You're Being Asked for More—and Bigger—Tips. How Much Further Can This Go?

Investopedia
22 Dec 2024

Key Takeaways

  • According to poll findings, Americans feel they are expected to tip in more places and at increasing amounts, a problem known as "tipflation."
  • Some airport self-checkout kiosks ask for customers to tip when they are just buying a water bottle they've grabbed themselves. A Texas hotel issued guests a QR code to leave a tip for the person who checked them in, according to travel site View From the Wing.
  • The dynamic seems unlikely to last forever, experts say.

Ever been asked to tip at a self-checkout kiosk? It happens—and it might not be the most unexpected request you've received.

Americans today feel they are expected to tip in more places and in increasing amounts, according to Pew Research, a phenomenon sometimes called "tipflation." I've seen it myself, with restaurants frequently putting "suggested" tip percentages—on post-tax amounts, not the pre-tax levels to which many were long accustomed—at the bottom of bills.

It's definitely not just me. The Bryan, Texas-based LaSalle Hotel, part of Marriott International's (MAR) Tribute Portfolio, issued guests a QR code to leave a tip for the person who checked them in, according to travel site View From the Wing. (Marriott did not respond to Investopedia's request for comment.) And when I mentioned the issue to various friends and family members, they offered tales like:

  • A tip jar that sat just past metal detectors at a concert. (In other words, "Take all your change out of your pockets...and leave it with me.")
  • A $100 buffet at a hotel that added a 20% gratuity—then included an additional tip line on the check.
  • A rideshare driver who accepted and then canceled a trip—and still asked the would-be traveler if he wanted to tip.

By themselves, any of these instances might have a rational explanation. (The rideshare request, for example, may have been automated.) Taken together, though, Americans are feeling like they're getting hit up more—and for more—than ever. Some can't help but notice, though others may not blink at many of the requests.

"I suspect most people, when they see these screens, assume it must be the new norm," said Michael Lynn, the Michael D. Johnson and Family Professor of Services Marketing at Cornell University's Nolan School of Hotel Administration. "They don't see other people's behavior."

'There's Been a Drive Towards Tipping More'

According to travel expert Gary Leff, proprietor of View From the Wing, the issue has intensified since the COVID-19 pandemic.

"Tipping requests really took off during the pandemic with labor shortages that caused wage growth making employers look for an offset, and a cultural disposition towards doing right by service workers who continued in customer-facing roles during the pandemic (especially for customers who didn't face the same requirements with their own jobs)," Leff said. "Tipping briefly became both a business strategy and culturally more acceptable—but got taken to some real extremes."

In September, when my daughter and I went to see Pearl Jam at Fenway Park in Boston, a worker handed me a hoodie (for her), a t-shirt (for me), and a tablet for payment that showed a prompt for a tip—starting at 15%."Along with looking for tips in more situations, there's been a drive towards tipping more," Leff said. 

He's the one who said that last year when he attempted to buy a water bottle at an airport retail shop, the self-checkout kiosk wouldn't let him finish the transaction unless he gave a tip above $0. "As soon as the amount was changed to $0.01 payment was permitted," he wrote.

The situation, however, seems likely to change, according to Lynn. "Most people aren't (tipping self-checkout kiosks) and they're never gonna be," he said. "Part of what's going on here is the post-COVID environment. Now (business owners) know there's fatigue."

"I just don't think it's gonna keep going," said Lynn. "It's going to roll back."

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