Last year, I wrote a post about tipping those in the travel industry. I’m adding to that advice today with a note about tipping while abroad. In the past, many travel companies and guides said that it was acceptable to tip in US dollars as long as you were using bills and not coins; this is no longer the case due to rising bank fees.
A guide explained that shopkeepers could no longer accept US dollars because they were easily paying 25-30 percent in fees to convert the dollars to euros. While she never mentioned tipping or the travel industry, I immediately thought of it and was thankful that we had been tipping in euros.
If at all possible, tip in the local currency. If it isn’t feasible remember that in addition to the exchange rate, you should consider the large fees that the bank will charge when your guide or driver changes money.