Tourism in Africa is booming, leading to infrastructure development. According to the 15th annual study by the W Hospitality Group, published in 2023, nearly 500 new hotel establishments are expected to open soon, representing more than 84,000 rooms, half of them by the end of 2024. Thus, the hotel industry in Africa continues to grow in importance.
With this increasing demand, hoteliers must face several challenges, including the acceptance of virtual credit cards (VCC) for online bookings and reducing the risk of no-shows.
Booking a hotel room in Africa
Booking a hotel room can be done in several ways:
- Directly contacting the hotel by phone, email, or through a form on its website.
- Using booking platforms such as Booking.com, Expedia, or TripAdvisor.
- In some cases, bookings can be made at the last minute by physically going to the hotel.
After bookings, managing payments
When booking through online platforms, the customer may choose to pay immediately. In this case, the platform collects the payment, deducts its commission, and then transfers the due amount to the hotel. Typically, payment at the hotel is made using virtual credit cards (VCC), which the hotel can charge like a regular credit card.
For direct bookings, hotel chains and some hotels may integrate an online payment solution on their website or through payment links. However, it is often observed that payment is made at the hotel upon key collection.
The risk of no-shows
Payment upon key collection carries a risk of no-shows. Without a financial commitment from the client, they can cancel their stay at the last minute or choose another establishment without consequence. This no-show represents a cost to the hotel: a room considered unavailable cannot ultimately be rented, and costs related to room preparation are unnecessarily incurred.
CashPay Hotel: a solution to secure booking revenue
CashPay Hotel is an online payment solution designed to meet the challenges faced by hoteliers in Africa. It addresses two major challenges:
- Accepting virtual cards. Banks rarely offer an online portal that allows hotels to independently process these cards. With CashPay Hotel, this operation becomes easy, thus eliminating cash flow discrepancies.
- Reducing no-shows by requesting full or partial payment at the time of booking. Through a payment link sent by email, SMS, or via WhatsApp, the customer can make payments by bank card or through mobile accounts such as Orange Money, Wave, MTN Money, and other payment methods.
CashPay Hotel is already adopted by about forty hotel establishments in West Africa. It is a reliable tool for securely collecting payments and thus improving the cash flow of the establishment.
By adopting innovative solutions like CashPay Hotel, establishments can not only secure their revenue but also offer a better experience to their customers. This is particularly important as hoteliers must remain proactive and adopt effective strategies to maximize their potential in an expanding market.
