Technology that drives bookings: discover the power of flexible payment

Hotels like yours have the possibility of employing new tools that not only optimize the customer experience, but also strengthen your direct channel in a context in which consumption patterns are changing rapidly. One of these tools is the"Buy Now, Pay Later" (BNPL) payment model.

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What is BNPL and why is it gaining ground?

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BNPL is a form of short-term financing that enables the consumer to pay in fixed installments without interest or complicated procedures. Although it is well established in e-commerce and online travel platforms, its direct implementation in hotels is still in its infancy, which represents a competitive opportunity.

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Data of interest:

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• 4 out of 10 travelersare already paying for their vacations in installments (AgentTravel).

• In Europe, in the face of rising prices, 1 in 3 travelers are opting for solutions such as BNPL to continue traveling without compromising their economy according to a KANTAR study on the uses of payment in Europe.

• Intelligent payment management can increase transaction success by up to 35%, reduce operational costs and speed up refunds and cancellations (Craftgate).

According to Hosteltur, this system is being consolidated in the tourism sector as a tool to improve customer experience and increase direct sales revenues.

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Concrete benefits for the hotelier

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1. Increase in the average booking price
   By offering payment flexibility, travelers tend to book longer stays or higher category rooms.

2. Reducing cancellations
   The financial commitment involved in BNPL reduces booking volatility, especially at a time when 71% of travel companies have seen refunds for free cancellation grow. (AgentTravel - Four out of ten travelers will pay in installments for their summer vacation go to article).

3. Attracting new segments
   BNPL is particularly attractive to Generation Z travelers and millennials, who appreciate having control over their monthly liquidity and choose options other than credit cards. A growing portion of the travel market is represented by this group.

4. Less dependence on OTAs
   By integrating BNPL in the direct channel, your hotel can compete with the facilities offered by online agencies, strengthening your direct relationship with the customer.

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There are also other payment methods that do not involve financing but flexibility in payments, adapting to the new needs of travelers and reducing the risk of cancellations.

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Epayments by Roiback: facilitate installment payments on your direct channel

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At Roiback we understand that payment flexibility is key to improve conversion and customer loyalty. With ePayments, you can split, schedule and automate payments for reservationsin your direct channel.

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Thanks to ePayments, hotels like yours can offer installment payment methods similar to BNPL, without relying on intermediaries. This functionality allows:

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• Design customized collection strategies, adapted to each client's profile.

• Reduce the risk of cancellations by establishing progressive payment commitments.

• Improve the booking experience by offering options that fit the traveler's financial reality.

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Roiback customers who are already taking advantage of it:

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Pilar Vizcaíno, Senior Revenue Manager at Seramar Hotels, a chain of two hotels in Mallorca (Spain), explains her experience with ePayments:

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"With the implementation of the ePayment Manager tool, in addition to being able to tokenize all transactions, we have been able to implement our strategy of a new pricing structure that consists of the flexibility of deferred scheduled payments, facilitating conversions with increased lead time for the season.This facilitates conversions with a longer lead time for the season.

‍At the operational level, by automating the collection of payments according to the rules created, there is no need for manual management of collections through the gateway.

We have increased conversion by +23% vs. last year same sales date in just a short period of 5 months. In addition, we are managing to guarantee bookings not only with prepayments and scheduled payments, but we have the guarantee of being able to automatically apply the cancellation fees of flexible rates. On the other hand, we have managed to to emulate the payment methods of other agencies or tour operators. or tour operators that allow their client alternative forms of payment."

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Discover the full Seramar Hotels Case Study here.

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What do you need to implement ePayments in your hotel?

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The integration of installment payments requires consideration of some key technical aspects:

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• Have the Roiback booking engine active.  

• Have a payment platform integrated with ePayments.

• Risk management: establish clear policies on cancellations, refunds and penalties.

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Conclusion

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The BNPL model or other flexible payment methods are not just a trend: they are a direct response to the traveler's new needs. Integrating them into your hotel's direct channel, especially through solutions such asRoiback ePayments, allows you to be more competitive, profitable and closer to your customers.

Are you ready to offer more flexibility and improve your results?

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With Roiback, the future of direct payment is now available .

Contact us if you want to know more about ePayments.

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