Limited payment choices drive away one-third of hotel guests

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 (32%) 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. Nearly a third of hotels (27%) confessed that they can’t currently accept payment options like BNPL and Apple Pay.

New 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 (20%). Almost one in ten (9%) guests said they had booked a stay via social media for the first time over the past 12 months, and 5% said they had done so using BNPL over the same time period.

The majority of consumers (58%) 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 40% of consumers surveyed, with 37% admitting greater options would support them making bigger purchases. 35% of 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 53% of travellers 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 travellers

Many 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 (11%), being requested to share card details over the phone (9%), experiencing delayed charges or refunds (9%) and overpayment due to error (8%).

“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 in the UK, and it was encouraging to find 62% saying that their company would be looking to enhance and improve their payments journey over the next 12 months, and 61% 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.

-ENDS-

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.

• 2007 adults polled in the UK

• 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.

• 400 merchants polled in the UK

• 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.