How cashless payments can help hotels on the road to recovery

Few industries have been hit as hard by the pandemic as the hospitality sector.

Research by the American Hotel & Lodging Association shows hotels have already lost more than $46 billion in room revenue since the coronavirus started escalating in the United States and are currently on pace to lose up to $400 million in room revenue per day. Reaching historic low occupancy rates, hotels can only expect it to get worse. 

Even as travel restrictions slowly begin to lift as states reopen, STR and Tourism Economics predict U.S. hotel demand will not return completely to pre-pandemic levels until 2023. As the world waits for economic stability and a return to “normal” life, now is this time for hoteliers to reimagine success and plan out a clear path to recovery. 

Prioritizing safety and hygiene 

Beyond installing hand-sanitizing stations and conducting temperature checks for guests in the months to come, hotel stays are going to look very different from what guests are used to as safety and cleanliness become top priority. Any potential source of contamination or transmission is now under close scrutiny as travelers arrive and depart. 

Elevators might be limited to one guest per ride, and guest room cleaning processes will be reevaluated. High-touch areas like buffets, communal tables, coffee and tea stations, touchscreen kiosks and mini bars are looking like a thing of the past in an effort to put guests’ minds at ease. 

Moreover, payment systems within hotels will need to be completely restructured to become cashless and contactless to mitigate any safety risks. Hoteliers will need to carefully rethink the check-in/checkout process and any area that requires the exchange of cash or credit and debit cards. 

Historically, cash has been known to carry various bacteria and viruses, including influenza, which can live on bills for up to 17 days. As physical cash is circulated from person to person, there’s no telling what kind of germs are picked up along the way, and PIN terminals and credit and debit cards are no exception to this truth.

Simply put, the hand-to-hand exchange of cash, cards and pens are considered a major risk factor for transmitting the virus, and neither staff nor guests would prefer to handle anything for the foreseeable future. Lengthy transactions also slow down service, leaving people to wait in lines at close contact for longer periods of time than necessary. 

Putting cashless payments front and center

While not all guests pay for their hotel rooms with cash, there are still plenty of activities where cash is the main form of payment, such as tipping wait staff, bartenders or room or cleaning services. 

On the other side of these activities are hotel staff who are put at risk every time they have to handle, count and recount the cash inside registers before handing it all over to bank tellers, who have to handle and count the cash again. These very tedious processes are not only time-consuming and leave room for human error, but they’re also increasing the likelihood of spreading germs. 

Fortunately, resorts and hotels around the world are beginning to phase out cash not only to eliminate human-to-human touch points, but also to streamline business operations. 

Cashless systems are opening the door for hotels to access a wealth of data that can be used to create seamless, personalized experiences for guests and a fully integrated customer view, enhancing their stay and increasing consumer spending and loyalty.

Hotels and all-inclusive resorts are beginning to discover that innovations like digital payments through keycards can guarantee guests a unique, frictionless, safer and more enjoyable experience. This is because cashless transactions create an environment where, from arrival to departure, a guest can enjoy the freedom of movement without stop points and checkpoints. 

Guests can put a prepaid amount onto their keycard (powered by RFID technology or white-label mobile pay) or hotel app and use this for contactless payments across the grounds, whether they’re dining or at the bar. Most importantly, the benefits of the right cashless solution are huge for hotels and resorts. 

By utilizing cashless payments, hoteliers can access data on guest behavior, from foot traffic around the resort and favorite locations and products (even what time of drink they ordered at the bar), to spending patterns and frequency. Owners can build up a very clear view of each individual guest and their experience not just once, but every time they stay at the hotel. This enables properties to tailor hotel rewards based on guest preferences. 

With these insights, hoteliers can maximize operational efficiency to better serve their patrons and create positive experiences that will keep wary guests coming back following the COVID-19 outbreak.

Ultimately, restructuring payment systems within hotels to become cashless and contactless is key in mitigating safety risks beyond those quick fixes like temperature checks. There is huge potential for the hospitality industry to bounce back by minimizing human contact and handling of dirty cash, as well as adding value to every guest’s experience. 

Eliminating touch points while understanding guest behaviors will allow guests to feel more at ease about traveling and entice them to stay longer or more frequently once the coronavirus is behind us.