One in 10 travellers are victims of payment fraud when booking a hotel

Research finds 51% of hotel owners report over-the-phone bookings remain popular, despite higher risk of fraud 

New research published today by Adyen, the global financial technology platform of choice for leading businesses, has found that one in 10 hotel guests have been a victim of payment fraud when booking a hotel or as a consequence of staying at the accommodation.   

Adyen’s Hospitality Report found that concern over fraudulent activity could be discouraging people from booking stays, with 71% of travellers worrying about the risks of scams. 

Of those who fell victim to a fraudulent attack, £564.08 was the average amount lost per guest in 2024.  

The hospitality industry is particularly vulnerable to payment fraud with legacy practices, such as over-the-phone payments, still widely available and less common in other sectors. 

Almost half of hotels (47%) offer manual, over-the-phone payments options, and the majority of business leaders Adyen polled (51%) claimed that it remains a popular option for guests.  

But in reality, just 11% of travellers said they prefer to pay over the phone, and 26% said that they wouldn’t book with a hotel again if their credit card details were requested in this way. 

When asked what measures would make travellers feel more comfortable providing payment information when booking a stay, the top answers were being able to pay at check-in (43%) and booking directly with the hotel online (36%). 

Over a third (38%) of businesses said that they had experienced an increase in fraudulent attacks in 2024, and 7% said they’d fallen victim 15-20 times. 

Of those affected, the average loss due to fraud and chargeback-related costs totalled £845,111.06. 

These figures underscore the urgent need for investment in technology to combat the rising threat of fraud, protecting both the business and traveller from falling victim. 

Nicole Olbe, managing director of Adyen, comments: “Many hotels offer payments over the phone for convenience, providing a personal touch to last-minute bookings. 

Nonetheless, some accommodation providers, particularly independent or boutique businesses, still rely on outdated systems that haven’t integrated modern, secure payment options yet. 

“January is a key month for holiday bookings, and we’re warning travellers and hotel owners alike to be vigilant this Blue Monday," she said. 

"Fraudsters are professional con artists, and can impersonate hotel staff over the phone, online and on social media sites, tempting bookers with deals too good to be true with the lure of sunshine escapes. 

"Travellers should be wary of offering payment details over the phone and the industry needs to modernise and prioritise safer alternatives without compromising service quality.”