U.S. Businesses Add More Fees to Bills as Tipping Culture Spreads Beyond 20%
Updated
Updated · Fox News · Jul 27
U.S. Businesses Add More Fees to Bills as Tipping Culture Spreads Beyond 20%
1 articles · Updated · Fox News · Jul 27
Summary
Restaurants, cruise lines and online retailers are increasingly adding tips, surcharges and "crew appreciation" charges, pushing gratuities beyond their traditional role as a reward for service.
Upfront tip prompts at counters and online checkouts weaken the link between service quality and pay, the report argues, especially when pooled tips may not go to the worker who served the customer.
Businesses are also using service fees to mask higher costs instead of raising listed prices, leaving customers to discover extra charges only at the end of a transaction.
Some of those add-ons are labeled optional but require customers to ask for removal, a practice the report says undermines price transparency and fuels backlash against tipping norms.
The broader implication is a shift from voluntary, performance-based tipping toward opaque billing, with the suggested alternative being clearer menu prices and higher wages.