What is the story about?
What's Happening?
BirchStreet Systems, a prominent hospitality operations platform, has published a new survey report titled 'Hotel AP in 2025,' which highlights the evolving landscape of accounts payable processes in the hospitality industry. The report, developed in collaboration with Hotel Management magazine, gathers insights from key hotel finance decision-makers, including those at ownership, operations, and C-suite levels. It reveals that the hospitality sector is facing significant challenges such as rising costs, fraud risks, and the need for more efficient financial operations. The survey emphasizes the growing importance of embedded payments, which integrate directly into the procure-to-pay workflow, thereby eliminating manual inefficiencies and enhancing data-driven financial control. Key findings include the need for greater oversight, cost efficiency, automation, and security in financial processes.
Why It's Important?
The findings of the BirchStreet Systems survey are crucial for the hospitality industry as they underscore the necessity for modernization in financial operations. With 64.5% of accounts payable leaders keeping payments in-house for better oversight, the report suggests that embedded payment solutions can enhance visibility and vendor relationships. The emphasis on cost efficiency, with goals like rebate capture and reduced processing costs, highlights the industry's focus on achieving measurable returns on investment. Additionally, the report points out that 37.5% of respondents see a lack of automation as a major challenge, indicating a pressing need for digitized processes to improve scalability. The prioritization of digital payments to combat B2B fraud, which occurs 65% of the time via checks, further stresses the importance of secure financial transactions. These insights are vital for hoteliers aiming to optimize their financial operations and improve profitability.
What's Next?
As the hospitality industry grapples with these challenges, the adoption of embedded payment solutions is likely to increase. Hoteliers may begin to invest more in automation technologies to streamline their accounts payable processes, reduce costs, and enhance security. The report serves as a blueprint for modernizing payment processes, which could lead to a shift in focus towards delivering superior guest experiences and maximizing profitability. Stakeholders in the hospitality sector, including finance leaders and technology providers, are expected to collaborate more closely to implement these solutions and address the industry's evolving needs.
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