77% of Travelers Prioritize Experience Over Cost
The hospitality industry has seen a resurgence since COVID-19, and international travel and tourism are expected to surpass pre-pandemic levels.
To capitalize on the growth, hospitality businesses must adapt to the expectations of tech-savvy travelers.
According to the PYMNTS Intelligence report “Check-In Time: Hospitality Welcomes Real-Time Payments,” a key strategy is the adoption of real-time payments, which can streamline operations, improve customer satisfaction and increase profitability.
Travelers’ Expectations for Seamless Payments
Travelers expect the same seamless payment experiences they enjoy in their daily lives. As a result, real-time payments have come to the fore. Travelers are prioritizing ease of use and security when making payments, with 73% reporting instances of payment declines or issues, per the report. Real-time payment systems, such as digital wallets, address these concerns by providing secure, instant transactions, reducing fraud risks, and ensuring smoother experiences.
Additionally, most travelers are willing to invest more in the quality of their experiences rather than price. According to the report, 77% of travelers prioritize experience over cost. This presents an opportunity for hospitality businesses to invest in real-time payments, which elevate service quality and customer loyalty, leading to potential financial returns.
The Need to Upgrade Hospitality Payment Systems
Despite the increasing demand for advanced payment methods, the hospitality sector continues to rely on outdated, complex payment systems. These systems, designed to oversee international transactions, can hinder efficiency and profitability. According to the report, 66% of travel finance executives said their existing payment infrastructure limits their growth. To keep pace with customer expectations and streamline operations, upgrading these payment systems has become a priority.
Real-time payment systems are becoming more popular, with 47% of hospitality firms with revenues exceeding $1 million annually adopting instant payment solutions. Moreover, 79% of firms that have sent real-time payments and 81% of those that have received them plan to increase their usage. An example is the introduction of the Elavon Cloud Payments Interface, which allows for seamless integration of payment capabilities throughout the customer journey. By simplifying payment processes, this system enables hospitality businesses to meet customer demands while enhancing operational efficiency.
Real-Time Payments Strengthen Hospitality Profitability
Beyond benefiting travelers, real-time payments impact the financial health of hospitality businesses. According to the report, 82% of small- to medium-sized businesses (SMBs) in the hospitality sector that primarily use real-time payments reported healthy balance sheets, compared to 66% of those relying on non-instant payment methods.
The benefits of real-time payments extend to improved cash flow management, reduced risk and enhanced convenience. These systems ensure that money is immediately available, decreasing the time between providing services and receiving payments. As a result, hospitality businesses can monitor operating expenses more effectively, invest in growth and manage unexpected costs.
Real-time payment solutions provide a dual benefit for the hospitality industry by addressing customer demands and enhancing financial efficiency. As travelers and businesses gain from these systems, adopting real-time payment infrastructure is becoming crucial for hospitality firms seeking long-term success.
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