The New Age of Payments in Hospitality
At BGFT Hospitality, we’ve seen first-hand how the hospitality industry in India is evolving. Hotels are no longer competing only on location, service, or amenities payment experiences have become a crucial differentiator. Guests today expect seamless, secure, and flexible payment options, whether booking online, paying at check-in, or settling bills during checkout. As a hotel marketing and revenue management company, our mission is simple: helping hoteliers maximize revenue growth by adopting smarter strategies. And one of the biggest opportunities today lies in the integration of modern payment systems.
The New Role of Payments in Hospitality
Payment Gateways as Strategic Tools
Payments are no longer just transactions. In 2025, they are strategic enablers that impact guest satisfaction, booking conversions, and overall revenue growth.
Boosting Direct Bookings
By integrating with leading Indian payment gateways, hotels can reduce dependence on OTAs (Online Travel Agencies), build direct relationships with guests, and capture higher margins.
Why India’s Hospitality Sector Needs Seamless Payments
Digital India & UPI Revolution
The Indian hotel industry sits at the center of a digital payments revolution. UPI alone processed 19.47 billion transactions worth ₹25.08 trillion in July 2025, proving how deeply digital payments are embedded in everyday life. Guests now expect the same speed and convenience when booking hotels.
A Growing Digital Ecosystem
The Indian payment gateway market is valued at USD 2.07 billion in 2025 and is projected to reach USD 3.62 billion by 2030. For hoteliers, this means a rapidly expanding ecosystem of solutions to streamline transactions, reduce drop-offs, and capture more revenue.
Major Payment Gateways Powering Hospitality in India
1. Razorpay
- Known for UPI-first innovation, Razorpay powers multiple hotel platforms.
- Offers credit/debit cards, wallets, EMI, and Pay-Later options.
- Partnerships with hotel tech providers like RateGain make Razorpay a leader in reducing reconciliation issues and boosting success rates.
2. PayU
- Popular for its scalability and reliability, especially among larger hotel chains.
- Provides enterprise-level support for hotels needing high transaction volumes.
3. CCAvenue
- A trusted, long-standing player in India’s digital payment space.
- Offers multi-option checkouts cards, UPI, wallets, and international payments.
- Widely used by hotels catering to both domestic and international travelers.
4. Airpay
- A flexible and growing option in the Indian payment ecosystem.
- Known for supporting a wide variety of digital payment methods, which is crucial for hotels aiming to serve diverse guest profiles.
How Seamless Payment Gateways Drive Revenue Growth for Hotels
Enhanced Conversion Rates
Hotels lose millions in potential bookings due to payment failures or friction at checkout. Integrated gateways like Razorpay and PayU minimize drop-offs and increase successful transactions, directly driving revenue growth.
Improved Operations & Cash Flow
Case studies (like Djubo + Razorpay) show 80% faster reconciliation processes and improved financial control. For hoteliers, this means better cash flow management and operational efficiency.
Security & Trust
Gateways like Razorpay and CCAvenue comply with PCI-DSS standards and use advanced fraud detection. This reassures guests that their payments are secure leading to repeat bookings and higher guest loyalty.
Best Practices: Choosing the Right Payment Gateway for Your Hotel
When we at BGFT Hospitality advise hoteliers, we recommend looking at:
- High success rates (low transaction failures).
- Multi-payment support (UPI, cards, wallets, EMI).
- Mobile-first checkout (since most bookings in India are mobile-driven).
- Speed of settlements (ensuring cash flow stability).
Reliable customer support (critical for resolving guest payment issues).
The Role of Revenue Management Companies in Leveraging Payments
As a revenue management company, BGFT Hospitality helps hoteliers by:
- Integrating payment systems with booking engines for seamless guest journeys.
- Using transaction data to improve demand forecasting and pricing strategies.
- Optimizing operational processes reducing reconciliation time, increasing efficiency.
- Guiding hoteliers in selecting the most suitable payment gateway based on hotel size, guest profile, and transaction volume.
By combining revenue management expertise with digital payments, hotels can transform not just their booking experience, but also their profitability.
Conclusion: Payments Are the New Frontier of Hotel Revenue Growth
In today’s digital-first India, hotels that fail to adapt to seamless, secure, and flexible payment systems risk losing both revenue and guest trust.
At BGFT Hospitality, we believe payments are the new frontier of hotel revenue growth. By embracing gateways like Razorpay, PayU, CCAvenue, and Airpay, hoteliers can boost direct bookings, improve guest satisfaction, and unlock new revenue streams.
👉 Want to know how your hotel can adopt smarter payment and revenue strategies?
Visit us at BGFT Hospitality and let’s design your hotel’s next growth story.
1. What’s the impact of payment failures on hotel bookings?
Payment failures lead to abandoned bookings and lost revenue. Seamless gateways reduce this risk.
2. Which payment gateway is best for Indian hotels?
t depends on the hotel’s size and audience. Razorpay and PayU are strong for domestic, while CCAvenue is excellent for international guests.
3. How do payment gateways support revenue forecasting?
They provide transaction-level data that can be integrated with revenue management tools for better demand forecasting.
4. Can hotels integrate multiple gateways?
Yes, many hotels use multiple gateways to increase success rates and reduce risks.
5. Why partner with a revenue management company like BGFT Hospitality?
Because we combine marketing, revenue strategies, and tech adoption—helping hoteliers maximize profitability end-to-end.
