Tips for tippers: it isn’t what you expect

by Tom Johansmeyer on

Tipping’s a tough nut to crack. Should you tip a housekeeper? Back in the day, the rule was leaving some cash only if your stay was 30 days or longer. Since then, however, it seems to have changed. And, what’s appropriate for a valet? Bellman? Skycap? Travel means tipping, and there are plenty of points at which you can expect to do this. If you go to the same hotel or use the same car service frequently, you may want to adjust your tipping habits, as well.

If these questions make you feel ignorant, you’re not alone. Michael Lynn, a prof at Cornell University’s School of Hotel Administration, has conducted to nationwide tipping surveys and has found that a third of the respondents don’t know to leave 15 percent to 20 percent of the tab at a restaurant. Throw hotels and drivers into the mix, and it’s unsurprising that the rules aren’t understood as clearly as they could be.

So, USA Today and I are helping you know what to tip and when. A recent article by Gary Stoller provides some good ideas, and I’ve tossed in a few of my own.

Valet: This one was news to me. Don’t drop cash to the guy who opens the car door or brings the car to the valet lot. Instead, pay the guy who brings it back, generally $2 to $5. I’ve been overtipping on this one for a long time.

Bellmen: These guys carry bags, so they’re earning their tips. Give ’em $1 to $2 a bag, more if you pack for a weekend like you’re moving in for a month. Heavy bag, as well, warrant an extra tip.

Maids: Once upon a time, maids were only tipped if you were staying for the long term. I guess this has changed, and you’re supposed to leave $1 to $5 daily. But, if you’ve been tipping valets for both drop-off and pickup, this should be break-even for you.

Concierges: Don’t tip for the basics. If you’re asking for directions, recommendations or simple answers, those are free. Did the concierge score hard-to-find tickets? A table at an impossible restaurant? Pony up: $10 to $50. Nonetheless, it’s your call. Vivian Deuschl, a vice president at the Ritz-Carlton chain, says that you should expect fantastic service, “There is no obligation to tip.”

Skycap: Pay for help when you check your bags curbside: $2 to $3 a bag is fine. If you have a lot of bags, throw in a little extra, a good rule to apply for the driver who takes you to and from the airport, too.

And, here are a few others …

Service matters: Tips are provided for the service you receive. If you receive unacceptable service, don’t offer a tip. But, if service is so bad that you aren’t tipping, it’s probably a good idea to call a manager and give your side of the story. First, it will keep you from getting shafted by other hotel employees when the word spreads. Also, it will alert the management to a problem with the staff. Be thorough, and don’t whine.

“No tipping” is sacrosanct: Some resorts have no-tipping policies. They always make it very clear up front. Also, they will tell you if there are any exceptions. Curtain Bluff, in Antigua, doesn’t allow tips and makes alternatives clear (there’s a charity on the island). The spa is a “tipping zone,” however, and the front desk will let you know. If you try to tip in a no-tip hotel, the employee will probably let you know, but it’s best not to create the awkward situation at all.

Special requests: Think beyond restaurant reservations and event tickets. If the concierge does the impossible for you, shell out for it. I’m thinking of several super-luxury favors I’ve heard (sorry, can’t reveal them) from industry insiders. If you’re rolling in the big leagues, don’t bother carrying singles; you’ll need Benjies.

Be realistic: Tip what you can afford. You don’t need to toss around boatloads of cash that you don’t have. It may feel good to be a big tipper, but the high you get now will hurt like hell later. Remember that you’ll need to live with the financial situation that you create while on vacation.

Don’t tip from guilt: You don’t have to solve the financial crisis on your own. The recession has led to a travel industry slump, which means hotel employees won’t be making as much. Think of it this way: these guys aren’t buying more of what you make just to help you out. So, don’t think you need to return the favor.

Know your environment: There is a lot of mileage between Eden Rock and the Holiday Inn: don’t expect the same tipping strategy to work at both locations.

[Photo by AMagill via Flickr]

UK online bookings to grow this year

by Tom Johansmeyer on

Yes, you read that correctly – online bookings are expected to finish higher in the United Kingdom this year! Even in this dismal economy – which has been particularly brutal for the travel industry – the web guys have something to celebrate. Sure, the forecast is only for 3 percent, but that beats the losses being posted elsewhere.

Travel industry research firm PhoCusWright’s new study puts the amount spent on leisure and unmanaged business travel (i.e., employee picks for himself) at £17.1 billion for 2009, comprising 45 percent of all bookings for the year in the UK. So, a hefty portion of the industry over there is seeing some growth.

