For decades, in-stay service payments in hotels have followed the same routine:
A guest reserves a spa treatment, a cabana, or room service, and the hotel only collects payment on arrival. If the guest shows up, great. If they don’t, the slot is wasted, staff time is lost, and the hotel absorbs the hit.
This “reserve now, pay later” approach may feel ingrained in hospitality, but it comes at a high cost.
Industry research suggests that nearly 1 in 5 hospitality bookings are lost to no-shows or last-minute cancellations. (HospitalityNet). That means that out of every 100 spa bookings, 20 may never generate revenue. Multiply that across properties, seasons, or entire chains, and the impact is staggering.
Meanwhile, guests outside of hospitality are used to a completely different reality.
They book flights, rides, concerts, or food deliveries with upfront payment as the norm. Why shouldn’t hotels offer guests that same level of convenience?
That is why leading hotels are shifting toward digital upfront payments.
Behavioral economics offers a simple explanation: when people pay, they commit.
Upfront payments create accountability. Guests are far less likely to abandon a spa slot or a cabana if they have already paid for it.
Hotels benefit from fewer empty spaces, higher utilization of premium services, and more predictable revenue streams. This also allows revenue managers to better forecast demand and adjust pricing strategies with confidence.
Hotels that adopt upfront payments often report a significant drop in no-shows, which not only secures revenue but also optimizes staffing and resource allocation.
Hotel teams are stretched thin.
Every minute spent chasing payments, correcting bills, or explaining charges is a minute taken away from creating memorable guest experiences.
By automating the payment process, hotels eliminate unnecessary admin work.
Guests complete transactions in seconds through their mobile devices, leaving staff free to focus on hospitality, greeting guests, preparing treatments, or delivering food quickly and accurately.
This shift is more than operational efficiency. It directly improves guest satisfaction because employees can dedicate their attention to what matters most: service quality.
Modern travelers are digital-first. They pay for almost everything else in their lives with one tap, and they expect the same in hotels.
Offering mobile wallets such as Google Pay and Apple Pay isn’t just a convenience, it’s a signal that a hotel understands and respects guest preferences.
Importantly, digital payments don’t have to be mandatory. Hotels can still give guests the option to pay later. But by offering secure, instant, on-their-terms payment methods, hotels position themselves as forward-thinking and guest-centric.
Trust is built when hotels reduce friction. A smooth, secure payment process enhances the overall perception of the stay, contributing to loyalty and positive reviews.
Deferred, manual payments are a nightmare for finance teams. They result in delayed cash flow, complex reconciliations, and incomplete data.
For large hotel groups, this lack of clarity compounds quickly, affecting reporting accuracy and even investor confidence.
Digital payments transform this process. Every transaction is recorded instantly, synced with finance systems, and available for reporting in real time.
Refunds are faster, reconciliations are cleaner, and executives can access up-to-date revenue data at the touch of a button.
Payment providers such as Stripe and Adyen are now standard in industries like retail and travel. Hotels that integrate these gateways into their guest apps are aligning with global best practices and gaining financial reliability previously missing from in-stay services.
The transition may sound complex, but it doesn’t have to be. Modern mobile ordering systems make it seamless:
This model mirrors what airlines, restaurants, and ride-sharing platforms already do. Hospitality is simply catching up, and those who move early stand to benefit the most.
Digital payments are not just about technology. They are about protecting revenue, freeing staff, empowering finance, and delighting guests.
In short, they are a growth strategy.
Hotels that cling to manual or deferred payments will continue to leak revenue and frustrate teams. Those that embrace upfront digital payments will secure a stronger financial foundation and elevate their guest experience.
If you want to see how forward-thinking hotels are digitizing payments and in-stay services with STAY, book a personalized demo.