Caxton’s ultimate guide to tipping on holiday for 2023

Tipping – a way to show gratitude to someone going the extra mile, or a confusing custom ripe for misunderstandings? It’s an old custom, dating back to medieval times, when servants would sometimes receive a token of gratitude in exchange for extraordinary service. And while many of us would like to show gratitude to those making our evenings out a great experience, it can be difficult to know who to tip, and how much.

Do you tip taxi drivers? Do you leave the change at the pub? And if we’re this confused domestically – how on earth are we supposed to know how much to tip when we leave the country!?

And quite apart from the anxiety this can cause, tips can have a real impact on your travel budget. If you've loaded enough money onto a currency card to cover your expected travel costs, and they're suddenly 20% higher than expected, where does that leave you? Especially if you're not making sure that you're getting the lowest fees on your pre-paid travel card, unexpected costs can blow the budget.

Confused about how to tip?

If you’re confused about how to tip, you’re not alone. In our recent survey of people across the UK we found that only 19% of Brits feel confident in how much to tip when on holiday overseas. We’ve created this simple guide to help you get an idea of what the expectation is in different countries. For more detailed information about your destination, check out our Travel Money guides.

Which countries do you tip in?

Before you travel and plan how much holiday money you need, it’s a good idea to find out if tipping is common practice where you’re going. You may think that the worst that could happen is that you’ll seem a little out of touch, but in certain countries tipping is actually considered offensive. In Japan, for example, trying to tip your server may be taken as a sign that you don’t trust them to do their job properly without an extra incentive. To a Japanese person, who prides themselves on their strong work ethic, nothing could be more insulting.

The other extreme is America, where wait staff is paid only a nominal wage, and the majority of their take home wages are made up of tips. Though it may seem strange to us, this means that customers are expected to tip generously almost regardless of level of service – even if your waiter was doing the bare minimum. Luckily, in most countries a tip is neither insulting nor mandatory, but a small token of gratitude for a job well done.

It can also get confusing in countries where a tip is not customary, but may be appreciated. As a general rule, if you check your receipt and it details a service charge, anything you choose to give above that is generous and not mandatory. It may also be worth noting that high end restaurants, or restaurants in capital cities, may be more accustomed to receiving tips due to their international clientele. We’ve put together this table as a starting point to check if you should tip or not:

How much should you tip?

Even if you know that the country you’re in has a culture of tipping, it can be confusing to know how much to give. The amount you should tip varies from country to country and the type of service you’re receiving. From your tour guide, to your porter, driver, housekeeping, or bartender, each may need to be tipped differently. While the amount you tip is always up to you, understanding the expected amount can help you feel more confident.

Holiday tipping checklist

As tipping etiquette varies from country to country, and sometimes even within the country itself, it’s a good idea to read up on your travel destination before you set off on your journey. Here’s our checklist to help you get it right:

• Factor in tips by adding an extra 10 to 20 per cent to your planned holiday budget.
• Tipping in cash is often preferable as some businesses may not pass on tips given on card. Make sure you travel out with some local currency for taxi drivers, hotel porters and any other tips that may come up along the way.
• While most people prefer to be tipped in their local currency, it may also be acceptable to tip in Euro or USD as long as you’re using notes only. Remember that coins cannot easily be exchanged.
• Always check the bill to see if service is already included before adding a tip – if it is, an extra tip may be welcomed but is not expected.
• Never ask the person providing the service directly how much they should be tipped. They may tell you no tip is expected out of culturally expected politeness, even where tipping is in fact the norm. A hotel concierge can be a good guide to local tipping for non-hotel services.
• For more specific advice, check out our Travel Money guides.

Make sure that you’re getting the best rates and fee free spending abroad by using your Caxton currency card. Apply for yours today, or top up your existing card.