Consumers everywhere, especially Millennials and Gen Z, are waking up to alternative payment methods and foregoing the use of credit cards and instead renting rooms at hotels with book now pay later. Having the freedom to do what they love, these people will travel more often and spend more while they’re on the trip. Additionally, with simple-to-use interfaces and flexible payments, this niche will find the fact that your property offers this method to be pleasing. Happier customers is what it’s all about in the hospitality business.
What is a ‘Book Now Pay Later’ payment method?
The concept behind PayLater is not new. Generations past used layaway to make large purchases and paid in installments. Everybody went with Grandma to the discount store to make her weekly payments on the Christmas presents. It is a warm feeling for so many. What’s unique about a buy now, pay later model is that the consumer can book a hotel now pay later. The customer can receive the goods or services immediately and then pay in interest-free installments over time after receipt and staying at hotels with book now pay later.
Book Now Pay Later is Right for Your Hotels
Buy now, pay later is uniquely valuable for hotels. Guests on a budget or customers who manage their cash flow tightly find the method appealing because it gives them the freedom to book spontaneous trips and pay off their stay over time through online paymment. Additionally, offering more payment methods, a better user experience, and interest free installments will cause guests to spend more on property, stay longer, and return again and again. The hotel is the biggest part of a vacation’s cost in many cases. Giving your customers the opportunity to upgrade to your property as alternate to your competitors is a sharp strategy. Plus, if you offer their preferred payment option, they are more likely to upgrade to a better room at your hotel.
1) Customers Prefer to book a hotel first, Pay Later
Everybody loves spontaneous trips, opportunities to manage cash flow, online hotel booking, and the power to pay when they like. Buy now, pay later booking gives your consumers the freedom and power to book spontaneously while they’re feeling excited and they’re more likely to splurge. Offering the services gives your property access to a broader set of consumers. There is a steady and growing consumer base for alternative payment methods and you’ll get to cash in.
2) More Payment options
Including more payment options can be a smart and effective addition to your broader marketing strategy. More and more consumers are waking up to and using buy now, pay later services and as awareness and utilization grow, you can reach new markets by offering new payment options. There are approximately 30 million active users of buy now, pay later services on the internet and you can capture a piece of that pie. That’s lot of potential!
3) Better User Experience
Seamless alternative payment methods give a smooth user experience by integrating with your payment gateway. Users apply for and are given a line of credit that they can use anywhere PayLater is accepted. When they book and it’s time to pay, they simply select the pay later option and proceed with payment like normal instead of using their card. The PayLater option appears among all of your other payment method offerings.
4) Interest Free
Having access to interest free credit gives consumers more power to spend for the things they want in life including travel and hotel stays. When your customer pays each installment on time, they are charged no fees or interest which increases their spending. Plus, you get paid out immediately which means you have no risk.
5) Increase Sales
Accessing your customer’s dining, merchandise, and experiences budget can dramatically increase your sales and if they can use their line of credit for room service, you will see a lot of lift. Browsing your gift shop, utilizing room service for dinner and Champaign, and spending days at the spa for facials and massages will all give you a boost as you help them spend more of their line of credit.
6) Guests will stay longer
Everybody wants vacation to last forever. PayLater gives guests on a budget the freedom to stay a little longer. If your customer has the peace of mind knowing that they can afford a few more days, they will go for it. Suddenly weekend-only short term guests can afford to stay a week or more. Sell out more often in the coming travel seasons.
7) Increase repeat purchases rate
Your property is a little piece of heaven. If you have the competitive advantage of offering alternative payments, guests are more likely to choose you over and over. Consumer behavior studies show that there is a large, solid niche of people who love to repeat exciting experiences, because familiarity is comfort for many, and giving your customers the opportunity to enjoy what you have to offer now and manage the expense over time will bring them back again and again.
8) Get your payout immediately
With PayLater, you do not take on any credit or collections risk. You are paid out as soon as the consumer makes the purchase and that’s it. You have no worries about non-payment or having your staff working on getting paid on an aging account. We take all of the risk.
PayLater is an innovative new alternative payment method
PayLater gives your company more opportunities to make sales by reaching a large, strong niche of mostly younger consumers who shy away from credit cards but still want to leverage credit to make purchases. Your company takes none of the credit or collections risk and you get paid out as soon as the customer makes a purchase which improves cash flow. Additionally, people who use PayLater are more likely to spend more on property. Sign up for PayLater and watch the sales roll in.