74% of Travelers Rely on Digital Wallets for Trips

For years, the travel and hospitality sectors have stuck to traditional payment options, such as cash and credit cards. But as consumers and staff demand quicker, more efficient ways to manage transactions, it’s clear these old systems are no longer enough. Enter real-time payment technologies that promise to impact operations and elevate experiences for consumers and employees.

A PYMNTS Intelligence report, “From Trips to Tips: How Faster Payments Can Elevate Travel and Hospitality,” in collaboration with The Clearing House, explores how adopting faster payment systems can benefit businesses and their customers.

Shaping Employee Satisfaction

Real-time payments don’t just benefit travelers — they also improve the experience for employees. In the hospitality sector, where tipping plays a crucial role in worker compensation, 82% of employees prefer receiving tips instantly. Those who already use these systems report an impressive 85% satisfaction rate.

This ability to access earnings quickly could help address staffing shortages, offering a solution that enhances employee morale and raises operational efficiency. Instant payments aren’t just a convenience; they are a critical tool for attracting and retaining talent in a sector that relies heavily on frontline workers.

Responding to Consumer Demand

Consumers expect fast, frictionless payment experiences, particularly in the travel and hospitality industries. According to the report, 74% of travelers now consider digital wallets essential to their trips, with usage particularly high among millennials (82%) and affluent travelers (83%). This shift toward digital payment options is not just about convenience — it’s also about spending behavior.

Travelers using digital wallets spend more on average — $44 per restaurant visit, compared to $33 for those using traditional methods. As consumer expectations continue to change, companies that can deliver faster, more seamless payment options will have a competitive advantage.

Importance of Instant Payments

Business travel is changing as professionals seek faster financial solutions, especially for expense reimbursements. Currently, 43% of consumers prefer instant payments for business expenses, up from 40% just months ago.

Employee satisfaction with instant payments is also rising, with 78% expressing contentment, compared to 70% for other payment methods. This increased demand for speed and convenience is encouraging businesses to adopt new payment technologies, simplifying processes, and reducing out-of-pocket costs.

The push for faster payments is giving companies in the travel and hospitality sectors a competitive edge. According to the report, 71% of hoteliers believe guests view technology as empowering, with contactless payments being particularly in demand. But 69% of hoteliers still face difficulties integrating these systems into their existing infrastructure, resulting in operational inefficiencies.

Innovative partnerships are helping businesses tackle these integration challenges. For example, Davidson Hospitality Group’s collaboration with eTip, a digital tipping platform, illustrates how real-time payment solutions can boost both employee satisfaction and guest experiences. Using QR codes for instant gratuity payments increases employee earnings, provides data on tipping behavior, and improves service quality and guest satisfaction.