Why are Mobile Wallets a Good Investment for Hotels?
Travelers want the convenience of hotel technology during their hotel stays and more hotels are making the investment. The 2023 Lodging Technology Study surveyed 18,000 properties worldwide and discovered that hoteliers are embracing contactless/self-service technology. The study found that 88% of hoteliers currently offer or plan to offer contactless payments in 2023 and 90% of hoteliers felt that contactless payments had high potential for the Hospitality Industry. One way that hoteliers can offer guests a seamless hotel experience is by using mobile wallet technology. Mobile wallets offer hotels a range of benefits including increased guest satisfaction, increased revenue and brand awareness.
How can Hotels Benefit from Mobile Wallets?
Streamlined Check-in Process
With mobile wallets, guests can easily store their payment information, loyalty program information, and reservation details in one place, making check-in faster and more convenient.
Contactless Payments
Mobile wallets enable guests to make contactless payments using their smartphones, reducing the need for physical credit cards or cash, and helping to maintain hygiene and safety standards.
Seamless Room Service
With mobile wallets, guests can easily order room service and make payments through their smartphones, without having to call or visit the front desk.
Personalized Offers
Hotels can use mobile wallets to send personalized offers and promotions directly to guests, based on their previous stays and spending habits.
Loyalty Programs
Mobile wallets can store loyalty program information and enable guests to earn and redeem rewards seamlessly.
Guest Satisfaction
Mobile wallets offer a seamless and convenient guest experience, which can lead to higher levels of guest satisfaction and positive reviews.
Data Analytics
Mobile wallet transactions can provide hotels with valuable data and insights into guest behavior and preferences, which can be used to improve services and offerings.
Reduced Costs
By streamlining check-in and payment processes, hotels can reduce costs associated with manual processing and paperwork.
Improved Security
Mobile wallets use advanced security features, such as biometric authentication and tokenization, to protect guests’ payment information and prevent fraud.
Sustainable Practices
By reducing the need for physical credit cards and receipts, mobile wallets can help hotels reduce paper waste and promote sustainable practices.
How can Hotels use Mobile Wallets to Increase Revenue?
Offer Discounts and Promotions
Hotels can use mobile wallets to offer guests exclusive discounts and promotions, such as room upgrades, complimentary meals, or discounted spa treatments. These offers can be targeted to specific guests based on their past spending habits and preferences.
Cross-Sell and Up-Sell
Hotels can use mobile wallets to promote other products and services, such as restaurant reservations, spa treatments, or local activities. By offering these services directly through the mobile wallet, hotels can make it easier for guests to book and pay for additional services.
Loyalty Programs
Mobile wallets can help hotels increase revenue by encouraging guests to participate in loyalty programs. By offering rewards for repeat stays and purchases, hotels can incentivize guests to spend more and stay longer.
Contactless Payments
Mobile wallets can help hotels increase revenue by reducing payment processing times and improving the overall guest experience. By enabling contactless payments through mobile wallets, hotels can reduce transaction times and increase the number of payments processed per hour.
Personalized Offers
Mobile wallets can help hotels increase revenue by offering personalized offers and promotions based on guest data. By analyzing guest spending habits and preferences, hotels can offer tailored offers and discounts that are more likely to convert into revenue.
Room Service
Hotels can use mobile wallets to make it easier for guests to order room service and pay for meals directly through their smartphones. By offering this convenience, hotels can increase the likelihood that guests will order room service and increase revenue.
Partner with Mobile Wallet Providers
Hotels can partner with mobile wallet providers to offer special promotions and discounts to guests who use their wallets. This can help hotels attract new guests and increase revenue from existing guests who are more likely to use mobile wallets for payment.
Types of Mobile Wallets
There are several types of mobile wallets that hotels can invest in, depending on their needs and target audience. When choosing a mobile wallet to invest in, hotels should consider factors such as their target audience, payment preferences, and desired features. It’s also important to choose a mobile wallet that offers strong security features to protect guests’ payment information.
Closed-Loop Mobile Wallets
These are mobile wallets that are specific to a particular hotel or group of hotels. They typically offer features such as loyalty programs, discounts, and special offers for guests who use the wallet. Examples include Marriott Bonvoy, Hilton Honors, and IHG Rewards Club.
Open-Loop Mobile Wallets
These are mobile wallets that can be used at multiple hotels and other merchants. They typically support multiple payment methods, such as credit cards and debit cards, and may offer additional features such as loyalty programs and discounts. Examples include Apple Pay, Google Pay, and Samsung Pay.
Contactless Payment Apps
These are mobile apps that enable guests to make contactless payments using their smartphones. They may support multiple payment methods and can be used at a variety of merchants, including hotels. Examples include PayPal, Venmo, and Cash App.
Digital Wallets
These are mobile wallets that enable guests to store multiple payment methods and use them for online and offline transactions. They typically support credit cards, debit cards, and other payment methods, and may also offer features such as loyalty programs and discounts. Examples include PayPal, Alipay, and WeChat Pay.