I receive a monthly newsletter from a corporate travel agency, and this piece in the December edition caught my eye. I found it amusing that the Canadian section is quite brief, while the American section is much longer and very specific. Granted, this is a corporate rather than consumer focus, so the tips are for business people on company money. (I don’t know why the Canadian part left out suggestions for taxis and such. They probably assume that Canadians know how to tip in Canada, but then why have a Canadian section at all?)
Here’s the copy-and-paste from the newsletter:
Tipping Guidelines When Travelling
For business travellers, tipping can be confusing. How much is not enough? How much is too much?
A golden rule: Reward good service and don’t feel pressured into rewarding bad service. And remember that a dollar or two might not be a big deal to you, but to your server or maid, it could really make a difference to their family.
How To Tip.
Canada
At hotels, a suitable tip for the valet is $5; bellmen, $1-2 per bag; maids, $1-2 per day. If you’re ordering room service, find out if a tip is included in the cost of the room service. If it is, you don’t need to tip, but if not, then 15 per cent is an acceptable amount. It’s not necessary to tip the concierge, but if you’re happy with the service then a small amount at the end of your stay is welcome.
United States
In the U.S., tipping rates are slightly higher than in Canada – 20 per cent at sit-down restaurants (25 per cent for bigger groups), 20 per cent on large bar tabs, $1 per drink or $2 if your drink is one of those $15 martinis. At Starbucks or a cashier-service restaurant: $1 or pocket change in the tip jar on the counter. At takeout restaurants, gift the hostess between $2 and $5. A good rule for cabs is $2 for a $5-ride; $3 for a $10-ride; and 20 per cent for everything else. You get extra points for tipping cash when you pay by credit card. At hotels, tip the valet $2-$5; bellmen, $5 for a bag or two and more than $10 if he’s carrying an entire cart of your luggage. The maids should get $5-$10 a night (depending on how expensive your hotel is). For hotel room service: 15-20 per cent of the bill. Don’t forget the concierge – $5 for information; $10 for scoring you reservations or arrangements of any kind.
Why the difference?
The simple answer is that our service sector wages are generally higher, or to put it another way, the American minimum wage is lower, depending on how you view the comparison. In Canada we pay more and tip less, in the USA they pay less and tip more. The lower minimum wage in the USA has bred a tipping culture that either makes us look stingy when we’re down in the States or makes the Americans look generous up here. Where you grew up shapes your expectations of service and what you’re willing to pay for it.
As for me, I am a DIY, self-serve kind of consumer. It’s a major reason why you won’t find me on a cruise ship. I rarely stay in hotels. I’d cut my own hair if I could. I’ll take transit or walk before I’ll hail a cab. I book my own travel, carry my own bags, fuel my own car, and prefer not to have service or be forced to pay for it if I don’t want it. If every restaurant was self-serve, like eating at IKEA or Panera Bread, I’d be happy. I don’t like being served because it makes me feel lazy, and I prefer not to have my conversations interrupted. Tipping is something I’m resigned to doing at restaurants, but I will tip in any service situation when I feel it’s been earned (hairdresser, taxi, etc.).
That said, I know there are lots of people who enjoy being served, whether it’s fine dining or a regular restaurant meal. And sure, maybe if I’m a wobbly senior citizen I would be pleased to have someone help me versus the likelihood of dropping my food. At any rate, if I were a higher-maintenance person, I’d be pro-service environment and should tip accordingly.
I’m all for service providers working extra hard for tips (I’m grateful when wedding clients tip me for going above and beyond the call of duty), but I think people should be obliged to tip only when it’s warranted. This is where it gets complicated…
There is the touchy subject of illegal workers in the U.S. who the government refuses to acknowledge until they have to — immigration law reform, anyone? always an issue when the economy is in decline — but turn a blind eye to because it gives them a “free” labour force. Sure, the workers don’t pay taxes but the risks are high: these people have no protection from exploitation or abuse. There are no statistics on them because they’re not supposed to be working, yet they do, because they work for people who get away with not paying them properly and work for tips to survive.
It gets even more complicated because the perception of many Americans is that these illegal workers are taking jobs away from the citizenship-holding public. I’ve heard this in other countries, too, and it couldn’t be further from the truth.
But back to tipping… it’s very arbitrarily-applied, anyway — does anyone tip their mechanic? Or the librarian? Or the butcher? Or the ice cream vendor?
Do we really need that much service, anyway? Couldn’t we pay people more for the service that’s provided (i.e., better base wages) than make them rely on tips? We don’t need a tipping culture to receive good service — much of Europe, Australia, and New Zealand doesn’t tip and there’s plenty of good service. Mind you, people will argue that’s not the case…
There is the argument that we put people out of work if we cut back on service. States such as Oregon and New Jersey only have full-service gas stations (though they state safety rather than employment reasons), where the rest of the USA and all of Canada have both self- and full-serve, although full-service stations are becoming extinct outside of NJ and OR. But we don’t NEED full-service stations, so why am I forced to use them, NJ and OR? The pay-at-the-pump options have reduced drive-offs. I’m sure we can create better jobs for people — let’s work on that, instead!
Are you a big tipper? Do you subscribe to the guidelines in the article above? Do you stick to suggested percentages or make your own? Do you tip even when your service was mediocre?
