Cashflow management will continue to be critical for each hospitality business. While planning is difficult, as what restrictions are imposed and when is unknown, understanding what the real cash burn of a business is can help to plan and understand the impact that any disruption in trading can have on cashflow.
Over the last nine months tourism businesses have been diligent in reviewing their costs and reducing these where possible. Maintaining a focus on costs into 2021, to ensure that they are at a minimum for the business levels, will help with cashflow management. However, it is important that businesses remain conscious of how cost reductions can affect quality, to ensure there is no long-term negative impact on their business.
Card payments within the hospitality sector
Cash transactions are twice as expensive as card transactions for the hospitality sector.
The value of an average card transaction (€28.25) almost three times more than the average cash purchase (€11.34) for the hospitality industry
Increasing the volume of card payments to 80% of accepted payments can play a crucial part in lowering admin costs, saving a business as much as €7,000 annually.
Woohoo Merchant delivers services to great businesses of all sizes, from sole traders through to major brands and principally distributes its capability through a network of partners within a variety of sectors.