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Canadian hotel operators call for better balance between fair wages and tips
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Canadian hotel operators call for better balance between fair wages and tips

A national survey of Canadian hospitality operators and professionals indicates that 71 percent of respondents believe tipping is important (50 percent rate it very important), 34 percent prefer a higher base for tipping and 42 percent remain indifferent until total compensation is achieved. is right.

The 2024 Hospitality Tipping Trends Survey was released by Atlasa leader in hospitality automation and tipping management software, in partnership with Angus Reid.

Afshin Mousavian
Afshin Mousavian

“This survey clearly shows that hospitality workers are demanding fair and more transparent pay models,” said Afshin Mousavian, CEO and co-founder of Atlas.

Some of the main findings of the survey:
● A staggering 91 percent of Canadian hospitality operators believe tipping practices should be clear and transparent to both employees and guests, with 21 percent of respondents having no idea tip that reaches the intended recipient.
● The majority (66%) of respondents want tipping to be exempt from income and payroll taxes, and 41% of hospitality operators want clearer regulations on tipping practices;

● As the rising cost of living continues to impact Canadians, over the past two years, tipping practices have decreased among 39 percent of operators;
● Half (50 percent) of respondents see an increase in tipping during the holidays, with 29 percent seeing a 10 percent increase;
● 71 percent of respondents believe tipping is important, and 50 percent consider it very important, with the greatest emphasis on tipping seen among those aged 55 and older (52 percent) and in Ontario (57 percent).

● When it comes to how tipping decisions should be made, 47 percent of participants advocated that tipping should be a voluntary gesture on the part of the customer, particularly favored by 67 percent of respondents in Saskatchewan. Additionally, 37 percent think tipping should be based on the quality of service provided;
● A notable 42 percent of hospitality operators express no preference for their work environment, as long as the pay is fair. Meanwhile, 34 percent prefer a no-tipping environment with a higher base salary, particularly important in Quebec (58 percent). Only 25 percent indicated a preference for a tipped work environment, highlighting a significant shift toward valuing fair wages over perks in the industry;
● When it comes to holiday tipping, 50 percent of respondents report a net increase during the holiday season, with the largest increases seen in Manitoba (73 percent). Although 45 percent say there is no change in their tipping habits, 29 percent say tips typically increase by 10 percent during the holidays, particularly in Manitoba (55 percent), in Saskatchewan (33 percent) and Atlantic Canada (33 percent). );

Photo-Mario Toneguzzi
Photo-Mario Toneguzzi

Other survey results:
● About 47 percent of respondents don’t know exactly how their tips are distributed,
among the least informed in Alberta (38 percent);
● Additionally, 21 percent of participants have no idea how much of their tip reaches the
service provider;
● When it comes to the clarity of tipping policies, 91% agree that tipping policies are clear.
policies should be clear and transparent to both employees and customers, with 70 percent of them strongly agreeing. This feeling is particularly pronounced among people aged 55 and over (74 percent) and is expressed most strongly in Saskatchewan (83 percent);

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