Enhancing Hotel Operations

Introduction

When the VP of Accounting for a leading global, hospitality company reached out due to the challenges the hotel was facing, they were looking for a solution to help streamline operations. Too many employees were required to handle cash transactions at the hotel’s restaurant, bar, coffee shop, banquet hall, and front desk. The time demands of handling cash impeded operational flow and took employees away from more important, guest-facing tasks.

With a shift in consumer behavior, where travelers increasingly favor digital transactions over cash, this hotel was at a crossroads. They needed a solution that not only catered to modern payment preferences but also streamlined their operations, all while maintaining the high standard of service synonymous with the brand.

Enter Ready Credit to offer a solution that would meet the digital payment preferences of tech-savvy travelers while freeing staff from the demands of cash handling duties. Our cash-to-card kiosks streamlined payment options to reduce demands on staff while offering guests the convenience of quick and secure transactions.

Let’s examine how Ready Credit’s pilot cash-to-card program improved efficiency at several Midwest locations by partnering with this leading global hospitality company.

A Bottleneck of Inefficiencies

The hospitality industry has struggled in recent years to find enough staff to support guests’ needs and day-to-day operations. A recent survey from the Hotel & Lodging Association found that 82% of hotels were experiencing staffing shortages, with most establishments having to raise wages and offer flexible schedules to compete in what’s been a tough job market. Making matters worse, the turnover rate in the leisure and hospitality sector remains high at 79% in 2023, a slight drop from 82% in 2022.

As one of the world’s premier brands, our partner understood the need to lower turnover rates and has made employee satisfaction a key organizational focus. However, when too few staff members are asked to do more to cover for the lack of employees, this creates a stressful work environment that directly contributes to a high turnover rate.

Cash handling represents one of the biggest areas of inefficiency in the hotel industry. If just one guest wants to make a cash transaction, it sets off a cascading series of tasks and procedures that require significant time and energy to complete.

At the locations involved in the Ready Credit pilot program, approximately 5% of each guest-facing employee’s day was spent on cash management. Over a week, month, and year, this small incremental demand results in a significant drain on employee resources that takes away from tasks designed to improve guest satisfaction.

Take, for example, what one cash transaction requires:

The Payment

A guest paying in cash for a cup of coffee, cocktail, or bite to eat requires that a hotel keep cash on hand to make change. Cash transactions also require that employees have quick and convenient access to the cash on hand to help speed up guest interactions. The more employees with access to cash, the higher the risk of theft and fraud a hotel must accept.

The Storage

Collecting and storing cash requires infrastructure like cash drawers, safes, and reconciliation rooms. These areas must be closely monitored and secured, which creates pressure on the employees given the responsibility of controlling on-site cash while also demanding their time and attention.

The Processing

At the end of each day, staff must count cash, ensure amounts match sales records, and prepare deposits. The time and labor spent on reconciliation creates longer work days while also forcing staff to complete a tedious and potentially stressful task.

The Accounting

Reconciling sales takes time, which prevents hotels from having real-time knowledge of their sales figures. It could take up to a week for the properties involved in the Ready Credit pilot program to complete reconciliation. For an industry heavily dependent on dynamic pricing, this gap in sales knowledge can significantly impact revenue management decisions, delaying timely financial adjustments that could optimize profits.

The Transportation

On-site cash requires depositing, necessitating armed security to transport the money to a secure location. By eliminating the need to accept cash, hotels can realize immediate savings in armored car transport and security costs alone.

Just one cash transaction requires the attention of the front-of-house staff, management, and security to complete. For hotels struggling to find, train, and retain adequate staff, this type of inefficiency can significantly compound their operational challenges.

The additional labor and time required for each transaction can exacerbate workload pressures on already stretched staff, potentially leading to increased dissatisfaction and higher turnover rates. This cycle of inefficiency and staff attrition further strains the hotel’s ability to maintain high-quality service and operational standards.

Yet, for an industry built on providing exceptional guest experiences, not accepting cash risks alienating a segment of their customer base. Failing to accommodate the needs of even a small percentage of guests wanting to use cash can lead to significant long-term loss of revenue if once loyal customers decide to take their business elsewhere.

Faced with this complicated issue, this leading global hospitality company turned to Ready Credit to answer the challenge and help improve operational efficiency.

The Ready Credit Solution

Ready Credit cash-to-card kiosks allow hotels to accommodate guests who prefer to pay with cash while freeing staff to focus on tasks directly impacting guest satisfaction.

Ready Credit kiosks can be placed in lobbies, bars, or near any hotel area where retail sales occur. Guests can load cash onto prepaid cards that are usable inside the hotel, and anywhere Visa is accepted.

There are no card or transaction fees that guests must pay to use our kiosks. The total amount they pay is directly applied to the card’s balance. This prevents guests from feeling unfairly taxed for wanting to use cash and removes one of the biggest obstacles to achieving guest buy-in for our cash-to-card services.

Freed from the need to handle cash, hotel employees can maximize their time and dedicate more energy to creating the incredible guest experiences the hotel industry must provide to stay competitive.

The process of completing a sale outlined above changes entirely:

• Payments are now completed with a swipe of a card.
• No longer accepting cash means no longer needing to keep cash on hand.
• Rather than finishing their days completing tiresome reconciliation processes, shifts become shorter, and staff is free from the stress of cash handling duties.
• Ready Credit kiosks offer real-time data, enabling hotels to track revenue and dynamically set pricing to meet the market.
• No more cash means no more security dedicated to transporting cash from on-site to a secure location.

After installing our kiosks at the hotel, the reconciliation and accounting process that once took a week at that location is now completed daily. Staff can now focus more on guest-facing tasks, which leads to improved customer service.

Resources, once dedicated to securing and monitoring cash drawers, safes, and reconciliation rooms, are now allocated to enhancing the overall guest experience. This not only reduces operational costs but also supports a more engaging and personalized service approach, creating an environment that encourages repeat business and positive guest reviews.

Post-Implementation Success

The Ready Credit cash-to-card implementation at these locations has proven to be a significant success, paving the way for the program’s expansion to four additional locations. This expansion is a direct testament to the operational efficiencies and enhanced guest satisfaction experienced at the
pilot locations.

Our cash-to-card kiosks also position these locations to provide improved guest services during peak times of the year. During these high-demand periods, our kiosks will efficiently reduce wait times and streamline service, significantly enhancing the guest experience when it will be the most noticed and appreciated while reinforcing a hotel’s reputation as a modern, guest-centered destination.

Our successful pilot programs at select locations demonstrated the significant benefits of our cash-to-card kiosks. This integration within the hotelier’s supply framework allows us to extend our innovative payment solutions across the hotel chain, ensuring that more properties can leverage operational efficiencies and enhanced guest satisfaction observed during the pilot phases. This placement underscores Ready Credit’s role as a crucial component in modernizing our partner’s payment systems.

Revolutionizing Hotel Operations with Ready Credit’s Cash-to-Card Solutions

Through our successful pilot programs, Ready Credit has demonstrated the profound impact of our cash-to-card systems in enhancing hotel operations. Our system has allowed hotels to refocus their staff’s attention while streamlining transactions, ultimately improving guest satisfaction. Our technology has established a new benchmark for operational efficiency and set the stage for broader adoption across the hospitality industry.

As more locations adopt our innovative kiosks, Ready Credit continues to play a pivotal role in transforming how hotels manage payments. This ultimately enhances the overall guest experience and supports the hotels’ reputations as leaders in the hospitality industry. Expanding our cash-to-card solutions promises a new standard in hotel operational efficiency, marking a significant step forward in the industry’s ongoing evolution.