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📣 Editor’s Pick

How Hotels Are Choosing Payment Methods in 2025

In 2025, hotels are taking a more strategic approach to how they get paid. For OTAs and travel finance teams, that shift is starting to impact availability—and ultimately, growth.

As hotels prioritise operational efficiency and tailored guest experiences, many are opting to work only with partners that can meet their payment preferences—whether that means local methods, faster settlements, or greater visibility over funds.

In this article, Modulr unpacks:

• Why some hotels are turning away OTA partnerships due to payment friction

• What criteria hotels are using to evaluate payment options

• How OTAs can future-proof their payment operations to maintain strong supplier relationships

💡 Staying aligned with hotel payment expectations could be the key to unlocking new inventory and smoother operations.

🌟Sector Spotlight

HOSPITALITY TECHNOLOGY

HotelRunner Named Booking.com’s Premier Connectivity Partner For Eleventh Consecutive Year

HotelRunner’s recognition as Booking.com’s Premier Connectivity Partner for the 11th consecutive year is more than a badge—it’s a clear signal of their sustained excellence in travel technology. Their knack for enabling thousands of properties to thrive on leading travel platforms, by integrating extensive features and seamless connections, directly translates to enhanced business value for their partners.

What stands out is HotelRunner’s hands-on approach: contributing to product innovation, engaging in feedback loops with Booking.com, and making sure properties can handle everything from bookings to operations without hopping between platforms. In the ever-evolving eCommerce-driven hospitality sector, that kind of reliability and integration makes all the difference for accommodation providers aiming for global reach and efficiency.

ONLINE TRAVEL MARKET

Global Online Travel Market Set For Strong Growth Driven By Digital Adoption

Digital innovation is fuelling extraordinary growth in the online travel market, projected to leap from $566.74 billion in 2024 to $1,377.17 billion by 2033—a near doubling in less than a decade, driven by a CAGR of 9.85%. What’s fascinating here is how smartphones, AI-driven tools, virtual reality and secure digital payments are not only enhancing the customer journey but actively shaping consumer expectations. Direct bookings with travel suppliers are gaining traction, helping travellers secure exclusive deals and simplify planning.

STRATEGIC PARTNERSHIPS

Expedia Group Integrates Ryanair Flights Into US And European Offerings

Expedia Group's decision to integrate Ryanair flights into its platform marks a significant move in broadening travel choices for users across both the US and Europe. By offering the budget carrier's expansive network—spanning over 230 destinations—Expedia is strategically enhancing value and convenience for travellers who can now book Ryanair flights seamlessly, whether as standalone services or holiday packages.

A notable aspect of this integration is the direct myRyanair account access and simplified management of bookings, eliminating the extra steps of customer verification. This not only streamlines the process but signals a trend among major OTAs to accommodate low-cost carriers, maximising transparency and flexibility for consumers. Expedia’s partnership here typifies the evolving, customer-centric landscape of eCommerce-driven travel, where accessibility and choice drive bookings and loyalty.

PAYMENT INNOVATIONS

TAP Air Portugal Adds Klarna’s Flexible Payment Options for Flight Bookings

TAP Air Portugal’s recent integration with Klarna signals a shift in travel payments, offering passengers greater flexibility and control. Travellers can now either split their booking costs into three interest-free instalments with Klarna’s Pay in 3 or opt for a simple one-time payment at checkout. This not only caters to varying budgets but also reflects a recognition of evolving consumer preferences in the modern eCommerce landscape.

Beyond convenience, this partnership stands out for its customer-centric approach; it empowers holidaymakers to better manage their travel finances without incurring extra charges. As Klarna’s expansion—recently partnering with Eurostar—gathers pace in the travel sector, it’s clear that flexible, transparent payment options are fast becoming expected norms. TAP Air Portugal’s move is less trend-following, more table stakes for airlines wishing to remain competitive and relevant.

PAYMENT INTEGRATION

Hilton Integrates Conferma API To Simplify Virtual Card Payments For Hotels

Hilton’s integration of Conferma’s virtual card technology via API marks a significant evolution in hotel payments. By allowing property management systems at thousands of global Hilton hotels to accept single-use virtual card numbers directly, business travellers and hotel staff can finally wave goodbye to clunky email or fax verifications—a notorious pain point in travel payments. This roll-out eliminates needless admin, speeds up the booking process, and enhances the guest experience, letting hotel teams focus on hospitality rather than paperwork.

From a payments perspective, streamlining virtual card use addresses a longstanding headache in business travel management. Wider industry adoption of such seamless digital payment solutions could set new standards for efficiency and traveller satisfaction in corporate accommodation. Hilton’s move suggests real momentum behind integrating modern fintech into hospitality, smoothing operational wrinkles for everyone involved.

CORPORATE PAYMENT TRENDS

American Express Sees Steady Commercial Spending Growth Amid Global Economic Uncertainty

Despite ongoing economic uncertainty, American Express has managed to sustain solid growth in commercial spending, with first quarter figures for 2025 showing a 2% year-on-year increase in overall business outlays, including travel and entertainment (T&E). Notably, international clients outside the US reported a 13% jump in total spending, with T&E up by 9%. While US-based large clients were more conservative with a 1% rise, small and midsized US customers maintained a healthier 2% increase, hinting at resilience among smaller businesses.

Amex’s revenue reached $17 billion for the first quarter—a 7% rise over last year—while net income grew to $2.6 billion, up 6% year-on-year. The company’s recent acquisition of Center, an expense management firm, signals a strategic push towards building a more comprehensive ecosystem for SME clients, aiming to deepen Amex’s footprint in the SME segment.

PRICING TRANSPARENCY

Airbnb Now Globally Displays Total Prices Including Fees and Taxes Upfront

Airbnb’s move to globally display total prices—incorporating fees and, where applicable, taxes—marks an overdue step for transparency in online booking. This shift enables guests to better gauge actual costs up front and helps hosts compete in a more open marketplace, as frustrations over hidden charges have long plagued users, particularly when cleaning and service fees inflate the advertised cost at checkout.

What stands out is Airbnb’s data-driven approach; nearly 17 million users adopted the previous total-price toggle, a testament to the strong demand for pricing clarity. By empowering over 80% of hosts with competitive pricing tools, Airbnb is setting a new bar for eCommerce transparency that others should follow. Ultimately, making the true price visible benefits both buyers and sellers, reducing friction and building trust in an increasingly competitive travel landscape.

IN CASE YOU MISSED IT - TRAVEL TECHNOLOGY SHIFT

Mobile Phones Overtake Desktops as Consumers’ Preferred Travel Booking Tool

eCommerce has fundamentally reshaped how we book travel, with mobile phones now being the go-to tool for most consumers, including for booking taxis and public transport. It's surprising, though, that while one might expect tech-savvy Gen Z to spearhead this change, their preference for computers when booking reveals a counterintuitive trend; many still favour traditional browsers, akin to baby boomers. This reflects Gen Z's extensive computer use for academic purposes, creating an intriguing pattern where familiarity trumps innovation in certain travel booking experiences.

Research remains at the heart of the travel buying process, with smartphones proving invaluable for both planning and booking. Consumers meticulous about getting the best deals will find that merchants can sweeten the deal by enhancing rewards programmes linked to mobile bookings. Insights from detailed surveys expose the nuanced preferences of different age groups; as mobile phones grow more sophisticated, adapting to these consumer behaviours will be crucial for businesses eager to thrive in this transformed industry landscape.