The first of its kind, The Hospitality Show is a bold new event for the entire hospitality ecosystem with one shared goal: operating hotels efficiently and profitably. Brought to you by The American Hotel & Lodging Association and Hotel Management, the event will bring together top industry leaders, senior executives of hotel brands, owners, operators, management companies and procurement specialists—and their teams—to discover, network and drive profitability.
Business accelerates when the right people are in the room, and this new weekly series of advisory board interviews goes 1:1 with the industry’s best and brightest as they build the inaugural event to be held June 27-29, 2023 at The Venetian Resort Las Vegas.
In this installment, we catch up with Kerry Levine, SVP and GM Enterprise Sales, U.S. Bank Payment Solutions / Elavon.
What issues are currently causing headaches for the industry?
Levine: Across the board the industry’s biggest challenges are staffing shortages, rising operational costs and a slower than expected recovery for the business & group travel segment. According to a report we recently published, "Payments transformation: What you need to know," 65 percent of survey respondents agreed that mitigating fraud risk and chargebacks is a key factor to maintaining healthy revenue. Additionally, legacy software and outdated payment equipment are causing challenges when it comes to keeping transactions secure and being able to offer the guest the variety of payment methods that are available with more modern technology.
What will it take for those issues to smooth out and when do you anticipate that will happen?
Levine: I believe that new technology and automation will eventually help with staffing shortages. Things like unattended kiosks, robotic food deliver and chatbots are helping to support the guest experience even when staff are not available. The key will be whether hoteliers will have the funding to be able to make the necessary investments required to support that technology. In regard to chargebacks, having a high number of disputes can really impact the bottom line. Unfortunately, cases of chargeback fraud are on the rise and these cases are complex and time consuming to win. There are few things an operator can do today to help reduce frequency of chargebacks, like making sure the company name on the transaction matches the DBA name so it isn’t mistaken as a fraudulent charge. Another way to support this is by ensuring payment terminals are EMV and PIN enabled, and for ecommerce transactions, they should use EMV 3D-Secure.
What new trends do you see affecting the hospitality industry the most in 2023?
Levine: AI and machine learning will certainly affect how hotels operate this year and in the future. I think we’re already seeing some of that play out. From personalizing the guest experience and automated inventory management, to predictive analytics and chat bots, I think guests will get an enhanced experience. Another trend that I see playing out in 2023 is with mobility. Tablets and mobile phones can be used in a variety of ways to engage with guests from the time the reservation is made during and post checkout. Encouraging customers to use a hotel brand’s app can benefit both the hotel and the guest by offering the ability to check-in/check-out, use a mobile room key, order room service or schedule other amenities, chat with the front desk if an issue arises and pay for their stay as well as ancillary charges. Again, looking at results from our report, 40 percent of financial leaders want to give guests the ability to reach their rooms quickly without having payments slow them down. This can be achieved by giving them that option through a mobile device.
What do you see as the biggest opportunities for the industry as we make our way through 2023?
Levine: I think an emerging opportunity that we will see come to light this year for the hospitality industry is Buy Now Pay Later. According to our report, about 10 percent of respondents see the possibility of offering guests this option in the next two years. This makes a lot of sense for large resorts and luxury hotels that may be out of reach for travelers on limited budgets by allowing guests to pay for their vacation over time. For the hotel, it can increase the number of guests who seek a more extravagant vacation as well as increase ADR by upselling a regular room to a suite.
What do you think the industry’s biggest win this year will be?
Levine: A highlight for 2023 will be the increase in digitalization. This will span across all parts of the hotel business, including payment acceptance. A surprising find from our report is that 76 percent of hotel financial leaders say that guests are willing to pay a premium for technology features such as mobile ordering and payment. The appetite is there and consumers are already embracing this technology when it’s available. A recent study by Hilton’s global research team found 56 percent of travelers will focus on adopting solutions that make travel easier in 2023, highlighting the importance of a digital experience. Digital payments can take the form of a digital wallet, contactless card, mobile payment or an ecommerce transaction. When a payment is digitized, it offers businesses the benefit of increased efficiency, improved cash flow, enhanced transaction security and can result in reduction in costs.
What are you most looking forward to at The Hospitality Show?
Levine: In one word…change. It has a great mix of guest speakers and educational sessions mixed with networking events and exhibitors. It will be an excellent opportunity to meet key decision-makers and changemakers, as we all look to find new and innovative ways to differentiate in the hospitality industry.