Online payment in the hotel industry: how and why transform your payment processes?

Finally, among the means of payment that are increasingly popular in the hotel industry, we find dematerialized payment systems. Customers then pay directly with Apple Pay or Google Pay, or go through all-in-one systems, such as Paypal or Strip. Payment also takes place at the end of the stay, or at the time of booking.

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B to B payments

To remain competitive, hotels have no choice but to adapt their payment systems. Professionals need to save time, and get to the point. They use virtual credit cards to make money transfers. These are temporary, one-time cards that are created for a specific amount. They can be used on OTAs, or on reservation systems directly integrated into establishments' websites.

Integrate a direct booking tool

In order to offer a secure online payment process, you can choose to integrate a reservation and payment tool directly on your website. This solution represents many advantages for your hotel:

• You offer an end-to-end experience for the customer, who discovers your brand, your rooms, their availability, their prices, and can proceed with the reservation in a few clicks: to boost the reservation rate, it is a valuable tool;
• You collect valuable customer data, such as the name, first name, email, telephone number, nationality of your customer, and can offer him targeted communications, in order to create a solid bond with him;
• You have a clear view of your business, seasonal peaks, successful rooms, and can make more informed decisions to successfully improve your performance all year round;
• You put in place a clear and thoughtful revenue strategy: you have all the data to be able to offer the right room, at the right price, at the right time: in order to maximize your profits, this is essential.

Automated payments

When the customer's card is entered in the system, it can then be used for other payments, such as room service, restaurant, bar... A considerable time saving, both for the customer and for the employees , which can focus on customer well-being as a priority.

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Dematerialized payments

Payment gateways

Payment gateways are digital versions of the physical TPE. To set them up, you can use solutions such as PayZen, PayBox, Payline or Click&Pay. These solutions require secure distance sales contracts, and come with commissions, which are deducted from each payment. Count between 30 to 60 € per month, and 0.05 to 0.1 € per transaction.

VAD on TPE

This dematerialized payment system is particularly interesting in the hotel industry. To set up this payment solution, you enter the customer's card number on the TPE and can then withdraw it.

This type of payment requires a VAD contract between your hotel and your bank, which will specify the amounts of the commissions that will be charged, depending on the types of cards used. The rates are around 0.3% to 0.6%, if it is a French card. In case of foreign card, the rates are higher.

Distance selling payments are practical in the hotel industry, especially when customers have not gone through the reception at the time of check-out or when they have not come to the hotel. Be careful though: with VAD payment, the customer does not authenticate himself in a “strong” way, with a pin code or 3D Secure authentication, and can therefore dispute the payment.

All-in-one payments

To make payment, some hotels use all-in-one payment systems, such as Paypal, Stripe, HiPay or PayGreen. These are financial organizations that are responsible for collecting payment from your customers and then transferring it to you. Commissions are higher than for payment gateways or VADs, because there is a variable part as well as fixed costs for each of the transactions that are carried out.

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Set up a dashboard to understand your activity

In order to understand which payment methods bring you the most revenue, you need to collect your data and create a dashboard, updated in real time. You will also learn more about the consumption habits of your customers, and will be able to offer services that are ever more suited to their needs, to boost their level of satisfaction.

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