We often focus our energy on distribution channels, pricing strategies, and guest experiences, but there’s a critical element we often overlook in hospitality: Payments.
For years, payments were treated as a backend process—a necessary but uninspiring step at the end of the guest journey. Today, that mindset is costing us conversions, loyalty, and ultimately, revenue.
Payments are no longer transactional; they are transformational.
If you’re not treating Payments as a strategic lever, you may be leaving serious money on the table.
👉 Read the full article at the Hospitality Labs blog and subscribe for more actionable insights and exclusive content. Let’s shape the future of hospitality together!
🔑 Why Payments Are Now a Revenue Driver
The payment process is one of the most emotional moments in the guest journey. It’s where trust, perceived value, and convenience are either validated or broken.
And here’s the reality:
👉 Payment friction is a conversion killer.
👉 Seamless, localized payment options build trust and increase direct bookings.
👉 Offering flexibility in payment boosts the average booking value.
Your checkout experience—whether online, at the front desk, or in the restaurant—is often the final point of decision for your guests. Make it easy, flexible, and localized, and you’ll see the difference in your conversion rates, guest satisfaction, and revenue.
🌍 The New Payments Landscape in Hospitality
1️⃣ Alternative Payment Methods (APMs) Are Becoming Mainstream
In many feeder markets, traditional credit cards are no longer the norm:
• Mobile wallets like Apple Pay, Google Pay, and WeChat Pay dominate in some regions.
• Local options like iDEAL in the Netherlands or BLIK in Poland are must-haves if you want to convert regional traffic.
• Digital wallets and QR code payments are standard in Asia and increasingly popular in Europe and the Americas.
What this means for the industry:
If you’re not offering localized payment options, you risk losing bookings in the final step of the funnel. A guest might love your hotel and your price, but if they can’t pay with their preferred method, they’ll go elsewhere.
2️⃣ Buy Now, Pay Later (BNPL): The Future of Flexible Travel Payments
The rise of BNPL in eCommerce is now spilling over into hospitality. Guests expect payment flexibility, especially for high-value bookings like:
• Extended stays
• Luxury suites
• Vacation packages
By allowing guests to split payments over time or reserve with a partial payment, we can:
✅ Reduce friction in the booking process
✅ Increase the conversion rate on higher-priced inventory
✅ Expand your reach to younger travelers or markets sensitive to cash flow
3️⃣ Currency and Localization: Win Over International Guests
Today, global travelers expect seamless experiences—including when they pay.
• Offer multi-currency pricing (MCP) and let the guest pay in their home currency.
• Use dynamic currency conversion (DCC) carefully—it can be a double-edged sword if fees are unclear.
• Local language + local currency = trust and higher conversion rates.
4️⃣ Frictionless Check-In and Check-Out: No More Queues
Guests don’t want to think about payments when they arrive or leave.
Pre-authorization, automated payments, and digital wallets create a seamless experience.
• Express check-in/check-out with automatic payment improves satisfaction and speeds up operations.
• Offering in-app payments or room charges linked to mobile wallets enhances the contactless experience.
📊 How Payments Integrate into Your Revenue & Distribution Strategy
Payments are not just an operational decision; they should be part of your commercial strategy:
• Align payment options with market segmentation (corporate vs. leisure, domestic vs. international).
• Use data from payment behavior to inform your pricing and upselling strategies.
• Offer exclusive payment benefits (discounts for certain methods or loyalty members).
🚀 Final Thoughts: Payments Are a Key Part of the Guest Experience
The future of payments is fast, flexible, and guest-centric.
Those who embrace the new payment landscape will see higher conversion rates, increased revenue, and more loyal guests.
Payments are no longer the final step in the guest journey. They are the strategic bridge between consideration, conversion, and loyalty.
Until next time, keep exploring the endless possibilities of hospitality.
👉 Read the full article at the Hospitality Labs blog and subscribe for more actionable insights and exclusive content. Let’s shape the future of hospitality together!
Fernando Vives
About Fernando Vives
Fernando Vives stands at the forefront of hospitality expertise, guiding Minor Hotel Europe and Americas (part of Minor Hotels ) Commercial Discipline and Top Line Results. His dynamic leadership oversees a vast portfolio, including sales, revenue management and digital growth, steering a team of over 2,000 across 30 countries and managing a turnover of over $3 billion USD. Awarded as one of the Top 20 Extraordinary Minds by HSMAI in the industry for Commercial & Revenue Optimization Leadership, Fernando’s extensive background includes senior roles at renowned hotel chains and ventures into entrepreneurship. He is an academic pioneer, and an esteemed speaker and a passionate industry advocate, Fernando’s educational prowess is matched by his commitment to shaping the future of hospitality as an Ambassador for Hospitality Labs
The views and opinions expressed in this newsletter are solely those of Fernando Vives and do not necessarily reflect those of any company or organization he works for or is affiliated with, nor those of their partners or suppliers. The data sources used are mostly public, ChatGPT and other AI tools may have been used for research assistance, copywriting or editing. If you find any discrepancies or errors in the data or insights shared, please reach out via LinkedIn for necessary adjustments. Thank you for following and being a part of this community.
