Why Digital Tipping is Here to Stay

There are many things about 2020 that we won’t be sorry to leave in the rear-view mirror: social distancing, travel restrictions, etc. At the same time, the pandemic revealed some unique opportunities that many are interested in continuing – the ease and convenience of QR codes, for example. One thing that’s not going anywhere is digital tipping, especially for staff in hospitality. The technology is forward-thinking, efficient, and valuable to guests and employees alike. Pandemic or not, it stands to make a massive difference in how society views and approaches tips.

On the whole, digital services are going to drive businesses forward like never before. A recent survey from McKinsey found that the onset of COVID sped up the adoption of digital resources in business by an estimated four to seven years, and companies acted 20-25 times faster than employees expected them in order to adjust to a touchless, pandemic world. Businesses – particularly in hospitality, where the short-term impact on staffing and revenue was particularly brutal and the long-term effects remain unknown – reassessed and recreated the ways they operated in response to COVID and began to redefine the customer experience with contactless offerings and digital opportunities.

So few people are carrying cash anymore that analog tipping has become a consistent inconvenience. Studies show that cash was on the outs even before the pandemic, and a COVID-influenced world has accelerated the digital revolution. In addition, folks are now so attuned to what’s clean and hygienic that cash passing hand-to-hand simply doesn’t cut it anymore. Digital tipping options remind guests that their safety is still top of mind. Digital offerings also allow for an easier user experience – simply point your phone’s camera at a QR code and click on the popup that appears, seamlessly bringing you to the tipping website – which creates happier guests and, ideally, higher tips.

And indeed, a crucial tenet of employee satisfaction in hospitality centers on tips. Hotel managers are recognizing that simply raising salaries won’t fix this labor shortage in the long term. Instead of engaging, some managers are incentivizing workers by offering digital tip services. Tips are paid out instantly and accurately, and employees are seen and valued for their hard work in an even harder period of time. That sort of work environment is priceless these days, as the hospitality industry looks to rebound from a tumultuous year.

With digital services driving business, the decline of cash use, and an increase in employee satisfaction and productivity with better tips, digital tipping isn’t going anywhere as COVID recedes. If you’re looking for an easy way to offer this service at your property, head to eTip’s website and get started with our cashless, app-less platform.