'Tip Creep' vs. 'Tip Fatigue': Americans' Tipping Habits
As if inflation wasn’t putting enough pressure on Americans and their credit cards already, there’s another crisis straining personal finances: tipflation. A significant number of Americans believe that tipping culture has gotten out of control, as they are not only asked for higher tips but also in situations that didn’t require tipping a couple of years ago.
This phenomenon, also known as “tip creep”, is supported by a recent Pew Research Center survey of nearly 12,000 U.S. adults. Pew found that 72 percent of Americans feel that tipping is now expected in more places compared to five years ago and that 29 percent of respondents think of tipping as an obligation rather than a choice. There’s also a growing sense of frustration with digital payment systems suggesting high tip percentages during the payment process, making a generous tip feel like the standard option that customers are forced to consciously (and seemingly stingily) opt out of.
Other surveys have shown that many people feel overwhelmed and confused by the increased expectations to tip in a wider range of situations, leaving them uncertain of when to tip and when not to. Pew Research found that 26 percent of respondents found it hard to figure out whether to tip for different kinds of services these days. Interestingly, this percentage climbs to 35 and 40 percent for respondents with a bachelor’s or postgraduate degree, suggesting that people perhaps tend to “overthink” tipping.
The following chart, also based on Pew’s findings, shows when Americans typically tip and when they don’t, providing a little bit of guidance for those struggling to keep up with modern tipping culture.