Economic Meltdown: The Financial Effects and Monetary Practices Underlying Tipping and Gratuities

The practice of giving gratuities or tips is usually determined by custom, telltale signs and unwritten rules. Tipping problems can be reduced to two questions, when and how much. Tips are usually given after a service has been performed however it is not unknown in some countries to have to tip prior to service, for example to secure a good table in a restaurant or to get hold of a taxi. There may be occasions when a tip is given while a service is being performed in a restaurant, such as the preparation and cooking of a special dish next to one’s table or carving of a joint of meat by skilled restaurant staff on a trolley positioned next to one’s table.

In some restaurants and places of entertainment one may be expected to tip musicians if one has requested that a special tune or melody is played or when they are playing next to one’s table. In some countries tipping is not permitted, while in others it is not expected and in fact positively discouraged because it is contrary to the local concept of hospitality, in yet others nothing can be achieved unless one gives a tip.

Tips may be given for a wide range of services, for instance to a hotel porter for obtaining a taxi or carrying luggage, a waiter for serving a meal, a guide on a tour bus, cabin staff on a cruise liner, a hairdresser or a barber. In principle it is different from gifts and other considerations for some future services, but the dividing line is a very fine one and in some countries almost indistinguishable. If in doubt about tipping and gratuities, one should make enquiries when making a hotel or restaurant reservation, as to their tipping practice. Even in those countries where tipping is discouraged, small token gifts typical of one’s own country might well be appreciated.

It is however essential to be aware of local rules and exercise discretion. In the United Kingdom, in what are known as Gentlemen’s Clubs as well as in Service or Armed Forces Clubs, tipping is not allowed. Instead members are encouraged to contribute to the staff Christmas box. The reason for this is particularly in the Armed Forces or Service Clubs, that all members should receive the same service, regardless of their rank or wealth. In many countries a service charge or gratuity is include in the hotel and restaurant invoice and additional tipping is not required although sometimes, if there is a small quantity of loose change, this might be left as a tip.

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