A Tip Doesn’t Just Come From Your Pockets, It Comes From The Heart.
Picture this: you’re on your much-awaited vacation, and your stay has been incredible. You're eager to express your gratitude in a more tangible way than just a thank you note. And if you’ve ever worked in the hospitality industry, you know how much tipping changes your mood or performance and, most importantly, how you feel about your work.
There are countless tiny but meaningful efforts behind the scenes of your hotel stay or your dinner reservation, but have you ever considered what happens with the money you leave on your bedside table? Or the tip you gave to your server that night?
Who is it going to, and why is it important?
Tipping is essential because it’s more than “just a tip.” For hospitality workers, especially when tipping at hotels, tips represent, in most cases, the majority of their income. For example, housekeepers make a median annual wage of $24,850, according to the U.S. Bureau of Labor Statistics.
Servers at sit-down restaurants typically earn a significant portion of their income from tips. They earn a low base wage and expect tips to make the difference. Proper tipping (18-20%) ensures they earn a decent living wage.
The bottom line is that tipping represents a way to express gratitude, financial support, and an emotional boost to any employee. When you work in this industry, you realize there are different ways to show appreciation for one another. Whether it’s a genuine smile, a compliment, or an extra tip, it can help make someone feel seen and appreciated.
Tipping is not an extra charge on your bill. It goes beyond a quick math calculation at the end of your dinner or hotel stay. It should reflect directly on how the staff made you feel throughout your experience.
For any manager or hotel operator, tipping goes far beyond that. It is a way to ensure that employees are happily performing their jobs, ensuring employee retention.
The more your employees feel fairly compensated for their work, the more likely they will continue performing at extraordinary levels and stay in the company instead of seeking more significant opportunities. Plus, happy employees mean even happier guests!
How much we tip may vary, but why we tip does not.
Although tipping may look different depending on where you are, the reason behind the tip should always be the same: showing someone gratitude.
In the United States, tipping culture has evolved over the years. During the 1950s, people commonly tipped 10% of the bill. By the 1970s and 1980s, that percentage had jumped to 15%.
In 2023, people typically tip anywhere from 15% to 25%. According to a Creditcards.com survey in May 2022, consumers, on average, said they tipped more than 21%.
Ever since the pandemic in 2020, there has been an increase in how we reward those who work in the hospitality industry. This directly reflects tips, knowing that hospitality workers don’t make enough money on a wage in most cases, so they rely on the tips they get.
Why does tipping matter in the hospitality industry?
When we talk about the hospitality industry specifically, we’re talking about employees working solely to create unique experiences for you as the guest. Most of the time, these people work on their feet, making magic happen.
So, when rewarded with a great tip, they feel seen, valued, and appreciated. It’s a way to reaffirm that they are doing a good job and making a difference in your experience.
Being on different sides of the table doesn’t mean we can show gratitude and respect to the people serving us.
That’s why we tip from our hearts, not just our pockets.
