New York – December 7, 2022 – This holiday season, more U.S. adults anticipate giving an annual tip to the service providers they use compared to last year, according to a new report from Bankrate.com.
This includes housekeepers, childcare providers, landscapers, mail carriers, teachers and trash collectors. However, while more people are feeling generous, the median tip amount has declined for several service providers.
Service Provider Percent that planned to tip (among users of each service) in 2021 Percent that plan to tip (among users of each service) in 2022 Housekeeper 47% 56% Teacher 41% 51% Childcare provider 41% 49% Landscaper 36% 41% Mail carrier 27% 31% Trash/recycling collector 19% 22%
With inflation near all-time highs, the median holiday tip has decreased in four out of the six services since last year, with no median tip exceeding $40.
|Service Provider||Median reported tip amount (among tippers) in 2021||Median reported tip amount (among tippers) in 2022|
“I know that money is tight for a lot of households right now due to high inflation and rising interest rates, but if you can afford it, I think it’s nice to tip generously around the holidays,” says Ted Rossman, Senior Industry Analyst for Bankrate.com. “Consider that sometimes it’s more tactful to give a gift card rather than cash. Some companies, such as FedEx and UPS, frown upon their employees accepting tips but acknowledge that gift baskets of snacks and soft drinks are welcome tokens of appreciation.”
In addition, over half (54%) of all U.S. adults say they’re likely to give higher than normal tips around the holidays this year to service workers who are customarily tipped throughout the year (for example, restaurant waitstaff, food delivery people, bartenders, coffee shop baristas, hair/stylists, etc.). That includes 21% who are very likely and 33% who are somewhat likely to tip more.
62% of millennials (ages 26-41) are likely to give higher tips around the holidays to service industry employees who are customarily tipped throughout the year, followed by 54% of Gen Zers (ages 18-25), 53% of Gen Xers (ages 42-57) and 48% of baby boomers (ages 58-76).
“If you have a regular service provider that helps you throughout the year – perhaps a dedicated housekeeper or a hair stylist you really love – it could be customary to give a holiday tip equal to the cost of one service,” Rossman noted. “For others, such as a mail carrier, trash collector or your child’s teacher, our data indicates that giving around $20 could be appropriate.”
Bankrate.com commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,425 U.S. adults. Fieldwork was undertaken between November 9-11, 2022. The survey was carried out online and meets rigorous quality standards. It employed a non probability-based sample using quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.