Cashless Payments Are Essential for the Hospitality Industry's Relevance
Cashless payments provide more convenience for both consumers and businesses, are a faster payment method and are seamless. Some industries are going completely cashless, but this isn’t the case for the hospitality industry even though it has a specific need to accept cashless transactions: tourism.
Using cashless payment methods such as credit or debit cards helps tourists travel around the world without having to exchange money. This is especially the case since the widespread implementation of EMV-chip cards, which provide an extra layer of security to consumers, allowing travelers to spend without needing to request any special permission from their bank.
The hospitality industry is also a 24/7 industry, with guests checking in and out at all hours of the day. Since the pandemic, the service industry in general has struggled to maintain stable levels of employees. These two reasons justify the implementation of unattended business models at hotels, such as vending machines and micro markets. Staff isn't always available to serve customers, especially in the middle of the night, and therefore a convenient spot to purchase food at a hotel lobby or on every floor is a great way for hotels to increase their revenue by providing more convenience to the consumer.
Advancements in card management and prepaid card technologies can also help hotels increase their revenue. They can add payment capabilities to guests' room cards, allowing them to use the card to pay for snacks and meals at micro markets, vending machines, or coffee machines without needing a staff member on site. The card will keep track of all transactions, and the guest will pay at checkout, creating a smooth, fast experience. This system is simpler and more efficient than a mini bar, because mini bars require staff to count what has been consumed which can lead to uncertainties and the risk of theft and shrinkage. Micro markets and vending machines also offer a greater variety of products, increasing customer satisfaction at hotels. For locations that cater to a specific clientele, adding an on-premise laundromat, with payment via the guest room card can allow for an even more all-inclusive experience.
Beyond giving hotel guests a convenient way to access and pay for snacks, meals, and other services, adding payment capabilities to room cards can also help encourage loyalty programs. Loyalty club members can create an account with the hotel or hotel chain and accrue points, not only for special prices on hotel rooms, but for other perks such as free amenities.
On top of vending, micro market and laundry services, there are other revenue streams that the hospitality industry can expand into by adopting cashless in their operations. Installing EV charging stations in their parking lots will encourage EV drivers to choose their hotel, ensuring that the hotel won’t miss out on the increasing number of EV drivers looking for this service. EV charging can also be monetized by the hotel directly instead of by an external company and can also be included in guest loyalty offerings.
Cashless payments are essential for the hospitality industry, as they not only create a more convenient experience for guests and tourists, but help hotels stay ahead of the curve and expand into new revenue streams.