If you’ve been in hotel management for more than 30 seconds, you know that vendor payments are like the base of a Jenga stack. They hold everything together, but one wrong move and things get wobbly fast. According to BirchStreet Systems’ recent survey, many hoteliers are struggling with their current payment vendor solutions. The issues? A lack of rebates, clunky processes, and a frustrating manual component that seems to haunt every department.
The beauty of progress is that these challenges aren’t unsolvable. The hospitality industry is ripe for transformation, and third-party payment platforms could be the upgrade hotels need to fix these weak spots. Here’s a closer look at the main pain points identified by the survey and, more importantly, how to kick them to the curb.
Challenge #1: No Rebates, No Relief
When you’re managing tight budgets and astronomical fixed costs, every dollar counts. That’s why it’s a little heartbreaking to hear that the top frustration with current solutions is the lack of rebates to offset costs. A whopping 27.5% of surveyed decision-makers flagged this as their number one pain point. It’s understandable. For an industry known for thin margins, even small amounts of unclaimed revenue matter.
At its core, this tells us hotels are ready for more than just services that “get the job done.” They’re looking for solutions that give back. Enter embedded payment systems like BirchStreet Pay, which transform processes into profit-generating opportunities. By digitizing payments and leveraging rebate programs, hotels can earn 1-3% on calculated spend. That’s not just scratching the surface; it’s flipping AP into a revenue stream.
Think about it this way. If your current payment vendor just processes invoices and pays suppliers without capturing rebates, it’s like booking a suite without tapping into its free breakfast or perks. Sure, you’ve got the basics, but you’re leaving so much off the table.
Pro Tip:
When evaluating vendors, ask about rebate programs. A truly innovative solution will do more than cut checks – it’ll help boost your bottom line.
Challenge #2: Digital (or Lack Thereof)
While the hospitality industry is all about delivering modern, memorable experiences to guests, the backend operations don’t often get the same glow-up. One in five respondents admitted their current systems lack a “simplified, fully digitized process.” Translation? There’s too much paper, too many steps, and an interdepartmental game of telephone that’s slowing progress.
Automation and digitization of AP aren’t just about being fancy. They’re about creating seamless operations that scale with your hotel’s needs. BirchStreet’s platform, for instance, integrates automation throughout the payables process. From reconciling invoices to approving payments, automation ensures you avoid the endless cycle of manual paperwork. Instead, you’re greeting efficiency with open arms.
Imagine this scenario. Your accounts payable team spends days chasing approvals for a single vendor payment. By the time the green light arrives, deadlines are missed, late fees creep in, and the vendor’s asking, “What’s going on?” With automation, those delays disappear into thin air. Payments are scheduled, verified, and dispersed without your staff hitting snooze every step of the way. By breaking down these common silos, satisfied vendors are more likely to offer favorable terms, prioritize your orders, and collaborate on process improvements.
Benefit Highlight:
Automation does more than save time—it reduces the risk of human error, such as duplicate payments or misfiled invoices, while enhancing supply chain collaboration and reliability. And in an industry where efficiency is everything, that’s golden.
Challenge #3: The Struggle for Automation
Here’s a stat that’s both sobering and motivating. About 17.5% of respondents said their systems lacked the automation necessary to maximize payment efficiency. That number speaks to something critical: Many current solutions are too manual and sluggish. Worse, they’re holding hotels back from being scalable and innovative.
Automation has come a long way from being a buzzword. It’s now the engine driving operations in every industry, and it’s especially crucial for high-touch industries like hospitality. For hotels managing accounts payable across multiple properties, platforms like BirchStreet generate real business gains. Tasks that once consumed hours of labor, like reconciling invoices for services spanning multiple locations, are completed in seconds. Your team’s energy is then redirected to more strategic and impactful work.
Imagine This:
Software that logs vendor invoices, reconciles them against purchase orders, and checks them off with automated approval workflows. No sticky notes, no bottlenecks, and definitely no anxiety-inducing piles of paper.
Challenge #4: Trust Issues
When it comes to vendor solutions, trust issues can cause massive operational friction. Limited responsiveness from payment partners and a weak infrastructure (each cited by 12.5% and 15% of respondents respectively) make it harder to establish reliable systems.
But better providers exist. Take BirchStreet’s highly responsive support ecosystem, for instance. They’re not just vendors; they’re partners who ensure their systems consistently perform under pressure. By investing in real-time reporting tools and 24/7 support, platforms like these eliminate roadblocks that can erode trust.
When it comes to infrastructure, hotels that switch to modern payment solutions benefit from multi-layered security protocols, robust electronic payment integrations, and centralized dashboards. It’s not just about fixing today’s glitches – it’s about future-proofing your AP operations.
The Opportunity? Streamlined Efficiency and Real-Time Insights.
We can’t talk about solutions without emphasizing the overwhelming need for insights. BirchStreet Systems’ survey revealed something fascinating: one-third of payment-related challenges boil down to disconnected or overly complicated systems.
Centralization unlocks efficiency. For example, BirchStreet offers a one-stop shop for managing payments, from partner onboarding to approval flows. Our platforms allow users to pull real-time insights, making those chaotic monthly budget reports a thing of the past.
Instantaneous data visibility lets you make smarter financial decisions faster, improving overall results in fiscal planning AND ground-level operations.
Hot Tip:
Demand platforms that offer automation oraz robust insights, because success doesn’t just happen at the operational level. It requires crystal-clear data so hotel leaders can make confident, long-term decisions without hesitation.
It’s Time to Reimagine Accounts Payable
The BirchStreet survey painted a clear picture of where AP solutions fail and how hoteliers can solve these issues by taking a fresh approach. Clunky, rebate-free, paper-heavy systems might have been fine in the past, but the industry is moving forward – fast.
Imagine earning checks instead of writing them, cutting approval times in half, and securely automating processes so staff spend less time on grunt work. That’s not just innovation – it’s evolution.
The future of effective payment solutions isn’t about choosing what’s “comfortable.” It’s about choosing what works, giving you time for everything else that truly matters.
Want to turn these challenges on their head in your hotel or property? BirchStreet Systems is transforming how the hospitality world thinks about payments. Streamline processes, stop leaving money on the table, and simplify the seemingly un-simplifiable – starting today. Because good operations lead to great service, and great service keeps the good times rolling.