As digital tipping technology grows in popularity, hotels are testing options that allow guests to tip housekeepers and other staff individually. But digital tipping has definitely not reached widespread adoption yet, sources say.
Hotel franchise companies, such as Wyndham Hotels & Resorts and IHG Hotels & Resorts, along with third-party management companies including Hotel Equities, Crestline Hotels and Dimension Hospitality among others, have approved vendors to provide digital tipping options, with varying uptake.
But while consumers are accustomed to tipping food service staff, the more widespread practice of tipping individual hotel staff like housekeepers and bellmen has been slow and deliberate.
A 2023 survey done by Forbes magazine found that only 24% of Americans tipped for hotel services, and 22% felt they needed to tip.
But for those hotels that are experimenting with cashless tipping options, it is a way to help reward employees and help retain them.
Cashless tipping is mostly prevalent these days in quick-service dining establishments and some hotels, Rentyl Resorts CEO Nick Falcone said. For the quick-service experience dining options, it can create a positive impact on wages, increasing them by as much as 20% to 30%.
"We aren't seeing it in our resorts, but I’m sure it will be something that occurs more frequently," he said.
Josh Dow, vice president, hotel technology strategy & services for Wyndham Hotels & Resorts, agreed, saying that today's travelers are less inclined to carry cash. This makes digital tipping a move in the right direction to reward exemplary service in the hotel industry.
"Mobile tipping allows guests to leave housekeeping the reward they deserve more easily. As part of our new owner and guest engagement platform, Wyndham Connect, we are now including mobile tipping as part of our standard technology offering because it helps bridge the gap between guests and hotel staff," he said.
Based on all Wyndham hotels that have adopted the digital solution, the average tip is more than $10.
"Not only is that a benefit from a compensation perspective, but it’s also an incredible tool for staff morale with housekeeping getting the appreciation and recognition for their hard work from guests," he said. "As an early adopter of this kind of technology, that can be a difference-maker for staff."
Dow added that mobile tipping is a great tool to promote from a recruiting and retention perspective. It provides extra money for staff and is a positive reinforcement of their work and effort. This is important in an industry known for high turnover, especially among housekeeping staff members.
The key to having this work is guest awareness, he said. Whether it’s through AI messaging with guests after their stay or in-room communication that highlights the service, showing guests how easy it is to use will go a long way and hotel staff will reap the benefits in return.
"Cashless tipping is certainly here to stay and will grow in popularity, as the younger generation is much more tech-savvy," said David Sangree, president of Hotel & Leisure Advisors.