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Implication of Tipping on
Services (a case study on
Restaurant and Hotel
Services in Tasikmalaya)
M. Yani Syafei
Dedi Rianto Rahadi
Gabriel Sianturi
Introduction
Data from the BPS 2022 of Tasikmalaya
City, in 2021 :
 the number of restaurants in
Tasikmalaya City is 261 units.
 the number of hotels is 35 units
with 1,515 rooms available
Problem
 Tipping in Indonesia is still
voluntary because tip is a sign
of customer satisfaction with
the service provided by
consumers to restaurant
waiters .
 Although the tips given by
customers to workers have
been budgeted by the
company or referred to as
service charges, some
generous customers will give
tips directly to restaurant
employees because they are
considered to have provided
satisfactory service
Method
This study uses descriptive qualitative research method
 in-depth interviews with 55 consumers and 8
restaurants and hotel business units in Tasikmalaya City.
 the survey was conducted for 5 days from 10 to 15
December 2022.
Questions asked :
 to consumers: related to whether or not they had
given tips to waiters or hotel’s employees.
 to hotel and restaurant owners : related to how
they respond when an employee receives a tip from a
customer.
Result and Discussion
Result and Discussion
 In Indonesia tipping:
 is voluntary
 as a thank you as well as appreciation
for good cooperation.
 Kristanti & Mandias estimated the
amount of tip money received affects the
services provided, and the effect varies
from individual to individual.
 Research reveals several facts that until
now the amount of tip money received
affect the quality of service on customer
satisfaction
 During pandemic in Indonesia :
 Eating at fast food restaurants is
temporarily banned in many states
 Some fast food restaurants serving
takeout and delivery remained open.
Most states reopened fast food
restaurants for outdoor and limited
indoor dining.
 Many workers at fast food restaurants
rely on tips as their main source of
income during normal times. It is
possible there is a decline in income
during pandemic
Conclusion
Suggestion from this research and study:
 In Indonesia giving tips is not a mandatory
thing to do or is voluntary but when customers
are satisfied with the service provided, they
should give tips as gratitude to the waiter.
 When on vacation, it is a good idea to include
tip money in the vacation budget. For
example, for drivers, for tour guides, for
restaurant waiters, and others.
 Before or during the pandemic if you do not
want to tip waiters and workers, it's best to
avoid unnecessary services, regardless of the
service charge.
 When arriving at a fast food restaurant, if there
are quite a number of restaurant waiter, usually
one waiter can focus on one or two tables that
have a lot of people to serve so this kind of
waiter deserves to be tipped
 In the post-pandemic period, most of the service
workers income is from tipping, it is best for
customers to tip extra because many service
workers depend on gift money voluntarily given
by customers.
Thanks For You All

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Implication of Tipping on Services.pptx

  • 1. Implication of Tipping on Services (a case study on Restaurant and Hotel Services in Tasikmalaya) M. Yani Syafei Dedi Rianto Rahadi Gabriel Sianturi
  • 2. Introduction Data from the BPS 2022 of Tasikmalaya City, in 2021 :  the number of restaurants in Tasikmalaya City is 261 units.  the number of hotels is 35 units with 1,515 rooms available
  • 3. Problem  Tipping in Indonesia is still voluntary because tip is a sign of customer satisfaction with the service provided by consumers to restaurant waiters .  Although the tips given by customers to workers have been budgeted by the company or referred to as service charges, some generous customers will give tips directly to restaurant employees because they are considered to have provided satisfactory service
  • 4. Method This study uses descriptive qualitative research method  in-depth interviews with 55 consumers and 8 restaurants and hotel business units in Tasikmalaya City.  the survey was conducted for 5 days from 10 to 15 December 2022. Questions asked :  to consumers: related to whether or not they had given tips to waiters or hotel’s employees.  to hotel and restaurant owners : related to how they respond when an employee receives a tip from a customer.
  • 6. Result and Discussion  In Indonesia tipping:  is voluntary  as a thank you as well as appreciation for good cooperation.  Kristanti & Mandias estimated the amount of tip money received affects the services provided, and the effect varies from individual to individual.  Research reveals several facts that until now the amount of tip money received affect the quality of service on customer satisfaction  During pandemic in Indonesia :  Eating at fast food restaurants is temporarily banned in many states  Some fast food restaurants serving takeout and delivery remained open. Most states reopened fast food restaurants for outdoor and limited indoor dining.  Many workers at fast food restaurants rely on tips as their main source of income during normal times. It is possible there is a decline in income during pandemic
  • 7. Conclusion Suggestion from this research and study:  In Indonesia giving tips is not a mandatory thing to do or is voluntary but when customers are satisfied with the service provided, they should give tips as gratitude to the waiter.  When on vacation, it is a good idea to include tip money in the vacation budget. For example, for drivers, for tour guides, for restaurant waiters, and others.  Before or during the pandemic if you do not want to tip waiters and workers, it's best to avoid unnecessary services, regardless of the service charge.  When arriving at a fast food restaurant, if there are quite a number of restaurant waiter, usually one waiter can focus on one or two tables that have a lot of people to serve so this kind of waiter deserves to be tipped  In the post-pandemic period, most of the service workers income is from tipping, it is best for customers to tip extra because many service workers depend on gift money voluntarily given by customers.