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Jordan Hollander
CEO @ Ocean Park Hotel
Jordan is the co-founder of Hotel Tech Report, the hotel industry's app store where millions of professionals discover tech tools to transform their businesses. He was previously on the Global Partnerships team at Starwood Hotels & Resorts. Prior to his work with SPG, Jordan was Director of Business Development at MWT Hospitality and an equity analyst at Wells Capital Management. Jordan received his MBA from Northwestern’s Kellogg School of Management where he was a Zell Global Entrepreneurship Scholar and a Pritzker Group Venture Fellow.
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Choosing the right Digital Tipping Solutions for your hotel depends on several variables some of which come down to personal preference but most of which come down to the characteristics of your property. Is your hotel a small property with limited budget? Or is your property a luxury resort with lots of outlets and high ADR? Below are HTR’s defined key personas based on common property characteristics that typically indicate similar product choices.
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Allows guests or customers to leave cashless gratuities: Guests often forgo tipping valets or bell staff not because the service was lacking, but because they don’t have cash on hand. A digital tipping system lets guests show their appreciation for service workers through a variety of digital payment options, like ApplePay and Google Pay.
Reduces administrative work. Adding a new income stream might seem like adding a big administrative burden too, but modern digital tipping solutions handle much of the digital paperwork for you. Thanks to automation and integrations with other systems you use, the administrative work is quite minimal once you’re onboarded.
Payment collection: The most important feature of a digital tipping solution is its ability to accept payments from guests or customers who want to leave a tip. A good digital tipping system will accept all kinds of digital payments, including credit cards and digital wallets like ApplePay and Google Pay.
Tip distribution: Once tips have been collected, the system disburses the funds to your hotel’s bank account or payroll system.
Pooled and individual tips: A versatile digital tipping system can handle both individual tips and tip pools so it’s equally valuable for spa therapists and servers.
Shift and location management: Support for multiple shifts and even multiple locations makes a digital tipping system ideal for hotel groups or chain restaurants.
Feedback and reviews: After a customer leaves a tip, they have the option to share a rating or a comment about their service experience.
QR codes and links: How does a guest access your tipping platform? The vendor should provide several options, like QR codes or links that you can embed in your digital receipts and confirmation emails.
Web-based platform: To maximize use of the digital tipping system, customers should be able to use it without downloading an app. A web-based app will make adoption easier.
Branding: Make your digital tipping software look like an extension of your website with your brand colors, fonts, logos, and images.
Most digital tipping apps charge a few different fees. Businesses pay a subscription fee to use the system, and you might also need to pay implementation fees or additional monthly fees to integrate the digital tipping system with other software, such as your property management system, payroll system, or branded mobile app. In addition, many digital tipping apps charge a per-transaction convenience fee to customers. These costs vary based on the scale of your business, so it’s best to reach out to the vendor directly to get a customized quote.
Besides the software fees, you’ll also need to pay for any collateral you use to advertise or access the digital tipping software. For instance, you may print QR codes on stickers you affix to your to-go containers, or maybe you install signage near your valet desk with a QR code and instructions on how to leave a digital tip. These expenses add to the cost of implementing a digital tipping solution.
Setting up a digital tipping system is relatively straightforward, and you can expect to be up and running in as little as 24 hours. More complex businesses with customization needs might need a week or two before they’re fully onboarded. You’ll first get access to a dashboard that lets you configure all of your settings, like inviting users, building shift or location objects, and inputting your brand elements (logo, colors, etc.). You’ll also need to set up payment disbursement methods so your employees can get tipped out. This may include connecting a bank account, your payroll system, or your property management system. Before rolling it out, make sure to conduct training for employees and managers so everyone knows how the app works. The last step is to create any printed or digital material that advertises the digital tipping app to ensure customers or guests can easily access it.
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