Studies Show Digital Tipping is Growing in Demand - youtip
Studies Show Digital Tipping is Growing in Demand

Studies Show Digital Tipping is Growing in Demand

Rewarding frontline hotel workers for excellent service via a cashless gratuity does more than just boost their income; Digital tipping improves the physical safety of guests, reduces physical touchpoints, and increases employee productivity.

Recent studies show digital tipping is growing in demand as fewer people carry cash, especially post pandemic. When travel resumes, hotel guests will be expecting to tip the valet, doorman, bellmen, housekeeper, etc., using their smartphones and digital wallets because they want to reward good service, just not touch filthy cash. Even hoteliers are budgeting for the technology, with digital tipping becoming a great supplement to a hotel’s contactless guest service technology initiative.

The 2021 Lodging Technology Study: Reimaging Hospitality, polled hotel IT professionals from more than 22,000 properties worldwide and revealed that hoteliers are aspiring to oblige to guests’ contactless transaction demands. Findings show that 90% of hoteliers plan to add contactless payments in 2021.

Hoteliers also stated in the study that although IT budgets remain flat, most are eager to embrace technology that:

youtip digital tipping screen
  • 90% — Improves the physical safety of guests.
  • 80% — Reduces physical touchpoints at the property.
  • 78% — Improves analytics.
  • 66% — Reduces the cost of managing technology.
  • 60% — Increases employee productivity.
  • 50% — Enhances guestroom technology.

The right “digital tipping solution” can meet each of these demands and more.

youtip, for instance, uses the technology that already exists on a tipper’s smartphone — QR code scanning built into the camera and the digital wallet. When hotel guests want to leave a tip, they simply take out their smart devices, scan a QR code conveniently present on a name badge, business card, table tent or digital screen, enter the tipping amount and go!  There is no app to download and no hotel name, department, or employee to look up. Even better, the solution easily integrates with other existing hotel technologies.

  • youtip improves the physical safety of guests by enabling tippers to scan a QR code displayed anywhere that is visible and convenient, such as a valet stand, on an employee’s badge, or in the room on a desk or nightstand.
  • youtip enhances guestroom technology when the QR code is featured on the in-room TV or smart speakers with digital displays. This digital scan-and-tip system provides a quick and easy experience while it reduces physical touchpoints at the property, like stopping at the front desk or an ATM machine to get paper money in the proper denomination.
  • youtip’s digital dashboard improves analytics by providing a place for guests to provide feedback on hotel employees’ service delivery.
  • The QR code nature of youtip greatly reduces the cost of managing technology — because no digital app is required for the digital tipping transaction to take place, therefore, there is no associated cost.
  • Finally, when frontline workers know their hard work will be rewarded via digital tipping, it increases employee productivity.
youtip qr code placement examples for digital tipping

Cashless Trips Need Cashless Tips

According to the 2020 Customer Engagement Technology Study: What Do Guests Want Now? more than 50% of seasoned travelers said “Cashless Tipping” is an important service. There has already been a significant decrease in cash usage over the past few years. Nearly a third of U.S. adults said they typically make no purchase using cash during a week, according to a study by Pew Research Center.

Not surprisingly, Millennials are the ones leading the charge toward a cashless future. A report from Experian in 2019 revealed that 1-in-10 Millennials use their digital wallet for every purchase. Pew Research also found that about 34% of adults under the age of 50 make no purchases in a typical week using cash.

So, without cash on hand to extend tips to hard-working hotel employees, travelers will need an alternative. youtip provides a truly cashless, contactless, and app-free customer experience. More importantly, youtip is offering its standard platform FREE through the end of 2021 to ensure that hoteliers can meet guest expectations as summer approaches and travel rebounds. Those wishing to brand or configure this contactless, cashless, and app-free digital tipping solution to an existing app can do so at a low cost.

Digital tipping is here to stay! Will you be ready when your guests return to meet their demands and help reward your staff for a job well done? If you’re not sure, I suggest you give youtip a contact us today.

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