As the cost of living continues to rise, the pressure to tip has increased significantly over the past year, leading to a new phenomenon known as “guilt tipping.” This pressure to tip is not limited to traditional service encounters, but extends to app-based services like ride-share and delivery apps as well.
Tim Self, an assistant professor of hospitality at Austin Peay State University, acknowledges the widespread perception that tipping has become ubiquitous in our society. Tips are often prompted by predetermined options that can range between 15% and 35% for each transaction, leaving consumers feeling financially strained.
According to Alex Skijus, CEO of True Life Wealth Management, consumers are feeling squeezed by inflation, shrinkflation, and tipflation. Skijus advises consumers to consider tipping as a way to express gratitude, rather than feeling obligated to tip at every point of sale.
The fear of being ostracized may be causing consumers to tip more than they want to, but sticking to your guns can help business owners scale back suggested tip amounts or eliminate tip prompts altogether. It is important for consumers to feel empowered to make their own decisions about tipping, rather than feeling pressured to conform to societal expectations.
Overall, the increasing pressure to tip in various service industries is a growing concern for consumers. By being mindful of when and why they choose to tip, consumers can take control of their financial decisions and alleviate some of the stress associated with guilt tipping.
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