BNPL has already reshaped how travelers spend in other industries, and hotels that adopt it early are seeing the same momentum. By meeting guests with modern payment options, you position your property as flexible, guest-focused, and ready for what’s next.
The payoff goes beyond smoother transactions. BNPL can extend booking windows, strengthen cash flow, and give hotels a competitive edge in a crowded marketplace. It’s not just a payment feature, but a growth lever waiting to be pulled.
What is BNPL for hotels?
Widely considered one of the fastest-growing e-commerce payment methods, buy now, pay later (also known as book now pay later) offers guests the convenience and ease of paying for their hotel stay in installments. Leading pay-later hotel providers like Affirm offer anything from four interest-free payments every two weeks to longer terms with monthly payments up to 36 months.
Think of buy now, pay later as a down payment or prepayment that helps guests manage travel expenses without relying solely on a credit card or debit option. It empowers guests to book their dream vacation or getaway now and pay later, making it more accessible to a broader range of travelers.
By enabling your guests to spread payments across weeks or months, they can manage their budget while still enjoying premium experiences — whether it’s a romantic weekend in New York, a luxury resort hotel room, or a multi-day vacation package
7 benefits of BNPL for hotels
With the global BNPL market expected to reach an annual growth rate of 26% by 2030, this financing option continues to grow in popularity among travelers and hoteliers alike – and for good reason.
During Passport, Julia Perschke from Affirm broke down some of the benefits of buy now, pay later for hotels.
Watch Affirm’s full session from Passport.
1. Improves conversion rates
Hotels that offer BNPL as a payment option can boost conversions, especially among younger travelers. Many Gen Z guests are more likely to select installment payments instead of paying the full purchase amount upfront with a credit card.
In fact, a recent study found that 40% of Gen Z shoppers used a pay-later solution in the past 90 days. By providing flexible payment solutions, you increase the likelihood of a book now decision while helping guests manage their credit score responsibly.
2. Increases booking value
A BNPL with your property might be all the convincing your potential guests need to book an extra night or two with you or splurge on luxury add-ons that were once out of budget. Affirm reports that travel providers using BNPL see a +48% increase in average hotel booking value.
BNPL also affords travelers the opportunity to plan their dream getaway by better managing their budget without having to sacrifice their wishlist. This is especially true during high season when room rates, flights, and activities are traditionally pricier. Without BNPL, travelers may choose a lower room category or forego a night or two altogether.
3. Boosts property revenue
The proof is in the payment method when implementing your next BNPL for your hotel. Merchants saw a 14% increase in revenue for payment sessions where BNPL was an eligible payment method. How does this translate for your property?
Your guests are not only more likely to complete their transaction with your hotel, but they’re also more likely to spend more of their hard-earned cash on your property. This provides a huge boost to your additional offerings, like upselling on hotel room types and property upgrades, as well as ancillary services like spa treatments and on-site activities.
4. Extends booking windows
Another benefit of enabling your property with BNPL is longer booking windows for your visiting guests, making it easier to forecast future demand and manage room inventory and availability.
Implementing a BNPL provider with various payment timeframes allows you to oversee present and future occupancy rates while granting your guests ample time to pay for their stay.
5. Improves margins
By offering monthly installment payments directly through your website, you give your guests greater control over how they pay. In many instances, they opt for BNPL over payment upon check-in for hotel stays. In doing so, you receive payment upfront from the BNPL provider and experience lower service fees and commission rates than you would having guests book via OTAs.
This means more revenue to invest back into your business. It also makes purchases more attractive to consumers, reducing the need for costly discounts or promotions, especially during low season.
6. Enhances the guest experience
By offering your guests’ desired payment methods, you boost your overall guest experience and tap into a demographic of travelers accustomed to convenience when booking their accommodation.
Offering different payment methods helps your guests book their dream vacation package with you, increasing travel accessibility while also improving your profit margins by allowing them to add on special perks.
7. Increases distribution channels
By incorporating a BNPL strategy, you instantly gain access to a previously untapped audience of potential guests across a broader range of distribution channels. This is especially the case for Gen Z and millennials, who flock to merchants with BNPL offerings as an alternative payment method to credit cards that doesn’t impact their credit score.
Affirm offers merchants and hoteliers access to its premium network of over 12.7 million shoppers who utilize BNPL as a hassle-free means to manage their cash flow and take advantage of interest-free transactions.
From digital marketing channels like apps and websites to email marketing and social media, your property is suddenly positioned in front of a brand new audience of potential guests when you partner with a BNPL provider.
Listen to Julia break down how BNPL channels like Affirm help hotels with marketing and distribution.
Watch Affirm’s full session from Passport.
How BNPL works
Next, let’s look at how BNPL works and how it fits with your property. When selecting and implementing buy now, pay later, keep in mind that it’s ultimately about what works best for your hotel and your guests.
Choosing a provider
To start using BNPL as part of your payment offerings, you’ll first need to choose your provider. Select a BNPL provider with ample experience in the hospitality industry, especially one skilled in higher-value purchases over longer periods of time. You’ll also want to choose a BNPL partner with a vast network of shopping and distribution channels.
A trustworthy and transparent BNPL partner will handle underwriting the customer, collecting payment, and taking on the risk of any associated payment issues, refunds, chargebacks, or fraud. This enhances your property’s reputation among your guests while offering precious time for you and your finance teams to get back to business.
As part of your provider agreement, you’ll likely be asked to accept a standard processing fee and transaction fee that come from your guests’ booking. The processing fee will depend on business factors like the size of your hotel and your risk profile but should be much lower than OTA commissions.
Setting up BNPL
Once you’ve settled on your buy now, pay later provider, you’ll want to set it up as a payment option. You’ll likely want to offer BNPL on your booking engine or via a pay-by-link, as this gives your travelers the choice to select BNPL when it’s time to check out online with you.
Be sure to highlight BNPL as one of your payment methods throughout critical touch points on your website and other marketing channels (like email nurtures and social media) to increase conversion rates.
This is also a great opportunity to create a dedicated FAQs section to help guests understand eligibility, down payments, and installment terms.
How BNPL works for travelers
Once satisfied with their booking, guests will see different payment options based on their cart size, credit check, and the finance program selected by your hotel, including your BNPL offering.
If your guest selects BNPL at the time of booking, they’ll be taken to your BNPL provider page, where they’ll be asked to enter a few key pieces of information. Returning BNPL users will be able to sign in to their account using their phone number. From there, your guests receive real-time information on their payment options, including term length and payment schedule.
One of the key benefits for travelers in using BNPL is that there are no fees, compounding interest charges, or credit impacts, making it an attractive alternative to credit cards.
How properties get paid
Upon successful processing of the guests’ payment by the BNPL provider, properties receive a full payout for the transaction amount, minus a small processing and transaction fee, within one to three business days from the date of the purchase.
As a lodging operator, this means no waiting until guest arrival to receive full earnings, significantly reducing the risk associated with guest payments. In addition, the BNPL provider helps take on payment challenges such as chargebacks and fraud.
Getting started with BNPL
The future of hotel payments is flexible, guest-friendly, and built to drive more revenue. BNPL gives hoteliers a practical way to modernize payment flows while keeping trust at the center of every transaction.
With Cloudbeds Payments and our integration with Affirm, US and Canadian hotels can now unlock this advantage directly within their PMS. It’s a simple step with outsized impact.
Earn more and improve the guest experience with BNPL.
Published on 3 September, 2024 | Updated on 28 August, 2025
