People are noticeably more frugal when tipping in barber chairs and Ubers than they were just a few years ago. According to a recent Bankrate survey released on Wednesday, the percentage of adults who say they always tip their hair stylists, servers at sit-down restaurants, and food delivery personnel has each decreased by 8 percentage points since 2021. Similarly, the rate for tipping taxi and ride-hail drivers has dropped by 7 percentage points during the same period.

Three years ago, during the economic reopening from the pandemic and amidst higher inflation, there was a heightened concern for frontline workers. At that time, three-quarters of consumers reported always tipping restaurant servers. Today, only about two-thirds continue to do so. Despite slight increases since last year, only a bit more than half of people now consistently tip hairdressers (55%) and food delivery drivers (51%), with only 41% always tipping when ordering a ride.

The survey highlights Americans’ growing ease in bypassing ubiquitous tipping prompts seen everywhere from coffeeshops to airport terminals in the post-Covid economy. This trend persists even as sticker prices have risen. While consumer spending has remained remarkably steady, many households are feeling the pressure from persistent inflation and are tightening their belts accordingly. This newfound caution appears to be influencing when, where, and how much people tip.

“After the pandemic came inflation, and that has seriously cut into consumers’ buying power,” said Ted Rossman, senior industry analyst at Bankrate. While some workers’ wages are now rising faster than prices, others are still playing catch-up. Many Americans are tipping less because they have less disposable income and because they are no longer appreciating service industry workers as much, Rossman explained.

However, any decline in restaurant tips does not necessarily mean servers are worse off. At least 25 states have raised or will raise their minimum wage this year. Several major cities, including New York and Chicago, are mandating a full minimum wage for tipped workers. California’s new $20 hourly minimum wage for employees at large fast-food chains took effect in April. Additionally, some of the most rapid hiring and wage growth recently has been in part-time and service-sector roles, including those where tips are common.

Despite these wage increases, many restaurant workers are still feeling the impact of diners' “tipflation” fatigue. According to a recent survey by SpotOn, a digital payment platform used by eateries and retail shops, roughly equal shares of restaurant workers reported their tips staying flat as those who saw a decline (36% and 35%, respectively). Only 29% said their gratuities increased.

Some patrons may be deterred by preset tip amounts, said Hans Frech La Rosa, a senior behavioral researcher at Duke University’s Common Cents Lab. Others might find mobile payments more impersonal, making it easier to skimp on tips. “The larger that sort of psychological distance from the person or business — or the weaker that shaming force is — the less likely we are to follow through on that intention of tipping,” he said.

The Bankrate findings come amidst a broader reshuffling of consumers’ leisure habits, with spending reductions in some areas and increases in others, often along existing socioeconomic fault lines. Budget-conscious diners have retreated from fast-food chains this year following menu price hikes, prompting a race to lure them back with deals and discounts. Meanwhile, middle- and upper-income consumers continue to spend on vacations, with cruise line bookings surging.

Other consumer shifts are more situational than zero-sum. For instance, in most major U.S. cities, transaction volumes have decreased sharply during the midday workweek but have been offset by increases during evenings and weekends, according to the digital payments processor Square. This indicates that Americans are saving their lunch money to spend on happy hour drinks and weekend brunches.

With people's spending behaviors in flux, there is little consensus on what the new normal should be. For example, one TikToker sparked widespread debate in February by posting about opting not to tip the stylist she paid $350 to do her braids, citing the inconvenience of needing to make an ATM trip to pay in cash. While many service workers may disagree with such decisions, it is clear that cash tips are still preferred in the era of card readers. In the SpotOn survey, a resounding 89% of restaurant workers said they would rather be tipped in cash if tipping is to be done at all.

Additionally, the broader economic landscape is influencing tipping behaviors. The combination of post-pandemic recovery, ongoing inflation, and shifting consumer priorities means that discretionary spending, including tipping, is under greater scrutiny. As consumers navigate these financial pressures, their tipping practices reflect a complex interplay of economic realities and changing social norms. The evolving attitudes towards tipping highlight the need for a deeper understanding of how economic factors and technological advancements impact consumer behavior in the service industry.