Nigerian hospitality industry needs improved digital payment options to boost growth, says DPO Group
By Cynthia Ezekwe
DPO Group,a payment solution service provider, has advised travel and tourism companies and other stakeholders in the Nigerian hospitality industry to increase and maximise digital payment options as part of their competitive offerings.
This came as the Nigerian hospitality industry is gearing up to take advantage of future opportunities after months of low growth witnessed during the lockdown of businesses during the COVID-19 period. Industry data also show that customers now prefer to browse, research, and make transactions online.
Speaking on the need to embrace more digital payment options,Chidinma Aroyewun, DPO Group’s country manager in Nigeria, said; “During the past four years operating as a licensed payment solution service provider in Nigeria, we have seen four-, three- and two-star hotels struggle to collect payment from international and virtual cards, especially from foreign customers due to limited payment facilities, and sometimes staff’s limited knowledge of payment options.”
She observed that this has cost hotels millions of naira when they can’t charge checked-in guests or collect penalties from cancellations, resulting in many losing customers.
According to her, payment cards are widely accepted around the world and are the preferred payment method of corporate travelers and credit cards in particular offer longer payment terms, come with built-in travel insurance, accrue more loyalty points and frequent flyer miles and, most importantly, can have their spend data integrated into the company’s expense systems.
The DPO manager further explained that offering a card service would create opportunities for direct booking and, should there be a cancellation, they would still be able to apply a small cancellation fee to cover costs.
Aroyewun also added that offering a secure payment method will enable businesses to build trust with their customers, which will result in repeat business, and also offer protection to businesses and customers.
“Being able to charge international cards and accept foreign currencies like US Dollars will not only boost revenue, but foreign currency inflow for the country as a whole,’ she noted.’’
The solution sales and marketing professional also pointed out the need to adopt a system that will be transparent to businesses and customers, noting that virtual terminals allow businesses to take booking deposits through an online virtual card terminal and manually process payments without using a physical POS device.
“Businesses using Virtual Terminal can immediately process transactions and receive real-time payment confirmation without the need or cost of a physical point of sale device. Nor do they need any additional phone lines or hardware to operate the terminal. The setup is easy and the service can be added to their payment option without much hassle,’’ she said.
Aroyewun added that businesses will support a chain of hotels, or even a small boutique lodge, if they know that they can conduct business the way they prefer, regardless of their country; while noting that the security of working with a known, trusted payment provider that is recognised across Africa will also help build trust, and generate revenue.