Want to grow your hospitality business without hemorrhaging cash?
You open a hotel property or begin accepting bookings because you want to grow.
More rooms booked. More revenue. Larger market share.
But…
If your infrastructure isn’t equipped to handle growth, you’re fighting an uphill battle.
The good news?
There are certain investments that actually pay for themselves. Hotel payment solutions are near the top of that list.
In this post, we break down the infrastructure investments that have the biggest impact on hospitality businesses.
From optimizing payment solutions and preventing chargebacks, to automating guest experiences and investing in scaling hardware and software, here’s what we’ll cover:
- Payment Infrastructure Is Priority Number One
- Hidden Costs Of Bad Payment Infrastructure
- The Infrastructure That Actually Moves The Needle
- Other Areas Of Infrastructure To Consider
Ready to level up? Let’s dive in.
Payment Infrastructure Is Priority Number One
Guests don’t pay much attention to your payment processing when everything goes smoothly.
Shouldn’t it be that way with your hotel payment infrastructure as well?
Sure. But here’s the thing…
Payment processing represents the final step in your guest’s booking journey. If that step fails? They’re likely to abandon their booking entirely.
In fact, research shows that 74% of travelers will walk away from booking if their preferred payment option isn’t available. That’s nearly three quarters of your bookings you could be leaving on the table.
Here’s the cool part…
Hotel payment solutions these days do way more than accept credit cards.
Today’s platforms integrate effortlessly with your property management system, accept global currencies, secure transactions, and scale with your growth. Partnering with a reputable provider like 2accept for your merchant account for hotel and hospitality means you’re covered.
With payment out of the way, your infrastructure can focus on delighting guests and streamlining operations.
Hidden Costs Of Bad Payment Infrastructure
Think about how much money your hotel spends on credit card processing every year.
Pretty expensive, right?
For the entire hotel industry, payment processing eats up about $21 billion dollars annually.
There’s an awful lot of revenue lost because payment infrastructure fails to meet guest expectations.
The average hotel booking abandonment rate clocks in at just under 81%. That means more than 80% of guests will begin the booking process on your site, but never complete it.
If you asked them why they left, “payment issues” would be at the top of the list.
When guests encounter roadblocks in your payment process, there are several ways they can react:
- They may give up on booking with you entirely
- Book with another property
- Leave you a negative review
- Never stay at your hotel again
Oh, and did we mention that poor payment infrastructure creates manual work for your employees? Every chargeback and dispute takes time to investigate and correct. Slow or insecure systems lead to security breaches.
When money is going out, it’s not growing your business.
The Infrastructure That Actually Moves The Needle
Just because hotel payment infrastructure is critical doesn’t mean it’s the only important factor.
Here are several other smart infrastructure investments you should make.
Contactless Payment Options
Contactless payments were rated as the top hotel technology investment opportunity in the 2024 Lodging Technology Study.
Let’s be honest. Your guests expect contactless options these days.
COVID accelerated the adoption of contactless transactions across the board. And for good reason. Contactless payments are faster, safer, and more secure than traditional methods.
It’s not just about checking off a box for your guests, either.
Contactless payments reduce handling errors and increase the efficiency of your entire payment department.
Property Management Systems
Your hotel payment processor should seamlessly integrate into your property management system.
Why does that matter?
Software integration allows your reservations to post automatically. Charges can update in real-time and your reconciliation doesn’t feel like sheer torture.
On top of that, your team won’t spend as much time chasing down manual data entry errors. They can spend more time focusing on guests and less time looking for stray numbers.
Multi-Currency Processing
When you’re ready to scale, you open your doors to international guests.
But what happens if your booking process requires your international guests to pay in U.S. Dollars?
Booking friction goes through the roof.
Luckily, modern payment processors make it easy for your guests to pay in their home currency.
Not only does this streamline your booking process, but it also protects you from currency fluctuations.
You always know how much you’ll be receiving.
Security
Data security is a major concern across every industry, and hospitality is no exception.
76% of hoteliers now say their businesses prioritize cybersecurity efforts. That’s likely because guests expect their payment information to be protected.
One data breach could sink your reputation fast.
Make sure your infrastructure includes:
- PCI compliance
- Encryption
- Tokenization
- Regular security updates
Safety doesn’t just keep your guests happy — it protects your bottom line.
Beyond Payments: Other Infrastructure That Moves The Needle
While hotel payment infrastructure is arguably the most important investment you can make, there’s plenty more you should consider.
Let’s take a look.
Revenue Management Software
Want to ensure you’re maximizing profitability for every room sold?
Revenue management software can help.
These tools pull data from your market, competitors, and demand to dynamically price rooms. Not only does this ensure you’re always charging the most competitive rate possible, but it can integrate with your payment processor too.
Closing the loop between pricing and booking is important when scaling your business.
Guest Communication Platforms
Want to lower your no-show rate and increase guest satisfaction?
Try automated guest communication platforms.
From booking confirmations, to pre-arrival emails and post stay surveys. You can set up everything to run automatically. Want your guests to add on services? You can send them a payment link directly from the platform.
Many of these solutions allow you to integrate your payment processor so guests can book with a single click.
Analytics Software
You can’t improve your operations if you don’t know where you’re losing guests.
Hotel analytics allow you to dive deep into your booking process to understand where guests are bouncing. You’ll also know which payment methods are working and which ones could use a boost.
Data driven decision making is always the best choice. These tools will allow you to grow smarter.
Choosing The Right Infrastructure For Your Hotel
Much like investing in the right payment processor, infrastructure isn’t one-size fits all.
Consider these four things when choosing who to work with moving forward.
Scalability
Look for solutions that can grow with your business. What happens if you open 10 more properties? What if your booking volume triples?
You should have an idea what your scaling goals are (and if you don’t, you should). Make sure your tech can handle that growth.
Integration
Technology should always integrate with technology you’re already using.
Don’t waste time moving data from one system to another. That’s manual labor we both know you don’t have time for.
Support
When you own a hotel (or multiple hotels), things come up. What happens when an issue arises at 2 AM on Christmas? You pay for support, so you should actually use it.
Ensure your provider has 24/7 support and quick turn times.
Cost
Cheapest doesn’t always mean best. And when we’re talking about investing in infrastructure, sometimes cheap solves nothing.
Factor in setup costs, employee training time, and maintenance fees. Do your research.
Invest In Infrastructure That Supports Growth
Infrastructure investments are the foundation of your hotel growth strategy.
When done correctly, each investment has a ripple effect that impacts everything your business does.
Smooth payment equals completed bookings. Every guest that bails on your payment process is another lost sale.
By investing in modern hotel payment infrastructure, you stand to gain back all of those missed opportunities.
