In a new article, Tricia Wood, Profitroom's Business Development Manager for Africa, argues that payment friction is one of the biggest reasons African hotels lose direct bookings, and one of the easiest to fix.
Losing guests at the last step
Guests may arrive through ads, browse photos, check rates and select dates, then abandon at checkout. Wood says these guests have not changed their minds about the hotel but about the transaction, wasting the marketing spend that brought them in. The good news, she says, is that this is the most recoverable loss in the funnel: Profitroom says triggered recovery emails drive up to 10% of total confirmed direct bookings.
Common culprits
- A 50% non-refundable deposit with no context.
- Wire transfer as the only payment option.
- No visible cancellation policy.
- No trusted payment brands or security indicators on the page.
Local payment realities
Wood stresses that payment options should reflect each market. In South Africa, EFT is essential infrastructure. In Kenya and Tanzania, M-PESA handles most digital transactions, so hotels that cannot accept mobile money turn away their likeliest guests. For visitors from Europe or the Middle East, unclear forex terms can push them to OTAs. Large, unexplained deposits also signal distrust, she says.
A better deposit flow
Wood recommends tiered deposits, multiple payment methods (card, EFT and mobile money), a plain-language cancellation policy, instant branded confirmations and visible security signals such as SSL and gateway logos.
Case study
Profitroom cites Dream Hotels and Resorts, which introduced lay-by payments through LayUp and PayFlex so younger South Africans could pay over time without credit cards or large deposits. Profitroom reports 76% growth in direct booking share in the first nine months and a 132% revenue increase in the initial period.
Takeaway
"The payment page is not the end of the booking journey," the article concludes; it is the start of the guest relationship.
Originally published by Profitroom: Profitroom: Payment Friction Is Costing African Hotels Direct Bookings
