Drivers of Tipping Behaviour in Restaurants: The Case of Croatia

Abstract

Tipping in the hospitality industry is a widespread but under-researched phenomenon, particularly in regions where cultural, economic, and social dynamics diverge from established norms. This study explores the critical role of consumer-perceived value in shaping tipping behaviour in the restaurant industry, specifically focusing on Croatia - a context where unique cultural, economic, and social dynamics influence tipping practices. Analysing data from 438 Croatian residents, the study reveals how service dimensions - such as food quality, ambiance, service convenience, and server quality - intersect with demographic characteristics and payment methods to influence tipping practices and WoM recommendations. The research situates Croatia's tipping practices within the broader framework of tourism innovation, emphasizing the interplay of legislative reforms (such as the introduction of card-based tipping), operational advancements (such as the integration of digital payment systems), and evolving cultural norms. These innovations enhance the dining experience for both locals and international tourists, aligning local hospitality practices with global standards. The findings underscore how transitional economies can leverage these combined innovations to strengthen their competitiveness in the global tourism market while fostering positive tourist perceptions