Picture this. You’re running a busy hotel, your guests are focused on poolside margaritas and conference breakout sessions, while you’re deep in the weeds, managing accounts payable (AP) by hand. Payments are trickling out, invoices are piling up, and addressing every vendor request feels like wrangling quicksand. Sound familiar? You’re not alone.
The latest BirchStreet Systems survey uncovered some interesting stats about how hotels manage vendor payments. 56% of decision-makers keep it all in-house for one main reason – control. If you believe outsourcing means giving up control or overcomplicating processes, we’re here to politely challenge that notion. Spoiler alert: You might actually be gripping the reins too tight.
The Appeal of Keeping it All to Yourself
There can be something comforting about an in-house system. It’s yours, it’s familiar, and at first blush, it feels like you’re holding all the cards. After all, 64.5% of surveyed hoteliers chose “greater control over the payment process” as their motivation for sticking with internal management.
But here’s the kicker. While in-house systems provide some level of control, the manual effort often comes with blind spots. The same survey showed that nearly half of the respondents are merely “satisfied” with their current solution. Translation? It works, but it’s not blowing anyone’s socks off. Meanwhile, escalating inefficiencies, human error, and scalability challenges quietly lurk in the shadows.
Oh, and don’t forget the opportunity cost of having administrative staff tangled up in invoices rather than focusing on activities that directly delight your guests.
Why the “All Control, No Outsourcing” Narrative Falls Apart
One of the strongest arguments against using embedded payments is the myth that outsourcing equals relinquishing control. Hotels worry that by handing the reins to an external platform, they’ll lose sight of where their money is going and fall victim to unresponsive service. Reality? It’s kind of the opposite.
A robust platform like Systèmes BirchStreet does more than handle payments – it offers visibility so clear it’ll make your monthly reporting meetings a breeze. Imagine dashboards that provide real-time transaction updates, insights into budget data, and automated oversight that catches issues before they snowball. Instead of constantly crossing your fingers for smooth payment runs, you’ll have precise control over what’s happening across multiple properties.
And then there’s the matter of efficiency. Managing payments in-house often means relying on outdated systems, manual data entry, or, worse – facing non-compliance. While they might have served you well in the past, they can’t meet the evolving demands of today’s digital hospitality landscape. Embedded payment vendors, however, partner directly with hotels to streamline these processes through automation. With BirchStreet, for instance, hotels can decide who to pay, while the system handles the “how” with options like ACH, virtual cards, or electronic checks.
Efficiency Meets Empowerment
Managing vendor payments in the hospitality world is no easy feat. Consider a mid-size hotel dealing with tens of thousands of invoices on an annual basis or a sprawling resort juggling vendors for everything from linens to logistics. Every hiccup in the payment pipeline isn’t just inconvenient – it disrupts the guest experience.
This is why it’s crucial to rethink how we define control. Is it manually processing hundreds of invoices in-house for the sake of familiarity or empowering your operations team with tools that make managing payments simple, insightful, and (dare we say it) satisfying?
Take automation, for instance. Streamlined payment processes cut through layers of inefficiency. They eliminate the need for paper shuffling, which drastically reduces risk for errors. Platforms like BirchStreet allow for end-to-end automation, meaning recurring tasks–like payment matching, invoice verification, and reconciliations happen at the speed of technology, not human downtime.
Oh, and did we mention cost reduction? While cost sensitivity drives many hoteliers to remain in-house, platforms like BirchStreet offer pricing models with rebates and incentives baked in. Those vendor fees you’re worried about? Often offset by savings generated elsewhere in the process.
Visibility Equals Smarter Decisions
One of the strongest benefits of third-party payment platforms is the unparalleled insight they offer into a hotel’s finances. The BirchStreet survey highlighted this as a critical feature, with participants calling out a lack of real-time visibility as a major pain point.
When you’ve got an integrated system that tracks every payment, approval, and activity in real-time, you’re not just staying on top of your finances – you’re anticipating what comes next. Budget decision-making becomes proactive instead of reactive.
For example, imagine your AP team noticing significant delays in vendor responses. By using consolidated insights from a third-party provider, you can address these inefficiencies before they snowball into larger issues. BirchStreet’s real-time reporting and dashboards create a clear financial roadmap for operations – whether it’s day two of peak season or the tail end of Q4 budget crunch. You’re no longer flying blind when making key financial moves.
Addressing the Pain Points
Still think keeping it in-house is the way forward? The same survey revealed the biggest challenges with current in-house systems. The leading challenge with current payment solutions is the lack of rebates (27.5%), while 22% of respondents cited financial incentives as the greatest value received—highlighting a clear demand for solutions that deliver tangible financial returns. Moreover, 18.2% of businesses identified cost-saving payment process improvements as a top priority for 2025, reinforcing the need for systems that reduce operating costs and enhance cash flow. With rebates mentioned by more than a quarter of respondents as a prime interest, partners like BirchStreet transform your payment process into a revenue-generator. Imagine using those rebates to fund new initiatives like guest service tech or sustainability projects.
Additionally, by integrating digital workflows, these platforms drastically cut down the time your team spends on manual work. That doesn’t just equal higher productivity. It’s hours freed up for your team to focus on quality guest experiences.
The Embedded Advantage
Even as 56% cling tightly to in-house payment management, the stats don’t lie. The efficiencies (and perks) of third-party solutions are far too compelling to ignore. From rebates and automation to unmatched visibility, vendors like BirchStreet aren’t a threat to your control–they’re the toolkit that takes it to the next level.
Deciding not to adapt in a constantly evolving industry is like choosing to drive with one eye closed because the car’s been “fine so far.” The truth? Fine isn’t enough.
What Next?
If your hotel still relies on in-house manual systems, it’s time to ask yourself some critical questions. Could your current system provide clearer visibility? Could your AP process be faster, more efficient, and even fun to manage?
With embedded payment solutions at your disposal, you’re not giving up the reins – you’re finally steering them with power and precision. It’s hospitality done right, from the numbers on your balance sheet to the smiles on your guests’ faces. Embedded payments aren’t just a convenience—they’re a strategic investment. As customer expectations evolve and regulations tighten, embedded solutions ensure your business remains agile, compliant, and competitive. Embedded payments eliminate friction. Ready to give “good enough” the boot? BirchStreet Systems has you covered. Learn more today.