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Consumer payment behaviour is changing; How can hotels capture more bookings?
Globally, cashless payments are set to increase by more than 80% to almost 1.9 trillion transactions from 2020 to 2025. Moreover, an increasing proportion of these payments are taking place online.
Businesses are accepting alternative payment methods, and consumers are expecting them when booking hotels as well. But is the hotel industry ready to meet these demands?
For instance, one-third of hotels’ direct bookings are from mobile, but the conversion rate is 50% lower than bookings made on desktop.* The most commonly cited reason for cart abandonment is that the payment process is too complicated and needs to be simplified.
To increase conversion, hotels must offer diverse payment options, provide a frictionless payment experience, and simplify the online booking process, ultimately attracting more travellers and capturing more bookings. Hoteliers can start by understanding the most popular online payment methods available today.
Currently, there are several online payment methods, but ultimately, it’s challenging for hotels to accommodate the diverse payment methods. Hotels do not necessarily need to accept the latest payment types; however, it’s important to adjust to the preferences of guests and target markets as payment methods vary by country and region with its networks and regulations.
Moreover, payment information is often scattered across multiple systems, requiring manual processing, reporting and reconciliation. This leads to inefficiencies and human error and can expose the hotel to data breaches, fraud, and chargebacks. Resolving technical issues and payment disputes can be especially challenging.
Here are a few things to know about hotel payment methods:
Consumer payment behaviour is changing, here’s how hotels can capture more bookings.
Many hotels are moving to a centralised payment management system, such as D-EDGE Pay, that integrates a payment gateway with the Central Reservation System (CRS), allowing hotel staff to manage reservations and payments in one platform.
With the right payment gateway, hotels can seamlessly accept a broad range of payment types and automate many of the tasks related to verification and reporting. As a result, guests are assured a secure and fast booking experience regardless of the payment method or online booking channel they use – website, OTA or central reservations and regardless of the device they use: mobile or desktop.
As consumer payment behaviour evolves, hotels that adapt quickly will reach more travellers, increase conversion rates, and provide guests and team members with an elevated payment experience from booking to departure.
Find out more about D-EDGE payment solutions.
*D-EDGE data
RM Magazine - Australian Revenue Management Association
