After the holidays, most lodging management companies see things slow down for a little bit. Although a seasonal slowdown may translate into fewer guests and lower revenue, you can use this time to focus on other aspects, such as finding new profit and growth opportunities for your company. Switching to credit and debit card payments over cash and personal checks could be one of those opportunities.
Top Reasons to Opt for Credit and Debit Card Payments
When it comes to choosing between credit and debit card payments, on the one hand, and cash and personal checks, on the other, we must admit that each payment method has its own pros and cons. While your choice will ultimately come down to which payment options work best for your company, one important thing to consider is that people increasingly prefer digital payments to traditional methods, like cash and personal checks. In addition to taking into account travelers’ preferences for digital payments, opting for credit and debit card payments instead of cash and personal checks could bring your business a few significant benefits. Here are the most important ones:
The vacation rental management companies that accept digital payments are more likely to appeal to a higher number of travelers. The number one reason for this is the convenience they offer. For example, a traveler can book a vacation rental from the comfort of his or her home almost instantly by simply providing his or her credit or debit card information. Since instant booking enables travelers to book a vacation rental when it attracts their attention, opting for a payment processor that allows you to accept different types of digital payments is a great way to increase your revenue. This could have a positive impact on your company’s profit and growth strategy.
On the other hand, booking a piece of property instantly online wouldn’t be possible with cash or a personal check. Thus, by not accepting digital payments, you basically make it difficult for travelers to book your properties online—that could drive them away from your business.
More Secure Transactions
Although digital payments may carry some risks, they’re perhaps the most secure types of transactions for lodging companies and guests alike. To begin with, when a traveler pays with his or her credit or debit card instead of cash or a personal check, the amount is pulled directly from his or her bank account. If funds are insufficient, suspicious activity is detected, or inaccurate payment information is provided, the transaction is declined, and your vacation rental will continue to be available for rent.
Conversely, in the case of cash and check payments, many things can go wrong. Let’s consider two possible scenarios: first, a traveler who agrees to pay the security deposit as well as a portion of the total reservation amount in cash upon check-in, and the remaining balance upon check-out; second, a traveler who pays the entire reservation amount and security deposit with a personal check upon check-in.
In the first scenario (which we are pretty sure isn’t allowed anywhere), the guest may leave the property before the check-out time and without paying the remaining balance. In the second scenario, the guest might not have enough money in his or her account to cover the payment. Both of these situations could lead to significant losses for your company. Third, the cash could be counterfeit, as most of the cash would most likely be large denominations.
A few more things you should know about digital payments is that, when a guest books directly through your website, the amount is usually deposited into your bank account within 24 hours. If the booking is made through some OTA’s, the payment is often released shortly after the guest has checked in. Not only do all these mean more secure and timely payments, which will translate into a better cash flow for your business; you also don’t need to worry about counterfeit money, bounced checks, and guests who may leave without paying for their stay.
Competitive Services That Provide More Value to Guests
The vacation rental market is a highly competitive industry sector in which lodging management companies compete with each other for the attention of the same travelers. To attract more travelers, it’s important to find new ways to stand out from the crowd. One way to do that is to offer services that not all of your competitors provide.
While most payment processors enable businesses to receive credit and debit card payments, some of them provide additional services that you can use to offer your guests greater payment flexibility and even allow them to collect reward points while staying at your properties.
Choosing credit and debit card payments instead of cash and personal checks is a win-win scenario for your company and guests alike. The easiest way to integrate digital payments into your existing system is to opt for our lodging management solution that comes equipped with advanced payment processing capabilities. But besides allowing your company to accept all types of digital payments, our system can perform a wide variety of operations, giving you peace of mind and maximizing your company’s returns. To find out how you can set up and customize a perfect system integration process, you can book a free 30-minute consultation with us.