The hospitality industry has consistently led the way in adapting to the ever-changing needs of travelers and guests.
NB: This is an article from Cendyn, one of our Expert Partners
One notable innovation that has recently gained substantial momentum is the “Buy Now, Pay Later” (BNPL) payment option. This innovative payment solution is revolutionizing the way travelers make reservations, dine at restaurants, and access a wide range of services within the hospitality sector.
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What is Buy Now, Pay Later!
Buy Now, Pay Later is a modern, consumer-friendly payment model that has gained significant popularity in recent years. It offers consumers the flexibility to shop for their desired products or services and then defer payments to a later date. This payment method typically divides the total transaction amount into smaller, manageable instalments, which can be paid over a specified period. This approach not only empowers consumers to make purchases they might not have considered otherwise, but also provides them with greater financial control and convenience.
Buy Now, Pay Later in the hospitality industry
In the hospitality industry, the BNPL payment method is a game-changer as it allows travelers to enjoy accommodations, dining, and various services without immediate payment, providing greater flexibility and convenience. It’s reshaping the way guests experience hospitality, making it easier to enjoy the best without financial constraints.
The significance of integrating Buy Now, Pay Later in your hotel booking engine
BNPL has revolutionized how travelers secure their accommodations. Rather than requiring an immediate full payment upfront, they can book their stay and choose to spread the cost over several weeks or months. This level of flexibility is especially appealing to budget-conscious travelers and those planning extended stays. The integration of the BNPL payment method within the booking engine is imperative to boost direct bookings and overall profitability.
Here are some compelling benefits of integrating the BNPL payment method with your booking engine:
- Attracting a wider audience: BNPL offers travelers greater flexibility when booking accommodations. By integrating BNPL with the booking engine, guests can reserve their stays without the immediate financial burden of paying the full amount upfront. Not all travelers have the financial means to pay for their entire stay in advance. By offering BNPL as an option, hoteliers can cater to a broader range of travelers, including budget-conscious travelers, families, and those who prefer to manage their expenses over time.
- Amplified booking conversions: Simplifying the payment process can lead to higher conversion rates and reduced booking abandonment rates. When guests can choose BNPL at the point of booking, it reduces friction in the reservation process by letting travelers split their payments in installments for a later time.
- Drive guest loyalty: When guests have positive experiences with BNPL, they may be more likely to return to the same establishment. The convenience of deferred payments can build guest loyalty and encourage repeat business.
- Competitive advantage over other hotels: As the adoption of BNPL continues to grow across various industries, offering it in your hotel’s direct booking channel can give your hospitality business a competitive edge. This demonstrates that your business stays up-to-date with market trends and evolving preferences. Travelers are likelier to choose establishments that provide payment options aligning with their financial preferences.
- Boost revenue: BNPL can encourage guests to make additional bookings, opt for extended stays, and utilize more paid services at your hotel since they can spread out their payments. This can lead to an increase in the average traveler’s value for your hotel.
- Data insights: A booking engine with an integrated BNPL service can provide valuable data and insights into each traveler’s preferences and spending habits. The information can further tailor marketing strategies more effectively.
Integrating the BNPL payment method with your booking engine can offer numerous benefits, from enhanced customer satisfaction to increased direct bookings. By providing this flexible payment option, you can better serve the diverse needs of your guests while positioning your business for success in a rapidly changing hospitality marketplace.
Cendyn Booking Engine seamlessly integrates with “Uplift,” a third party Buy Now Pay Later solution that empowers hoteliers to provide a BNPL payment option for their guests. Additionally, with its array of advanced features like dynamic pricing rules, geo-fenced promotions, responsive design, superior merchandising, integrated upsell opportunities, loyalty integration, and more, hoteliers can unlock new opportunities for revenue growth, enhance guest satisfaction, and stay ahead of industry trends.
