How Tipping Backlash Could Affect How You Make Money
Written by
Cameron Diiorio
Edited by
Joe Evans
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Lately, the tipping rate in the United States has exponentially increased. According to USA Today, the average tip in America is about 18%. There have been many complaints about the rise of tipping culture, and disgruntled customers find themselves burnt out.
But how does this affect the service workers? Here is how the backlash against tipping culture could potentially alter the earnings of those working in the service industry.
Tipping Fatigue
Consumers are asked to tip even in situations like takeout food and self-service kiosks. Customers are increasingly becoming annoyed at being asked to tip time and time again.
“Approximately 63% of Americans say that too many places are asking for tips and roughly 48% say they’re tired of being asked to tip,” said USA Today in an article.
In a post-pandemic society, and with inflation on the rise, tipping has become integrated into every purchase we make — and people are sick of it.
Because of this fatigue, people are tipping less, directly affecting employees at customer-facing businesses.
Service industry employees will be especially affected during the holiday season.
Holiday Tipping
Tipping tends to increase during the holidays. And of course, foot traffic in businesses also increases.
“The average holiday tip is about 20%,” said USA Today.
However, this year may see some differences from previous years as the tipping demand has reached new heights, leaving customers less inclined to tip.
“The tipping slowdown is a gloomy development for all types of workers who rely on holiday tips as a chunk of their annual income,” said The Wall Street Journal in an article.
There may be some positives for workers come this winter. People tend to tip more during the holidays for sentimental reasons — they feel the holiday spirit and usually have more face-to-face interactions with workers.
The human capacity for kindness and compassion during the holidays may allow holiday tipping to increase as it normally does.
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