Every 10th hotel guest falls victim to some scam!
New research published today by Adyen, the global financial technology platform, has revealed that one in ten hotel guests falls victim to fraud when booking accommodation or during their hotel stay.
Prema Adyen's report on the hospitality industry, As many as 711,000 travellers express concern about the risk of fraud, which could discourage people from booking accommodation. The average financial loss per guest who fell victim to fraud in 2024 was £564.08.
Although telephone reservations are often associated with a higher risk of fraud, 51% hotel owners state that they remain popular with guests.. Almost half of hotels (47%) offer the option to pay by phone, which is far less common in other sectors. However, only 11% of travellers prefer to pay by phone, and 26% said they would not book accommodation again at a hotel that requests credit card details over the phone.
The hospitality industry is proving particularly vulnerable to fraud. In 2024, more than a third (38%) of hotels reported an increase in the number of frauds, and 71% admitted to having fallen victim to fraud 15-20 times. Total losses, including fraud and recovery costs, reached an average of £845,111.06 per business.
Safety first
To increase guest trust and reduce the risk of fraud, hotels should invest in more secure technologies. Travellers in a survey stated that they would feel safer with options such as payments on check-in at the hotel (43%) Or direct online bookings via hotel websites (36%).
This data clearly indicates the need to modernise payment systems in the hotel industry. By introducing contemporary security measures, hotels can not only protect their guests and operations but also build trust, which is crucial for long-term success.
