Automatic tipping – a pilot project
The Falkensteiner hotel group is taking a risk in Carinthia, Austria: in future, guests will be required to tip a fixed amount on the bill.
In the US hospitality industry, tips are part of the wage. There, these monetary amounts are not just extra income, but an important part of income – the wages themselves are so low that they are not enough. That’s why the voluntariness of tips is canceled there as a matter of course and a separate item is collected as a tip directly on the bill.
Cash is king
In Austria, things have looked a little different. Tipping is still a contentious issue. How much tip is appropriate? How is the tip handled and who is actually entitled to it? These questions have been occupying the hotel and catering industry for a long time. Even if a tip is not a real salary component in Austria, it remains attractive, especially as it is tax-free. Now the international model is also moving into Austria: The hotel group Falkensteiner (FMTG), which is represented in almost all of Austria, is now introducing a fixed tip in some hotels.
The reason for this pilot project is obvious: Where previously a few euros were given in cash without any problems, this is no longer the case in the age of card and mobile phone payments. Guests often do without or simply forget about it. at the expense of the employees. This should allow employees to receive more tips in the future, so that guests can pay the same easily.
Unexpected guest feedback
According to their own statements, the guests are informed in detail about this model before arrival and then again at check-in and can refuse it. Guests can also change the amount at any time according to their own wishes. The hotel announces that the experiences should be extremely positive: Over 80 percent are positive about the change and often give more than the 10 euros per room and night.
How much should the tip be?
Add about 10 percent to the bill for tips. Especially in the last few years, this percentage has steadily decreased on average. Practice shows that the higher the bill, the lower the tip. The higher the costs, the further away customers are from the ten percent tip that used to be common.
Delivery people get nothing
It also looks sad for various food delivery people. In the meantime, the bill is paid almost exclusively in advance by credit card. Usually they doesn’t get any tips. The question about the amount of the tip should be answered with at least one to two euros.