Travel Advice - Tips for Paying and Tipping in Cabo
You’ve booked your trip and you’re getting excited to stay in the paradise that is Los Cabos. But as a first time visitor, (or even a returning visitor), there are many things to consider and plan when traveling to a foreign place. Amidst the excitement, it’s easy to feel overwhelmed about the details, especially if it’s your first time visiting. One of the questions we get asked often is about paying for goods and services while in Cabo, so we put together this quick guide that will hopefully help answer some questions as you prepare for your stay.
Pesos or US dollars?
Thankfully for American visitors, the US dollar is widely accepted in Cabo, making it a convenient place for travel and tourism. In addition, almost all places accept American cards and American card companies typically give you the prevailing exchange rate. All of this makes paying in Mexico pretty seamless on American traveler’s end. That being said, there are many situations where you will need to tip - drivers, at restaurants, etc. Depending on what the exchange rate is, Mexican may prefer to be tipped with US dollars or Mexican pesos. When the rate is favorable to the dollar, most will prefer to be tipped with dollars, and the same with when the rate is favorable to pesos, most will prefer pesos. Whichever currency you are using, always tip in cash, so that your server can keep the entire tip. This helpful app converts dollars to pesos for you on the go.
So should you pay for other things with dollars or exchange them for pesos? Almost all establishments in Cabo will gladly take your money in whatever form you decide to spend it. Whether you’re shopping, dining, filling up at a gas station or paying for a ride, no one will turn away your American dollars. But just be aware that you may get a different exchange rate in each case. Check the exchange rate before traveling: it’s a good idea to hold on to your US dollars if the rate is 20 pesos or fewer to the dollar. Here is a handy resource to show you the current exchange rate. It is usually best to exchange at your bank before traveling, as they will have better rates. Never exchange at the airport if you can help it!
For these reasons, we do recommend using your card for just about everything (besides tips). It is very convenient and usually cost effective. We do recommend bringing at least two credit or debit cards just in case one is compromised. Cabo is a very safe place and while using your cards in most places is generally safe as well, unfortunately compromise can happen. Be very careful at gas stations, outside ATMs (that are not located at a resort or reputable place), etc, as these are common places where card info can be swiped. If you want to play it extra safe, bring some cash to pay for things you might need, such as gas. If you do decide pay with pesos for some or all of your needs, remember about the added cost to do so. Some places will charge an added 10-15% for using US dollars (this may be another reason you decide to exchange for a least some pesos).
When you are out shopping or dining and using your card, ask the merchant to charge the card in pesos - it will often save you money. Also be sure to call your bank before leaving the country and let them know you will be traveling abroad to avoid the any blocking of any transactions.
Tips on tipping
Whether you bring pesos or dollars, bring lots of smaller bills for tipping! Tipping is expected when you receive good service in most places around the city. Remember that the Mexican culture is extremely service-oriented, and tipping is a huge part of the livelihood of the workers. Many people in Cabo have jobs that depend on the tips you give, so it is highly important to be fair and generous. An average tip in Cabo is generally 10-20% of the total bill. 10% is considered a minimum, but for superb service, tip at least 20%. Giving less than the standard can be disrespectful and may even affect your service.
Remember, you can always ask for smaller bills when you are out. Don’t let large bills be the reason you don’t tip, or tip too little.
Here is some additional guidance on tipping in different situations:
Hotels/Resorts: 10-15% of the total bill is expected at hotels. You also must tip when you order food or drinks. If you are staying at a lower-end/budget hotel tip around 20 pesos, if you are staying at a luxury hotel, tip closer to 50 pesos.
Bell boys: when a bell boy brings your luggage up to your room, a typical, expected tip is 20-50 pesos.
Housekeeping: Minimum 50 pesos, tip daily instead of at the end of your stay.
Valet Parking / Chauffeur: 15%-20% of your services
Bartenders: typically around 10-15 pesos
Tour Guide: 10%-20% of the whole package cost
Restaurant Wait Staff: 10%-15% of your bill, at least 50-100 pesos
Spa Services: 10%-15% of your bill, at least 50-100 pesos
Grocery Store Baggers: Tipping the person who bags your groceries is standard practice. 5-10 pesos depending on the number of bags and service received (5 pesos for 1-2 bags, 10 pesos for more). If someone brings your bags to the vehicle or helps you carry them, you should give an additional tip.
Gas Station Attendants: 5-10 pesos is expected for filling your tank. Attendants may even check your air pressure or clean your windshield, in which case you should tip 10-15 pesos for these additional services.
Although 10-20% of the total bill is a standard tip in Cabo, a good tip is considered to be 50 pesos and up. Tipping 150-200 pesos is considered generous and will surely get you extra helpful and enthusiastic service. Ultimately, tip as much as you feel is deserved, and remember to be generous. Happy travels!
Los Cabos has so much to offer its visitors! If you’d like help planning your stay, feel free to contact us here for local Cabo expertise. You can also email us at info@edsdestinations.com. We offer concierge services and luxury vacation rentals that will make your stay enjoyable, comfortable, and unforgettable. Happy Travels!