Tipping isn't mandatory or customary in Iceland, but it is always appreciated. The standard rate of tax on Icelandic products is 24%, with some products and services, including books, food and accommodation, taxed at a reduced rate of 11%. Hotels, restaurants and cafes already include a service fee and consumption taxes (VAT) on your bill, so tipping extra is often not necessary. However, if you’re happy with the services provided by waiters, drivers and other service workers, leaving a small tip is a good way to show your appreciation. While it may not be customary to you, it’s of great significance to the people who take care of you during your travels. Tipping also encourages excellent service in the future and is an entrenched feature of the tourism industry across many Intrepid destinations.
Carrying small notes in local currency will make tipping easier and you'll be more confident about the amount.
Participate in a tipping kitty
Your local leader may discuss the idea of running a group tipping kitty on the first day of your trip. In a group tipping kitty, everybody contributes an equal amount at the start of the tour that your leader uses to tip drivers, local guides and hotel staff on your behalf. The leader will keep a running record of all monies spent, which can be checked at any time. Any money remaining at the end of the tour is returned to group members. This is often the easiest way to avoid the hassle of needing small change and knowing when and what is an appropriate amount to tip. Participation in this kitty is optional, and you are welcome to manage your own tipping separately if you prefer. Please note the tipping kitty excludes tips for your tour leader.
Do I need to tip your tour guide in Iceland?
You do not need to tip your tour guide but you may also consider tipping your tour leader for outstanding service throughout your trip. The amount is entirely a personal preference, however USD 2–4 per person, per day, is a commonly used guideline. Of course, you are free to tip more or less as you see fit, depending on your perception of service quality and the length of your trip. Remember, a tip is not compulsory so you should only feel like doing it in appreciataion of good service.
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