Chronicles of the New Normal: Leveraging New Payment Technologies in Travel

  • Craig Brightly, Head of Sales at Trust Payments

  • 14.12.2022 05:15 pm
  • #payments

The COVID-19 pandemic not only altered the way we work, travel, and communicate with family and friends, but it also altered the way we pay for goods and services. With sectors of the economy closed down for extended periods of time and demands put in place for customers to stay at home and maintain distance, there were significant changes in what we bought and how we paid for it.

As a result, one of the most evident outcomes of the pandemic was an increase in demand for contactless transactions. The good news about contactless payments is that they are as safe and secure as regular card-based purchases because the cards and terminals are fitted with protective technologies.

According to a recent Pymnts analysis, 89% of U.K. Citizens and 76% of Americans prefer contactless payments over other alternative options, demonstrating the anticipated longevity of innovative payments in the coming years. Furthermore, it only stands to reason that the travel industry needs to evolve in line with the technology needs of its customers in order to be one step ahead of competitors.

Contactless payments staying in power

Customer expectations have changed drastically as they emerge from pandemic life. Many see digital services as the 'new normal,' so expect this to be replicated when going abroad. Yet, as hotels try to meet these needs, without the right assets and processes in place it’s proving a challenge.

If you've been in the travel industry for a while, you're probably getting tired of hearing people complain about how long it takes to get paid by credit card processors. Transaction values in travel are getting higher and systems are getting older. The manual processing of customers is one of the greatest pain points and hotels find it hard to collect and keep customer information all into one secure database.

In the modern travel industry, businesses can no longer afford to use inefficient and dated payment methods. Sophisticated technology that automates routine payment processes is needed. This will help hotel operators reduce operational costs and allow them to be more efficient with collecting guest payments. Omnichannel services will help staff to monitor and swiftly issue payments and be comfortably integrated into self-service machines, alleviating pressures for staff from the front desk.

Going digital in travel

As it stands, the travel industry should rethink travel, putting payments first as many other industries have done. The popularity of digital wallets, contactless payments, and Buy Now Pay Later (BNPL) methods has accelerated. Customers look for a simple, stress-free experience and don't want to book a room at a hotel which doesn’t accept their preferred payment method or lack a guest checkout option. Without this wide range of choices, hotels will fall victim to their competitors as customers will go elsewhere.

Swapping to an omnichannel end-to-end payment is the competitive advantage hoteliers have been looking for. A unified end-to-end payment process can help manage online booking fees and accommodation deposits. These fees can be collected swiftly, while customer data is easily tracked on a scale and recorded all in one place.

Multi-currency payment processing

As a hotel owner, the importance of multi-language payment should not be underestimated. It allows travel businesses to cater to both a local and broader audience, reaching new possible customers across the globe.

Multi-currency payments are also important for any hotel business. This choice can attract customers who are more likely to decide when to buy, especially when it's a currency they are familiar with.

Finally, hotels that integrate Dynamic Currency Conversion (DCC) features on their website allow the customer to pay in their local currency and save money on exchange rates. Full payment transparency is shown on the terminal at the point of sale (POS), benefitting the experience of both the customer and the business. 

A centralised payments system

Implementing an innovative payment method has a multitude of benefits for hotel businesses. The centralised nature of end-to-end payments means transactions can be processed faster. With a rise in late bookings and last-minute cancellations, hotel owners can easily accept payments and issue refunds.

A centralised system can help with tracking real-time customer data. Complete visibility allows businesses to cater to every customer exclusively, including tailored support and opportunities to give rewards to returning customers. The result? The golden ticket to customer loyalty and retention.

With unnecessary admin being largely taken care of, businesses can focus on high-priority tasks and ensure more can be done to improve the business. A dependable and trustworthy solution will reflect positively on your team experience that stands out as seamless and flexible is a feature most customers look for in hotel stays and distinguish one business from the other.

Sophisticated technology that automates routine payment processes is needed. This will help hotel operators reduce operational costs and allow them to be more efficient with collecting guest payments. Omnichannel services will help staff to monitor and swiftly issue payments where needed. In addition, multi-language and currency software automatically reduces time spent worrying about exchange rates and language barriers. The power of innovative technology can allow payments to be comfortably integrated into self-service machines, alleviating pressures for staff from the front desk.

Contactless adoption post Covid-19

Covid-19 was a tipping point that forced consumers and many businesses to change their ways. Consumers, by nature, dislike change, but forcing change through adopting new technologies will drive many to accept contactless.

As this technology advances, more businesses will take advantage of what it has to offer. As a result, providing other payment alternatives to travellers and guests can ensure a pleasant and rewarding customer-to-merchant experience over time.

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