The hotel industry has experienced significant challenges over the past couple of years, and while it may seem that hotel rate growth has started to level off, pricing remains remarkably high and is expected to stay elevated well into 2024. However, it is not just the high prices that are causing concern among hotel guests; it is also the declining service levels due to staffing issues. As travel demand returns and costs increase, guests are becoming less willing to compromise on their expectations. In this article, we will explore the changing mindset of hotel guests and the pressure it puts on hotels to deliver exceptional service. We will also discuss the potential rise of digital tipping as a way to show appreciation for genuine and thoughtful service.
In recent years, as service levels have dropped due to staffing challenges, guests have been forced to lower their expectations. However, with travel demand rebounding, this trend is anticipated to shift in the coming year. Craig Strickler, the president at Valor Hospitality Partners, emphasizes that guests will no longer accept paying more for lower levels of service. Hotels will face increasing pressure to meet these heightened expectations, forcing them to reassess their approach to guest satisfaction.
The Importance of Properly Training Hotel Teams
One way hotels can meet these rising expectations is by focusing on training their teams and getting “back to basics.” This involves simple gestures like greeting guests with a smile, ensuring clean rooms, and providing great food and beverage service. While technological advancements and F&B trends may come and go, the fundamental desire for genuine and thoughtful service remains constant. Hoteliers need to prioritize training their staff to deliver exceptional experiences at every touchpoint.
As guest expectations evolve, so does the way they show appreciation for excellent service. The hotel industry has been slowly adopting digital tipping, but it has yet to be widely embraced. However, in 2024, we may witness a significant shift as cashless tipping goes mainstream within the hotel sphere. Many hospitality giants are already piloting digital tipping initiatives, indicating a growing acceptance of this practice. Russell Lemmer, CEO and founder of Grazzy, a digital-tipping startup, believes that 2024 will be the year when the early digital-tipping movement gains momentum. As hotel ownership and management groups increasingly express interest in digital tipping solutions, more pilot programs are expected to evolve into standard operating procedures.
Digital tipping offers several benefits to both hotel guests and staff. Firstly, it provides a convenient and contactless way for guests to express their appreciation. In a world where people heavily rely on their smartphones, digital tipping eliminates the need for guests to carry cash. Secondly, it helps shift the focus from physical tipping jars to more transparent and fair systems. Hotel workers, like Darren from an Embassy Suites in Texas, have experienced a significant increase in their earnings due to digital tipping. With just a single QR code, Darren went from making $5 to $10 a week in tips to over $500 a week. This anecdote highlights the positive impact digital tipping can have on the financial well-being of hotel employees.
While the adoption of digital tipping by hotel properties is crucial, positive word-of-mouth will play a significant role in driving its acceptance. Guests who have had satisfying experiences with digital tipping are likely to share their positive stories with others, creating a ripple effect. Personal anecdotes, like Darren’s story, can inspire confidence among both guests and hotel staff, ultimately leading to the widespread adoption of digital tipping.
As the hotel industry continues to navigate the challenges of the labor shortage and rising guest expectations, there is a need for innovation and adaptation. Hoteliers must prioritize guest satisfaction by providing genuine, thoughtful service at every interaction. Simultaneously, embracing new technologies like digital tipping can enhance the guest experience and improve the financial well-being of hotel employees. Overall, the changing landscape of the hotel industry necessitates a renewed focus on guest service and the exploration of modern solutions to meet evolving needs.