Boosting tourism growth in Guatemala through digitization: Discover key opportunities

API credit and debit card payments - PayRetailers

Guatemala is a country with an interesting culture and history, as well as breathtaking landscapes and natural wonders that attract tourists from around the world. The tourism industry plays a vital role in the country’s economy, representing approximately 8% of the GDP.

  • In 2020, the country recorded a total of 594,000 tourists, ranking 119th in the world overall and 8th in Latin America. Additionally, during the same year, it generated around $298.50 million in the tourism sector and employed over 1.5 million people. This country represents 2% of tourism in Latin America. For this year, Guatemala expects the arrival of 2.2 million people and a growth of 1.3% in the sector.

To provide efficient and secure solutions to tourists, Guatemala’s tourism sector has embraced digitization. Paytech companies play a key role in providing convenient payment solutions that enhance the traveler’s experience. With a user-centered approach, these solutions enable a wide variety of payment methods, facilitating transactions and optimizing the travel experience in the country.

The tourism industry has been challenged by companies like PayRetailers, which offer a cross-border payment system and a wide range of local solutions. These solutions facilitate access to reliable websites, save time and costs, and provide a complete digital experience for travelers and tourism service providers in Guatemala. Whether it’s booking a hotel, purchasing tickets for attractions, or planning transportation, digital payments are transforming the way tourism is conducted in the country. In this blog, we will further explore the Guatemalan travel industry and the increasingly relevant role that digital payments and companies like PayRetailers play in its growth.

That being said, welcome to Guatemala!

To begin, it is important to understand the main challenges within this market. The main challenges include:

  • System integration and innovation.
  • Limited connectivity.
  • Security and fraud prevention.

The first challenge refers to the lack of interoperability between different systems and platforms, which can hinder the implementation of digital solutions. In this regard, APIs (Application Programming Interfaces) can facilitate system integration and enable efficient data exchange. Open and well-documented APIs promote innovation and the development of third-party applications. This can drive the creation of new and creative digital solutions that meet the specific needs of the Guatemalan market.

The second challenge reflects the digital divide faced by the country, given the lack of access to high-speed internet in some areas of Guatemala. Approximately 50% of the population lacks a good internet service at home, which hinders the widespread adoption of digitization.

Furthermore, digitalization has also led to an increased risk of cyberattacks and fraud, posing a challenge to information security in Guatemala. This can impact customer trust and perception, which can be avoided with a robust checkout process like the one offered by PayRetailers, where there is no need to leave the website to make a payment.

These challenges are currently being addressed by companies like PayRetailers, which recognize the potential of digital payments and tourism in the country. By being ahead in local trends and regulations, building strong alliances with local merchants, and offering innovative payment solutions, paytech companies can help drive growth and innovation in this sector, making it possible to explore the country with just a click in the most user-friendly way possible.

How to streamline payments to travel service providers while making travel accessible and affordable for consumers?

Digitalization is the challenge that several hotels and companies have yet to master. Aspects such as compliance with the current PCI DSS card processing regulations, which ensure the protection of private information and financial data, are not universal within the industry, and manual processes are still used for managing operations. This results in setbacks in payment and refund management, system failures, inefficient technical support, and fraud, leading to dissatisfied customers and a lack of preparedness to deal with such situations.

PayRetailers, through its all-in-one platform and robust financial security technology, makes a difference so that your customers can be just one click away from traveling. Learn more here.

Payment methods to choose from

When it comes to making an online payment, the first thing to decide is the payment method. Each tourist has their preferences based on their country of origin, the currency they use, and sometimes not having their preferred payment method available can result in losing a customer. To avoid this, alternative payment options that cater to each customer’s profile should be offered.

Moreover, for international tourism, it is important to have a gateway like PayRetailers, which offers over 250 payment methods and cutting-edge technology that allows for automatic currency conversion during the payment process, streamlining the process for both the hotel and the tourist.

 Payments without leaving the website

When it comes to making an online payment, it is essential to build trust with the user to convert them into a customer. Many payment gateways redirect the customer from the hotel’s website to another website for payment, which can create mistrust. This situation can be avoided by simply choosing a gateway that integrates the payment form within the hotel’s own website and allows for customization with the brand logo, ensuring a secure and convenient payment experience for the customer.

PayRetailers offers hoteliers a comprehensive payment solution that meets all their needs without compromising on security and conversion. With this tool, hotels streamline their processes while increasing security and minimizing the impacts caused by the European Payment Services Directive (PSD2). This way, it is possible to serve customers from anywhere in the world.

  1. Implementing digital payment solutions: These solutions enable quick and secure transactions with travel service providers, eliminating the need for traditional payment processes and streamlining the flow of money. This benefits the hotel industry, travel agencies, and transportation services by allowing users to make payments from their mobile devices, a significant advancement that facilitates access for both foreign tourists and Guatemalans exploring the country.
  2. Offering local payment methods: Partnering with local financial institutions such as Banco de Antigua, Caja de Desarrollo, or BAM, through digital cash payment methods, expands business reach at the national and international levels. This simplifies the payment process for foreign tourists visiting the country. Additionally, the implementation of digital payments also helps reduce costs associated with cash processing and improves financial management.

The travel industry in Guatemala is a key pillar of the country’s economy, and by adopting digital payments, travel service providers can offer a more efficient and convenient experience for their customers while reducing processing times, costs, and enhancing security. For payment technology companies like PayRetailers, this industry represents an opportunity to make a positive impact and contribute to driving growth and innovation in this important sector. To learn more about what PayRetailers can do for your business, click here.