LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

Change Of Heart: Hilton’s CEO Revises His Personal Tipping Policy, Will Now Tip Housekeeping!

by Sebastian Powell
June 10, 2019
Reading Time: 3 mins read
22

A couple days ago we reported about Hilton’s president and CEO, Chris Nassetta saying at a conference that he doesn’t usually leave tips for housekeeping – a controversial statement that resulted in loud opposition once it made the rounds in the media.

Following a pretty hefty blowback from the public and industry insiders, Mr. Nassetta has now issued a statement that he would revise his tipping policy and will tip housekeeping in the future on both business and personal stays.

The whole matter has prompted a big conversation and many comments from people all over social media, news and travel blog (see John’s article from last week).

Basically what started this whole discussion is that CEO, Chris Nassetta was interviewed at the NYU International Hospitality Industry Investment Conference last week and had stated that he doesn’t usually leave tips for housekeeping and that sentiment was echoed by other event participants.

ADVERTISEMENT

I guess on the surface that would have been fine if he was a CEO of a random company but not Hilton, a hospitality giant. I believe this opened up a can of worms and opposition within the company itself and the pressure came as much from the outside as it did from the inside to rectify this statement, likely because management feared the CEO’s statement would provoke an uprising of staff and unions.

So what did he say now? Bill Murphy wrote on Inc.com that Nassetta revised his position:

“When it comes to tipping in hotels, I have always had a different approach to work and personal travel. I also never meant for my approach to work stays at Hilton properties to discourage others from tipping when they are traveling,” Nassetta’s statement began. “Going forward, I will tip when traveling for both work and personal travel.”

Fine, ok he rectified that controversy and will tip from now on. An expense that he will likely recoup through the company or even if not is totally insignificant to someone who earns $20 Mil+ annually.

I don’t want to go into the discussion if it’s the right thing for him to tip or not. Nassetta is a self made guy who worked his way up from the bottom in this industry so whatever his decision is I’m sure it’s well founded.

This entire back paddling on the tipping matter wasn’t because he suddenly feels different but Hilton management including the CEO himself probably saw dynamite in this statement if they let it stand. Staff and their unions might feel that this emboldens guests to not tip anymore at Hilton, cutting into the employees bottom line. Something that could very well result in labor action and demands for pay increases so better rectify the position now and hope this matter dies off soon.

The matter has kicked off a discussion about the hospitality industry paying “living wages” to their employees. Two weeks ago I wrote about hotel employees in expensive cities being unable to live in the immediate vicinity of their workplace due to expensive living cost. I pulled some data and found that many hotels in fact pay quite well, especially in places such as San Francisco or Hawaii. So how necessary are tips really?

In Asia it’s very common that hotels are charging a 10-15% service charge on each room rate and the total will be distributed among all employees of the property. There are charts for each city where properties are ranked by the amount of service charge received per employee and people frequently change their workplace over this. Check out this Website called Hotel Service Charge Update by Hotel Thailand Tomorrow, outlining all the service charges for Thailand.

Would a service charge in hotels be a worldwide solution for this issue or just another method for corporations to pass the buck?

Conclusion

Whilst this was likely a simple management decision rather a personal position of Nassetta, I find this culture of bowing to an online mob worrisome.

Even though the implications could have been potentially severe company wide, though I doubt that, many customers who believe it’s right to tip their housekeeper would feel deterred by the CEO’s statement and suddenly don’t leave a tip anymore. Some might even tip extra, who knows?

Previous Post

Top Hotel Promotions June 2019

Next Post

Airfare of the Day: Egyptair BUSINESS CLASS Hong Kong SAR (HKG), PRC to Milan (MXP), Italy/Athens (ATH), Greece/Istanbul (IST), Turkey from $1,796 Round Trip 

Related Articles

Cosmopolitan Las Vegas To Retain Affiliation With Marriott Following MGM Acquisition

Cosmopolitan Las Vegas To Retain Affiliation With Marriott Following MGM Acquisition

Sebastian Powell
May 13, 2022
6

Blackstone and MGM announced last September that MGM would acquire the operations of the Cosmopolitan hotel in Las Vegas, currently...

Top Hotel Promotions July 2021

Hilton Advance Purchase Rate Modification With A $25/$50 Fee

John Ollila
May 9, 2022
4

Hilton is the only chain that I know of which allows you to modify an Advance Purchase Rate that doesn't...

IHG Rewards Rate & Bonus Promotion January 2022

Top Hotel Promotions May 2022

John Ollila
May 8, 2022

Here is an updated look at the top 3 most lucrative hotel promotions you can take advantage of this May....

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Entering Indonesia Through Bali In May 2022
Travel News

Entering Indonesia Through Bali In May 2022

May 22, 2022
Chaos Reigns: What The Heck Is Going On At Canadian Airports As Lines & Passenger Riots Escalate?
Airports

Chaos Reigns: What The Heck Is Going On At Canadian Airports As Lines & Passenger Riots Escalate?

May 23, 2022
World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!
Featured

World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!

May 22, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
Thailand Contemplates Scrapping “Thailand Pass” Entirely
Featured

Thailand Pass Changes June 1, 2022 (Gone For Thais)

May 20, 2022

Top Categories

  • IHG Rewards Club
  • Hilton Honors
  • Marriott Bonvoy
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Suite Saturdays: Sunrise Overwater Villa @ Le Meridien Maldives Resort & Spa

Suite Saturdays: Sunrise Overwater Villa @ Le Meridien Maldives Resort & Spa

May 21, 2022
Singapore Airlines Awards Temporarily Not Available Using Partners

Reader Question: How To Get Matched By Singapore Airlines? (Cathay Pacific Diamond)

May 18, 2022
World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!

World Of Hyatt Globalist Breakfast Benefit: Reminder That Gratuities Are Always Included!

May 22, 2022
Japan Expects To Allow International Tourist Arrivals On Trial Basis From April 2021

Japan Tourism Trial Disappointment

May 20, 2022
Airfare of the Day [Business Class] ETIHAD Amsterdam to Johannesburg from 1,384€

Airfare of the Day [Business Class] ETIHAD Amsterdam to Johannesburg from 1,384€

May 23, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents