The COVID-19 pandemic has changed nearly everything about life, including how guests want to engage with a hotel. Thus, enhancing guest experiences is one of the top concerns of an accommodation business owner. In this blog, Hotel Link & Kovena will get you some insights to get an overview of the Pacific Island region, thus considering strategies to reduce no-shows and boost booking extras during guests’ vacations in your hotels.

Pacific Island Region: A quick overview

Following the Kovena Benchmark Survey 2022, hotels in the Pacific Island region pay 211% more for international transactions, while hotels have a lot of room to reduce booking costs.

Besides, lacking a booking app causes the loss of an average of $137K annually for hotels in this market. 84% of Pacific Island hotels do not have an app to enhance their guest experiences during their stays, and only 16% of hotels in the Pacific Islands offer a guest app.

How to reduce no-show losses for hotels in Pacific Island region?

Once a guest has booked, the next guest touch-point is often at arrival… or not at all. If hotels only take payment on arrival, they can experience 44% more no-shows. With an average no-show rate of 8% in the Pacific Islands, there is a direct effect on occupancy rates and financial forecasting. The fact is, upon arrival, 54% of hotels in this market still use manual payment processing, such as manually entering details into a POS terminal. Moreover, properties that do not secure a guest’s card details before arrival miss out on no-show revenue and require additional touch points at guest arrival.

Besides, traditional bank transfers require additional manual tracking and carry an increased risk of potential fraud or non-compliance, while securing a booking with a card pre-authorization or deposit can decrease no-shows. Moreover, being able to process cards is integral to a smooth stay for guests, the fact is 64% of American Gen Z travelers use a debit or credit card when traveling, meaning that they are more likely to use a credit or debit card within a consumer app to engage with and purchase add-ons to their hotel stay.

Currently, only 16% of hotels in the Pacific Islands are using an app to engage with their guests. This is a huge opportunity in the region to enhance the guest experience while also helping to increase revenue with a consumer app that is embedded with payments. The advance pre-authorizations are now commonplace globally, and significantly reduce no-show losses, and guaranteeing a reservation with a card payment can help ensure bookings turn into stays.

Why do I need to upgrade technology and diversify my business?

58% of businesses in the region are working to diversify their offering and 78% do not see money as an issue holding back this change. Globally, 67% of hoteliers believe that non-room revenue such as excursions and transfers will play an important role in their future income streams. More guests want a digital experience and more hoteliers are positioning themselves to meet this demand.

Therefore, bringing in a digital payment solution by adopting a PMS – or moving to a new one that offers embedded payments – supports businesses well into the future. 41% of hotel revenue is generated by on-site spending, and guest apps can help hotels capture more on-site spending.

A hotel allows guests to seamlessly pay for extras can help increase their spending on-premise. This adds value to their time and allows them to pay how they want.

Conclusion

The need to upgrade technology and diversify business offerings have been clearly identified by Pacific Island businesses. Let’s meet the Kovena which was founded in Australia in 2018, by ex-AirBnB, ex-HotelTonight, and payment gateway entrepreneurs who have come up with a Payment Solution specifically targeting the hotel industry.

By offering a frictionless guest booking experience, Kovena also provides industry-specific chargeback technology in order to help prevent claims. Moreover, Kovena has a local team in Fiji to assist with immediate support and educational material for the region. Want to get a deep-dive insight? Just click here, and explore how to take over this opportunity to be an outstanding player in the Pacific Island region.

The Check-in & On-site Micro Report (Pacific Islands Edition) is a part of a series of Micro Reports dedicated to helping hotels enhance their check-in flow and on-site experiences for guests. The insights and data in this report have been extracted from the full 40-page Pacific Islands Hotel Insights 2022 Report.

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