With the global business travel market expected to surge by 188% by 2028 and industry spending anticipated to rise by up to 12% this year, hotels need to be ready to accommodate and capitalize on this growth. For businesses, increased travel comes with chronic expense management inaccuracies and payment delays. Hotels can help. In an industry where every detail matters, the ability to streamline billing processes can set a hotel apart from its nearby competitors while meeting the evolving demands of this rapidly growing industry.
By leveraging innovative and secure payments technology, hotels can enhance their billing accuracy, while fostering stronger relationships with corporate clients. Here are three payments technology tips to help hotels drive key performance indicators such as length of stay and booking frequency.
1. Offer Choice at Checkout
By offering diverse payment options, hotels position themselves as flexible, customer-centric establishments, fostering stronger relationships with corporate clients and driving long-term growth.
Building loyalty is about providing flexibility, especially when it comes to payment options. Research shows that 45% of business buyers (those making purchases on behalf of their company) would spend more with brands offering trade credit, or the ability to pay via invoice in 30, 60 or 90 days. With trade credit, companies have greater flexibility and insights to manage their cash flow more effectively, which can be a significant incentive to have their employees book at your hotel. In fact, the same survey unveiled 78% of business buyers consider invoicing a must-have feature.
Enabling cross-currency transactions is also crucial for international guests. For example, a U.S.-based hotel chain might have guests from Canada who prefer to pay in Canadian Dollars. By offering this option, hotels can make the payment process smoother, attract more international travelers and boost global growth. These kinds of flexible payment options help to enhance the guest experience and drive long-term loyalty and revenue.
2. Accelerate Payments with Direct Billing
Corporate travelers, accustomed to seamless consumer payment experiences, increasingly expect the same efficiency when booking and paying for business accommodations. Direct billing meets this demand by allowing companies to reserve hotel stays and check out without a physical payment card. Instead, all charges are invoiced directly to the company. Travelers from the same company can even be consolidated into a single invoice being sent.
This approach not only simplifies and quickens the payment process for travelers but also helps hotels capture more corporate spending. By eliminating the need for individual transaction processing, direct billing reduces operational challenges for both hotel staff and the finance department. Additionally, it enhances Revenue Per Available Room (RevPar) by appealing to business clients who prioritize streamlined billing. This also minimizes the risk of payment errors and fraud, providing a secure and efficient solution for managing corporate accounts.
3. Automate the Hotel Back-Office
To simplify and accelerate the integration of payment options like direct billing and diverse checkout methods, automation in the hotel back-office is key. With the global robotic process automation market expected to exceed $13 billion by 2030, automating administrative processes is increasingly necessary and advantageous for hotels.
A digital back-office solution can streamline your entire accounts receivable process, cutting out the manual workarounds tied to outdated systems. By using AI and machine learning, you can further enhance operational efficiency, reduce billing errors and handle repetitive invoicing tasks with ease.
Automation not only simplifies invoicing by enabling customized, consolidated billing and reducing administrative overhead but also incorporates security features that safeguard against fraud and ensure safe transactions. My colleague Kauleen Adiutori, who is speaking on Intelligent Automation using RPA and machine leaning at the upcoming industry event Crossroads, likes to remind our industry partners that this level of digital transformation enhances efficiency and allows hotel teams to focus on delivering exceptional guest experiences.
In addition to payments, it’s important to ensure that the components in your hotel’s customer platforms—website, social media and booking apps—work together seamlessly. This composable integration will help deliver a smooth, user-friendly experience for your customers and boost operational efficiency, making it easier to implement and manage the payment options discussed in the previous tips.
Optimizing payment processes with flexible options, direct billing capabilities and back-office automation can transform your hotel’s operations and ultimately a company’s experience with you. By embracing these strategies, you will attract more corporate clients, streamline operations and boost revenue. These innovations not only meet the demands of modern business travelers but also position your hotel as a leader in efficiency and guest loyalty.
About the Author
Brandon Spear leads TreviPay with expertise in managing large, diverse global teams. His strength is discerning and focusing on the most important challenges facing an organization at a particular point in time and unifying all stakeholders behind accomplishing a set of specific goals. Brandon has a unique ability to connect across all levels of an organization, motivate staff with diverse skill sets, while ensuring a common alignment and results.
