Kevin J Ryan, Buy Side by Wall Street Journal featuring Vincent Birardi, CFP®, AIF®, Wealth Advisor at Halbert Hargrove
Be prepared the next time you need to say, “thanks”
Vacation is a time to relax and be pampered. And what better way to thank the people who make that possible than with a generous tip?
But with tipping standards that vary greatly from one country to the next, culturally-appropriate tipping can get tricky when you’re traveling abroad. In the U.S., we tip more than just about any other country, which means American standards aren’t always the most useful barometer.
“We’re pretty much over-tippers when we go anywhere outside of the U.S. because our service industry depends on tips for their income and for their livelihood,” says Pamela Eyring, president of the Protocol School of Washington. “That’s not the case in a lot of other countries.”
The last thing you want to do after a great vacation meal or hotel is fret about whether or not you’re leaving a big enough gratuity. . With that in mind, here’s what the experts say about tipping when you’re on vacation so you’ll be prepared the next time you need to say, “thanks.”
How much to tip around the world
With so many different standards out there, it’s good practice to familiarize yourself with the customs before you travel, says Vincent Birardi, a certified financial planner at Long Beach, Calif-based Halbert Hargrove who frequently travels abroad. “That will reduce the likelihood that you inadvertently offend someone by tipping an inappropriate amount,” he says.
While expectations around amounts vary, one thing remains true: “Cash is king,” says Eyring. With credit card and exchange fees, tipping in cash helps ensure the full amount ends up in the intended recipient’s pocket.
How much to tip in Mexico
How much you tip in Mexico will strongly depend on what part of the country you visit. “There are two different cultures in Mexico when it comes to tipping,” says Jaime Peters, who teaches personal finance at Missouri’s Maryville University and studies tipping from a budgeting perspective.
In most of the country, including places like Mexico City, tips are slightly less than they are in the U.S.—so 10% to15% on most services, as opposed to the 15% to20% that’s common in the U.S.”
However, if you’re going to a resort area like Cancún or Cabo, she says, you should be tipping by U.S. standards. “These places are really built to cater to tourists,” she says—many of which are American, which makes U.S. standards the predominant tipping culture. And while businesses in many Mexican tourist destinations will accept U.S. dollars, adds Eyring, you should still tip in pesos whenever possible so the recipient won’t have to pay an exchange fee.
