Pilot Test of Voluntary Flat Gratuities: New Standards for the Hotel Industry

The trend of less frequent cash payments has not bypassed the hotel industry, and this greatly affects tips for staff. While in the past guests could easily shell out a few euros when paying in cash, in the era of card and smartphone payments, this is no longer the case. Due to increasingly frequent requests from guests for alternative ways of tipping, a new pilot design was launched. The goal was to find a way that would offer guests a pleasant and simple service and enable them to voluntarily tip the staff, and thus more tips and a fair distribution.

Test design based on international solutions

For the development of the system, the Austrian hotel group focused on various international solutions. They have been testing their own design for almost a year now: 10 euros per night and room are reserved as a tip, and it is extremely important that everything is on a voluntary basis. This means that the guests are already informed in detail about this model before their arrival, and they can refuse it again when checking in. They are also asked again at check-out if they want to tip or not. In addition, guests can change the amount at any time according to their own wishes.

” With this pilot test, in which our guests can voluntarily participate, we want to offer a service that makes tipping uncomplicated,” says Otmar Michaeler, CEO Falkensteiner

Michaeler Tourisma Group (FMTG).

” It is very important to us how this attempt is received. “Since our employees regularly inform our guests, we also receive direct feedback, and it is very positive. More than 80% of our guests welcome the possibility of an uncomplicated tip and often give more than 10 euros per room per night,” he added.

Fair distribution and motivation of employees

Gratuity for employees is not only increased, but its distribution will be fairer. While before, only those who were in direct contact with the guest received a tip, with the new model it is fairly distributed to everyone. That is why each hotel

that participates in the pilot project has its own commission composed exclusively of employees, which decides on the method of distribution, and the Management is not Included. The design is very well accepted by the employees because everyone who contributes to the guest enjoying their vacation gets something. Likewise, guests can still give individual tips, which is an additional motivation for the staff.

Tipping as an important assessment of quality service

” In Austria, tipping is not part of the salary, but the guest voluntarily gives it to the staff and thus expresses satisfaction with the service. It should stay that way. For our staff, it is an important sign of gratitude. They do a great job every day and do everything to make our guests happy. feel good during their vacation”, says Erich Falkensteiner, Chairman of the Supervisory Board of FMTG, underlining the importance of this project.

Due to very positive feedback from guests and employees, the voluntary flat tip design will be extended to all Austrian hotels during the year 2023.

” Here we create several positive effects. On the one hand, we offer our guests a pleasant and uncomplicated way of tipping. On the other hand, our employees receive more tips that are distributed more fairly,” emphasizes Michaeler.

He also concluded d and are very happy because of the positive reactions of guests, employees and experts as well as representatives from the tourism industry and beyond. Their design could set new standards in the hotel industry.


The Best Amsterdam hotel Deals

Click the button listed below to get the very best discount rates on hotels in Amsterdam.

Check All Deals ➡

Visit Amsterdam?
Get The I-Amsterdam City Card and Save!

The I-Amsterdam City Card is an All-In-One Amsterdam Discovery Card that includes Free Public transportation, totally free entry to 70 museums, complimentary canal boat trips, complimentary bike leasing, and far more!

Click the button listed below to understand more

More Info ➡

Leave a Comment