Seamless Payments Essential for UAE Hotel Guests, Report Finds

New research from Adyen highlights a crucial factor impacting hotel bookings in the UAE: payment flexibility. The study, featured in Adyen’s UAE Hospitality Report, shows that 63% of UAE residents abandoned their hotel booking process due to the unavailability of their preferred payment method.

The report uncovers a significant gap between consumer expectations and the current state of payment options in the hospitality sector. Despite a clear consumer preference for diverse payment methods, only 11% of UAE hotels deem this important. Additionally, 32% of UAE hotels are not set up to accept modern payment options like Buy Now Pay Later (BNPL) and Apple Pay.

Emerging payment trends for 2024 indicate that digital wallets are the most popular choice for hotel bookings in the UAE, used by 36% of respondents. Social media bookings have also gained traction, with 26% of users booking stays through social platforms for the first time in the past year. BNPL services were used by 11% of respondents during the same period.

Key findings from the report include:

– Payment Flexibility: More than half (62%) of UAE consumers consider a range of payment options essential. Among these, 37% would be inclined to make larger purchases if given more payment choices, and 37% prefer not to pay the full hotel cost upfront, reflecting the growing trend towards BNPL services.

– Cancellation Policies: Flexibility in cancellation terms is a major factor for 62% of respondents, who favor free cancellation 24-48 hours before arrival. This highlights the importance of adaptable travel plans.

– Financial Issues Impact Loyalty: Finance-related problems, such as payment declines (26%), the need to share card details over the phone (26%), delays with charges or refunds (22%), and overpayment errors (19%), have led to guests choosing not to rebook.

Sander Maertens, Head of Middle East at Adyen, noted, “The research reveals that UAE guests have higher expectations for payment options compared to their global counterparts. While 37% of guests in other markets may abandon bookings due to a lack of preferred payment methods, this figure jumps to 63% in the UAE.”

With the growing importance of seamless payment experiences and flexible policies, 66% of UAE hotel leaders plan to improve their payment processes in the next year. Additionally, 65% believe that investing in advanced financial technology can offer a competitive edge.

For hotels looking to attract and retain guests, addressing payment flexibility and financial issues is critical in today’s competitive hospitality market.