The tip you never gave

It’s common knowledge that a lot of folks in the travel industry, from the airport skycap to the hotel concierge, have their hands stuck in the “out” position, expecting a tip from you. What’s not as well covered by the travel media and travel blogs, is the how people in the travel industry often do the same thing to each other.

In fact, if several recent emails from readers who work in the industry are to be believed (and I do) then there’s a thriving underground economy fueled by kickbacks, tips and quid-pro-quo arrangements.

I’ve touched on these back-room deals in a recent story about hotel concierges. I also covered the topic back in ’99.

(I’d be remiss if I didn’t also mention my critically-panned expose on restaurant tips … but I digress.)

However, the net results of these shenanigans are indisputable: higher prices. Paid by you, the traveler.

This underground economy extends beyond hotels and restaurants, to limousine services. A reader who worked as a limo driver in Portland, Ore., wrote to me a few days ago to tell me that drivers who served a particular hotel in the city — I won’t mention any names — were forced to participate in the following scheme: Any referral by the hotel had to be rewarded with a $10 under-the-table “tip.”

Refusal to pay meant no more referrals.

This effectively raised prices of limo fares to and from PDX for many guests.

And here’s the thing: You would never know about these behind-the-scenes machinations. Unless someone like this limo driver came forward to talk about it.

Unfortunately, there is no way to steer clear of this scheme. You could be a victim of it without even knowing it.

But we do know enough to know we have to be suspicious when someone in the travel industry offers any kind of “referral.” There may be a good (read:financial) reason behind it.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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