# Hospitality needs to join the contactless revolution  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-18 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: How Hospitality Adapting to Tech Savvy Guests Meta Description: Discover how new payment apps are reshaping the industry, offering flexibility and convenience for guests. Stay ahead of the curve with SIHOT technology! URL: https://financedigest.com/hospitality-needs-to-join-the-contactless-revolutionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/contactless-payments-1-1736815446550-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/carsten-wernet-450x479-1736815446285-compressed.jpg) _Why hospitality has to adapt to tech savvy guests demanding flexibility_ _By_ **_Carsten Wernet_** _, Chief Executive at_ [_SIHOT hotel management software_](https://sihot.com/) An explosion of new payment apps and options is transforming how customers like to pay. The world of payments was traditionally controlled by banks but new players and modes of payments have opened the market up. The advantages for the hospitality sector are potentially huge. These new [technologies make it easy to travel](https://www.financedigest.com/contactless-technology-a-revolution-in-travel.html "Contactless Technology: A Revolution in Travel") without disruption across international borders with more affordable and instantaneous processing than credit cards. Today, the technological expectations of guests have been set high by the e-commerce revolution. [According to PwC](https://financesonline.com/hospitality-statistics/), 81% of travellers want greater digital customer experience from hotel brands. This is especially true of millennials, [70% of whom are likely](https://financesonline.com/hospitality-statistics/) to book hotel accommodation using a tech amenity like mobile payments, smart TVs, or keyless entry. Guests expect to be able to use a multitude of [contactless alternatives to bank cards](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending"). They’ve grown accustomed to using phone [apps like Apple](https://www.financedigest.com/apple-must-ease-app-store-rules-u-s-judge-orders-in-a-blow-to-iphone-maker.html "Apple must ease App Store rules, U.S. judge orders, in a blow to iPhone maker") Pay, PayPal, QR codes, or self-service check-in kiosks. A lot of high-end hotels have responded to the rapid technological shift, but too much of the hotel sector is stuck in the [slow lane](https://www.financedigest.com/broadband-wars-make-sure-youre-not-caught-in-the-slow-lane.html "Broadband wars – make sure you’re not caught in the slow lane  "). **Paying catch up** Credit [cards are still king](https://www.financedigest.com/king-charles-releases-photo-for-first-christmas-card-as-monarch.html "King Charles releases photo for first Christmas card as monarch"), specifically Visa and MasterCard. [Payments tend to be property-centric, so each hotel manages payments its own way](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments") even when it’s part of a chain. There are often several [payment stages in a hotel stay and details need](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") to be captured and processed each time. Guests are basically expected to fit around the standard processes. Even if they return to the same hotel, their payment details won’t be stored. There’s a real danger that all the inconvenience has a negative impact on their experience. **Becoming guest-centric** The solution for hotels is to [offer an “omnichannel” experience that provides customers with flexibility](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis") to pay how they want and switch between different methods. It’s much more guest-centric and more in harmony with modern expectations of flexibility. [Research from McKinsey](https://financesonline.com/hospitality-statistics/) shows an average customer shifts more than 50 times across desktops, tablets, smartphones and channels when researching travel online. An omnichannel system allows new payment types to be added easily. [Guest preferences are stored in one place and never need](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") to be re-entered. If the hotel is part of a chain, the details will be [shared with the whole group](https://www.financedigest.com/saipem-shares-drop-group-says-cannot-explain-why.html "Saipem shares drop, group says cannot explain why"). Smartphones are at the heart of the payment revolution. Their ubiquitous connectivity means payments can be authorised instantly and sent to the merchant. These ‘proximity [payments’ are enabled by digital](https://www.financedigest.com/italys-nexi-signs-digital-payments-deal-with-tims-olivetti.html "Italy’s Nexi signs digital payments deal with TIM’s Olivetti") technologies like smart messaging, QR-reading cameras, Bluetooth, GPS and NFC-enabled chips. Another option for hospitality businesses is self-service kiosks that enable [customers to pay for purchases](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") without interacting with hotel staff, or handling cash or cards. Guests use smartphones or [contactless payment](https://www.financedigest.com/the-importance-of-epos-and-contactless-payments-in-a-post-pandemic-world.html "The Importance of EPOS and Contactless Payments in a Post-Pandemic World") cards to tap and pay. Kiosks also accept payments using wearables or ID fobs. They’re particularly [valued by guests who are in a hurry to reach](https://www.financedigest.com/nordic-floor-paints-market-is-estimated-to-progress-at-a-cagr-of-2-7-and-reach-a-value-of-104-mn-by-2031.html "Nordic Floor Paints Market is estimated to progress at a CAGR of 2.7% and reach a value of 104 Mn by 2031") their rooms and want to avoid check-in delays. **How tokens enable omnichannel payments** Omnichannel payment systems allow orders to be created in one channel and fulfilled in another. Once guests have made a reservation online, their payment details are recorded using encrypted tokens, a system known as tokenization. There’s no need to present payment details again at check in, or making purchases during the stay. Guests are then able to use whatever payment method they want. They’re able to wander freely [around the hotel](https://www.financedigest.com/hotel-hotspots-for-2017-whats-around-the-corner-for-the-uks-hotel-sector.html "Hotel hotspots for 2017 – what’s around the corner for the UK’s hotel sector?"), using their chosen payment methods to settle bills for everything from bar snacks to spa treatments. And in doing so, they’re likely to be more relaxed and spend more. **Hotels reduce workloads and** [boost revenue](https://www.financedigest.com/coca-cola-raises-revenue-forecast-as-demand-rebounds-on-reopening-boost.html "Coca-Cola raises revenue forecast as demand rebounds on reopening boost") For the hotels, payments are smoother and faster, reducing workloads and tackling staffing issues. It’s likely to see an upturn in revenue. It’s also easier to track guests’ activities as each token provides a unique identifier. Assuming appropriate permissions with the property management system (PMS) at the centre, the [data can be entered into CRM systems and loyalty platforms](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform"), processed and shared automatically to remove friction and provide personalised offers. It also removes the transactional role from staff to concentrate in delivering exceptional services. Welcome [Hotels group](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") recently benefited from a successful implementation, realising the benefits of tokenization. Using tokens removed the hotel staff’s responsibility for safeguarding [credit card](https://www.financedigest.com/uk-credit-card-borrowing-rises-by-most-since-2005-boe.html "UK credit card borrowing rises by most since 2005 – BoE") details, firmly placing it behind secure IT systems. The group now has full tokenization with end-to-end encryption on the credit card details using the [SIHOT.PAYENGINE](https://sihot.com/) which is backed by a payment provider. **Why seamless payments [enhance the guest](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality") journey** Payments are an important part of the guest journey. When they’re effortless, there’s a real chance to grow revenue by removing the friction and frustration for visitors to continually process payments. One example of the power of frictionless payments is Uber. Instead of drivers processing card payments, or travellers paying in cash, Uber’s app charges you automatically. After your ride, you’re free to go. Now compare the experience of a lot of hotel guests today. The room has a lovely view and the staff are attentive. But the stay starts with a clunky payment [process demanding](https://www.financedigest.com/growth-of-mineral-processing-and-mining-industrie-is-creating-demand-for-rotary-trommel-market.html "Growth Of Mineral Processing And Mining Industrie Is Creating Demand For Rotary Trommel Market") a wait in a line. The same financial [information used to reserve the room](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") has to be manually typed into the PMS. At the end of the stay, check out takes ages because staff have to verify and add various different [payments for goods and services](https://www.financedigest.com/igtbs-payments-services-hub-faq.html "iGTB’s Payments Services Hub – FAQ"). This means hotel staff don’t have [time to attend to guests’ real](https://www.financedigest.com/its-time-for-real-time-accountancy.html "It’s time for real time accountancy ") needs. **Guests have high digital expectations** [Customers today have high digital expectations](https://www.financedigest.com/theres-a-fine-line-between-relinquishing-control-and-accountability-financial-institutions-must-balance-both-to-successfully-cloudify-operations-and-meet-customer-expectations.html "There’s a fine line between relinquishing control and accountability. Financial institutions must balance both to successfully cloudify operations and meet customer expectations") and want as frictionless an experience as possible. For millennials, [payment flexibility](https://www.financedigest.com/the-future-of-payments-flexibility-regulation-and-bespoke-models.html "The Future of Payments: Flexibility, Regulation, and Bespoke Models") is especially important. Some 64% book hotel rooms using their smartphones and 23% have checked into their holiday accommodation using a smartphone, [according to PwC](https://financesonline.com/hospitality-statistics/). A hotel’s ultimate goal should be to provide a smooth omnichannel experience. They need to create various touchpoints to offer guests whatever payment methods they want when it suits them, improving conversion rates and revenue. With the technology available today, there’s no [reason to make guests](https://www.financedigest.com/3-reasons-why-you-should-build-backlinks-with-guest-blogging.html "3 Reasons Why You Should Build Backlinks With Guest Blogging") wait in line – or to weigh staff down with repetitive payment transactions. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---