Challenges faced by the Hotel industry

Hotel industry is a ever blooming business. Travel and tourism keeps on growing every year.

Hotel industry is a ever blooming business. Travel and tourism keeps on growing every year. Travellers always look for the perfect accommodation. Due to very high demand in accommodation, the competition is also high in this business. In the crowded travel spots, you can see hotels at each and every locality. High competition is a major challenge in this sector. To reap the high profits, new or existing competitors could significantly reduce rates or provide greater conveniences, services or amenities, or significantly expand, improve or introduce new facilities in the markets.

The increase in mobile traffic and the importance of metasearch engines, the emergence of voice searches and the need to respond to an always-connected user are the main hotel industry challenges for 2019. These are some of the conclusions drawn from the event organized by Roiback, specialist and leader in the management of the direct channel of hotel sales, together with Google and Palladium Hotel Group, during FITUR (the International Tourism Fair held in Madrid, Spain).

The event has brought together 150 participants among hoteliers, decision makers and media. Paola Amoruso, Head of Channel Sales in Spain and Portugal of Google, has analyzed the current consumer, defining him as “super curious, very demanding and impatient”. In a context where, every day, the active buyer does 1.5 searches about its next trip, Amoruso highlighted the importance of understanding that digital buyers are always active and connected and that do not depend on seasons: “they search all the time, so hotels should always be there to not lose sales.”

Amoruso also defined mobile as the “device on the go” and highlighted that only 1 of each 4 users continue their reservation with a company or a brand that has a slow mobile site or app, moreover, over 50% of travelers have a negative perception of a brand if they have a slow mobile site or app. On this matter, Rebeca González, Managing Director of Roiback, explained that the mobile channel is one of the biggest challenge hotels face: “Mobile traffic has grown exponentially in recent years, reaching over 50% of the total traffic on hotels websites. 30% of Roiback’s total bookings are made through the mobile channel with an impressive annual growth year after year and the trend is to keep rising over the next few years. Those hotels that do not have an optimal mobile solution will see their sales and profitability negatively affected this year.”

 

González also underlined that 2019 is foreseen to be “an uncertain year, with a possible weakening of the demand”. Another of the main keys of hotel distribution and which allows to compete with the OTAs to optimize the direct channel are loyalty programs: “Hotels have a huge challenge to catch the direct customer. Currently, there is a fierce fight on the part of big hotel chains and OTAs to ‘take over’ the clients. This means that for the other chains and independent hotels is key and a strategic factor to have a loyalty program.”

 

Improper marketing effort:
As the technology is improving day by day, there are lots of options available for the hotels in capturing their market space online. But according to a recent survey in the year 2016, almost 70% of the hotels across the world still follow the old marketing practices. Due to poor marketing efforts, sales and brand recognition gets affected to high extent.
“Hotels need to utilize the online technology such as digital marketing & social media promotions effectively, to reach their potential customers” – Says, Ramesh Devangodi, Owner of a popular Indian restaurant in Edmonton, CA.

Energy management difficulties:
Investing in renewable & eco-friendly resources can help in improving your hotel’s overall profit margin. Tourists prefer to accommodate themselves at an environmental-friendly hotel room rather than a ordinary hotel room. With rising electricity prices and increasing pressure to cut carbon emissions, saving energy is the no.1 on a hotelier’s priority list. There are two solutions for effective energy management. One is voltage optimisation, which works to reduce the incoming power to premises for reducing the energy consumption and protect electrical equipment. The other is energy management systems, which switch on and off appliances depending on the occupancy of a room.

Poor customer satisfaction:
With the lack of food resources and staffs, most of the hotels provide low-quality foods to their customers. Once you get a bad recognition in your area / locality / city, it is very difficult to regain the good position. From a hotelier’s point of view, customer satisfaction is nothing but providing the good quality foods, amenities, customer support, etc..

Lack of productive chefs and managers:
Finding the right cooks, labors and managers may be a difficult task, especially if you are small hotel owner. Usually, five star hotels (luxurious accommodation providers) recruit professional cooks at high cost. Hence it is a hectic job for the low-budget hotels to find the right persons.

