After your potential customers have selected their ideal property from your collection, the next natural stage is for them to book their stay with you. Many different groups of people will be interested in your lodgings and each group has their own preferred way of paying for their holiday. As a holiday rental business you need to think of your customers’ needs but at the same time use payment methods which are best for your business.
Here are a few tips courtesy of Lodgify.com.
Methods Of Payment
The most popular method of payment these days is definitely plastic. Credit and debit cards are the most used form of payment because they’re easy and straightforward to use.
In days gone by many travellers opted to send postal cheques or direct wire transfers to bank accounts. However, the many measures installed for data protection and online security makes plastic payments much safer for your customers.
The only drawback of accepting credit and debit cards is that there is usually a ‘processing fee’ which is charged to your business. This is a small price to pay in order to get great volumes of business coming your way. In general terms, the amount is usually 2 or 3 % and sometimes an additional transaction fee.
Accepting Your Payments Through External Sites
Using external sites is an easy and affordable way to reach a much wider audience of potential customers for your business. In addition to showcasing your holiday rental properties, these sites can also take payment on your behalf. Different costs and fees may be applicable but here’s some general guidance from some of the market leaders in holiday rentals.
Being a worldwide application, the payment system on Air Bnb is complex in a way that it accommodates the payment options available in different countries. The site accepts the major credit/debit card names like Visa, Mastercard and American Express, but it also caters for Paypal in some countries, Sofort Überweisung in Germany, PayU in India and Google Wallet in the US to name a few.
There is a 24-hour holding policy on payments from Air BnB but the extent of potential reach certainly makes up for the wait. Payments from Air BnB are received from customers in full at the time they select their reservation.
The common ways to transfer you the money is via:
- Western Union
- IBAN for a bank account
- Direct Deposit
Using it’s very own form of payment known as HomeAway Payments, this provider allows customers to pay for their selected holiday accommodation via major credit or debit card and eChecks in the US.
HomeAway allows users to set their own amount to be put down for a deposit for a rental transaction. Using a 10% deposit is attractive for many customers but only allowing a full down payment is acceptable too.
Transferring the money to your business from HomeAway is managed through Payoneer and can be done via:
- Bank transfer – Local transfer or through international wire
- Payoneer Prepaid MasterCard
Accepting Payments On Your Own Website
Depending on the website builder application you use for your own holiday rental website, there are different varieties of plugins and add-ons you can use to allow payment through your site.
When using the Lodgify building process you can activate payment capabilities in the Settings area of your account. This is made possible through Stripe and Paypal. Payment policies can also be adapted to whether you accept instalment payments are require a full down payment on your property bookings.