Vacation Rental Owners Blog | |
| Is Saving On Credit Card Fees Costing You Money? Posted: 29 Oct 2013 09:00 AM PDT Whether it’s ease of use, a sense of security, or the attraction of points and other incentives, travelers think “card is king” when it comes to booking their accommodations online. A recent survey by PhoCusWright found that among lodging suppliers – a group that includes vacation rentals – 68 percent of website bookings are made and pre-paid by credit card. With a predicted 98.3 million people in the U.S. booking travel plans online this year, that preference for plastic isn’t anything to sniff at. And yet, a lot of vacation rental owners do – although not without reason. The same PhoCusWright survey found that vacation rental owners aren’t alone in their concerns about
As a result, a lot of owners turn away credit cards in favor of checks or money orders – neither method less likely to expose them to fraud, but perhaps easier to manage with low or non-existent fees. But what does that choice cost their business? “Companies may view payments as just a sleepy back-office process,” PhoCusWright noted in Payment Unsettled: Cost, Opportunity and Disruption in Travel’s Complex Payment Landscape. “But the moment the customer’s wallet is out, an effective payment system (and efficient customer experience) makes the difference between winning and losing a sale.” Change is coming, if slowlyEarlier this year, I anticipated that online bookings will be a major trend in our industry this year. In a recent look at those predictions, Vacation Rental Marketing Blog's Matt Landau wrote that he feels our industry has instead become polarized:
Businesses have been reluctant to implement these alternatives for a few reasons, including
Today, just one in ten lodging suppliers accept these alternate payment methods – but PhoCusWright found that more than 30 percent intend to implement them soon. “E-payments help increase cash flow, improve security, and lower costs,” Sean O'Neill reported on tnooz. ”But they come with their own pitfalls, such as high fees, risk of fraud, and conflict with local preferences for cash payment in emerging markets." There is no perfect solution when it comes to processing payments for your vacation rental. But there are a growing number of options that make it easier to balance your concerns against the preferences of your potential guests. Have you changed your payment policies recently? Tell us about it in the comments section below. |
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