Shiny, a provider of associate engagement and retention software, has released its second annual report on tipping for the hospitality industry, which finds that offering digital tipping increases associates’ take-home pay.
Entitled “Harnessing Tipping Data to Empower and Motivate Hospitality Workers,” the report offers a comprehensive analysis of tipping behaviors and patterns across a diverse sample of hotels utilizing the company’s digital tipping software. As the hospitality industry continues to evolve, understanding guest behaviors, particularly in how they express gratitude, is crucial for enhancing service quality and improving employee satisfaction, according to the company. The document also provides actionable solutions to introduce and potentially increase guest tipping.
“Not only is providing a tipping option for associates a phenomenal benefit to increase take-home pay, but it also is a fantastic way to keep employees engaged beyond daily standup,” said Rebecca Robinson, cofounder, Shiny. “In this report, we continue to explore trends in digital tipping to further improve operations and ultimately increase retention.”
This report delves into data gathered from a select number of Shiny’s hotels—138 properties, encompassing more than 13,000 tipping transactions and nearly 3,631 tipped employees, revealing key insights that can help hoteliers refine their operational strategies.
Highlights of the report include:
- Associates take home up to $375 more per week when digital tipping is offered to guests.
- Comparing 2024 to 2023, guests are 15% more likely to leave a tip today than they were in 2023.
- Half of guests who tip are leaving tips at or above $10.
Included in the report is a case study of one of Shiny’s partners, hospitality management company Stonebridge Companies, which launched its digital tipping platform in 2022 at all of its hotels.
As an example, at Stonebridge-operated hotels, the top 25% of tipped associates took home at least $100 per week in tips, resulting in a 50% reduction in employee turnover over a 12-week period. Equally important, one of their luxury city-center properties saw a 36% increase in guest satisfaction scores compared to the previous year’s Tripadvisor scores before Shiny’s digital tipping.
The report also provides tactics to increase gratuity awareness and opportunity. Suggestions include:
- Invest in quality materials
- Use simple, direct messaging
- Place collateral strategically
- Choose the right timing
“By partnering with a strong digital platform, we’ve been able to utilize their data to make improved operational decisions, which have led to increases in guest satisfaction, employee retention and recognition, making our hotels more profitable,” said Chris Cheney, SVP, commercial services, Stonebridge.
