At GoTab, we try to provide our operators a clear understanding of what goes into processor fees, and how they can apply a strategic approach to managing these costs.
Let’s face it, the payments space can be pretty confusing… sometimes intentionally so. At GoTab, we try to provide our operators a clear understanding of what goes into processor fees, and how they can apply a strategic approach to managing these costs.
The Growth in Digital (Card Not Present) Payments
According to Credit Union Service Organization PSCU’s 2021 Eye on Payments study, “consumers who reported using a mobile wallet in the past 60 days increased by 50% from 2019 (14%) to 2021 (21%), with 30% reporting that they use a mobile wallet at least a few times per month.”This growth in mobile payments means that more of your payments are carrying higher card not present (or ‘keyed’) processing rates. Which also means you’re probably experiencing a bit of sticker shock right now if you’re an accountant, or business owner working with an accountant, who is looking at where you can reduce costs.While Card Not Present fees, which are determined by the card issuer, payment networks, and payment processors, are higher than Card Present fees, we often see unreasonable markups under the guise of “card not present.” In general, card not present costs about one half of a percent more than card not present but Toast, for example, is charging a full 1% more. And the fun part of Toast pricing is that the Pay as You Go model doesn’t include the additional 0.4% that you have to pay for online ordering (that is better hidden in the details).
Better Ways to Manage Your Processing Costs
Navigating the payments world can be mind-numbing, especially for SMB owners who don’t have the time or bandwidth to fully evaluate their options. Unlike other hospitality-based technology companies, GoTab does not tack on additional fees to owners already operating on small margins.Part of our value proposition is to offer the lowest processing rates in the marketplace. Our rationale is if we deliver on our promise of higher check averages and happier customers, we all win. But that still leaves operators in a bit of a quandary when they’re struggling to find cost savings. We address this issue by giving our operators the discretion to cover those costs in a way that works best for their business.Instead of charging additional payment processing fees to operators, GoTab incorporates a small convenience fee on each tab opened by guests via QR code ordering. Customers are willing to pay this small fee due to the superior ordering and payment experience. This convenience fee allows operators to benefit from GoTab’s innovative technology, fair and transparent processing rates, and high-caliber customer service without increasing their effective rate.If you’ve experienced, or are dreading, that proverbial sticker shock moment, talk to us. We’d love to help you figure out a cost-effective model for your business.
Situated “in the heart of it all, yet tranquil enough to make you feel away from it all too,” The Limelight Hotel Snowmass offers 99 hotel rooms and 11 residences, as well as footsteps-to-gondola access in winter and summer — right in the middle of Snowmass Base Village.
The Situation
Especially over the last few years, the Limelight Hotels IT team had witnessed a significant shift to contactless technology in the hospitality industry. After evaluating friction points in the guest journey, aligning with modern technology platforms in their restaurant was determined to be an effective way to offer elevated contactless dining experiences to their guests while also evolving their technology platforms to continue to support long-term company goals. Limelight Hotel partnered with GoTab to provide an enhanced on-demand dining experience on par with the brand’s reputation for exceptional guest service.
The Solution
Reducing Staff Touch Points Without Sacrificing Guest Experience
Guests are now able to begin a tab from their room or the property’s restaurant by scanning a QR code, texting a link to friends or family members on the ski slope to add in their orders, then meeting up together at the patio or lodge to enjoy their meal and après ski festivities without interruption. By streamlining tasks like inputting orders and processing payments, this eliminates friction for hotel staff and allows them to focus on delivering renowned guest service for a memorable experience. Since partnering with GoTab, Limelight Snowmass has consistently seen higher check averages and sales.
“We found the Point of Sale platforms we were looking at offered the guest and staff limited opportunities to further reduce touch points or improve the traditional restaurant experience. The GoTab platform enabled the guest to take an active role over the flow of their experience while simultaneously reducing touch points and further streamlining restaurant operations.”Nick Giglio, Manager of Hotel IT Operations, The Little Nell Hotel Group
According to the Limelight Hotels team, some of the other platforms that were evaluated were either missing some of the pieces they were looking for, had weak customer support models, or had little willingness to develop integrations to existing hotel platforms already in place. To that end, GoTab integrated with cloud-based platform, Infor. Together, GoTab and Infor are providing dynamic solutions to support central, efficient service across hotel amenities and deliver exceptional guest experiences.
“Previously, guests would call down to the restaurant to begin an order from their room or while they were out enjoying the ski slopes. Using GoTab, guests can now place orders from anywhere on the resort, giving them the on-demand service they want without interrupting their day. GoTab empowers us to give control to the guest, reducing touch points and streamlining overall restaurant operations, making Limelight Hotel the resort of choice for Snowmass.”Nick Giglio, Manager of Hotel IT Operations, The Little Nell Hotel Group
Since introducing GoTab, The Limelight Hotel has seen a consistent level of upsells and items sold per check resulting in additional revenue capture. They have been able to maintain service levels in their restaurants during periods when there was reduced staffing available without significantly diminishing the guest experience.
The Benefits
Eliminate Phone Orders – Take Orders from the Slopes. Guests can start a tab from their room or on the mountain without interrupting the flow of their day.
Future-Proofed Technologies – Delivering elevated contactless ordering via integration with the Infor hotel management platform.
Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
Eliminating Friction in the Guest Journey – Maintaining service levels during periods of reduced staff without diminishing the guest experience.
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