Don’t Let “Chargebacks” and Corporate Slow-Pays Erase Your Margins
The hospitality industry is facing a silent crisis. While occupancy rates have stabilized, Net Revenue Retention is down. Why? Because the modern traveler—and the modern corporate client—has learned how to game the system.
From “friendly fraud” chargebacks on credit cards to corporate accounts stretching payment terms to 120+ days, the cost of waiting for payment is destroying your bottom line.
Why Switch to NexaCollect? Most generalist collection agencies destroy your reputation to recover a dollar. They treat your guests like criminals, leading to 1-star reviews on TripAdvisor and Google.
We do it differently.
We understand that in hospitality, a debtor is still a past guest. Our approach functions as a “Customer Resolution Department” first and a collection agency second. We recover the funds without burning the bridge. We recover more money by working with the debtor, rather than working against them. We shift our strategy from “amicable” to “diplomatic” to “more pressurizing” gradually.
If you are looking for an super-aggressive collection agency, we are not the right fit for you.
Serving Travel and Hospitality Industry NationwideNeed a Collection Agency? Contact Us |
The Modern Landscape: Why Old Methods Fail
1. The “Junk Fee” Regulatory Trap
The FTC and state regulators are cracking down heavily on “drip pricing” (resort fees, cleaning fees, service charges). If your current agency attempts to collect a fee that wasn’t clearly disclosed, you could face fines. NexaCollect’s compliance team audits your files before we demand payment, ensuring every dollar we pursue is legally enforceable under current “Junk Fee Prevention” statutes.
2. The Car Rental Damage Dilemma
For independent rental franchises, the biggest bleed isn’t unpaid days—it’s Damage & Loss of Use. Consumers almost always dispute these charges. We have a specialized workflow for subrogation and damage recovery that uses your photo/video evidence to shut down disputes with insurance carriers and credit card issuers.
3. Corporate (B2B) “Ghosting”
Events, weddings, and conferences are back, but corporate payers are slower than ever. AP departments often ignore invoices under $5,000. Our B2B strategies bypass the help desk and go straight to the Controller or CFO, getting your invoice to the top of the “To Pay” pile.
Q&A Guide: Solving Your Specific Pain Points
Q: Will sending a guest to collections ruin our online reviews?
A: It shouldn’t. We use a “Diplomatic Escalation” model. By using Step 1 (Fixed Fee), the first contacts are gentle reminders sent in your name. It looks like a billing oversight, not an accusation. This safeguards your brand integrity while effectively nudging the guest to resolve the balance.
Q: Can you handle international travelers?
A: Yes. Hospitality is global. We have the capability to reach debtors via email and digital channels compliant with international standards. While physical legal action is hardest overseas, our digital intensity often resolves the debt before litigation is needed.
Q: How do you handle “Service Dissatisfaction” disputes?
A: This is the #1 excuse for non-payment (“The room was dirty,” “The car smelled”). We act as a mediator. We ask you for the signed agreement and any incident logs. Once we present this proof to the debtor, 70% of “service disputes” evaporate because they know their bluff has been called.
Pricing & Services: The “Waterfall” System
We use a phased approach. You pay only for the intensity you need.
Step 1: Pre-Collection (Guest Retention)
-
Cost: ~$15 per account (Fixed Fee).
-
Best For: Balances < $500; Corporate accounts 60-90 days past due.
-
Strategy: Five polite but firm contacts (Letters/Emails) sent in your name. It preserves the “host/guest” relationship.
-
Benefit: You keep 100% of the money collected.
Step 2: Escalation (Third-Party Demand)
-
Cost: ~$15 per account (Fixed Fee).
-
Best For: 90-120 days past due; Ignored invoices.
-
Strategy: The tone shifts. We send formal demands in the agency name. This signals that the internal billing process has ended.
-
Benefit: Usually prompts immediate payment from business travelers protecting their corporate credit.
Step 3: Contingency Collections (The Heavy Lifting)
-
Cost: ~33% – 40% of amount collected (No Recovery = No Fee).
-
Best For: Skipped guests, damage claims, and accounts >150 days old.
-
Strategy: Our professional collectors use skip-tracing, credit reporting (where applicable), and intensive negotiation.
-
Benefit: We take the risk. If we don’t collect, you pay $0.
Step 4: Legal Action (The Final Step)
-
Cost: ~40% – 50% Contingency.
-
Best For: Large corporate event balances or high-value damage claims ($2,500+).
-
Strategy: Our network of attorneys files suit to obtain a judgment.
Recent Results: Real Recovery Scenarios
-
Boutique Hotel (Charleston, SC) – Wedding Event Default
-
The Problem: A bride and groom disputed a $14,200 “Food & Beverage” minimum charge after their reception, claiming “breach of contract” over minor service issues.
-
The Solution: We bypassed the couple and went to the guarantor (the father). We placed the account in Step 3 (Contingency).
-
The Result: Our legal team reviewed the contract, proved the service was delivered, and negotiated a settlement of $12,500 within 3 weeks. The hotel recovered revenue they had already written off.
-
-
Independent Car Rental (Florida Airport) – Damage Claims
-
The Problem: The franchise had 150+ files of “diminished value” and damage claims (average $800) that insurance companies were ignoring.
-
The Solution: A bulk placement into Step 2 (Fixed Fee) to wake up the insurers, followed by Step 3 for the drivers.
-
The Result: Collected $48,000 in damages. The fixed-fee step cleared out the easy insurance payouts, saving the client over $6,000 in contingency fees compared to their previous agency.
-
-
Corporate Travel Management (Chicago) – B2B Commissions
-
The Problem: A travel agency was owed $65,000 in commissions from various hotels and tour operators who were “slow-rolling” payments.
-
The Solution: We acted as an “Accounts Receivable Outsourcing” partner using Step 1.
-
The Result: 85% of the commissions were collected within 45 days. The agency kept 100% of the funds and only paid the small flat fee per account, maximizing their operational cash flow.
-
Need a Collection Agency? Contact us