Cashless Tipping Takes Off: How Hotels Like the Gwen in Chicago are Boosting Employee Tips
The hotel industry is embracing a new trend – cashless digital tipping that makes it easy for guests to show their appreciation without having to pull out their wallet. One notable example is the Gwen Hotel in Chicago, part of Marriott’s Luxury Collection, which has implemented a cashless tipping system from vendor Unifocus called Gratitude.
What is Cashless Tipping?
Cashless or digital tipping allows hotel guests to tip employees electronically using their mobile device, without the need for cash. Most guests today travel with credit/debit cards rather than cash. In fact, a recent poll found only 16% of Americans still regularly carry cash.
Cashless tipping systems like Unifocus Gratitude used by the Gwen enable guests to simply scan a QR code, located in the hotel room or on employee badges, to access a mobile tipping interface. There’s no app to download. Guests can then easily select a tip amount to give using digital wallet options like Apple Pay or Google Pay, or enter a credit card.
How Hotels and Employees Benefit
For hotels facing staffing shortages, cashless tipping offers a way to boost employee compensation and morale. Roles like housekeeping that have traditionally been difficult to hire for can benefit the most. When the Gwen in Chicago implemented Gratitude, general manager Fadi Takouz said “For me as an operator and hotel manager, I look at guest satisfaction and staff satisfaction. The tool and the app gives us the ability to achieve both.”
David McCartney, General Manager of Hotel Arras in Asheville, NC, reports: “Since we started [cashless tipping] early last fall, most housekeepers have averaged tips that add $.50 to $1.00 per hour to their income. We have not had to hire a single housekeeper for over a year.”
Beyond direct compensation, employees appreciate the recognition. Tiffannie Sims, GM of Hotel Peter & Paul in New Orleans noted “A lot of our housekeepers have been with us since the beginning and since we’ve implemented [digital tipping], more tips have definitely gone into their pockets.”
Digital tipping systems also reduce administrative work around calculating and distributing cash tips. Gratuities go directly to employees’ paychecks. Employers get tools for managing and tracking the flow of tips.
Customized For Your Hotel Brand
Vendors like Unifocus allow hotels to provide a branded digital tipping experience. QR codes and tipping screens can incorporate brand logos and imagery. This gives guests a consistent, secure experience.
Some solutions like TipBrightly even allow customizable feedback surveys to be incorporated into the flow. Hotels can collect real-time input on guest satisfaction and quickly identify service issues. Integrations with hotel systems allow personalized tipping experiences.
A Win-Win-Win
While some may feel soliciting tips electronically is tacky, attitudes are shifting as digital payments become the norm. When both guests and staff are increasingly cashless, digital tipping is becoming a necessity.
As Jess Wilson, GM of AMC Highland Center put it: “For guests and staff alike, [digital tipping] is plug and play—the QR code works seamlessly and is easy for guests to understand and we could see the Stripe transactions immediately.”
For hotels, digital tipping is truly a win-win-win:
1) Employees recover lost tip income and feel valued
2) Guests can easily show appreciation as they want to
3) Hotels get tools to manage and boost staff compensation
If you’re a hotel operator interested in exploring cashless tipping solutions, contact Jet Hotel Solutions at jethotelsolutions.com. As an approved IHG vendor, Jet can provide expert guidance in selecting and implementing a system that fits your specific hotel needs and brand. Take advantage of the digital tipping trend to boost your employee experience and stand out to guests.