Ways to Tip Fairly in the Recession

By Betsy Vereckey -- AP Business Writer

NEW YORK (AP) — As you head out to a nice dinner or on vacation at the height of the summer travel season, everyone will understand if you tip less because of the recession, right?

Well, some people may. But it's guaranteed they've never made a large portion of their income from tips — as waiters and other hospitality workers do. And hospitality workers already have taken a direct hit from the downturn, as companies cut jobs and work hours to save money.

To be certain you tip properly for the services you enjoy, here's some advice:

DO THE MATH. Business psychologist Debra Condren says 15 percent is the minimum for just being served — even unsatisfactorily — at a restaurant. For good service, she says, 20 percent is fair.

"Tipping 10 percent and justifying it by saying, 'We're in a recession,' makes you a heartless Scrooge," she says.

If you need help figuring the amount, use a calculator or download a tip estimator on your smartphone. And try to tip in cash: Waiters and waitresses greatly appreciate being able to head home that night with cash in their pockets.

TRADE DOWN. Consider a cheaper restaurant if you can't afford to tip appropriately at an expensive one.

Most of U.S. hospitality workers' income comes from tips, which at a restaurant they share with other staff like baristas, bartenders and busboys. At the same time, there's no need to tip the owner of a business.