Hotels losing guests due to limited payment choices

New research from the global financial technology platform New research from the global financial technology platform Adyen suggests potential hotel guests will bolt if they can't use their payment method of choice.Adyen suggests potential hotel guests will bolt if they can't use their payment method of choice. In fact, better than a third (37 percent) of consumers surveyed admitted they have left the online booking process because they couldn't pay the way they preferred.

The findings, published in Adyen's first Global Hospitality Report, suggest hotels are losing guests and money by limiting payment choices. Twelve percent of hospitality businesses said offering guests a variety of payment options wasn't important. What's more, nearly a third (31 percent) said they lack the ability to accept new payment options like buy now, pay later and Apple Pay. That could be bad news.

"Travel expectations are sky high, with payment options playing a critical role in shaping the overall guest experience and influencing future booking decisions," said Mark Rademaker, head of hospitality at Adyen.

Leaving money on the table

The U.S. hospitality industry currently is valued at $235.96 billion and is expected to chart a combined annual growth rate of 4.87 percent, reaching $299.29 billion by 2029, according to Mordor Intelligence.

But research suggests many in the industry are leaving money on the table by not providing potential guests with payment flexibility. The Adyen report draws on a Censuswide poll of 7,661 hospitality accommodation merchants across 18 countries, including the United States, conducted in June 2024. A second Censuswide poll of over 31,000 consumers in those same 18 countries was also analyzed.

The bottom line, Adyen concluded, was that offering a wide range of payment options is a very important consumer consideration when selecting lodging.

Offering a wide range of payment options was cited as being important to 49 percent of consumers, with four in 10 (42 percent) admitting greater options would support them making bigger purchases. Paying via digital wallets is one of the most popular options globally when booking online (cited by 15 percent of consumers surveyed).

Additionally, four in 10 (40 percent) of hotel guests said they don't like paying the full cost of a stay upfront – reflecting a broader shift toward careful budgeting and the opportunities that come with offering BNPL.

Flexibility in cancellation polies also emerged as a critical factor in hotel selection, with 59 percent of travelers considering policies allowing free cancellation up to 48 hours before arrival as a deal maker.

Strive for positive financial experiences

Financial experiences clearly affect customers' decisions to return to a hotel, Adyen said. Better than four in 10 (44 percent) of hotel goes said they had not rebooked a stay at a hotel due to finance-related issues or grievances. Specifically, problems with payments, such as card declines or incorrect charges (cited by 13 percent), being requested to share card details over the phone (11 percent), delayed charges or refunds (11 percent) and overpayments (10 percent).

"Today's guests demand easy booking processes, transactions and hassle-free cancellations, otherwise they may decide to go elsewhere," Rademaker said. "With potential guests abandoning bookings due to payment inflexibility, and some not returning due to finance-related issues, the hospitality industry must urgently look at how experiences can be enhanced in an era where every touchpoint matters and payments are no longer just a transaction."

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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