Flywire’s Hotel Wins Put Growth Model to a Margin Test

A hotel payment can begin with a signed event contract and end with a card charge, a bank transfer and hours of reconciliation. Flywire wants to handle that chain in one place, making hotel deals more than a tally of new customers: each deployment can put its software beside the payment itself.

The latest example is Davidson Hospitality Group, which Flywire said on September 9 would expand the company’s payment and e-signature tools across its portfolio. Davidson cited roughly 75% faster signature turnaround at properties already using the platform. The company has not disclosed a dollar value for the savings, so the rollout is evidence of customer adoption, not yet a quantified contribution to revenue.

There is other traction. Flywire said it signed 42 hospitality software deals across Europe and Asia in the first half of 2026 and expanded its Driftwood Hospitality deployment to nearly 90 U.S. hotels. At 10 Driftwood properties, the company reported payment-processing costs had fallen nearly 30% over five months, with ACH adoption and digital authorization workflows helping drive the reduction. Those are customer-specific results, not a company-wide margin forecast.

The commercial logic is straightforward. Embedding contracts, payment authorizations and collections into hotel operations can steer some transactions away from more expensive card processing, while giving finance teams fewer manual steps. If the software becomes part of routine workflows, Flywire may also be able to capture more payment volume when a customer expands, rather than win each transaction separately. CEO Mike Massaro said on the company’s August earnings call that Flywire’s hospitality software is used across more than 20,000 properties; he also pointed to payment-fee reductions of more than half in some cases.

The financial backdrop is strong, but not uncomplicated. Second-quarter revenue rose 27.2% year over year to $167.7 million, while total payment volume climbed 38.2% to $8.2 billion. Adjusted EBITDA increased 44.5% to $24 million. Yet gross margin fell to 53.4% from 57% a year earlier, adjusted gross margin slipped to 56.6% from 61.1%, and Flywire still posted an $8.1 million GAAP net loss.

That spread is the test for the hotel push. More properties and transactions can sustain growth, but investors will want to see software-led wins improve the economics per payment, not just enlarge the volume running through the system. Flywire raised its full-year outlook in August; the next proof is whether adoption and cost savings begin to show up more clearly in margins.