Austin Airport Shop Demands Tip When Buying A Bottle Of Water ‘To Go’

I ran into a retail shop at the Austin airport that requires a tip when paying by credit card. This isn’t a sit down restaurant with table service. You pay at the counter, and I was buying a bottle of water.

My upgrade wasn’t going to clear so I decided to stop at the store closest to my gate to buy a bottle of water. The payment terminal at the concession requires you to select a tip amount prior to processing your card.

  • They suggest amounts like 20% and 25%, but you can go to the extra effort for a custom tip aount

  • The terminal would not accept $0.00. You must tip at least $0.01.

You can call me cheap if you want but when did we start tipping for bottles of water to go?

To be clear the terminal would not allow payment to proceed until a tip amount other than $0 was chosen. $0.00 would not submit. Staff confirmed this. As soon as the amount was changed to $0.01 payment was permitted. I’m also not the only one to report this:

Maybe I should have boycotted that shop, but if I’d gone elsewhere I’d still be paying the same company, Delaware North! You aren’t usually doing business with a local brand when you walk into a store at the airport, regardless of the store name. You’re usually dealing with a company like OTG (iPads!), Delaware North, or HMSHost. The airport, for its part, promised to “check[..] on this.”

You might think ‘the employees just make a couple of bucks an hour and rely on tips’ and I’m being unfair to those workers thinking that the store should take some of the margin on their $4 water bottle to pay them But, in fact, starting salary is $20 an hour.

Tipping is out of control in the United States. Being presented a terminal requesting a tip, where you have to go through hoops to avoid tipping, while standing in front of the employee – when it’s not an activity that traditionally involved tipping at all – is a huge turn off as a customer. And I’m going to go out of my way to avoid dealing with these merchants in the future.

Unfortunately at the airport concessions companies are given a monopoly, which isn’t good for passengers but makes lives easier for management at the airport and often fills political coffers like in St. Louis, Baltimore, and Atlanta.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. @Gary: One workaround. Austin has bottle fillers (usually located between the restrooms), right? Take an empty bottle and fill it.

  2. Was just connecting through ATL today and bought a water bottle ($5.50). Same thing in that the credit card reader suggested a tip. This was just a grab and go by a gate. The options were $1, $2, no tip or customize. I pressed no tip and the woman working there didn’t seem to mind. Even she probably thinks that is crazy.

  3. I believe instead of entering an amount you can press the Green Enter button the skip the screen.

  4. @Anthony

    I’ve seen one of OTG’s self check outs ask for a tip in a grab and go location at EWR. Absolutely ridiculous.

  5. Raise your hand if you believe that the tip money will actually go to that employee behind the counter. Anyone?

  6. This is why I carry cash.
    Cash is king.
    By the way, are the payment terminals throughout the airport all like this, since it’s a monopoly?
    Oh andI hope you didn’t Harris the front line employee. I doubt they ordered or built or programmed the terminal…..

  7. One of the self-serve checkouts in IAH asked me for a tip last month when I bought a bottle of water. Ridiculous.

  8. I don’t see the problem. You still have the opportunity to cancel the transaction, use cash, or shop elsewhere.

    A disclosure would be nice, but red Texas doesn’t like regulations in the interest of consumers, so the voters are getting what they asked for. If you don’t like it, you have to do your part to tell the market you reject this practice. Shop elsewhere or bring a water bottle.

  9. @Uncle Jeff: It is a monopoly. Read the article before commenting.

    In TX we deal honestly — that is why we don’t want the govt. interfering.

  10. You could always dispute the charge with the credit card issuer on the grounds that this was forced on you and you received nothing. A deceptive trade practice. Make them work to get their penny.

  11. File a formal, public record complaint with the D.O.T. As airports are ultimately under regulatory control with the F.A.A., a public record formal complaint will certainly light a fire under Delaware North (if they are indeed the operator of the concession), and their legal counsel to respond swiftly. An informal resolution by the F.A.A. to re-program the P.O.S. devices with the option not to tip will most likely be the outcome.

