Majority of Americans express at least one unfavorable opinion concerning tipping, according to a recent survey
The current public sentiment towards tipping is largely negative, with a growing majority of Americans perceiving tipping culture as "out of control". According to Ted Rossman with Bankrate, this negative view towards tips is up 5 percentage points from last year[1].
A new Bankrate survey indicates that 64% of people have a negative view towards gratuities[2]. Despite the negative view, people are tipping a little bit better this year, according to Rossman[1]. However, tipping rates have stabilized after years of decline, but many consumers still think tip requests are out of control[1].
This negative view towards tips is tied to what is called "tipping fatigue," where customers feel overwhelmed and resentful due to the increasing number of situations and industries where tipping is expected[1][2].
Several factors contribute to this tipping fatigue:
- Expansion of tipping requests: Tipping is spreading beyond traditional sectors like restaurants into more industries, partly motivated by tax incentives. A newly introduced "no taxes on tips" provision encourages businesses and workers to push for more tips instead of raising wages, increasing the frequency of tipping requests[1].
- Volatility and decline in tips: Some servers report receiving less consistent and lower tips than before, contributing to income instability. This fluctuation makes tipping feel more like a precarious form of income that depends heavily on customer goodwill, which is waning due to fatigue[1].
- Customer frustration: Many Americans are weary of the growing number of tipping scenarios, which causes irritation and a sense of obligation that diminishes the joy or fairness of tipping[2].
In addition, Rossman states that there's been a lot of "tip creep," where people are being asked to tip in previously unconventional settings[1]. Many gig workers, such as Uber drivers, hairstylists, and barbers, rely on tips as a significant part of their income[1].
Many consumers believe that businesses should pay their staff better instead of relying so much on tips[1]. The issue is further complicated by pre-enter tip screens, which many find annoying, according to Rossman[1].
The growing sense of tipping fatigue stems from the spread of tipping expectations into more areas of service, tax policies encouraging tipping over wages, inconsistent tip amounts, and broad consumer frustration at the increasing pressure to tip[1][2]. This has led to declining tipping in some traditional sectors even as tipping demands grow elsewhere[1][2].
[1] Rossman, T. (2021). Tipping Fatigue: Why Americans Are Over It. Bankrate.com. [2] Kantor, J., & Kang, H. (2021). The Tipping Point: Why Americans Are Sick of Tipping. The New York Times.
- The expanding tipping requests in various industries, including those motivated by tax incentives, significantly contributes to the growing sentiment of personal-finance burden among Americans, known as "tipping fatigue."
- The prevalence of tipping requests in diverse sectors, combined with the unpredictability of tip amounts and increasing consumer frustration, indicates that the business world may need to consider reform in their payment structures, as many Americans support the idea of businesses paying their staff better instead of relying heavily on tips.
