Let’s be honest: getting guests to your website isn’t the hard part anymore. The real challenge is getting them to actually hit that ‘Book Now’ button. And more often than not, the drop-off happens at the very last step: the payment.
NB: This is an article from Hotelchamp
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Guests expect booking a room to be just as simple as the apps they use every day. They want payment options they know and trust, in their own currency, on the device they always use. And if they don’t see it? They’ll book somewhere else.
That’s why your booking engine’s payment experience is one of the biggest levers for improving conversion. Localised and flexible payment options can truly remove the barriers to booking. And offering that can be the difference between losing a booking and securing it, without an OTA taking a cut.
Let’s look at why payment options are such a dealbreaker for guests.
The payment gap in hotel booking engines
Booking abandonment is a serious revenue drain. Studies show abandonment rates in travel & hospitality often hover around 80%. Here’s why:
- Too few options (only credit card when guests want PayPal or Apple Pay)
- No local methods (missing iDEAL, Bancontact, Sofort, Alipay, UPI – depending on the market)
- Currency mismatch (prices not shown or payable in guest’s local currency)
- Slow or clunky checkout (especially on mobile)
Because guests are used to one-tap payments or locally trusted methods for almost everything online, they expect the same from hotel websites. When your booking journey feels rigid, OTAs instantly seem easier.
5 ways better payment options drive conversions
Here are the most impactful ways better payment options support higher conversion rates.
1. Reduce cart abandonment
Abandonment is a major source of lost revenue for hotels. Guests can spend a long time comparing rooms, selecting extras, and entering their details, but the moment they don’t see their preferred way to pay, they quit. It’s not frustration, it’s instinct. People simply stick with what feels familiar.
By offering localised hotel payments (like iDEAL for Dutch guests or Alipay for Chinese travellers) alongside flexible methods such as PayPal, Apple Pay, or Klarna, you remove that final barrier. Guests stay on your site, complete their booking, and never have a reason to look elsewhere.
