The hotel industry has always worked hard to provide choice to customers from abroad, whether it’s translated menus or training receptionists to speak as many languages as possible. While many people on holiday want to be immersed in foreign cultures and customs, others will want a certain level of familiarity so that they know exactly what they are getting. This may be particularly true for business travellers who don’t usually have the time to get up to speed with the country they may only be visiting for a matter of days.
Any good hotelier therefore knows that when it comes to foreign guests, so much is down to providing choice. Not all of your guests will want the same thing and will have different reasons behind their choices. The same thinking should also be employed when it comes to payment options.
Although not always the most interesting of topics, the payment options you offer customers when using their debit or credit cards is important. People want to pay in the way that suits them best and which they feel most comfortable with. If your guest wants to make a payment from a bank account in a foreign currency, they currently have two options.
The first is to pay in the currency of the country they are in. For example if the hotel is in the UK, this will be in GBP. If they have set themselves a budget in GBP for their holiday or business travel, this might be the best option for them. They will essentially pay for the cost of the hotel stay in isolation at the point of transaction. Additional fees from banks or card providers will then be added on at a later date.
Alternatively, hotels can offer guests the additional service of dynamic currency conversion, or DCC. Using this service gives guests the option to pay their bill in their home currency. This is likely to be the currency that they feel more familiar with, and consequently, enables guests who may not feel particularly at ease with foreign exchange rates to work out the cost of their stay quickly.
When DCC has been selected, additional fees of banks or card providers are replaced with a DCC fee. These fees appear as a part of the initial transaction unlike card provider or bank fees, which may not be charged until several days later. Additionally, when DCC is selected the hotelier takes a cut of the DCC fee. This can then be passed on as a saving to your guests or be used to improve your service.
No one option is right for everyone. Some people will want to pay in a currency they feel most comfortable with while others will want to take advantage of special offers they might have from their bank or card provider. What is important, is that staff are trained to explain the options available to guests in a clear and succinct way. Only then can they choose the option which is best for them, and leave satisfied with their stay.
About the source
This article was submitted by the DCC Forum. The DCC Forum has been created by a group of 5 international companies, all of whom work within the Dynamic Currency Conversion (DCC) and financial services sector. Members of the DCC Forum have elected to adhere to a set of Forum Principles advocating best practice of DCC and ensuring it is operated in line with all card scheme rules.
