We all knew that 2022 would be different. After the pandemic dominated our lives for the last two years, there was no chance that we were going to escape significant changes in the hotelier industry. One of the biggest differences we’re going to see is a trend towards cashless tipping at hotels as well as in various other businesses and franchises across the United States.
What is Cashless Tipping?
Cashless tipping is the process of allowing guests to tip staff members without leaving cash for them. Usually, cashless tipping needs technology such as an app or similar online platform so that guests can tip when they want to and leave as much or as little as they want to for each staff member. Cashless tipping is a great way to improve the experience of your guests by allowing them to tip without the inconvenience of having to find and leave cash.
Research shows that 66% of hotels around the country intend to increase their IT budget in 2022. In addition, 65% of hotel operators believe that contactless tipping has a huge potential to become an essential hotel service in the future. Indeed, 74% of hotels already offer or intend to offer certain contactless payment options for guests.
It’s clear that cashless tipping is a new and emerging trend that hotel owners, operators, and managers are planning to invest in in 2022 and beyond.
Why is Cashless Tipping Important?
Cashless tipping has emerged primarily as a result of the COVID-19 pandemic. One of the biggest reasons that hotels want to implement this safe and effective practice is to encourage their staff members to stay working and to work hard in their positions. Without cashless tipping, tipping as a practice is going to take a hit. Take, for example, the words of HEI Hotels and Resorts’ CEO, Ted Darnall.
Darnall says: “…in today’s world, people just don’t carry cash.” In HEI hotels, Darnall and his associates have adopted contactless tipping as an option for customers who want to tip staff members but just don’t want to carry cash around to do so. While guests could and would often leave envelopes with cash in hotel rooms for the staff members, since the pandemic, tipping practices have begun to decline.
Darnall believes that the main reason tipping has declined is that people don’t carry cash. He also mentions that as the pandemic has begun to wane, many guests just aren’t sure how important tipping is to the staff. During the pandemic, everyone knew that the staff at hotels were making less. Now, they’re not so sure. But the truth is, especially in an economy of inflation, staff still need tips to keep going.
Plus, staff members are struggling emotionally and mentally with the added hours of work and the stress of handling work in a post-pandemic world. There are fewer staff members overall, but there are more guests now than ever during the pandemic. Together, those factors make for a very challenging work environment for hotel staffers who are doing their best to perform their jobs well.
Cashless tipping is important because it allows staff members to receive much-needed and much-appreciated tips from guests without having to worry about any unsanitary cash-handling practices. It also encourages guests to leave more tips, which are deeply appreciated by the staff who are working so hard to take care of them even in a challenging work environment.
With better cashless tipping practices, more employees will stay at work and work hard to support their guests despite the personal challenges they are facing.
Why Mobile Technology is Crucial for Hotels
Patrick Dunphy, the chief information officer at Hospitality Technology Next Generation, says that “Mobile-first has been a rallying cry for more than a decade” and “Companies that embraced this before or during the pandemic have a head start on those that are just trying to figure this out.” While restaurants and other businesses have increasingly begun to rely on mobile technology in the last few years, hotels have been slow to follow suit.
However, some hotels have begun to shift to mobile technology, and the difference shows. According to Sloan Dean, the president and CEO at Remington Hotels, technology is not only a benefit to combat labor and capital shortages, but a benefit to staff members as well.
As he told Sean McCracken for Hotel News Now, “Staff-facing technologies such as internal communications, shift sharing, alternative payments opportunities like daily pay and other improvements may help combat the worker shortage.” Cashless tipping is one form of technology that will benefit both customers and staff members by keeping staff members engaged and encouraging customers to offer tips even when they normally wouldn’t think of it.
In the years ahead following the shifts brought on by the pandemic, cashless tipping is sure to become a powerful tool for all hoteliers around the country. With a simple, easy online process, customers will tip more and staff members will earn more. This will encourage more staff members to keep their jobs and help customers feel more comfortable about their tipping options.
Choosing the Right Cashless Tipping Technology
There are a few key things you want out of the best cashless tipping technology:
- Powerful features such as scanning that allow customers to pay without having to download an app.
- Feedback opportunities so that customers can rate staff and leave reviews to encourage them or ask for improvements.
- Versatile options so that customers can tip in a variety of ways, whether they want to use an internal link or scan a QR code.
Youtip can do all of this and more with our simple and fast technology solution to cashless tipping. When you install the youtip product, you’ll be able to collect tips, feedback, and other important data with a few simple steps. Customers can pay from anywhere, using any method you choose, and staff members get the tips they need and reviews and feedback to help them improve their performance and grow to be better employees.