The holiday season has returned in 2024, and with it comes the generous holiday tipping. Yes, most Americans hate the word 'tip' in any form now. About 6-in-10 have a negative view of tipping, with one-third saying it has gotten out of control. But, during the celebratory holiday season, the generosity comes back out, and people like to give to their maid, dog walker, or what have you an extra tip for their work through the year. Call it a Christmas bonus for the service industry.
But as the tips come back, they are not very high, especially in this economy. Most people leave an extra $20, or something, for the people. But as you may have noticed in the Biden economy, $20 does not go very far. Those rates have held steady too the last few holiday cycles, as inflation continues hurting people's wallets.
Ted Rossman of Bankrate says while tipping is not everyone's favorite thing to do, this time of year is different than just going to eat or getting coffee.
"We have more of a relationship with these people, so it is not that nameless, faceless counter service transaction," he says.
A Bankrate survey found that the thankfulness, and cheeriness of the season, is a big factor. When asked why they planned to tip this season, four in five tippers said they just want to say thank you.
But the tips themselves are not particularly high, especially in the current state of things. Their survey found while tipping rises this time of year, the median tip amounts remain flat over year for a majority of services. In this case though, remaining flat or slightly less is a good thing.
"I know people would love to get more, but a lot of tipped workers are getting less...people are tipping less in restaurants, for taxis...so holiday tipping is doing okay," he says.
The drop in tips for other services during the year is likely attributed to both the economy, and the fact that people are generally annoyed with tipping now. Because it is regularly forced upon people for workers performing some menial tasks.
But in the holidays, it is someone you know and interact with, which makes it more worthwhile.
As for the tips in holiday tipping? Rossman says there is a good rule of thumb to follow.
"Tip equivalent to one service...so if you have a cleaning person, tip them the equivalent of what a service would be...if you can afford it," says Rossman. "These are people we interact with regularly so it can be nice and help get better service next year."
He adds that many people in a position to have extra workers provide these services are generally in better position to tip them.
Photo: Tetra Images / Tetra images / Getty Images