The Role of Digital Tipping Solutions

In her latest blog post, Elle Rustique, PhD, Founder & CEO of TipBrightly, examines the impact of hotel strikes on the industry and how digital tipping solutions are offering support for both workers and management.

In recent months, the U.S. has seen a wave of hotel strikes as workers demand higher pay, better working conditions, and job security. Over 10,000 hotel employees have walked off the job in cities like Los Angeles, New York, and Chicago, as inflation continues to erode wages. UNITE HERE, the union leading the strikes, is pushing for wage increases to keep pace with the rising cost of living. With up to 40,000 workers expected to join the strikes, this is shaping up to be one of the most significant labor movements in the U.S. hospitality industry. From the hotel management’s perspective, these strikes come at a challenging time. While the hospitality industry is recovering from pandemic-related downturns, many hotels still struggle with reduced travel and rising operational costs. Hoteliers face pressure to balance wage increases with maintaining profitability. Increased costs of energy and supply chain disruptions have made it difficult to meet all worker demands without significantly raising room rates. Hotels have also turned to technological solutions like digital check-ins to offset labor shortages, but the need to attract and retain workers remains essential. In response, many hotels have begun offering pay raises and benefit packages to mitigate the effects of the strikes and maintain service standards. The strikes also have important implications for digital tipping platforms like TipBrightly. As hotel workers advocate for higher wages, cashless tipping is becoming more critical for boosting staff earnings. Digital tips, which are often 25-50% higher than traditional cash tips, provide an immediate and transparent way to supplement income, especially in an era where cash is less common . This can be a win-win for both workers and hotels, allowing guests to tip more easily and hotels to enhance guest satisfaction without directly raising wages.