Beyond tax-free: revitalising hospitality through technology

Hoteliers have skilfully navigated many challenges over the last few years, from the pandemic to rising prices and staff shortages. Amidst this, it’s clear that the UK Government’s refusal to reinstate tax-free for overseas visitors is holding back growth. Our latest research shows that the ability to shop tax-free when travelling abroad appeals to over 40% of international consumers, rising to almost 50% of Americans and just short of 60% of Chinese tourists. But with no incentive to shop tax-free in the UK – which is a clear draw – they’ll look elsewhere, with UK hospitality businesses paying the price. The summer season helped deliver a welcome boost to guest numbers and hoteliers are now busy looking ahead to next year. One of the major considerations for hotel owners is where to invest now to help deliver stellar guest-centric experiences, turning one time customers into repeat guests and creating an outstanding reputation to attract new guests. Unsurprisingly in our digital world, technology is at the heart of this. Reflecting genuine preferences While the lack of UK tax-free shopping is undeniably an obstacle to hospitality’s revival, hotel owners won’t let this overshadow other important customer preferences. One of these is payments, which is without doubt a major factor in creating an experience that is tailored and memorable. Our most recent research into worldwide consumer payment habits showed that 73% of Brits prefer to pay with their card at hotels, with digital wallets much lower at 17%. It's no surprise that technology uptake in the industry isn’t as widespread as it could be. Often hospitality businesses building their technological capabilities must contend with several complex applications across numerous software and payment systems. Despite the challenge, firms that opt for a digitally mature approach and invest in an integrated offering are best placed to compete in a challenging market. However, with digital wallets predicted to capture 21% of the UK market by 2026, hotels should be thinking ahead to ensure that they can cater to this steadily growing demand. Our research shows that for 24% of Brits, being able to pay with options like digital wallets is “very important” and in 2022, an unprecedented 91.2% of eligible card transactions were made through contactless channels. Specifically in the hospitality sector, hotels, resorts and accommodations saw an over 100% increase (+101.4%), followed by bars, pubs, and clubs at +91.9% and restaurants at +90.5%. Clearly, the payment experience is an area that all hospitality businesses – be that a restaurant, bar, or area hotel – should invest in. Generating actionable insights to build loyal relationships The benefits don’t end at the point of payment. Data gathered is key to unlocking better management of guest profiles, something that 84% of hoteliers are seeking to improve. After a difficult few years, what business leaders in hospitality are looking for is revitalisation, and that means building trust with volumes of guests who are excited to keep coming back to their establishment. In doing so, prioritising an intuitive payment experience can be incredibly valuable in building a better picture of the true behaviour of current and future clientele. A connected payment process enables staff to know if a particular guest has visited their establishment before, the purchases that they made previously, their preferred payment method and many other insights. These insights empower hospitality providers and their teams to build stronger relationships with guests by offering a tailored service, ultimately fostering long-lasting guest loyalty. It’s an area where our data shows UK hotels can extract significant value as only 11% of UK guests who return to the same hotel say they are always recognised as returning guests. More than half (59%) of global consumers state they prefer self-check-in for speed and avoiding queues. A further 13% do not like dealing with hotel staff. There is a convenience factor at play here, with only 23% of consumers saying they are never, or hardly ever, asked to fill in forms if they go to the reception desk to check in. However, that means more than three in four guests do have paperwork pushed their way. Moreover, heightened consumer expectations mean that hospitality businesses should deploy modern technologies that can help support growth in a challenging market. This can help firms across the UK build and maintain a more global customer base, for example, Chinese tourists who say that loyalty points (44%) are most important to them when returning, Spanish tourists who prefer future discounts (54%), and American tourists who value simply being recognised (42%). A fundamental future focus Integrating advanced payment technologies into property management systems (PMS), the fundamental nucleus of hotel operations, helps to automate reconciliation and reporting, minimises manual intervention, and reduces human errors. Moreover, a digital home for payments helps to safeguard them and reduces the risk of fraud for both proprietors and guests. Above all, maximising the efficiency of payment data with user-friendly and seamlessly integrated systems can help hospitality staff decrease the time spent on admin, and it liberates them to focus on what matters most: delivering an exceptional guest experience. Regardless of the UK Government’s direction on tax-free, what’s clear is that hotel businesses making technology a strategic priority will be best placed to deliver experiences that cater to today’s dynamic guests, maintain loyalty, and enable growth. A hospitality landscape powered by innovation can bring about increased numbers of guests, resulting in dividends for not only the industry but the UK economy more broadly.