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Current Issues in Tourism Restaurant tipping in Europe: a comparative assessment

Author

Listed:
  • Stefan Gössling

    (Linnaeus University)

  • Sébastien Fernandez

    (University of Applied Sciences of Western Switzerland)

  • Carlos Martin-Rios

    (University of Applied Sciences of Western Switzerland)

  • Susana Pasamar Reyes

    (Universidad Pablo de Olivade)

  • Valérie Fointiat

    (LPS - Laboratoire de Psychologie Sociale - AMU - Aix Marseille Université)

  • Rami K Isaac

    (Breda University of Applied Sciences)

  • Merete Lunde

    (Western Norway Research Institute [Sognda])

Abstract

Tipping is a social norm in many countries and has important functions as a source of income, with significant social welfare effects. Tipping can also represent a form of lost tax revenue, as service workers and restaurants may not declare all cash tips. These interrelationships remain generally insufficiently understood. This paper presents the results of a comparative survey of resident tipping patterns in restaurants in Spain, France, Germany, Switzerland, Sweden, Norway, and the Netherlands. ANOVA and ANCOVA analyses confirm significant variation in tipping norms between countries, for instance with regard to the frequency of tipping and the proportion of tips in relation to bill size. The paper discusses these findings in the context of employment conditions and social welfare effects, comparing the European Union minimum wage model to gratuity-depending income approaches in the USA. Results have importance for the hospitality sector and policymakers concerned with social welfare.

Suggested Citation

  • Stefan Gössling & Sébastien Fernandez & Carlos Martin-Rios & Susana Pasamar Reyes & Valérie Fointiat & Rami K Isaac & Merete Lunde, 2020. "Current Issues in Tourism Restaurant tipping in Europe: a comparative assessment," Post-Print hal-02546589, HAL.
    • Handle: RePEc:hal:journl:hal-02546589
    DOI: 10.1080/13683500.2020.1749244
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-02546589v1
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    References listed on IDEAS

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    1. Alan Macnaughton & Michael R. Veall, 2001. "Tipping and the Mcquatters Formula," Public Finance Review, , vol. 29(2), pages 99-107, March.
    2. Azar, Ofer H., 2011. "Business strategy and the social norm of tipping," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 515-525, June.
    3. John E. Anderson & Örn B. Bodvarsson, 2005. "Tax Evasion on Gratuities," Public Finance Review, , vol. 33(4), pages 466-487, July.
    4. Wessels, Walter John, 1997. "Minimum Wages and Tipped Servers," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 334-349, April.
    5. Lynn, Michael & Zinkhan, George M & Harris, Judy, 1993. "Consumer Tipping: A Cross-Country Study," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 478-488, December.
    6. Lynn, Michael & Wang, Shuo, 2013. "The indirect effects of tipping policies on patronage intentions through perceived expensiveness, fairness, and quality," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 62-71.
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    Cited by:

    1. Gicić Ajša & Milinčić Miroljub & Ivanović Marko & Vukoičić Danijela, 2021. "Impact of COVID-19 on Tourism in Serbia," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 11(2), pages 240-252, December.

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    More about this item

    Keywords

    Economic value; minimum wage; restaurants; service gratuity; social welfare; tipping;
    All these keywords.

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