Hotels that invest in payment innovation can streamline the guest journey.

Hotels of all sizes share a common goal: to deliver an excellent, seamless guest experience. Yet the payment systems at the core of many hotels’ business operations are anything but frictionless. As the lodging sector contends with rising labor, infrastructure, and improvement costs, maintaining healthy margins is critical. A holistic payment strategy can help control costs, elevate brand reputation, and drive growth.

In our latest Payment Strategy Report, How Payment Innovation Is Helping Finance Leaders Achieve Revenue Growth, we surveyed over 300 finance leaders to understand how they are driving improved business outcomes with innovative payment solutions. Just 33% of lodging respondents rated their payment strategy as advanced, lower than other industries we surveyed.

Opening the door by closing gaps

Industry leaders know that meeting consumer expectations for quick, simple payment options can help improve the guest experience and burnish brand reputation. However, industry-specific hurdles are slowing implementation. 

Airlines and other travel service companies were quick to implement customer-friendly payment options like digital wallets. Historically reliant on credit cards for transactions at check-in and check-out and incidental charges, the lodging industry was slower to pivot. Here are a few industry-specific challenges—and the opportunities they offer. 

Knowledge gaps

Implementing new technology and training staff can feel overwhelming, especially in an industry with higher-than-average turnover. Helping all stakeholders—from executive leadership to managers and front desk staff—see how innovation benefits business outcomes is critical.

• Opportunity: 64% of leadership say they’d be open to payment innovation if they knew more about emerging technologies. This is where you should lean into your payment provider for frontline insights and business model-appropriate strategies that can close the knowledge gap and start planning a path forward.

Evolving technology

Many in the hospitality industry may rely on legacy payment infrastructure that can impact the ability to provide a streamlined guest experience. Legacy travel payment systems can create operational impacts and a higher risk of chargebacks and non-compliance.

• Opportunity: 56% of respondents agree that it’s never been more difficult to update payment strategies to confront evolving fraud threats. And 41% see how AI benefits fraud prevention and detection. Making a business case for payment innovation can help stakeholders see how it can help decrease fraud-related costs and the associated reputational damage.

Funding gaps

Successful hotels excel at upgrading service and amenities to meet changing consumer demand, but less so at transforming technology infrastructure. High labor and operational costs and more competition keep transformation budgets stretched thin.

• Opportunity: 56% of respondents say the biggest challenge in transforming their hotel payments acceptance approach is lack of budget. Increasingly, guests view mobile payments or Buy Now, Pay Later (BNPL) as amenities that eliminate paperwork and check-in queue inconveniences and enhance the guest experience.

Despite challenges, our survey indicates hospitality leaders are ready to embrace hotel payment processing innovation. They know flexible payment options can help increase guest loyalty, attract new consumers, and stay ahead of the competition. Here’s where they plan to innovate:

Workflow simplification through automation

Increasing guest satisfaction is one part of improving business outcomes. Hoteliers are exploring ways automation can streamline operations and control costs. Among respondents:  

• 63% agree that innovating payment acceptance is crucial to their strategy. 
• 66% plan to invest in upskilling staff to work more with automation. 
• 65% will increase their use of AI/automation to streamline internal operational AR processes.   
• 65% plan to consolidate the number of payment provider partnerships to better align B2C (front desk) and B2B (suppliers) strategies.  

Payment innovators are powerful performers.

Our survey indicated that payment leaders with advanced payment strategies are seeing improvements their counterparts aren’t.

For businesses that want to stand out in an increasingly competitive environment, payment innovation is key. Welcoming guests with a frictionless hotel payment gateway, simplifying staff workflows through AI and automation, and improving payment security, speed, and convenience can offset rising operational costs and help drive revenue and growth.  

Download the 2025 Payment Strategy Report or schedule a call with an experienced payments consultant. 

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