# How fintechs are supporting the hospitality industry Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-04 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Emerging Fintech Innovations Transforming Hospitality Meta Description: Discover how fintech solutions are transforming the way hotels operate, from seamless payment systems to personalised services. Find out more here! URL: https://financedigest.com/how-fintechs-are-supporting-the-hospitality-industryhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1288104376-1736816002819-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/14-450x675-1736816002776-compressed.jpg)_ _By **Dr Albian Albrahimi**,_ _Lecturer in Finance_, _Les Roches Global Hospitality Education_ Fintechs have experienced a significant development over the last five years. Some smart technologies are emerging with obvious potential for the hospitality industry such as making booking reservations and payments, often linked to management systems of access to rooms and services. The pandemic has [accelerated the implementation of these innovations](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-linear-accelerator-market.html "Innovation at periodic intervals to upscale the Linear Accelerator Market"). The field of [hospitality was transformed by Covid](https://www.financedigest.com/the-icu-is-full-medical-staff-on-frontline-of-chinas-covid-fight-say-hospitals-are-overwhelmed.html "‘The ICU is full’: medical staff on frontline of China’s COVID fight say hospitals are ‘overwhelmed’"). The lockdowns prompted [customers to purchase](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") online, while health reasons were driving the adoption of frictionless payments and other connected apps for check-in without contact at the reception desk. Traditional face-to-face sales or cash payments in hotels and restaurants vanished in favour of [credit cards](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"). But it had also promoted the rise of E-wallets – mobile wallets – example such as [Apple Pay](https://www.financedigest.com/supporting-apple-pay-integration-in-japan.html "Supporting Apple Pay Integration in Japan"), Alipay, Moneo in France, Clearpay in the UK, Twint in Switzerland, or M-Pensa in Kenya. However, when it comes to payments with existing systems in hotel management, there are several issues especially for the booking process: global acceptance of various wallets, client no-show despite a reservation, mistakes with credit card information (5% of transactions), [fraud to stolen credit cards](https://www.financedigest.com/uk-card-fraud-losses-climbed-18-percent-in-2015-largest-rise-in-europe.html "UK CARD FRAUD LOSSES CLIMBED 18 PERCENT IN 2015, LARGEST RISE IN EUROPE"), even sometimes malicious customers claim they did not stay in the hotel and ask for a refund from their credit card. Therefore, a host of companies from the fintech side are helping to [solve those issues](https://www.financedigest.com/how-the-financial-services-industry-can-solve-the-issue-of-vulnerable-code.html "How the financial services industry can solve the issue of vulnerable code"). One is ECOMMPAY, an international [payment service](https://www.financedigest.com/igtbs-payments-services-hub-faq.html "iGTB’s Payments Services Hub – FAQ") provider for mid-sized and large businesses, and they have developed a simple payment solution to Accor Hotels. They [provide a platform](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") where the customer has their credit card data registered and verified. Then, the client has to approve each transaction using the 3D [payment security](https://www.financedigest.com/allpay-signs-with-eckoh-to-secure-telephone-payments.html "allpay signs with Eckoh to secure telephone payments") system. Like when you pay at Uber, you just give your credentials. No matter from where the customer makes his reservations those systems have to be global. At checkout, the client gets a summary of everything that was [consumed and then can pay](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services") directly. Everything is paperless. For the reception it is a virtual terminal. For the booking desk it is a proof of an existing transaction even if the client does not show up. With new [apps you can also open the doors with mobile](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") phones or have menus printed out in hotels. [Client acceptance of these solutions](https://www.financedigest.com/redpalm-enhances-client-engagement-with-vias-advanced-call-routing-solution.html "REDPALM ENHANCES CLIENT ENGAGEMENT WITH VIA’S ADVANCED CALL ROUTING SOLUTION ") is not a matter of technology, it is about the client experience, reinventing processes. Most of the time, if the client understands the benefits, he will subscribe to the innovation. And this even though the system analyses the customer’s behaviour, which is no different to tracking the client through a loyalty programme. Among rewards, the [client is aware that he can get the advantages of a personalised service](https://www.financedigest.com/bny-mellon-strengthens-support-for-treasury-services-clients-in-germany-with-appointment-of-gungor-taner.html "BNY MELLON STRENGTHENS SUPPORT FOR TREASURY SERVICES CLIENTS IN GERMANY WITH APPOINTMENT OF GÜNGÖR TANER") on his/her preferences. [Knowing the customers helps a lot in terms of analysing their needs](https://www.financedigest.com/4-things-you-need-to-know-about-mortgages.html "4 Things you Need to Know About Mortgages"), what they like and their dislikes, and this can be then translated into a way to perform better. The cost of those solutions is presently too high for individual independent hotels, but over time [technology becomes cheaper and it could also be adopted](https://www.financedigest.com/kings-secure-technologies-adopts-agile-flexible-cloud-reporting-access-granular-real-time-financial-information.html "Kings Secure Technologies Adopts Agile and Flexible Cloud Reporting for Access to ‘Granular Real-time Financial Information’"). [Note that it is not bad to let the big players test](https://www.financedigest.com/the-mycotoxin-testing-market-to-grow-on-an-innovatively-cordial-note.html "The Mycotoxin Testing Market To Grow On An Innovatively Cordial Note") these fintech companies until they mature and then once everything is proven that it works properly. It is also the [case with blockchain](https://www.financedigest.com/blockchain-a-case-for-the-general-ledger.html "BLOCKCHAIN: A CASE FOR THE GENERAL LEDGER"). Though lots of expectations are behind blockchain, at this moment, we lack easy-to-implement applications for hospitality. Of course, in the future, [blockchain will be able to connect](https://www.financedigest.com/binance-upgrades-blockchain-bridge-to-connect-defi-and-cefi.html "Binance Upgrades Blockchain Bridge to Connect DeFi and CeFi") different platforms because it is more secure, it is faster and it is also peer-to-peer oriented; applying the technologies for verifying transactions, and simplifying transactions for direct reservations without the middle booker. It is like the [payment by token](https://www.financedigest.com/what-is-card-on-file-emv-payment-tokenization.html "What is card-on-file EMV payment tokenization?"), it will take hold the day the cryptomoney is stable and less volatile. In everyday business life, [innovation is mostly a process](https://www.financedigest.com/how-can-stream-processing-act-as-a-catalyst-for-innovation-in-financial-services.html "How Can Stream Processing Act As A Catalyst For Innovation In Financial Services?") of incremental change. Thinking about the wider market, there is a positive [outlook for the hospitality industry](https://www.financedigest.com/abb-dispels-industrial-gloom-to-raise-full-year-outlook.html "ABB dispels industrial gloom to raise full-year outlook"). The [industry’s recovery](https://www.financedigest.com/5-ways-the-fs-industry-can-support-the-recovery.html "5 ways the FS industry can support the recovery") from the pandemic is accelerating, overcoming the crisis that it has faced. In the first half of 2021, the stocks of the major [hotel groups](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") recovered and outgrew the indexes, and the major organisations began investing massively in new international offerings. [Markets anticipate](https://www.financedigest.com/microfluidic-devices-market-is-anticipated-to-expand-at-a-healthy-cagr-of-24-during-the-forecast-period-2021-to-2031.html "Microfluidic Devices Market Is Anticipated To Expand At A Healthy CAGR Of 24% During The Forecast Period 2021 to 2031") general hotelier sentiment. A survey by Deloitte showed that a [return to normal is expected](https://www.financedigest.com/lufthansa-expects-further-significant-improvement-after-return-to-profit.html "Lufthansa expects further ‘significant improvement’ after return to profit") in the third quarter of 2022. On the investment front, the same report notes that serviced apartments have overtaken hotels to [become the “most attractive asset class to invest](https://www.financedigest.com/uk-becoming-less-attractive-for-investment-manufacturers-warn-2.html "UK becoming less attractive for investment, manufacturers warn") in Europe for 2021″, driven by positive demand fundamentals and leaner costs. It is essential for operators to have a wide range of accommodation solutions, and rooms and apartments are complementary. In fact, Accor’s brand architecture includes 37 brands and Marriott’s includes 37 brands. However, still the [main investments](https://www.financedigest.com/main-reasons-why-not-investing-is-riskier-than-investing.html "Main Reasons Why Not Investing Is Riskier than Investing") go to the traditional hotel rooms. Hilton, for example, has been [growing at the rate of 50 to 100,000 rooms every year](https://www.financedigest.com/the-next-upcoming-years-to-see-the-gastric-electric-stimulators-market-grow-kinetically.html "The Next Upcoming Years To See The Gastric Electric Stimulators Market Grow Kinetically"). They are making their investments pay off. We can have fair [expectations for the future](https://www.financedigest.com/the-immunooncology-market-is-expected-to-grow-on-a-persistent-note-in-the-future.html "The Immunooncology Market is expected to grow on a persistent note in the future"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---