The Benefits of Offering Multiple Payment Methods at Your Hotel

The world of hotel payments is everchanging. New payment methods are constantly being introduced into the market, from cash and bank transfers to credit cards and digital wallets. To satisfy guest expectations and encourage direct bookings, lodging operators must stay on top of emerging trends and offer the latest payment methods.

The Importance of a Seamless Payment Experience

In addition to popular global payment methods, lodging businesses must be mindful of local payment preferences and consider their target demographics when deciding what to offer. By understanding and accommodating diverse payment methods, hoteliers can capture more bookings from guests worldwide. To effectively do this, however, lodging businesses must be backed by the right technology to facilitate a seamless payment experience.

Here, we look at the benefits of offering multiple payment methods at your hotel and tips to do so seamlessly.

Popular Hotel Payment Methods

Digital payments have taken over every industry – from ordering an Uber to buying something on Amazon, and the hospitality industry is no exception. Cashless payment volume is increasing rapidly, bringing new payment methods.

From traditional credit cards to digital wallets and localized payment systems, the myriad of payment options represents a shift towards personalization and a seamless payment experience for guests. Popular payment methods today include:

1. Credit cards. Major credit cards like Visa, Mastercard, American Express, and Discover, in which transactions can be card-present, card-not-present, or contactless.
2. Digital wallets. Mobile or e-wallets like Apple Pay, Google Pay, and Samsung Pay allow contactless payments through mobile devices.
3. Localized payment methods. These include iDEAL in the Netherlands, SEPA in Europe, SOFORT in Germany, Interac in Canada, OXXO in Mexico, and PromptPay in Thailand, to name just a few examples.
4. Alternative methods. “Buy now, pay later” (BNPL) services (e.g., Affirm, Afterpay, Klarna) and bank transfers offer flexibility for specific consumer needs.

Why You Need to Offer Multiple Payment Methods

Implementing new technologies, processes, and procedures should be part of every lodging operator’s routine. Guest expectations and preferences are rapidly evolving, and payments are no exception. As technological advancements shape consumer behavior, hotels must keep up to deliver a frictionless and personalized experience.

Offering multiple ways to pay is beneficial to lodging operators in that it provides:

• More bookings. If guests can easily complete a booking on your website using their preferred payment method, the higher the likelihood that they’ll convert. Lodging businesses that fail to offer popular payment methods risk travelers abandoning carts and moving to OTAs or competitors to book.
• Increased revenue. Offering digital payments allows you to collect payment details ahead of time and implement best practices like automated authorizations, deposits, and prepayments to ensure you get paid whether a guest shows up or not.
• Improved satisfaction. By collecting a wide variety of payment methods, you satisfy guests’ expectations and provide a more seamless experience now and in the future. By automatically collecting card information, you eliminate manual errors and make guest transactions a breeze upon arrival and in-stay.

5 Tips for Providing a Seamless Payment Experience

Collecting and reconciling payments can be time-consuming and tedious without the right technology and processes. Here are a few tips to help you create a seamless payment experience for your guests and staff.

1. Look for an Integrated Hotel Payment Solution

Creating a seamless payment experience requires integration with your payment solution, booking engine, PMS, and channel manager. With proper integration, all payment information will flow seamlessly between systems, eliminating errors and simplifying reporting.

2. Find a Provider with Hospitality Experience

Not all payment providers are made equally. To ensure proper functionality and specialized support, look for a payment provider with a hospitality background. A vendor with experience in hospitality and payments will ensure issues are handled properly.

3. Prioritize efficiency

Talk with your provider and explore ways your payment system can eliminate manual processes for your team, reducing errors and increasing time spent with guests. This includes reporting, reconciliation, data collection, and more.

4. Ensure Proper Risk Management

Payment information needs to be kept secure, and unfortunately, the travel industry has some of the highest rates of fraud, data breaches, and chargebacks. To maintain trust with guests, ensure you have proper security measures in place, like SCA, PSD2, and 3DS regulations.

5. Standardize Processes

To optimize your payment process and streamline hotel operations, ensure that you implement policies and standard operating procedures (SOPs) for your team to follow. This includes cancellation policies, deposits, and authorizations.

A Proactive Approach to Payments

The digital evolution across the hospitality industry necessitates adaptability, especially in payment methods. By prioritizing diverse payment options, hoteliers position themselves at the forefront of a modern guest experience, leading to improved operational efficiency and guest loyalty. As we journey into a cashless era, this proactive approach will prove invaluable in staying competitive and driving guest satisfaction and loyalty.

Free Report: The State of Independent Lodging Report 2023