Tag Archives for tipping.
Hotels want guests to give tips to workers, so they can pay lower wages. The CEO of one hotel ownership group actually said the quiet part out loud.
In 2019 Hilton’s CEO said that even he didn’t tip housekeeping. But now hotels are pushing it, and we face a collective action problem. The practice pushes down housekeeper wages, but if an individual guest doesn’t do it that’s less money in a given housekeeper’s pocket on that given day.
The range of things for which tipping is being solicited in the United States has grown tremendously. Tipping, it seems, is no longer just for personal services someone provides – like a waiter in a restaurant, or a stylist in a salon. You’re asked to tip when you bus your own tray after waiting in line for food at a restaurant. You’re asked to tip when picking up food for carry out. And the amount you’re asked for has grown, from 15% to 20% and now sometimes 25%.
Surely there has to be a line. How much will we stand for? Isn’t a reasonable principle that tipping ought to be reserved for service provided by people and not machines?
I ran into a retail shop at the Austin airport that requires a tip when paying by credit card. This isn’t a sit down restaurant with table service. You pay at the counter, and I was buying a bottle of water.
The payment terminal at the concession requires you to select a tip amount prior to processing your card. $0.00 is not accepted.
Hotel chains aren’t pushing guests to tip out of affection for their lowest-paid employees. They’re doing it as a way of controlling owner costs. The CEO of one hotel group even says they need guests to tip more – so they don’t have to raise wages.
Nationally consumers are tipping 16.9% on bills at quick-service restaurants, 19.6% on bills at full-service restaurants, and 14.5% on takeout and delivery – but it varies a lot by state. How does your state tip, and are you more or less generous than your neighbors?
Addressing one of the real frictions, or barriers to tipping, we’re also seeing tipping via QR code paired with a clever psychological trick thanks to Holiday Inn.
A flight attendant on board United Airlines flight 6060 from Charleston to Houston Intercontinental, an Embraer ERJ-175 operated by Mesa Airlines, was photographed appearing to take cash from a first class passenger. Another passenger on board reported on twitter that the cabin crew member “took cash bribes” from passengers up front not to enforce mask rules for the flight.
Another photo from inside the cabin shows at least passengers in the cabin not wearing masks, although the two closest to the person taking the photo are speaking to each other while at least holding a drink.
A traveler reports that Hilton’s Hampton Inn & Suites Las Vegas-Henderson has a creative new way to squeeze guests. They are automatically adding tips to guest bills, and they aren’t telling anyone.
The plan is to be “encouraging customers to authorize tips at check-in to ensure staff were recognized for their hard work” and having these charged to credit cards, since customers are carrying less cash. They’re also “considering adding a minimum gratuity to restaurant checks.”
This is a tipping point, according to the chain’s CEO, for consumers deciding whether to retain the elevated tipping levels of the pandemic, when consumers felt bad for hotel workers serving customers or whether they’ll revert to pre-pandemic tipping practices. The chain’s task, he believes, is “to educate customers about how hard staff had been working,” and make sure they continue elevated tipping. Hard work shouldn’t be recognized by higher wages.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
