Amsterdam · September 19, 2024
Limited payment choices drive away one-third of hotel guests shows Adyen research
Over one in ten (12%) hotels believe offering multiple payment options is not important - but guests feel otherwise
Paying for a hotel experience via a digital wallet (e.g. Apple Pay) is one of the most popular options globally (15%) when booking online
New payment trends are emerging, with 10% of guests saying they have booked a stay via social media for the first time over the past 12 months, and 6% using Buy Now Pay Later (BNPL) services
Payment flexibility is sought by travelers, as two in five (40%) of hotel-goers prefer not to pay the full amount upfront when booking
New research published today by Adyen, the global financial technology platform of choice for leading businesses, has uncovered the importance of a frictionless payment experience for hotel customers, with over a third (37%) of consumers admitting to have left the booking process because they haven't been able to pay the way they would like.
The findings published in Adyen’s first Global Hospitality Report, suggest the payment experience could be impacting hotel revenues. Despite consumer sentiment finding otherwise, over one in ten (12%) hospitality businesses said offering guests a variety of payment options is not important. In addition to this, nearly a third (31%) confessed that they can’t currently accept payment options like BNPL and Apple Pay.
New global payment trends are emerging across the hospitality sector in 2024, as research found that one of the most popular ways to pay for a hotel experience online was via a digital wallet (15%). One in ten (10%) guests said they had booked a stay via social media for the first time over the past 12 months, and 6% said they had done so using BNPL over the same time period.
The majority of consumers (59%) said that a seamless experience from booking to check-out was important to them when choosing a hotel. The report pointed towards three new trends:
1. Payment flexibility is a deal-breaker
Offering a wide range of payment options is important to almost half (49%) of consumers surveyed, with four in ten (42%) admitting greater options would support them making bigger purchases. Four in ten (40%) hotel guests said they don’t like paying the full cost of a hotel upfront - reflecting a broader shift towards careful budget management and mirroring the rise in popularity of BNPL services.
2. Cancellation policies are well researched
Flexibility in cancellation policies also emerged as a critical factor in hotel selection, with 59% of travelers considering free cancellation 24-48 hours before arrival a deal-maker. The data underscores a traveler's desire to ensure plans can be adapted last minute.
3. Financial experiences affect returning travelers
Four in ten (44%) of hotel goers have not rebooked a stay due to finance-related issues or grievances. Specifically, problems with payments, such as card declines or incorrect charges (13%), being requested to share card details over the phone (11%), experiencing delayed charges or refunds (11%) and overpayment due to error (10%).
“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, Adyen.
“Today’s guests demand easy booking processes, transactions and hassle-free cancellations, otherwise they may decide to go elsewhere. We spoke to senior leaders at hotel businesses worldwide, and it was encouraging to find 60% saying that their company would be looking to enhance and improve their payments journey over the next 12 months, and 58% stating that investment in financial technology capabilities could offer a differentiated service over competitors.”
“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.”
You can read the report in full here.
About the research
Consumer research
Censuswide polled 31,312 consumers aged 18+ in Japan, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, UAE, UK, Brazil, Mexico, Canada, and USA. There are nationally representative sample sizes across markets.
Survey conducted between 03 June 2024 – 19 June 2024
Hospitality industry research
Censuswide polled 7,661 hospitality accommodation merchants across the UK, Belgium, France, Germany, Ireland, Italy, Netherlands, Poland, UAE, Japan, Brazil, Mexico, Canada, US, Denmark, Norway, Portugal, Spain, and Sweden. Those polled were senior leaders at businesses with insight into business revenue and strategy. Sole traders were excluded, with a focus on scale ups and enterprises.
Survey conducted between 31 May 2024 – 19 June 2024
About Adyen
Adyen (ADYEN:AMS) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M and eBay.