Sunday, October 01, 2006

Economics of Tipping

Stephen Dubner, co-author of the bestseller Freakonomics, asks why people do not tip flight attendants. He basically argues that flight attendants do the same type of service that you find in a lot of other jobs where the workers do receive tips (waiting tables, hotel bellmen, etc.). Any ideas on why people do not tip flight attendants? What makes it different from those other service jobs?

I think the rules about tipping are generally interesting/confusing. For instance, why is the tip in restaurants based on the value of the meal instead of the number of people at the table? I would think that the number of people at the table has a bigger impact on the amount of work a waiter (or waitress) has to do.

Also, if a tip is supposed to be a reward for a good job of service, why not have a convention where half of the tip is given at the beginning of the meal and half at the end? This strategy might encourage better service since I doubt giving a big tip encourages better service unless you go to a restaurant often enough for the server to recognize you and that you tip well.

Also, here is a link to a post I had last year on economic research on small ways that a server can increase the size of their tips.

(Source: Freakonomics)

12 comments:

Anonymous said...

I've never even considered the idea before but I guess that could be why no one does it: not many people have considered tipping them before. If it was a regular, normal thing though, I don't see people being so opposed to it. I definately see much better service on flights than in a majority of restaurants. So partially, it doesnt happen simply because not many people think to tip during a flight, especially since no one else does it. It's just not common. However that's definately not all of it. Flight attendants are trained and with that comes the understanding that they probably arent too poorly paid. It is assumed that generally waiters/waitresses and people in similar fields aren't qualified to get better jobs and it is known that those jobs don't pay well so of course it would be those same people who need the money most. Also, airplane tickets aren't exactly cheap so it kind of comes as a package deal. This sometimes includes things such as a meal/pillow/blanket. You're not paying for them on the spot so you wouldnt already have your wallet out. In this situation their job resembles that of a nurse more than a waitress. They are bringing you a good that you may already be entitled to. You dont tip your nurse for bringing you a pillow but you certainly are more than paying for it. Also with larger parties at dinner, gratuity is usually included probably because this would benefit the waitress more than if the individual was to just throw some ones on the table. Maybe thats just how it should always be done no matter the number of people or the price.
-Lauren Henderson

Anonymous said...

I think that you are more likely to tip people when you have been in a job that you receive tips. You are then more likely to recognize when people are servicing you and also when they are doing a good job. I agree with Lauren when she says that the service on flights is much better in restaurants. I think that because there somewhat is a rule of etiquette to tip waiters/esses 15%, they feel that they don't have to give the upmost service for what they are doing unless they desperately want more than 15%. But if not, there aren't gonna try any hard than what they have to do. I'm sure that some flight attendants get tips, but it is not a requirement of etiquette to tip flight attendents. With knowing that they might possibly get more tips if they are better at what they do. The same applies to hair dresser assistants. I am one, and some people tip and some don't. By tipping it helps me to do a better job at what I do to hopefully increase my likeliness of being tipped.
-Danielle

Anonymous said...

Like Lauren and Danielle said, I think that tipping flight attendants is proabably uncommon just because no one's used to the idea. And I guess that tipping flight attendants could increase the incentive for better service, but service does seem to be pretty good on planes now (like Lauren said). I did work at a restaurant for a little bit this summer (it was weird, though, because everyone was supposed to bring their tips to the front cash resister and if you found a tip on the table you could tell that the people weren't "regulars")and all the tips were pooled together (and I never even saw them), so I would be happier when people just said thank you than with a tip of unkown amount. That's funny though about the study saying that waitresses putting smiley faces increased their tips but waiters putting smiley faces decreased theirs--I never really thought about those kind of discrepancies in economics and tipping! I'll remember that patriotic message idea, though, and maybe test it out next year. -Carrie

Anonymous said...

I agree with all three of them that tipping flight attendents is an uncomman idea, which is the reason why it's not done. One reason why tips may not be given to flight attendents is that in a restaurant,there is only one person attending to you and your group, whereas on a plane, there are usually two or more flight attendents who attend to a passangers wants and needs. Other than that reason, there are no other justifications for flight attendents not recieving any tips as they do just as much work than a waiter, bellboy, cabbie, etc.
-Gautam Rao

Anonymous said...

In my opinion, when you pay for a plane ticket you are paying to be served on the plane. They offer free drinks to you, and ask you if you need a pillow or blanket. These services are all included in your original fee of flying on the plane. A portion of the large amount of money you spend on a plane ticket is given to the flight attendants.When you attend a restaurant, you are paying for the service and food so in that case you would tip the waiter. Also, in a restaurant a waiter is assigned to your table and told to take care of all your needs. They are constantly checking up on your specific table in order to make sure you are happy. A flight attendant only does something for you if you ask or push a button for them to come over to help you.
I am sure it would be nice if people started tipping flight attendants for working hard, but usually the task is simple, and doesn't deserve a tip above a dollar. Everyone likes a courteous flight attendant, so maybe a way to improve the attitudes of attendants would be to start tipping.

Anonymous said...

^That was Hope

Anonymous said...

The difference between eating at a resturaunt and a plane is that with a plane you are paying this initial fee which in the minds of the consumer covers the cost of the plane ride as well as the service from flight attendants (kind of like an assortment of services bundeled together into one). People do not usually tie tipping with a flight, it is just something that is not in our culture. Yet, in my opinion, flight attendants definatly deserve one because of their constant strive to please you during the flight. Another reason I agree with, as Lauren talked about, is that usually when you are on the plane your wallet is not easily accessible. Many people often do not even think about needing their wallet on the plane because everything is free with the exception of alchohol. I believe that for these reasons, the practice of tipping is not regarded during a flight

Anonymous said...

^Nick Wellmon^

Anonymous said...

I think that there are a few reasons why we do not tip flight attendants. One of them being that we see flight attendants as a "real career" job, where as things such as waiters and doormen are seen as temporary, less reliable jobs. We think that the people who have more temporary jobs need the extra money more, because their income is less stable. Another reason that was mentioned before was that it is just uncommon to tip flight attendants. I also think that convenience has a lot to do with tipping. When you are walking in a door to a hotel, you are normally carrying all of your belongings, such as a purse or wallet so it is very covenant to just take out a few spare dollars. This is also true for tipping at restaurants, because you already have your money out to pay anyway, to that is probably the most covenant. If you are sitting on an airplane all of you baggage is tucked under a seat in a very inconvenient location, or if you have a wallet you are sitting on it. Both of these are possible factors that go into when people think is the appropriate time to tip.
Andi

Anonymous said...

I agree with Danielle when she says that the service is better on planes because the attendants do not expect the tip, it is there job to serve the passengers with no complaints, and also i think because good service means happy people, and when many people are in an aircraft thousands of feet above the ground everyone should be as happy as possible. Waitress, bell hops, and even vallet drivers are accoustomed to being tipped, so basically they know that however they treat their customers, they will recieve some benefit, even if it is small. I believe people don't pay before simply because the task isn't done yet. The person is not completly satisfied, so why would they want to pay extra upfront?

Sara Diehl

Anonymous said...

ahhh..I was eleven minuets late...please?

Anonymous said...

This also confuses me. When I went to Europe, they do not expect tips as much but they still provide the same service. I think one reason is that they are paid well enough. Waiters and waitresses are paid essentially nothing and the tips are their salary. I work in a tiped based industry and I know from experience that I will work harder if i am trying to make a tip than i I am doing something that is just a part of my job. It is true that service is better in resturaunts but I think that another reason we perceive that is because being on an airplane is not the most comfortable place we can be waited on.

-Brian Meier
(I know this is late but I just remembered when I woke up)