If there’s one industry that wants to make the payment process as simple and painless as possible for customers, it’s the hotel industry. Hotels want guests to be able to make their reservations and payments without any issue, as it directly impacts their bottomline.
And the best way to accomplish this is by adopting a hotel smart payment system. If you don’t know how smart payment systems help hotels improve their bottom line, and their relationship with guests, read on to find out.
In this article, we’ll discuss what a smart payment system is and why they are so important for hotels.
What Exactly Is a Smart Payment System?
A smart payment system is a type of payment administration technology that interfaces with a number of programs that can help you manage your hotel business more effectively.
Smart in this context means not only automating procedures to make them more efficient, but also potentially leading the way to a cashless hotel.
Online transactions are more complicated than you might imagine, but a smart system will simplify the process by integrating payments into your core system, whether it’s your property management system or the hospitality cloud.
It is more secure, convenient, and efficient for guests to pay without having to physically show their credit cards. The hotelier can also integrate payments into any phase of the visitor journey and embrace a wide range of payment options to enhance customer satisfaction.
What is the Importance of Hotel Smart Payment Systems
A simple and straightforward booking process leads to increased conversions on your website, but it is not the only benefit of a smart system for hoteliers. Additionally, additional interfaces and automation assist in preventing mistakes and securing payments.
Now that we’ve defined smart payment systems, let’s look at why they’re so vital in the hotel business.
Boost guest satisfaction
Nothing is more aggravating for your clients than trying to make a reservation and discovering that either their preferred mode of payment isn’t accepted, the procedure takes too long, or their credit card is denied.
With smart payment, hotels have one of the simplest ways of enhancing guest happiness by offering a variety of payment options and the opportunity to determine when to do so along the user journey.
Because of modern technology, transactions are completed in the blink of an eye, eliminating the need for customers to wait to see if their reservation was successful; it’s nearly automatic.
Prevent website abandonment
When potential customers visit your website, meaning they choose to book directly rather than via an OTA or another third-party booking engine, the last thing you want is them to leave it, whether it’s during the booking process or at any other time during the customer journey.
This is why it is critical to have a system in place that allows payments to be made quickly and conveniently. The fewer obstacles there are during the booking process, the more likely future clients are to finish their booking.
Provide a variety of payment options
Smart means that using a credit card is no longer the only option to pay for a hotel stay. Hoteliers can now take a variety of online payments, including iDEAL, PayPal, and UnionPay, among others.
The more options you have, the more likely guests are to finish their transaction because they can choose the most convenient method of payment for them.
Not only can you offer a variety of payment methods, but you can also offer different ways of paying at different important touch points during the user journey, such as when guests arrive at the front desk, at the check-in kiosk, when it comes time to check out online, or you even have the option to send a request via email or have guests pay at any integrated terminal.
Automation
Automation is another fantastic aspect of a smart system because it not only helps to eliminate manual error, but it also makes front desk employees happier since they no longer have to manually enter credit card data.
Happier front desk employees equals better service, and better service means happier guests, thus automation is a win-win situation for all parties involved.
Instead of having to ask for credit card information and settle room fees upon arrival, the front desk crew can focus on connecting with guests and creating the greatest first impression possible, ensuring that the experience with your brand is smooth from start to finish. Discover the top 10 hotel greetings.
Make your guests’ safety your top priority
Avoid credit card fraud by utilizing smart technology that allows you to store and process data while maintaining the highest security standards available.
3D Secure Authentication, chargeback support to avoid fraudulent charges, tokenization, and PSD2 compliance enable you to conduct electronic charges with end-to-end encryption as safely as possible.
You can also secure your hotel by doing pre-authorizations, which ensure that guests have sufficient funds to pay for their reservation. Learn how to put safety first when making online payments.
Investing in future-ready technology helps keep your guests’ security protected while also being more cost-effective. Tap-and-go technology, which employs Near Field Communication (NFC), can expedite both check-ins and bill payments.
Because less time is spent managing credit card transactions, the faster it is to make a payment, the more opportunities your hotel has to promote the purchase of amenities and upsell.
The Future of Smart Payment Systems for Hotels
It is expected that by the end of this year, 70% of all credit cards and 40% of all debit cards (approximately 1.1 billion in total) will be EMV capable. This payment technology, commonly known as chip and pin, adds dynamic data to the transaction stream, making it impossible to replay payment transactions. EMV (Europay, MasterCard, and Visa) cards are nearly impossible to counterfeit because each card carries its own microprocessor chip.
There is no need for the card to leave the customer’s sight, and no swiping is required. The credit card number is not displayed on the screen. Though not completely fail-safe, the system has become a global standard, making transactions hundreds of times more secure. Card fraud has decreased by up to 60% in Europe, where EMV has been in place for several years, whereas it has climbed by roughly 50% in the United States during the same time period.
Any merchant who does not accept EMV, either by not installing EMV-compliant POS (point-of-sale) systems or by processing cards the old-fashioned way, without the advantage of the chip and pin, will be held liable for fraudulent transactions once the liability shift is implemented.
Because the onus of fraud liability falls on the party with the least EMV-compliant equipment, hotels will need to invest in EMV-compatible infrastructure to safeguard themselves. However, with the typical cost of one EMV-compliant POS terminal being around $500, it’s difficult to know how much money to invest in a new card processing technology that many hotel owners will not require right now. The responsibility is erased as long as the hotel can handle a chip and pin card.
Updates to the current card system are desperately needed. The lodgings industry, which includes hotels and restaurants, is one of the most common targets for POS intrusions. The Target and Home Depot hacks show that hotels are no more vulnerable than anyone else, but they also show that the situation is bad news for everyone. Merchants and banks haven’t always been on the same page, but the conversation is now moving forward. We must constantly reassess ourselves as an industry, which means hoteliers must regularly assess their compliance.
Final Thoughts
Hotels need to evolve with the times and that includes adopting new technologies. Smart payment systems allow hotels to provide more options to guests which in turn increase their satisfaction, and even their safety. By investing in such a system, you are not only making things easier for you but also giving your hotel an edge over the competition. Explore the options available and go for the one that makes more sense for your business.