Topline
About 35% of Americans think tipping culture has gotten out of control—a five percentage point increase from last year—and slightly less than two-thirds have some negative perception of tipping, a new survey from Bankrate released Wednesday found.
A senior industry analyst at Bankrate said tipping has become “a hidden tax” that allows for … [+]
Key Facts
This year, 59% of Americans viewed at least one aspect of tipping negatively—ranging from thinking businesses should pay employees better to being annoyed about pre-entered tip screens to being confused on how much to tip—slightly down from 66% last year, Bankrate found.
Older generations like baby boomers and Gen Xers have more negative attitudes about tipping—with 72% and 62%, respectively, having at least one negative view—than younger generations, like millennials and Gen Zers, 51% and 45% of whom had at least one negative take.
Though the percentage of people who always tip for services like a haircut, eating at a sit-down restaurant, or taking a taxi ride all increased slightly compared to last year, each is down at least 7 percentage points when compared to 2021.
The quality of service is still the biggest factor for the majority of tippers, the survey found, with 64% of people saying the amount they tip is based on service and just 10% saying they always tip the same amount, regardless of service quality.
Surprising Fact
Though Gen Zers and millennials are less likely to have negative opinions about tipping, they’re also tipping less consistently than older generations in some situations. The survey found that 78% of Gen Xers and 86% of baby boomers said they always tip servers, compared to just 35% of Gen Zers and 56% of millennials.
Big Number
34%. That’s how many respondents were annoyed by pre-entered tip screens—which the survey found can actually result in a smaller tip. Just 14% of people said they tip more when given a pre-entered tip screen, while 25% of people said they tip less or not at all when given one.
Key Background
Since the COVID-19 pandemic, Americans have expressed frustration with the growing expectation that they should tip for more things than they did pre-pandemic. A study by Pew Research Center last year found that more than 70% of Americans said tipping is expected in more places now than it was five years ago, and the phenomenon has even earned the nickname “tipflation.” NPR reported that the pandemic led to more tipping as people tried to show gratitude to people still going to work during the pandemic, and that technology—like the pre-entered tip screens Bankrate found people don’t love—has also made it easier to encourage tips. Bankrate senior industry analyst Ted Rossman said in a press release for Wednesday’s survey that “tipping has become a hidden tax,” adding that companies are hesitant to raise prices more and can use tipping as a way to ensure workers make money “without their employer needing to foot the bill.”
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