The partnership lets customers using Infor’s Hospitality Management System (HMS) customers offer guests the ability to give gratuities to select staff departments via credit card, one-click options like Apple Pay, or their guest accounts, according to a Monday (June 5) press release.
“The numbers of people carrying paper currency on them every day continue to decline due to the rise of credit cards, eCommerce, digital currency and even the pandemic,” Matt Tuchband, co-founder of TipQwik, an app that lets customers tip via mobile devices, said in the release. “The ability to tip with a smartphone throughout a property is important for two reasons. The first, reduced turnover through retention and reduced hiring costs for staff that normally do not get tips included on a bill such as housekeeping, porters, etc. And two, it provides a simple option for guests to show their appreciation at any time without fumbling for cash.”
The integration lets guests access TipQwik upon check-in and make gratuity payments to staff throughout their entire stay, the release stated.
Tipping can offer a retention solution for the hospitality and dining sectors as they deal with labor shortages.
Brian Hassan, co-CEO of instant cashless tip payouts platform Kickfin, told PYMNTS in January that a lot of press is dedicated to navigating the digital tipping culture that became systematized in the wake of the pandemic.
“You really can’t get a cup of coffee anymore, anywhere without being asked to tip a few bucks,” Hassan said. “…From our perspective, this is giving the ability for the customer to show gratitude to the hospitality employee.”
He added that estimates of what it costs eateries and coffee shops to hire and retain staff are running as high as $5,500 per employee.
“So, if there’s any way that they can reduce what is a multi-hundred percent turnover year over year on labor by saying instead of paying you $15 an hour, perhaps you could take home $20,” then that’s just smart business, Hassan said.
Meanwhile, PYMNTS research in “Connected Dining: Inflationary Pressure Squeezes Restaurant Tips” found that 39% of consumers have been tipping less at restaurants in recent months.