Hotel Electronic Distribution Network Association (HEDNA) set up a Global Hospitality Payment Working Group in early 2016 to provide clarity as to options, design and best practices for the entire stream of payment processing in the hotel industry. Mike Carlo (Onyx CenterSource) and Pascal Burg (Edgar, Dunn & Company) co-chaired the HEDNA Global Hospitality Payments Working Group that included representatives from a wide range of hotel industry stakeholders.
This white paper is primarily based on the findings from that payment working group. The objective is to gain a better understanding of the current situation about payments in the hospitality sector, access available solutions that would address the key pain points and recommend future best practices for three key areas: Guest-centric payments, B2B payments and Commissions.
Payment processing for the hotel industry has become increasingly complex with the advance of technology and rising demand from customers in today's digital world. The growth of mobile, new entrants and need to accept international payment brands have pressure hotels to assess and revamp their payment systems. However, the entire stream of payment processing is too difficult to be handled as one big process. The HEDNA Global Hospitality Payment Working Group decided to develop three smaller issue focused groups to identify key payment pain points, potential solutions and future best practices. The three focused groups include:
- Guest-centric payments, which looks at how hotel guests pay for their services and the major hurdles that hotels face in optimizing their payment solutions
- B2B payments, which focuses on how hotels receive payments from their trading partners (e.g. travel agencies)
- Commissions, which concentrates on the commission model. Priority has been given to smoothing the commission process for business travel bookings made through the Global Distribution System (GDS)
Overall, the findings from the Working Group suggest that payments have been an extremely important topic for hoteliers because it can impact both sides of their P&L (e.g. not only cost of acceptance but also revenue).
Download the HEDNA Global Hospitality Payment Working Group White Paper.
Learn more about the Global Hospitality Payment Working Group and sign up for updates here.