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What Is Cashless? Meaning
The cashless system, which has been widely used for some time now at major events (concerts, fairs, amusement parks, festivals, etc.), is a cashless payment system that uses a virtual medium (cell phone, smartwatch, rechargeable wristbands) using its own virtual currency and NFC technology.
This NFC (Near Field Communication) platform is a wireless communication system designed to connect two electronic devices at close range. This platform, which does not necessarily need to be connected to the internet, allows for the collection and exchange of data and the processing of payments via our cell phones, thereby reducing the need for cash.
In a changing society, the hospitality industry must be able to integrate these new forms of economic transactions into hotel businesses: new customers and new payment systems, which offer a number of advantages, as outlined below.
The Cashless System: Benefits for Hotels
The adoption of cashless systems in the hotel industry seems unstoppable. The widespread use of cashless payments signifies more than just the modernization of the transaction system between hotels and guests. It also brings a number of benefits that will improve staff management and, above all, the guest experience.
Occupancy and Brand Strengthening
The implementation of new payment systems leads to an increase in hotel occupancy and profits. Guests are encouraged to use hotel services almost on impulse, thanks to the greater efficiency of the service.
This system also benefits the hotel and its own marketing efforts. It will strengthen its brand by offering a new experiential approach.
Marketing tool
From the moment the customer arrives, at the time of check-in , the hotel can easily obtain a lot of information such as what type of traveler consumes the most, what the most requested product of the hotel is, or what their spending is according to their origin.
This will be a very important source of information for the establishment’s occupancy metrics or records and, consequently, for optimizing your results. The data collected in the system will allow you to create promotions tailored to your customers’ needs.
Security
The risk of loss or fraud is reduced by eliminating physical transactions and cash handling. Furthermore, security costs decrease considerably, requiring up to 10 times less security personnel for cash transport. In this respect, NFC technology offers another major advantage: it doesn’t require specific readers; any NFC-enabled mobile phone and the necessary application allow us to implement the system while meeting all security protocol requirements.
Customer loyalty
The greater variety and evolution of payment systems guarantees the highest level of customer satisfaction after their stay at the hotel. This is one of the indicators of loyalty to a particular hotel brand.
Customer access control
Those in charge of the common areas (dining room, cafeteria, etc.) will be able to carry out more thorough control of customer access to certain hotel facilities.
The Cashless System: Benefits for Guests
Current trends in the tourism and hospitality sector show that traveler preferences are increasingly shifting toward experiential travel. Guests pay for a good hotel, but above all, they want to feel like they’re part of what’s happening at their destination. New payment methods are becoming part of that experience and offer guests a number of benefits.
Staff training and the implementation of new technologies in the industry are the two factors that greatly facilitate the establishment of the relationship between the guest and the hotel. New payment methods have become part of that experience and offer guests a number of advantages.
Cashless payment
This is a fundamental change from the current predominant payment method using card payment terminals. With the cashless system, when making a purchase, the customer will simply tap their wristband on the waiter’s mobile phone, and their order will be paid for. Payments can even be made from the pool, providing greater autonomy for both hotel staff and guests.
Room opening
Keys and magnetic cards will become a thing of the past. Thanks to NFC technology, guests will be able to access their rooms securely and easily using their mobile phone or wristband.
Reservations for Services and Activities
Customers can, for example, book activities and excursions, set up Wi-Fi access, grant access to restricted areas such as the gym, spa, or conference rooms, or set spending limits for minors using the “kid-limit” feature.
Cumulative Charges
Guests may accumulate charges, which will be settled at the end of their stay. They can view their transaction history and download their final bill upon checkout.
Evolution in the hotel industry has replaced modernization and is now setting the pace in response to customer demands and social changes. The full-scale adoption of digitalization is no longer a pending issue.
As an international hotel consulting firm, IHCS can provide you with the necessary support for staff training, the full implementation of the digital system, and the rollout of new management systems at your property.
