Tuesday, November 11, 2008

Tip Envelopes at Bed & Breakfasts

We realize that many people reading this article may not have their own Bed & Breakfast at this time. However, it is never too early to start collecting information for what you do and DON'T want to have when you do purchase a property. There are many things to consider, but the following is one of my pet peeves!

Tip envelopes - If you ask many current Innkeepers that may say that they have tip envelopes and many guests repond and leave money. The question is how many people don't leave money? I always get the feeling when I see an envelope that I am obligated to leave a tip and I don't like it. It is an added pressure and I am suppose to be on vacation! If an Innkeeper has truly done their job, a tip will AUTOMATICALLY be left, with or without an envelope. So I say, don't intiminate your guests...do an excellent job and the tips will flow!

2 comments:

Rebecca Levitan, Quantum Hospitality Group, Inc. said...

Thanks Hilary, You are correct that people are spending less and that doesn't mean you aren't doing a good job if a tip isn't left. However, we do appreciate your not leaving a tip envelope! Take care!!

Howard J. Levitan, Quantum Hospitality Group, Inc. said...

Hi Hilary:

Let me jump in as well. If your Inn has tip envelopes, then technically you have to collect the tips and report the income to the IRS for your employees, and, by the way, pay SS tax on the collected tips. We did not want to be involved with that whole process, and in our guest literature, specifically stated that tips were not required as they were included in the rate. If the guest left something for the housekeeping staff, we knew nothing about it, and it was up to the individual housekeepers to report any such income. Hope this provides another good reason for not doing tip envelopes.