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UAE
New research by Adyen reveals local insights highlighting the importance of a frictionless payment experience for UAE residents staying at hotels.
DUBAI, DUBAI, UNITED ARAB EMIRATES, September 20, 2024 /EINPresswire.com/ -- New research by Adyen, the global financial technology platform for leading businesses, reveals local insights highlighting the importance of a frictionless payment experience for UAE residents staying at hotels. Nearly two-thirds (63%) of consumers in the survey said they abandoned the booking process because they couldn’t pay using their preferred method.
The findings published in Adyen’s UAE Hospitality Report suggest that payment experiences could be impacting hotel revenues. Despite consumer sentiment indicating otherwise, one in ten (11%) hospitality businesses in the UAE said offering guests a variety of payment options is not important. In addition to this, nearly a third (32%) acknowledged that they are currently not equipped to accept payment options like BNPL and Apple Pay.
New global payment trends are emerging across the hospitality sector in 2024, as research found that one of the most popular ways to pay online for a hotel experience in the UAE was via a digital wallet (36%). In addition, 26% of respondents said they had booked a stay via social media for the first time over the past 12 months, and 11% said they had done so using BNPL during the same period.
The majority of respondents (64%) said that a seamless experience from booking to check-out was important to them when choosing a hotel. The report pointed towards three new trends:
1. Lack of payment flexibility is a deal-breaker
Offering a wide range of payment options is important to more than half (62%) of consumers surveyed in the UAE, with 37% admitting that having more options would encourage them to make bigger purchases. Three in ten (37%) respondents said they do not prefer paying the full cost of a hotel upfront – reflecting a broader shift towards careful budget management and mirroring the rise in popularity of BNPL services.
2. Cancellation policies are well researched
Flexibility in cancellation policies also emerged as a critical factor in hotel selection, with 62% of respondents considering free cancellation 24-48 hours before arrival as a deal-maker. The data underscores a traveler’s desire to ensure plans can be adapted last minute.
3. Financial experiences affect returning travelers
According to the survey, many hotel guests in the UAE have chosen not to rebook a stay due to finance-related issues or grievances. Specifically, 26% reported problems with payments, such as card declines or incorrect charges, while another 26% cited concerns over being asked to share card details over the phone. Additionally, 22% experienced delays with charges or refunds, and 19% noted overpayment due to errors.
Commenting on the report, Sander Maertens, Head of Middle East at Adyen, said: “We’ve noticed a stark contrast between hotel guests in the UAE and their global counterparts, with higher expectations among UAE guests, particularly when it comes to payment options. For instance, around 37% of guests in other global markets would abandon the booking process and choose another hotel if their preferred payment method wasn’t available, while this figure rises to 63% among UAE guests.”
Today’s guests demand easy booking processes, seamless transactions and hassle-free cancellations, otherwise they may decide to go elsewhere, especially in the UAE. In conversations with senior leaders at local hotel businesses, Adyen found that 66% plan to enhance and improve their payments journey within the next 12 months. Additionally, 65% stated that investment in financial technology capabilities could offer a differentiated service over competitors.
With potential guests abandoning bookings due to payment inflexibility, and some not returning due to finance-related issues, the hospitality industry must urgently look at how experiences can be enhanced in an era where every touchpoint matters and payments are no longer just a transaction.
Nawras Communications
Nawras Communications
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