    I’m somewhat surprised that the P.O.S. devices were set-up as a default with a requirement to tip. It would be interesting to know if the employees receive any of the tips collected. If so, how are they distributed? It appears the workers have a bargaining agreement negotiated by Unite Here Local 23. Could language for a share of the tips be included within their bargaining agreement?

    If so, tipping must NEVER be forced upon the customer who chooses to use a credit and or debit card for payment. Do those who pay cash, are they required to tip before receiving change?

    SO_CAL_RETAIL_SLUT

  12. I Don’t think the mandatory tip would go over well in a court of law.
    BTW I am prepared to die of thirst vs. being extorted.

  13. Those payment terminals feel very awkward where are prompted for a tip while employee is in your face staring, for takeout food orders and such, feels almost shameful to press “No Tip” in front of them even on a $2 self serve coffee at a local shop.

  14. St. Louis, Atlanta, Baltimore…. this ex-TWA crew member knows exactly what you are talking about “Political Coffers”. Too bad our current society won’t let us have a discussion on this graft.
    (sorry folks you have to read between the lines here)

    The constant shakedown continues…

  15. On the one hand, that’s obnoxious.

    On the other hand, kind of hard to care about what happens to someone nitwit who’s paying $3 for a few sips of water when he’s 20 feet from a water fountain.

  16. @Luke I agree, and the most frustrating part to me is it’s not even pretending to be logical either. The whole point of a tip is to reward someone for great service. Drives me crazy that a coffee shop or deli wants to shame me into giving a “tip” when I haven’t even tried the food or drink yet. What if they spit in your coffee and gave it to you cold? Too bad, you already tipped them $2 for “great service”

    ???!!???

  17. It reminds me of all of these new delivery services—they make you tip before ever receiving your item, with their responsiveness depending on how much you tip.

  18. The tip scam disease, which was a restaurant exclusive until COVID, is now spreading everywhere.
    Those types of POS are common and I see them in all sorts of stores now.
    They are mostly tablet/iPad based.
    The programming is made by the business owner/manager, so if they don’t have a “no-tip” option then it is purposely designed to be a scam.
    Another problem that is becoming a big issue and helped by those POS is the added fee when you pay with a card. I see more and more stores doing that.

  19. Thanks Gary. Most folks don’t have the clout to get the Austin Airport’s attention.

    Appreciate you calling them out on this crap, not sure that the Austin City Council will care about this anymore than the other issues we have in town, but thanks anyways and please keep it up.

  20. Another point of sale scam is the “donate to the troops” buying additional snack items during checkout at airport mark up prices for the USO club. They don’t offer to sell the donated item wholesale …..

  21. I’m so cheap I buy a giant water bottle before the trip and bring the empty bottle through security. Then I fill it up at a water station.

  22. Recently I was with a group of friends at IAH waiting for our flight to EZE and we went to a Mexican restaurant near the gate for dinner as we were early. The restaurant is all self ordering on their table top devices and after I entered the food choices for the 4 of us the bill total jumped sharply.
    I went what happened? A deeper dive into the bills math showed that the computer DEFAULTED to an 18% tip and we had not even seen a human yet!!
    I changed the tip to $5 and shortly a human appeared with our food. She put it down on the table and departed with not so much as a word to us.
    Yes – this should be outlawed and it’s sure not teaching a good work ethic to the employees.
    Spence

  23. @L3 it’s not a monopoly. You’re free to use another airport or another mode of transportation (e.g., driving), or better yet, just bring your own bottle.

    This is what your so-called TX honesty looks like. People are so focused on marketing their ignorance as some sort of holier-than-thou behavior, when in reality they’re oblivious to the obvious — in this case, the impact of single use plastic bottles. So rather than bringing their own and using the government-provided (gasp!) fill station, they’d rather support a big, mega corporation, create additional plastic waste, and pay $5.50 + tax + mandatory tip for water they can otherwise get for free.

    Enjoy your bottle of honesty, my friend.

