Service Charge, Gratuity and Tipping

Tipping is elementary in the US. Most people working in the service industries get paid a very basic salary that is then complemented by tips. This being said, the travel organisation is taking care of all the tipping to waiters in restaurants, porterage at airports & in hotels, drivers and guides.

To give you an idea of the order of things… restaurants will charge, besides the 8,25% state tax, a 3% mandatory extra service charge in Texas. On top of that, often comes – especially with larger dining groups – also a 20% mandatory gratuity charge.

Gratuity can be interpreted as tipping in some states, however under Texas and federal employment law, these mandatory gratuities belong to the restaurant; the restaurant is not forced to give any portion of that mandatory charge to the employees.

It may seem quite a complex system to the European visitor who is used to pay just 1 final amount marked on his bill (all included). Long story short… It is up to the discretion of each individual if you wish to give something extra to someone who has gone out of his or her way to be helpful to you.

Taxi drivers do not expect to be tipped, but they appreciate the fare being rounded off.