Actually, the practice of tipping benefits the consumer, each consumer, who stands to benefit from a server or housekeeper pursuing said tips.
For some, it's the best they are able to do. Just because labor market conditions dictate these lower wagers, doesn't mean it's not both unfortunate and often difficult for those workers. Tipping in service industries isn't some new cost-savings idea contrived by MNC's. It's as old as Moses. People suddenly abandoning that practice has a negative impact on these workers. So incredibly selfish.