Shiny: Tipping probability doubles among loyalty program members

GUESTS TEND TO offer gratuities to hotel associates most frequently on Sundays, while Tuesdays emerge as the least likely day for such gestures, according to a new study on tipping by Shiny, a provider of associate engagement and retention services. Moreover, loyalty program members display a twofold increase in their propensity to leave tips compared to non-members.

In its debut report, 'Tipping and Beyond: Data-Driven Approaches for Handling Hospitality Staffing Challenges’, Shiny draws from sources in 2023 addressing labor shortage issues. The study examined tipping records from 28 U.S. hotels, including both select- and full-service branded as well as independent hotels, while the dataset comprised 594 tipped employees, spanning roles such as housekeepers, valets, lounge staff, breakfast servers, and others.

According to the report, $10.60 is the average tip amount received across departments including housekeeping, valet, dining, lounge, front desk, and the like. A notable majority of tips, totaling 80 percent, are left by customers when they proceed with check-out.

"Pre-pandemic, the foremost concerns impacting hotels included labor acquisition, productivity, and retention," said Rebecca Robinson, co-founder of Shiny. "COVID-19 amplified these challenges, intensifying the quest for effective talent attraction and retention strategies. This report sheds light on present tipping trends, offering insights for optimized staffing, and contributing to the resolution of ongoing labor shortages."

The study may show that higher wages lead to happier employees, Robinson said, but there is no one-size-fits-all solution.

"Through conversations with managers and staff, we developed strategies to reduce turnover, from improved tipping methods to transparent scheduling, simplifying processes for both employees and managers,” she said. “Our report doesn't just identify trends; it provides practical solutions to the issues we discovered."

In July, Hotel Equities partnered with Grazzy and Visa Direct to launch a digital tipping platform for associates and guests. This program facilitates mobile tipping for housekeeping, front desk, and other staff.