To tip or not to tip, that is the question.
I just returned from a trip to Sydney, Australia, where I keynoted an event and also conducted a journey mapping master class. It was my first time to Australia, so before I traveled, I did a little homework on what I needed to take along, what to expect while there, etc.
One of the interesting things I learned was that it’s not necessary to tip; Australia has a non-tipping culture. There is no expectation of a tip at all: not from the cab driver, the bartender, the waitress, the bellhop, or anyone else. In restaurants, for example, the wait staff is paid a solid hourly wage ($15-$18/hour) versus the minimum wage (or in some cases, less) received by wait staff in the States.
I also learned that customers most likely only tip in a fine-dining restaurant, but even then it’s not mandatory, and the gratuity amount for great service is usually 10% (versus 20% for the best service in the States).
A few years ago, I wrote a post called Are Gratuities an Expectation? and explored what that meant. When I arrived in Australia, I was really curious to find out how this would affect the customer experience. How would a non-tipping culture fare against what I was used to?
“How was the service?” you ask.
Well, let’s just say that it wasn’t consistent across the board, but it was pretty disappointing. My first cab driver was quite rude and not helpful at all, and I was warned afterward that that was the norm. At several restaurants, I sat for a long time just waiting for a waiter to take my order or to (re)fill my glass. Not only did I wait, but at two restaurants (because it had been so long) I got up to find waiters and wasn’t able to find a soul! Those experiences would rarely/ever happen in the States; certainly not as often as they did in the week that I was in Sydney.
Would it be different if there was the expectation of a tip for great service delivered? I think so.
11 Most Read IRIS Articles of the Week!
Why Secure Passwords Matter and How to Create Them
10 Ways to Celebrate International Women’s Day
Becoming a Great Podcast Host with Celeste Headlee
New Guiding Principles for Opportunity Zone Investors
Leaders: Do You Challenge Your Status Quo?
9 Marketing Trends That Will Dominate This Year
How To Keep Envy From Destroying Your Workplace
6 Tips to Help Your Journey to Retirement
Who Do You Sell to First
Forward-Looking Investing1 day ago
Moat Investing: Powered by Morningstar
Market Strategist1 day ago
We Are Not Convinced the Market Storm Has Completely Passed
Development1 day ago
Advisors: How To Answer “What Do You Do?”
Markets2 days ago
Higher Mortgage Rates, Student Loans and Nike
Equities2 days ago
7 Stocks That Pay the Largest Dividends of All That Trade on Nasdaq – Or Do They?
Advisor2 days ago
The Wizards of Wall Street vs. The Selbees from Michigan
Markets3 days ago
The Chameleons Are on the Run
Compliance3 days ago
Regulators Focusing on How Firms Identify, Monitor and Test Custody Scenarios With Client Assets