face2face

Tipping, service charges, and all that jazz

We're all so used to tipping that, when we hit someplace that has a service charge in lieu of tipping, we tip anyway (I do, at least). Here's an interesting comparison of voluntary tipping, service charges, and service-inclusive pricing, developed by Cornell University School of Hotel Administration professor Michael Lynn (who I had the pleasure of interviewing a while back for this article on tipping). As he says in the Cornell e-newsletter I got yesterday,


    “Tipping may not be as advantageous as managers seem to believe,” Lynn said. “What I’ve done is to identify nine factors to consider in determining what is the best way to cover the cost of service employees. I cannot advise an operator which policy is best, but I can frame the analysis.”


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