Why Digital Tipping is Here to Stay

Trends come and go, but one thing that’s not going anywhere is digital tipping, especially for staff in restaurants and hospitality. The technology is forward-thinking, efficient, and valuable to guests and employees alike — and it stands to make a massive difference in how society views and approaches tips.

The straw that broke the camel’s back: How digital tipping rose to prominence

Digital tipping technology has been around in one form or another for well over a decade, but it took a global pandemic to cement its place in businesses across the country.

A 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 expected to adjust to a digital, contactless workplace in light of the pandemic. 

Businesses — particularly in hospitality, where the short-term impact on staffing and revenue was particularly brutal — reassessed and restructured their operations in response to COVID and began to redefine the customer experience with contactless offerings and digital opportunities.

As businesses weaved technology into their daily workflows, the benefits — beyond protecting against a contagious virus — soon revealed themselves. Not only that, but consumers quickly adapted to the shifts in how they consumed and paid for hospitality services. Years after the pandemic, we’re still investing in — and expanding upon — these resources today.

What’s keeping digital tipping in business

Digital tipping may have forged its way into more businesses as a pandemic-era band-aid, but it’s proven itself to be a long-term operational win. 

Today’s hospitality leaders are embracing digital tipping not just to meet guest expectations but to solve deep-rooted operational challenges.

Owners and operators at hotels, restaurants, and other service industry businesses are always looking for ways to streamline processes and reduce turnover. And digital tipping has become the perfect lever to pull to achieve both.

Convenience and cashless lifestyles

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. 

Cashless tipping solutions also allow for an easier user experience — simply tap a link or point your phone’s camera at a QR code to leave a gratuity. This simplified experience leads not only to happier guests but, quite often, larger and more frequent tips.

Convenience for owners and managers

Digital tipping apps and platforms aren’t just making things easier for consumers. Hospitality operators also stand to benefit from cashless tipping.

Manually tracking, calculating, and distributing tips is a time-consuming headache. For managers already stretched thin, traditional tip-out processes tend to involve chasing down envelopes, reconciling spreadsheets, handling disputes between staff, and trying to maintain compliance with complex tipping laws.

Digital tipping platforms simplify the entire tip management process. With features like automated tip tracking, customizable distribution settings, and downloadable reports for IRS compliance, managers can save hours of administrative work each week. 

The bottom line: digital tipping ensures fewer disputes, faster payouts, and a lot more time back in a manager’s day.

Gains in employee satisfaction and retention

A crucial tenet of employee satisfaction in hospitality centers on tips. Hotel managers are recognizing that simply raising salaries won’t fix today’s labor shortage in the long term. Instead, some managers are incentivizing workers with streamlined digital tipping. 

With cashless tipping software in place, tips are paid out instantly and accurately, and employees are seen and valued for their hard work. That sort of work environment is priceless these days. 

Digital tipping: A long-term solution that’s here to stay

A cashless lifestyle isn’t a trend, it’s a reality. And for hospitality businesses aiming to modernize operations, reduce turnover, and improve guest satisfaction, digital tipping has proven to be a strategic advantage, not just a nice-to-have.

At eTip, we’ve seen it firsthand.

Our partners report: 

• Up to a 30% increase in staff retention
• A $5/hr average boost in employee income
• 5x more frequent tipping from guests

Ready to modernize the tipping experience at your business? Schedule a demo of eTip to see why thousands of leading hotels and service businesses trust us as their go-to digital tipping platform.