Meanwhile, the overall UK travel business is expected to shrink by 8.9 percent this year, with gross bookings dropping to around £37.6 billion. So, the online world is holding its own while the rest of the market gets spanked. For the near-term, PhoCusWright says, the “outlook is bleak.” The UK travel business should reach 2007 levels in 2012 (ouch).

“British travelers have had to cope with currency devaluation on top of the recession, and both have driven significant changes in travel patterns,” says Carroll Rheem, director, research at PhoCusWright.

The situation isn’t as bad at home, though. Rheem continues, “The blow to domestic travel has been relatively soft while the fall-off in U.K. visitors to the Mediterranean has been significant.”

Airline websites beat other suppliers in the digital space, the research firm says, picking up more than half of direct online sales in the UK. Hotel company sites are expected to grow with the market, and tour operators are forecast to have the biggest wins (in terms of growth rate) on the web. They’ve invested heavily in marketing to bring customers online, according to Peter O’Connor, PhoCusWright’s market analyst, U.K. and France. “Selling a combination of pre-packaged, dynamically packaged and decoupled travel components, their share of U.K. online direct travel is expected to increase through 2011,” he says. Even with the jump for tour operators, though, online travel agencies are going to lead growth for all online channels in the UK.

It’s not time yet to celebrate an end to the travel recession; that will only come when the bigger recession has been resolved. Nonetheless, it’s great to see some hope in any part of the travel business. It means that people are getting on planes and heading either to old favorites or new experiences. Let’s hope that next year the stats are higher in the UK and everywhere else.

Online travel agencies still making money in today’s travel market

by Tom Johansmeyer on

There’s still money in the travel business; you just have to look in the right places. In the United States, the online leisure and unmanaged business travel sector is where you’ll find the cash — this sector is outperforming every other travel sales channel, according to a recent study by research firm PhoCusWright. In a report that the company will release soon, U.S. Online Travel Overview Ninth Edition, PhoCusWright will reveal the details behind the online leisure/unmanaged business travel’s 7% decline relative to a nationwide general fall of 16%.

“For the first time since PhoCusWright began tracking the remarkable trajectory of the internet in travel distribution, online travel will decline in 2009,” says Doublas Quinby, senior director, research at PhoCusWright. “But,” he continues, “the 7% drop in online travel vs. far steeper double-digit declines for the total travel market and offline channels indicates that travelers are increasingly turning to the Web to shop and purchase travel amid the recession.”

The contraction of the travel market in 2009 has brought the travel industry back to pre-2005 levels. The effects haven’t been as brutal in the online space, though, which has outperformed all the other channel’s this year. When the year is over, PhoCusWright expects online travel agencies to own 39% of the total travel market in the Untied States, up from 35% last year.

[Photo by borman818 via Flickr]

“By honing in squarely on consumer concerns in 2009, heavily promoting deals and last-minute special offers and eliminating many booking and customer service fees, online travel agencies have deftly outflanked recessionary pressures and are outperforming every other distribution channel,” Quinby reports. He adds, “OTAs are taking back some share from travel supplier Web sites this year.”

Hundreds of flights cancelled as Iberia workers go on strike

by Sean McLachlan on

Thousands of passengers were left stranded today as workers at Iberia Airlines walked off the job for the first day of a two-day strike.

Iberia was forced to cancel more than 400 of its 2,000 flights for this Monday and Tuesday as cabin crews protested the fact that they haven’t received a pay increase in four years. This is a tough situation for Spanish workers, who live in a country with one of Europe’s highest inflation rates, between 3.6 and 4 percent annually in the past few years. And that’s just the official rate. Living in Madrid I can say that here at least it seems to be much higher.

Spain’s national airline has been hit hard by the recession and this new blow will only worsen its situation. It couldn’t be helping Iberia’s chances of clinching a proposed merger with British Airways either.

Information on the affected flights is available here.

Will flights be less crowded next year?

by Tom Johansmeyer on

The number of passengers passing through planes in 2010 is expected to decline again. The Boyd Group, a consulting firm in this industry, forecasts a decline of 74 million passengers relative to 2008 – down to 675 million next year. This means you’ll get a little more elbow room, as long as the airlines don’t respond with more route cuts. The fact that unemployment is likely to break the 10% level early next year isn’t helping, as people will be less likely to pick up a ticket and hit the road if they are worried about losing their jobs.

The year after is the one we’re all waiting for – the airline industry is expected to start to recover in 2011. It’s going to take a while, though. Even in 2014, there will be 16 million fewer passengers than there were in 2008.