As the serviced apartment industry continues to expand rapidly, the need for automated payment solutions has shifted from a luxury to a necessity. Despite this, figures suggest a landscape of partial automation across the serviced apartment sector, with just 19% of operators reporting that their financial administration is fully automated, according to the Serviced Apartments Innovations in Technology 2025 report.
In a fast-paced market driven by efficiency and rising guest expectations, traditional manual payment processes are simply no longer sufficient. Operators who fail to embrace automation risk falling behind their competitors and leaving money on the table.
The payment process is more than a simple transaction – it’s a pivotal touchpoint that hinges on trust and precision. In today’s instant payment economy, where we effortlessly pay for everything from groceries to international travel in seconds, smooth, seamless transactions have become the norm. Guests booking serviced apartments expect the same flawless experience, and any errors or delays in payment can lead to frustration, negative reviews, or even abandoned bookings and cancellations.
As one of the key target markets for the serviced apartment sector, for Gen Z’s (those born from the mid 90’s onwards) automated payments are even more important. As a generation of digital natives that have never known a world without smart phones, this demographic not only prioritises travel but sees it as a key priority in their lifestyle budget. That means that as much attention is paid to how they pay for their travel as the experience itself.
Not only is this market projected to be worth around $200 billion to the travel and tourism industry but this age group makes 87% of their purchases from their phones. The majority of these are made on a debit card (42%), credit cards (28%), or alternative methods such as Apple Pay, PayPal and Buy Now Pay Later methods (30%) as reported by Hopper’s report.. For operators targeting this tech-savvy generation, it’s crucial to evaluate whether their entire booking process—including payment functionality—meets the expectations of these younger, digitally driven travelers.
The payment process also plays a crucial role as the first interaction between a guest and operator. A smooth booking and payment experience sets a positive tone before the guest even arrives at the property. Payment automation offers guests peace of mind by providing secure payment gateways to protect sensitive financial information, flexible payment methods and currencies, and instant booking confirmations. Corporate clients—a significant segment of the serviced apartment market—also benefit from automation, as they often require alternative payment options like early payments, which can create administrative bottlenecks for operators reliant on manual processing.
Beyond improving the guest experience, automated payment solutions revolutionise operations for serviced apartment businesses. Manual payment processes are resource-intensive, requiring staff to handle repetitive tasks such as reconciling payments, processing invoices, and managing VAT adjustments. These tasks not only consume time but add a significant administrative overhead. By eliminating them through automation, operators can reduce operational costs and free up staff to focus on enhancing the guest experience.
Automation also simplifies complex payment challenges, particularly for long-stay guests. For example, VAT adjustments for stays exceeding 28 days can be time-consuming and error-prone when handled manually. Automation ensures these adjustments are processed effortlessly, improving compliance and operational efficiency. By integrating payment systems with property management software, operators gain real-time transaction visibility, automated invoicing, and streamlined reconciliation. This enhances financial accuracy, accelerates reporting, and delivers valuable data insights.
The advantages of automation extend far beyond payment processing. Larger operators can decentralise critical workflows, empowering individual properties to manage tasks that were once handled by a central reservations team. This shift enables businesses to restructure operations, upskill employees, and improve job satisfaction. Guests benefit too, as automated systems deliver a faster, more reliable service, contributing to a seamless and enjoyable stay.
As the serviced apartment sector continues to thrive, manual processes threaten to hold operators back from achieving optimal efficiency and meeting guest expectations. Automation is no longer an optional enhancement – it is a business imperative for staying competitive in today’s market. By adopting automated payment solutions, operators can prioritise exceptional guest experiences, empower their teams, and future-proof their operations. The message is clear: embracing payment automation is about more than staying ahead – it’s about transforming how operators work and delivering superiour guest satisfaction.