High service rates:
Whether you provide a high-quality or low-quality service, make sure it is affordable to the end users. High service rates can divert the visitors to your competitors. Provide lodging rooms at reasonable rates. Service rate should match with the facilities of your hotel. Avoid taking commissions, high tax charges, etc…

Cleanliness issues:
Make sure the lodging rooms have clean, odour-free, eco-friendly and spacious conditions. This would help to drive more visitors to your hotel. As hospitality businesses usually operate around the clock and slow periods in which staff can conduct some minor cleaning are never guaranteed; many companies choose to hire a professional cleaning service. This is the best way to ensure that all the requirements are met and it doesn’t mean you have to take valuable time out of your day to enforce the fact that everything is completed.

No proper transportation facility:
Hotels should be ready to provide transportation facility 24×7 from all the major pick-up points of a city or town. Even a small cab / van from the major spots (airports, tourist destinations, etc) can make a huge improvement in your hotel business management. Transport facility is a must for hotels situated in the remote locations.

Security challenges:


This is one of the major problems in hotel industry. Different types of security challenges are,

1. General theft and other crime
2. Public violence
3. Terrorism
4. Armed robbery
5. Credit card fraud
6. Cyber crime issues
7. Identity theft
8. Sexual abuse on women
9. Racial discrimination
10. Risk of food poisoning

 

How does a secure payment processing solution helps Hotel industry?

In today’s rapidly advancing technological structure, online shopping, online booking and registration and online payment is what is coming to be the expected payment processing solution for all industries, especially hospitality. No longer should guests have to come into your hotel, pay for their room, spa service or other amenities in person. All those features should be readily available on your website for their convenience. The biggest benefit to an E-Commerce payment processing solution is that it is fully customizable and can integrate into your everyday operations. A guest can easily log onto your hotel’s website, choose a room that they desire, choose a package for a service that they desire, and securely and efficiently pay directly online through your E-Commerce payment processing solution. This not only will increase efficiency on your end, as all transactions will be tracked online through a clear and effective reporting system, but the guests feels comfortable and hassle free, as they simply check into the hotel with their confirmation number and personal information. A great way to reduce line-ups at your front desk, and allowing you more time to focus on catering to the needs of those staying at your hotel.

Not all the challenges in hotel industry are unique, but many are common in hospitality as well as in other industries. A question of security is not a new one. Threats of digital data theft, virus attack and confidential data leaks are a big matter of concern for hoteliers globally.
Understanding the scenario, you must go for a payment gateway that has enabled high-security features preventing hotel data leaks. This way you create a credibility for your hotel to bring in more guests to your hotel.

Take these payment processing solutions to your benefit. Guests will be ecstatic at the type of experience you are providing them, your staff will be equally excited with the ability to streamline your operations, and your accounting department will thank you for reducing your annual audit costs, as well as chargebacks that directly affect your hotel’s bottom line. The choice is yours, make the right one.

Your hotel or travel business needs a quick, efficient and secure way of processing credit card payments. With IPayTotal, you can accept payments via mobile credit card readers on smart devices, tablet point-of-sale systems, or accept payments through your website with online payment services and more.

 

Appeal to More Customers

IPayTotal offers payment products that help you appeal to more customers because of our wide variety of processing options. Increase sales by offering customers the ability to pay using their preferred payment method.

  • Accept credit cards, signature and PIN debit, checks, and gift cards
  • Transact and fund in multiple currencies using Dynamic Currency Conversion (YEN, Canadian Dollar, British PS, Euro, AUS Dollar)
  • Process through multiple channels: online, point-of-sale, mobile, mail order, telephone order
  • Accept and transact payments using secure payment methods within your online checkout portal

Automate Payment Reconciliation and Manage Chargebacks

Automate your payment reconciliation and manage chargebacks efficiently for less back-office and manual work. Get a consolidated online portal for viewing transactions, funding, statements and chargebacks with MerchantConnect.

  • Eliminate the need to match up batches and deposits
  • Quickly and easily access payment information while still protecting cardholder and account data
  • View the chargeback list and be proactive about protecting your business
  • Simplify PCI compliance and strengthen payment security

 

From elegant hotel chains offering hundreds of rooms around the world to local hotel or B&B chains, your brand’s needs are unique, and your payment processing should reflect that. We build custom plans for each business we work with and adapt with you as you grow. It becomes our mission to save you money, and we’ll always keep an eye out for ways to pass savings onto you.

 We have designed payments solutions and services to cater specifically to the needs of the hospitality industry. In addition to secure and instant direct booking of hotel rooms on a hotel’s website through major Internet Booking Engines, our payment solutions help being efficiency and convenience to both hotels and guests.