Is Tipping Too Much In 2024? New Study Analyzes Americans Thoughts

Nearly 3 In 4 Americans Think Tipping Is Out Of Control According To WalletHub

The survey asked about a variety of topics, such as when people believe they should have to tip, whether they feel pressured to do so, and how they think gratuities should be split.

Below, you can find some highlights from the survey, as well as a Q&A with WalletHub Analyst Cassandra Happe.

Key Stats

• Enough is enough: Nearly 3 in 4 Americans think tipping has gotten out of control.
• Necessity or bonus: 64% of people think a tip is something you should give when you feel like it instead of something you always have to give.
• Employer crowdfunding: Nearly 3 in 5 Americans think businesses are replacing employee salaries with customer tips.
• Suggestion screen penalty: More than 1 in 4 Americans tip less when they’re presented with a tip suggestion screen.
• Automatic annoyance: 78% of people think automatic service charges should be banned.
• Pressure to tip: Half of Americans say they often leave a tip due to social pressure rather than good service.

WalletHub Q&A

How do Americans feel about the recent expansion in the number of places asking for tips?

“Nearly 3 in 4 Americans think tipping has gotten out of control, according to WalletHub’s Tipping Survey. More and more types of establishments are starting to ask for tips, and suggested tip amounts are growing higher, so it’s understandable that people are frustrated, especially when this issue comes alongside inflation,” said Cassandra Happe, WalletHub Analyst. “Tipping is so ingrained in our culture that half of Americans say they often leave a tip due to social pressure rather than good service.”

What are Americans’ thoughts on automatic service charges?

“Around 78% of people think that automatic service charges should be banned, according to WalletHub’s latest survey,” said Cassandra Happe, WalletHub Analyst. “Automatic service charges change tipping from something that’s highly expected but still optional to something that’s mandatory, which can frustrate customers. On the other hand, businesses argue that these charges are necessary for things like large parties at restaurants, as getting stiffed on a tip can cause a server to lose out on a huge amount of income.”

How do tip suggestion screens affect how much people tip?

“WalletHub’s new survey found that more than 1 in 4 Americans tip less when they’re presented with a tip suggestion screen, while 22% end up tipping more. For half of people, being presented with a tip suggestion screen has no impact on how much they tip,” said Cassandra Happe, WalletHub Analyst. “Given the fact that the vast majority of people tip the same or more when they see a tip suggestion screen, employers likely will see this as a positive and keep the practice in place. If the share of people tipping less or even shopping less at certain establishments grows, perhaps we will see businesses rethinking suggesting tips.”