How Hoteliers Can Embrace Innovation During Uncertain Times
A month ago the owner of a group of hotels reached out to me. He had heard through one of our company advisors that we had developed a mobile platform that enabled cashless, contactless tipping. This hotelier saw an opportunity to provide guests with a convenient, touchless method for tipping. This would also protect employees from cash handling. He also saw a way for their tipped service employees - housekeepers, valets, bellman — to recover tips and feel appreciated. This wasn’t just a win-win, it was a win-win-win for the organization.
I was excited and encouraged that amidst a pandemic, there were signs of optimism and potential innovation. This CEO introduced me to one of the GMs of his properties, and we exchanged emails. This GM then met with the other GMs in the property group. Unfortunately, their fear of change and adherence to existing practices didn’t make a partnership a good fit. The reason wasn’t that our technology didn’t work. The reason wasn’t that there were barriers to implementation. And it wasn’t that the employees didn’t want it. We offered our platform with a free setup fee and waived licensing to help hotels in this period of recovery.
So what was the reason?
Fear. Fear of change. Fear of messaging to guests that a cashless tipping option was available. Fear of saying something different from the traditional “Tips Appreciated.“ The GM explained that, "It’s against our policy to solicit tips. Explaining to guests that tipping could be done digitally, through a QR code, is considered solicitation.”
This sentiment starkly contrasted with the conversations I had been having with two hoteliers, who I am proud to name here: Anthony Loos, GM of a newly opening Aloft Denver Westminster and David McCartney of the Hotel Arras in Asheville, North Carolina. I had met Tony when he was at another Aloft in the Bay Area. A seasoned hotelier, Tony talked excitedly about bringing our cashless tipping platform to his new property. He wanted to do things differently. David, anticipating that innovation would take time, began planting seeds with management about the benefits to guests and employees.
Why did the current climate lead to acceleration of cashless tipping rather than fear? Because Tony and David had already developed a mindset that was receptive to change. These are the mindsets that set them apart:
Understanding the changing landscape. Both saw that changing attitudes toward cash would affect their employees ability to earn tips.
Appreciation of their employees. Both recognized the importance of positive employee morale and feeling valued.
Willingness to step outside their comfort zone. Unlike the GM who believed that eduction was solicitation. Tony & David understood that explaining new practices would feel uncomfortable, to start.
Courage to ask, push, and prod their management. Introducing a new technology into any organization is difficult -- people have to line up to be on board. Both recognized the necessity of aligning decision makers and bringing them along.
Fearlessness, not fear. During times of uncertainty, it is easy to hold onto what we know, rather than to introduce something unfamiliar. Both saw that only through change could we bring new benefits to guests and staff.
We’re proud to be launching our partnerships this month. Change is coming, whether hoteliers are ready or not. Uncertainty can give way to fear and resistance, or provide permission to go down a new path of innovation.
This is my message to hoteliers: The world of travel was changing before the pandemic, and is changing even more so since. What are you doing to keep pace with the changing landscape? Enhanced safety and appreciation for your front line hardworking staff, who are low wage workers, go hand-in-hand. Innovate! Take risks! The status quo today is very different from what it was five years ago, and it will be even more different five years hence.
Now is the time look at new ways to reward your employees and create a better experience for your guests. Look at ways to distinguish your hotel, to make it special. Show your guests visibly you care deeply for your staff - my experience (supported by company analytics by the way) is that the majority of guests will look kindly upon you for it. The transformation of traditional practices such as service tipping is just one signal of what’s to come.