2024 Tipping Trends

Curious about the shifts in tipping for 2024? Explore the evolving landscape and upcoming trends influencing tipping behaviors in the year ahead!

2024 Tipping Trends: Restaurants

As 2024 unfolds, tipping undergoes changes aligned with shifting consumer attitudes. Recent surveys indicate a decline in the percentage of people who “always tip,” dropping from 77% in 2019 to 65% in 2023. However, the fundamental principle remains: service industry employees depend on tips as part of their income. Here are key guidelines for tipping in 2024:

• Full-service dining: Tipping remains essential, ranging from 20-25% for excellent service, 20% for good service, to 15% for satisfactory service.
• Tipping on Full Tab for Pre-split Checks: Dividing tips based on individual portions of the check, especially in larger groups, can be complex. It’s increasingly recommended to base the tip on the full tab rather than individual portions to simplify the process and avoid confusion.
• Tipping with Credit Card vs. Cash: Cash tips are encouraged, providing immediate gratification to service staff and avoiding potential reductions due to transaction fees.
• Tipping Pre-tax vs. Post-tax: There’s a common debate about whether to tip on the pre-tax or post-tax total. Consider tipping on the pre-tax amount to ensure fair compensation for servers.

2024 Tipping Etiquette: Hotels

In 2024, hotels are witnessing changes in tipping etiquette. There’s an increase in tipping prompts on in-room tablets and during checkout, urging guests to offer preset percentage gratuities. The transition to digital payment options such as credit cards, apps, Venmo, and PayPal adds to the evolving landscape. To address this, here’s an updated tipping guide for hotel workers in 2024.

Specific Tipping Guidelines:

Bellhops and Doormen:

• Bellhops receive $1-2 per bag, more for additional services.
• Doormen receive $1-2 every time they assist, with higher tips for special services.

Housekeeping:

• Tips range from $2-5 per night at mid-range hotels and $5-10 at luxury hotels.
• Additional tips for extra services are recommended.

Restaurant and Bar Staff:

• Tips range from 15-20% based on service type and whether staff work directly for the hotel or as leased vendors.

Concierge:

• Tips depend on the complexity of the task, ranging from $10-20 for standard services to $20-50 for exceptional efforts.

Tip Jars at Lounges and Common Areas:

• Ambiguity around tip jars; tips not expected for standard services.
• Tips of $1-2 are suitable for above-average service.

Changes in Tipped Minimum Wage for Restaurant Employees in 2024

​​In 2024, significant changes are on the horizon for the tipped minimum wage in the restaurant industry. Currently, servers and bartenders receive a federal minimum direct wage of $2.13 per hour, supplemented by tips to meet the overall federal minimum wage.

The anticipated changes involve varying minimum wage rates for tipped employees across states, introducing differences in tip credit amounts. This categorization of states into groups based on their approach to the tipped minimum wage will influence how employers compensate tipped workers. Notable examples include California, New York, and Florida, each with its distinct regulations. Cities like New York City and Chicago have specific rates, with Chicago aiming to eliminate the tipped minimum wage by 2028.

These changes pose challenges for both restaurant owners and employees, sparking debates about their impact on income, tips, and working hours. Ongoing discussions about a two-tier wage system and proposed legislation to increase the federal minimum wage to $15.00 and eliminate the tipped minimum wage by 2027 further contribute to the evolving landscape. As a result, restaurants are advised to anticipate rising labor costs and consider adjustments in tip pooling, payroll reporting, and fair pay gaps to navigate these changes effectively.

Talks of “Tip Fatigue” and Debates on Social Media

Tipping is experiencing a transformation, with digital kiosks suggesting tips higher than the traditional 15%, reaching up to 30%. This shift is not limited to jobs with a lower “tipped minimum wage”; even those earning regular wages may expect tips. This phenomenon is termed “tip fatigue,” where individuals might feel pressured to tip more than they’re comfortable with. Debates on platforms like TikTok reflect confusion about who to tip and how much, leading to discussions on services that people might choose not to tip.

Remember, service industry employees depend on tips as part of their income. While tipping should always align with your comfort level, it’s important to acknowledge that many of these workers depend on tips to meet their essential needs and make a livelihood. Your generosity in tipping contributes to supporting individuals in the service industry, allowing them to sustain themselves and their families.

TipHaus in 2024

In 2024, TipHaus focuses on continuous enhancements for an improved user experience. Our commitment extends to expanding our network of partners and creating innovative solutions. Stay tuned for updates that will elevate your tipping experience. Explore TipHaus with a demo to see if it’s the right fit for you!