Dive Brief:
- IHG Hotels & Resorts said it had approved multiple new payment vendors in order to expand its ability to accept digital tips, according to releases obtained by Hotel Dive.
- Those vendors include payments startup Grazzy, San Francisco companies eTip and TipBrightly and hotel tech provider Canary Technologies.
- Hoteliers are increasingly turning to digital tipping solutions to boost both guest and employee satisfaction. The recent approvals are the result of “several pilots over the last year” to test digital tipping at IHG properties, according to Brian McGuinness, the company’s SVP of global guest experience.
Dive Insight:
McGuinness said IHG’s tipping approvals were born out of a desire “to meet guests where they are.”
“In recent years, we’ve seen customer behavior shifts to contactless payments and QR codes,” he told Hotel Dive. “Guests have told us they want a seamless and secure digital tipping platform to recognize hotel colleagues working hard to go above and beyond to make their stay excellent.”
“The stage is set for digital tipping to become commonplace in 2024,” said Russ Lemmer, CEO of Grazzy, in a statement. “Hotels and many other types of service-focused businesses recognize the importance of tips as a competitive tool in a tight labor market.”
Austin, Texas-based Grazzy is already in use at properties operated by Hotel Equities, Crestline Hotels and Dimension Hospitality, according to a release. The company’s digital tipping platform allows guests to tip via their phones without installing an app or creating an account.
“We are seeing an increase in market demand for a fast, reliable, and fully digitized tipping experience for hotel guests and employees in the hospitality industry,” said Yanilsa Gonzalez-Ore, SVP of Visa Direct, which powers eTip’s technology, in a statement.
A digital tipping and financial benefits provider tailored to hospitality and service industries, eTip is already deployed at hotels managed by Davidson Hospitality, Concord Hotels and Kalahari Resorts.
Meanwhile, hotel tech provider Canary Technologies also offers a digital tipping solution, which Marriott International tapped for its managed and franchised hotels in October. San Francisco startup TipBrightly was also approved by IHG, according to Hospitality Technology.
Wyndham Hotels & Resorts CIO Scott Strickland previously told Hotel Dive that digital tipping can boost both guest and employee satisfaction, as digital tips allow guests to thank staffers, and staffers to potentially earn more.
According to Canary Technologies’ 2023 State of Tipping in Hotels report, 70% of hotel guests would tip more if a digital tipping solution was available, and nearly 40% would prefer to digitally tip staff. “That helps a lot with the [wage] gap,” Strickland said.
