to save corporations money, by rewarding employees with cash and gift cards if they spend less when they travel. There’s Rocketrip and TravelBank — now the most well-capitalized is TripActions, which is announcing an additional $51 million in funding.
The round is being led by Lightspeed Venture Partners and Zeev Ventures and adds to the over $27 million previously raised.
“We think the solution that is out there is not good enough,” said Ariel Cohen, CEO of TripActions. He says that its platform has a more comprehensive approach than the other startups because it has hotels, flights, cars and trains.
Co-founder and CTO Ilan Twig says that its hotel offerings are so comprehensive that “if they don’t see it in our system, it doesn’t exist.”
TripActions basically offers a Kayak-like platform for travel booking, where employees have access to a full array of options, unlike the often limited selections seen on other platforms like Concur.
The startup identifies which flights and hotels look like good deals and employees who save on travel costs are rewarded with Amazon gift cards and credits for personal vacations.
TripActions also hopes that its 24/7 customer support will help set it apart. The team uses artificial intelligence and also has agents all over the world to help with travel woes.
The funding will primarily be used to expand its team, particularly its customer service operations.