Large hotel chains focused on leisure tourism operate in an environment marked by demand seasonality, rising costs (energy, salaries), and long payment terms. Added to this is the pressure to maintain quality standards and finance expansion projects. In this context, having immediate liquidity becomes a strategic element to invest in improvements, cover operating expenses, and respond quickly to market changes. Factoring can be key to achieving this.
Factoring is a financial tool that allows hotels to turn outstanding invoices into immediate liquidity. Instead of waiting for the B2B client to pay (typically a travel agency or tour operator), the hotel assigns its invoices to a financial entity, the factor, which advances the amount and assumes the risk of non-payment.
This financial mechanism is consolidating as a strategic alternative to traditional banking. The global factoring volume reached €3.78 trillion in 2023, with Europe accounting for 66% of the global market (Business Money). And the upward trend continues: it is expected to reach €6.5 trillion by 2033, according to IMARC Group.
Immediate liquidity for operations
The main benefit of factoring for large hotel chains is cash flow optimization. In a sector where payment terms can exceed 60 or even 90 days, having early liquidity makes a big difference. With factoring, hotels can cover operating expenses, pay suppliers, and handle demand peaks without relying on deferred payments. This is especially relevant during high seasons and in international markets where payments are often delayed.
Reducing financial risk
Outsourcing accounts receivable management through factoring minimizes the impact of defaults or delays, strengthening the financial stability of hotel groups. With this tool, the risk of non-payment is transferred to the factor: if the B2B client does not pay, the hotel does not have to return the advanced funds. This protects financial health against defaults and ensures greater security in operations.
Flexibility and scalability
Factoring offers greater flexibility, enabling hotel chains to grow, expand, or invest without being limited by long payment cycles. This early liquidity facilitates strategic decision-making at key moments, such as renovations, marketing campaigns, or opening new hotels.
Due to their size and solvency, large hotel chains can negotiate more competitive rates and personalized services with financial entities. Additionally, factoring adapts to billing volume and operational structure, making it a scalable solution for groups with multiple hotels and presence in different markets.
Focus on guest experience
By outsourcing invoice collection through factoring, teams free themselves from administrative tasks and can dedicate more time to optimizing the guest experience and ensuring high satisfaction levels. This redistribution of efforts boosts service quality and improves operational efficiency.
Automation and administrative efficiency
To continue improving our solutions and adding value to the hotel sector, Voxel has integrated factoring with Bavel Billing, our e-invoicing solution. This functionality acts as an additional layer of value, responding to the global trend toward integrated financial solutions in technological environments. Through this module, hotels using Bavel Billing not only automate accounting processes and reduce administrative workload but also enhance efficiency in financial management.
