Weekly Insights. May 20, 2023
Should OTAs and other intermediaries be asking customers for a tip?
Recently, Hopper, an OTA based in Canada, started to ask customers to pay a "tip" to Hopper as part of the booking. The tip is included automatically in the final price on the final payment page before completing the booking. The customer has to switch the toggle to the off position in order to not pay a tip.
The tip itself is either a flat fee ($3-$5) or a percentage of the booking, depending on the type of booking, according to Hopper's website.
Asked by ABC who actually gets the tip, Hopper replied: "This tip goes to Hopper and is completely optional. Customers have the ability to opt-in or out."
Some industry experts believe that "Hopper again is innovating", while others believe that tipping is a discretionary expense, paid AFTER the service has been delivered, paid personally to the person who delivered the service, based on the quality of the service provided.
The question is, should OTAs and other intermediaries be asking customers for a tip and will travel consumers accept this "novelty" approach?
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To ensure a focused and highly targeted marketing strategy, here are the 3 steps you need to take to ensure you best appeal to your target audience.
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Did you know that more than 85% of customers want to experience proactive communication and contact from a business? This statistic highlights just how important it is to engage with your guests before they even arrive at your hotel.
Furthermore, pre-arrival communication can also play a key role when building up your guest loyalty. According to research, 86% of customers say that good customer service turns one-time clients into long-term brand champions. This means that by communicating with your guests in the right way before they arrive at your hotel, you have the potential to turn them into loyal customers who will return time and time again.