Sorry, but I’m not about to tip hotel workers more so that hotels can pay them less and pocket the extra profits, a dimwitted idea from a major hotel CEO.
No, I Won’t Tip Hotel Workers More To Line The Pockets Of Greedy Executives
It’s easy enough to pile upon corporate leaders and scapegoat them for many labor issues afflicting the workplace. Sometimes that is fair, sometimes it’s not. I try to avoid that when possible because even if true in certain contexts, it does not fix the problem.
But here, Ted Darnall, CEO of HEI Hotels and Resorts, deserves to be called out. You may not have heard of the company, but HEI owns over 80 hotels in the USA branded as recognizable chains like Hilton, Hyatt, and Marriott.
As noted by View From The Wing, Darnall is advocating for:
- Asking guests to pre-authorize tips at check-in via credit card to incentivize more generous tipping
- Adding a minimum gratuity to restaurant checks
- Pooling tips based upon hours works
All of this because raising wages has “never been the solution” but instead “an unsustainable competitive advantage” because “if somebody pays a dollar more then somebody else is going to match that.”
And then Darnall complains:
“People are taking jobs, leaving them after three weeks. And that’s the worst thing that can happen because the cost associated with that is enormous.”
Well, yeah…and does he wonder why? Pay people a minimum wage to do strenuous manual labor and it’s no wonder that people will seek better options in the a tight labor market.
So let me get this straight. Hotels want to maintain a higher margin on the other side of the pandemic, don’t want to pay their workers more, but want to keep workers happy by coercing guests to pay more in tips?
One Mile at a Time is right that advocating for higher wages as the only solution is likely a non-starter. Tipping is so ingrained into our culture it is likely here to stay and being an anti-tipping warrior in the U.S. ultimately just comes across as an expression of consumer miserliness. I do tip generously.
But I am troubled by coerced tipping and pooling, for I think it encourages a pernicious combination of more tips in exchange for worse service.
I do love to reward workers who take pride in their job and deliver excellent service. I realize that is still possible with even more gratuity on top of tipping, but the idea that resources will be pooled seems to encourage less personalized service, not more, because all tips will be evenly divided based upon hours worked. When your colleague at the next table does not go the extra mile and you are not rewarded for doing so, you are less likely to do so.
In terms of hotel housekeeping, these are the hardest workers and often the lowest paid and least appreciated. While I won’t dissuade you from tipping, when we tip we allow the hotels to continue to pay these workers slave wages. If we didn’t tip, they would quit and use their talent to find better work elsewhere. Making hotel workers fodder is not an ideal solution, but we perpetuate a bad cycle by continuing to tip.
CONCLUSION
There’s never a truly practical solution when it comes to tipping in America. I’m against it and for it at the same time…and I know I’m not alone. But Darnall seems very much off-base in his remarks and I don’t think we consumers should tolerate bailing out hotel chains only to have them reduce service and guilt customers into tipping more so they can increase margins and pad their own pockets.
What are your thoughts on Darnall’s remarks about the future of tipping at U.S. hotels?
Yeah, this guy is ridiculous.
I do find “coerced tipping” or mandatory gratuities (usually 18%) to be an interesting concept. When I see that, I do not tip any more on top of it and assume that it is a fair amount of compensation for the wait staff. It’s one step in the right direction *away* from horrible US tipping culture, simply because there is no discretion in what the amount should be.
Just don’t tip. There is no mandate to fix an economic equity problem through tagging on a little cash to service purchase. Should you donate to a literacy program when buying coffee. UNICEF when renting a car. Donating to subsidizing working poor is not your responsibility. Pay the price offered and move on. If that feels exploitive , there’s airbnb. Boycott US hotel. Labor shortage solved. There is zero evidence any party in the US is well served by tipping culture. May be high end restaurant workers. They can give some pf their tips to hotel workers….
I always wonder when stores ask if I’d like to donate to x charity, is the store receiving a tax deduction when it merely passes it on to the charity. It’s not as if the charitable contribution is coming from me.
“Just don’t tip” ppl should “just not go out”
Tipping more?
I don’t even tip hotel workers. If hotels cannot pay them enough they can raise hotel prices. Tipping enables the practice of passing the responsibility of paying fair wages from the owner to the customer.
I don’t tip hotel workers unless they go above the call of duty. This means daily housekeeping? Nope…. lounge attendants? Nope… Door man? Nope.
The problem is that everybody is expected to give at least an average tip.
This is of course absurd, given what “average’ means.
The outcome is that tips creep up – 10% was once ok, 15% was generous. Now 20% is minimal. How long before 50% becomes the new norm?
Just tip in your country don’t ruin others by starting a tipping culture there when none existed before.
I prefer a no-tipping culture. Tipping makes the workers slave-like. Do you tip your attorney? Do you tip your Senator? I have seen the mayor more than once. Do I tip the mayor?
Still, I have tipped the hotel maid in the past. Not always. Depends on the length of stay and if I want something. I might, on rare occasions, leave a note reading “Please leave 2 extra bath towels. Will return them. Thank you. P.S. This tip is for you.”
Always trying to make the English as simple as possible in case they don’t know much.
You may not tip your Senator or your Mayor, but many people do by way of campaign contributions. I can think of at least one former president that is still soliciting and accepting tips.
Plus Hilton is doing away with the free breakfast for Gold and Diamond members at all of their properties. Instead you will be given a 10.00 meal credit for up to two people in your room. What’s next, bring your own linens. Man they are going down hill fast.
Remember the Westin Ft. Lauderdale Beach that charges a 1% fee on credit cards. Guess which company owns it?
