The act of tipping, once a gesture of appreciation, has now transformed into a source of annoyance for many consumers in the post-pandemic era. There has been a rapid rise in tipping culture, leading to more opportunities to tip for a wider range of services, which is also known as “tip creep.” Recent surveys have indicated that shoppers are experiencing “tip fatigue” and are starting to tip less, while also feeling resentful towards “guilt tipping.”
According to a recent WalletHub survey, nearly 3 in 4 Americans believe that tipping has spiraled out of control, particularly in relation to the predetermined point-of-sale tipping options. This negative perception towards tipping has significantly increased over the past year, with a Bankrate report finding that two-thirds of Americans had a negative view of tipping less than a year ago.
The pressure to tip has become more prevalent in various service encounters, including traditional services, app-based services, ride-share apps, and delivery apps. This widespread expectation to tip has created a feeling of “guilt tipping” among consumers, especially when faced with predetermined options ranging from 15% to 35% for each transaction.
While consumers may feel obligated to tip in certain situations, it is essential to remember that tipping is ultimately a choice. Tim Self, an assistant professor of hospitality, emphasizes the importance of consumers feeling comfortable saying “no” to tipping when they feel it is unnecessary. Self suggests that a tip jar may be a more suitable option for expressing gratitude without the pressure of predetermined tipping amounts.
With factors such as inflation, shrinkflation, and tipflation, consumers are facing financial constraints at every turn. According to Alex Skijus, CEO of True Life Wealth Management, many consumers are tired of feeling obligated to tip out of guilt. Skijus advises consumers to consider tipping as a genuine expression of gratitude rather than a compulsory practice, even when prompted at multiple points of sale.
Recent reports have indicated a shift in tipping behavior, with guests at full-service restaurants and quick-service establishments leaving slightly lower tip percentages compared to five years ago. Tipping at full-service restaurants averaged 19.4%, down from 19.5% in 2018, while tips at quick-service restaurants dropped to 16% from 16.6%. Additionally, tipping behavior varies throughout the week, with guests tending to tip less on Sundays and gradually increasing their tips as the week progresses.
Reevaluating tipping culture post-pandemic requires consumers to navigate the pressures of “tip creep” and “guilt tipping” while maintaining a sense of autonomy in their tipping decisions. By understanding when and how to tip genuinely, consumers can contribute to shaping a more sustainable and respectful tipping culture in various service interactions.
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