A recent study by Adyen, a leading global financial technology platform, has shed light on the critical role of seamless payment experiences in the UAE hotel booking landscape. The research revealed that nearly two-thirds (63%) of UAE residents have abandoned their hotel reservations simply because their preferred payment method wasn’t available. This underscores the significant impact that payment options have on hotel revenue, as highlighted by Adyen’s UAE Hospitality Report.
Despite the clear preference for diverse payment options, the report found that 11% of UAE hospitality businesses do not prioritize offering these choices. Furthermore, a concerning 32% admitted to being unable to accept modern payment methods like Buy Now, Pay Later (BNPL) or Apple Pay. This disconnect between consumer expectations and current offerings could be hindering the UAE’s hospitality sector from reaching its full potential.
The study also unveiled emerging global payment trends making their mark on the UAE hospitality industry. Digital wallets have emerged as a top choice for hotel bookings, with 36% of UAE consumers opting for this payment option. Additionally, the rise of social media booking has gained traction, with 26% of respondents making a hotel reservation through social media platforms for the first time in the past year. The adoption of BNPL for hotel bookings is also on the rise, with 11% of respondents using this payment option within the past year.
The study emphasizes that a smooth and effortless experience, encompassing the entire booking process from initial reservation to check-out, is paramount for UAE hotel guests. A staggering 64% of respondents cited this seamless experience as a key factor in their hotel selection.
Sander Maertens, Head of Middle East at Adyen, highlighted the notable difference between UAE hotel guests and their global counterparts, stating, “We see a noticeable difference between UAE hotel guests and their global counterparts, with higher expectations in the UAE, particularly around payment methods. Globally, around 37% of guests would abandon a booking if their preferred payment option wasn’t available, but this jumps to 63% in the UAE.”
Modern travelers, particularly in the UAE, demand effortless booking, smooth payments, and easy cancellations. This trend is reflected in conversations with senior leaders in the local hotel industry, with 66% planning to upgrade their payment systems within the next year. Additionally, 65% believe investing in financial technology can provide a significant competitive advantage.
With potential guests abandoning bookings due to limited payment options and others avoiding returns due to financial issues, the hospitality sector must prioritize enhancing the guest experience. In today’s highly competitive market, every interaction matters, and payments are no longer just a transaction – they are a crucial part of providing a seamless and positive customer journey.
