By Lauren Hall, CEO and Founder of iVvy - 11.3.2024
Guests expect convenience and flexibility at every turn – including when it comes to paying for their hotel experience. One powerful, yet often overlooked sales strategy is offering flexible payment options. By meeting these expectations, you can attract more bookings and enhance the overall customer experience.
Discover how payment flexibility can be a game-changer for your hotel sales strategy – and how to use it.
Understanding Payment Flexibility
Making sure guests have plenty of payment options and terms that work for them is what payment flexibility is all about. This could mean accepting different payment methods like credit cards, digital wallets, and bank transfers, and offering flexible payment plans such as instalment payments or pay-at-checkout options. By giving guests a range of ways to pay, you make it easier for them to book with your hotel, significantly impacting your sales.
And remember, payment flexibility isn’t just about hotel guests – it also applies to meeting and event planners, private hiring, and any other sales happening in our hotel space.
Meeting Guest and Client Expectations
Today’s travelers and event planners are accustomed to the seamless payment experiences they encounter with online retailers and service providers. They expect the same level of convenience and choice, whether they’re booking a hotel room or hiring out venue space. By offering flexible payment options, you meet these expectations head-on, reducing friction in the booking process. This can be particularly appealing to millennial and Gen Z travelers and professionals, who often prioritize convenience and technological integration in their purchasing decisions, as well as corporate clients looking for efficient and straightforward payment solutions.
Attracting a Broader Audience
Payment flexibility can help you tap into a broader market. Different guests and clients have different financial situations and preferences. Some might prefer to pay in installments to manage their cash flow better, while others might choose to use digital wallets like PayPal or Apple Pay for added security and convenience. By catering to diverse needs, you can attract a wider audience, including those who might otherwise be deterred by limited payment options.
Implementing Installment Payments
One of the most effective ways to offer payment flexibility is through installment payments. This option allows guests and clients to spread the cost of their stay or event over several months, making it more manageable for them. For instance, a guest might prefer to pay for a week-long vacation in three or four installments rather than a lump sum upfront, or an event planner might find it easier to budget for a venue space by paying in installments.
By partnering with a venue payment service provider like iVvy Pay that offers installment plans, you can seamlessly integrate this option into your booking process. Ensure that the terms are clear and transparent, so guests and clients know exactly what to expect. This builds trust and encourages more bookings.
Implementing Flexible Cancellation Policies
Payment flexibility isn’t just about how guests and clients pay but also about how they manage their bookings. Offering flexible cancellation policies can significantly enhance the guest and client experience and boost sales. For example, allowing guests to cancel or modify their reservations without penalty up to a certain date can provide them with peace of mind and encourage them to book with confidence. Similarly, offering flexible terms for event cancellations or postponements can make your hotel’s venue space more attractive to event planners.
Guests and clients appreciate the ability to make changes to their bookings as their plans evolve. For hotel sales, this flexibility can translate to more revenue. Just make sure your policies are clearly communicated during the booking process to avoid any confusion or frustration.
Promoting Your Flexible Payment Options
Once you’ve implemented flexible payment options, you need to promote them effectively in your sales strategy. Use clear and compelling language to communicate the benefits of flexible payments, such as convenience, security, and choice.
Consider creating targeted marketing campaigns to showcase your flexible payment options to different segments of your audience. For instance, you might run a campaign focused on promoting installment payments for families planning summer vacations or digital wallet options for tech-savvy millennials. For event clients, emphasize the ease and security of your payment solutions for venue hires.
Monitoring and Adapting Your Strategy
As with any strategy, it’s essential to monitor the effectiveness of your payment flexibility options and adapt as needed. Use analytics to track booking patterns, conversion rates, and feedback related to your payment methods. This data can provide valuable insights
into what’s working and where there might be room for improvement, allowing you to refine your approach and maximize sales opportunities.
Stay informed about emerging payment technologies and trends to keep your hotel sales strategy at the forefront of the industry.
Greater Payment Flexibility for Increased Hotel Sales
By incorporating flexible payment options, you can remove barriers to booking and make it easier for guests and clients to choose your hotel. This can lead to higher occupancy rates, more venue hires, and ultimately, more hotel sales.
Take a closer look at your hotel’s current payment options and consider how they can be more flexible or inclusive. By doing so, you will not only improve your sales performance but also build a reputation for exceptional service and adaptability. Your guests, your clients – and your bottom line – will thank you.
Lauren Hall is the CEO and Founder of iVvy, a a renowned software company that provides automation and cloud-based technology to help venues fill their function calendars and planners create unforgettable events. Lauren’s passion for entrepreneurship and over 25 years of business management experience at the executive and board levels make her a highly successful businesswoman. She has built multiple companies from startup to strategic and financial exit in various industries, including manufacturing, retail, advertising and technology, both in South Africa and Australia. Lauren co-founded iVvy in 2009 and has since overseen its growth to 10,000+ clients in 13 countries, expanding to New Zealand, Asia, Europe and North America.
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