HEI
When CEOs at these hotels make millions a year, they can afford to pay their workers. I will not tip workers that make regular wages. Servers can make as little as$2.38 per hour, so they depend on tips. If a hotel pays a housekeeper $9 or $15 an hour, that is the hotel’s decision and problem. I won’t tip for normal work duties. I also don’t tip at a drive-through or fast food restaurant. The nore we do that, the more they expect it.
What about in CA in NY where waiters are not paid a lower “tipped” wage? I agree that in principal they should not be tipped (as there is no wage loss to make up for), but still find myself doing it.
@ Andy K, you make a good point about CA and NY, and my understanding is most full service restaurants in those states make their waiters share their tips with back of the house employees. Technically its voluntary, but if you don’t volunteer (and remember this is on top of tipping out the host/busperson/bartender), you will be treated like trash by both management and other back of the house employees. I’d actually prefer a mandatory service charge be added to restaurant bills, and it be split between both front and back of the house employees.
“make their waiters share their tips with back of the house employees”
Pretty sure this is almost universal in the U.S. anyway.
I still tip hotel employees! WHY because they work really hard and are often under appreciated!
I do agree with the other comments, the CEO shouldn’t be profiting while their employee’s live in poverty. If you choose not to tip low paid employees, you will support them through other government programs. Open your heart, have compassion reach out to elected officials to encourage fair compensation for all worker. Tipping isn’t an issue if you are paid a living wage.
Lol.
Almost EVERYBODY works really hard and is under-appreciated.
(And many of those people don’t earn enough, yet don’t receive tips for working.)
I agree with Matthew, and I think we need an overhaul of tip-based employment in the U.S. I’d rather pay more up front and not have the awkward uncertainty after.
Just add 10% service charge and skip all these stupid “guilty trip” tipping.
I don’t tip any hotel worker. If a person does an extraordinary service I will certainly leave a a gratuity. A gratuity for the bell services person who lugs my families luggage yup. A gratuity for the person who gets me a can and has it wait for me yup. It is not my concern if a hotel worker makes a penny or a million. That is the owner’s concern as it is their employee not mine.
Tipping in many countries in Asia and Europe is offensive. I only tip if someone does something way above my expectations. Anything done as expected is … expected so no need to tip.
The complaint about tipping is misguided. You are going to pay for employees one way or the other. Increased wages mean higher room rates. It all comes out to the same cost to consumers at the end of the day. It’s is a trivial issue to latch on to. If wages are higher at a restaurant, your meal cost will be higher. Tipping at least allows us more control over providing the highest percentage to those who perform the best and are most pleasant while giving standard tips to average workers. It’s the same thing with resort fees. If there is no resort fee, your room rate will be $40 higher a night.
Not tipping in a system where tipping covers a significant part of the wages is wrong. You are penalizing workers because you disagree with the economic policy of the government (minimum wage) or restaurant/hotel policy. If you are unhappy with the common tipping structure found in millions of businesses in the U.S. and Caribbean. Voice your complaints to management and don’t stay or eat there. But please tip workers (waitresses)/bell hops if you use them ($3-$5), beach chair attendants ($1-$3), hair stylists ($5-$10 depending on if they wash your hair), hair washers ($3), valet ($2-$3), and etc.
I’m not wholly unsympathetic to your argument, but would answer that the reason companies do not pay their workers more is precisely because increased wages DO NOT mean higher room rates. Quite the contrary, higher wages would just squeeze margin since they still must compete amongst many rival hotels. Instead, there is a wink and a nudge and consumers are asked to subsidize stockholders and managers. I’m tired of it. This is why competition is so important.
The total spent by guests on room rate + tips is the same as the higher room rates. You’re right hotels can’t raise room rates because they would be uncompetitive with hotels who cost the same for the guest overall (with tips) but have lower room rates. Hotels of course aren’t going to lower their margins. Why should they be economically disadvantaged when other hotels are not. Hotel owners and shareholders are entitled to make a good profit for risking their capital. Many hotels already struggle. A higher minimum wage is more fair as it puts all hotels at the same level for these low end workers.
Some workers do quite well with tips. Some waiters/bartenders/waitresses make 30% more than they would with a fixed salary. The problem with tips if workers are actually getting their tips. Cruise lines are famous for taking some of the automatic tips placed on the guest accounts. Of course, I always tip extra in cash as well. Some restaurants do this as well. Pooled tips are a mixed bags because if I tip a specific person I want it to go to him or her. Maids are also a problem because the regular day time maid may be on her off days. Tipping is problematic but it is ingrained in the American culture.
Tipping is truly tacky. . Of course the shysters like this guy will try to pass on their costs to consumers. Is it really so difficult for the USA to pay a living wage and do away this this awful practice? Handing people cash at every turn and service, like latter day Lady Bountifuls? So, so, so cheap, nasty and vulgar.
Right now many hotels aren’t even providing daily service, and they want me to tip for not getting service?
On any multi-day stay in the past, I would usually leave a few dollars if the staff did a good job maintaining the room but I would never “pre-tip” people.
Right now the country is seriously broken with shortages of too many items, price gouging and charging more and more and providing less and less.
If I had better language skills, I think I would find some place in Germany or northern Italy with good Internet speeds and try to hide away in a small house or apartment.
Does anyone tip the person who vacuums their carpets, changes their bed linens and empties their trash can…in a hospital?
If you tip in a hotel, why not in a hospital? In both locations cleaning is performed by low-wage employees. And I bet the wage disparity in hospitals is greater than that in restaurants.
Er because hospital employees make more than $2.86 an hour
I wouldn’t mind eliminating tipping. It would be very easy for me to lose that “ingrained habit”.