A recent LendingTree survey of 2,000 U.S. consumers reveals that tipping has become a significant aspect of American culture, driven by technological advancements. However, this convenience has also brought about increased pressure to tip. Key findings from the survey include:
- Tipping Pressure: Approximately 24% of Americans always feel pressured to tip when the option is presented, with an additional 42% feeling this pressure sometimes.
- Changing Shopping Habits: About 41% of Americans have altered their buying habits due to gratuity expectations. Younger generations and parents with children under 18 are more likely to change their habits.
- Perceived Excessiveness: Sixty percent of respondents believe that tipping has become excessive, with baby boomers being the most likely to hold this belief at 64%, while Gen Zers are less likely at 54%.
- Mandatory Tipping: Only 44% of Americans believe that tipping should be mandatory in the service industry, with opinions varying by generation. Instead, 84% support increasing the minimum wage for service workers.
- Tipping Behavior: Two-thirds of consumers always tip when dining out, but the amounts vary widely. About 32% typically tip between 16% and 20%, while 55% generally add 15% or less.
- Tipping for Services: Americans typically tip for dining out (66%), personal care services (50%), and delivery services (45%). Childcare is the least common service to receive tips (16%).
- Factors Influencing Tips: Quality of service is the most significant factor in determining tip amounts for 59% of respondents.
- Social Pressure: Thirty percent of respondents admit they would judge someone based on how much they tip, with this sentiment being more pronounced among higher earners, millennials, and parents with underage children.
- Tipping Culture Impact on Sales: Food and beverage stores saw a significant increase in retail sales between December 2021 and December 2022, likely influenced by tipping expectations.
- Expert Tips: LendingTree's chief credit analyst suggests that consumers should vote with their feet if they feel a business is asking for excessive tips. He also advises against penalizing servers for their employer's policies and budgeting for more tipping in response to changing circumstances.
Overall, the survey highlights the evolving dynamics of tipping in American society, driven by technology and changing expectations, along with the associated financial and social implications.
Source: Lending Tree
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