You must’ve been there – that awkward moment when you realize you don’t have any cash to tip the valet, bellhop, housekeeping staff or other service workers who rely on gratuities. With fewer people carrying cash these days, those who depend on tips are getting the short end of the stick.
According to a recent poll by Travis Credit Union, the average American is now twice as likely to use credit/debit cards instead of cash. Out of 2,000 people surveyed, only 16% regularly carried cash, while 37% occasionally kept some bills on hand. This trend has significantly reduced the tips many hotel and service industry employees count on.
But advances in digital tipping technology now make it easy to show your appreciation without cash. Cashless or contactless tipping allows you to quickly and conveniently tip using a credit card, debit card, or digital wallet on your smartphone. No more awkward apologies or frantic runs to the ATM.
How does cashless tipping work?
There are a few main components:
1. Tip acceptance software that allows guests to tip digitally without cash
2. Tip distribution software that instantly pays out digital tips to employees at the end of their shift
For the customer, it’s as simple as scanning a QR code – which may be displayed in the hotel room, at the valet stand, or even on an employee’s name badge. This pulls up an interface to securely leave a tip using Apple Pay, Google Pay, a credit/debit card, or other options. No app download required.
Behind the scenes, the software automatically distributes the digital tip to the appropriate worker. This streamlines what was previously a major headache for managers – making bank runs to get cash for tips, spending hours counting it out, and dealing with inaccuracies and “skimming.” Digital tipping saves significant time and money.
benefits of cashless tipping
Some of the key benefits of cashless tipping for hotels and other service industries include:
Increased earning potential for workers. When guests have an easy way to tip digitally, employees can boost their take-home pay rather than losing out just because a customer doesn’t have cash on hand. Higher and more consistent tips lead to better employee morale and retention.
Expanded tipping opportunities. With QR codes throughout the property, guests are prompted to tip workers they may have previously overlooked, like housekeeping staff. Tips can be pooled when multiple employees contribute to the guest experience.
Reduced administrative work. Managers no longer have to manually total up and distribute cash tips, saving hours every week. Cashless tips can flow directly to the employee’s bank account or paycheck.
Performance insights. Digital tipping systems provide real-time data on guest satisfaction and employee performance, so management can make informed decisions.
Customized branding. Cashless tipping interfaces can be tailored to match a hotel’s brand for a seamless look and feel. This gives guests an added sense of security.
Ease of use. Customers appreciate the convenience of tipping how they want, when they want. No app download or cash required. Digital tipping profiles can even be shared with customers via text, email and print materials.
For workers, getting instant access to their digital tips is paramount. Solutions like Kickfin, a leader in cashless tip payouts, allow employees to receive their earnings after every shift directly in their bank account. No more waiting for payday or dealing with the high fees of some pay card options.
While the cashless trend has disrupted the tradition of cash tipping, innovations in digital tipping are a win-win for guests and service industry professionals. Hotel brands like Unifocus are integrating cashless tipping to create a better experience on both sides of the equation.
So the next time you find yourself without cash to leave a tip, fear not. Simply look for the QR code to quickly show your gratitude with a tap or scan. Embracing contactless tipping ensures the hardworking people in hotels, restaurants and other service roles can still get the recognition they deserve in an increasingly digital world.
If your hotel or business is looking for a seamless digital tipping solution to boost your employee experience and bottom line, reach out to learn how services like www.jethotelsolutions.com can easily integrate cashless tipping across your operations.