  24. This was brought up somewhere in the comments so I researched… here is the relevant portion of the labor contract between the workers and Delaware North concerning tips:

    F. Tip Jars. The Company agrees that in any facility where tip jars are
    currently used the practice shall be allowed to continue. Cashiers shall
    be allowed the use of tip jars as long as there is no rule prohibiting the
    use of tip jars by the respective airport.
    The Union and Management must come to a mutual agreement
    regarding the type of tip jar to be used in those locations.

    G. Credit card transactions which have a signature line included shall
    have a printed line on the receipt for customers to write in a tip if they
    so choose. The full amount of that tip shall be given to the employee.

    One other interesting note from the addendum letter for AUS is that the company will pay for employee parking and each shift provide a $10 meal voucher (at time of agreement, could have escalated in last 3 years) plus unlimited fountain drinks.

  25. @Uncle Jeff: You don’t even know how to define the relevant market. Stop pretending to be an economist. You are a quack.

  26. FOR THOSE WHO SAID GREN BUTTON IS NO TIP…THATS NOT THE CASE AT A STARBUCKS IN HOUSTON. THE CLERK PRESSES IT FOR YOU, MAKING IT LOOK LIKE SHE’S “RELEASING” YOU FROM TIPPING, BUT INSTEAD IT DEFAULTS TO A PRE-SELECTED 15% !!
    ALSO THOSE WHO SAID “CASH IS KING”, SEVERAL PLACES ARE NO LONGER TAKING CASH. (PERHAPS TO FORCE YOU TO TIP WHEN USING CREDIT CARD).
    I PREFER TO ONLY TIP WHEN YOU WAITED ON ME AND BROUGHT STUFF TO MY TABLE. OTHERWISE IT SHOULD JUST BE CONSIDERED “CASH N CARRY”!!

  27. There’s one dumber than having to tip. Paying $4 for a bottle of water

    Stop giving these companies your money

  28. No, I do not want to round up my change at PANDA EXPRESS.

    No, I do not want to contribute to whatever charity while buying my groceries at SAFEWAY.

    No, I do not want to…..

  29. I used to be intimidated when they’d swing the ipad around for me to sign…and tip.
    Then I got smart.
    All of them now get the same zero tip.
    And I so own it.
    I am the boss of the transaction, not them.

  30. These vendors know most people just click random buttons especially when they are distracted and not paying attention. The vendors also know most people will just hate it but won’t do anything about it. And they know it will take regulators several years to start up investigation. I was getting coffee to go the other day and they implemented a new register that defaulted to 20% tip. If you wanted no tip it required many many clicks and not always obvious what you need to do and I’m a super nerd. So now I am defaulting to 0 tip across the board. People clearly needs to learn the hard way. I can be annoying too.

  31. This is infuriating (probably illegal since you apparently had no choice) but even more infuriating is the idiots who without a second thought tip for anything and everything regardless of whether any meaningful, personal, exceptional service was given. I was at the coffee shop with my wife getting her latte fix. It’s a $3.5 takeout cup of coffee. It takes about 60 seconds to make, including the froth design. I am presented at the terminal with all kinds of crazy options, so I do as I always do, choose zero. If the clerk looks at the terminal while I’m selecting it I don’t give a shit. But the last time I went, I decided to pay attention to the people in front of us in line, assuming most would do the same and skip the tip. But I see two buck tip (so what, 50%?) from the gal in front of us. a college student spending her parents’ money. I see a buck here, three bucks there, so on a percentage basis it looks like 30-60% is not uncommon for small purchases. It’s out of control. I think they must be taking in at least $50 an hour just from tips. Just for doing their jobs. Anyone who tips in these situations deserves what they get, which will be more and more demands.

  32. Whether I get my upgrade or not, I still carry an empty Contigo bottle through security. A seasoned flyer should know this…

  33. To me the saddest part is that the author didn’t stand outside the stand and warn every single potential customer approaching the stand of their scam. I would have made that my mission until the last minute that I had t catch my flight. So may people have no backbone and just go along with this crap. It’s no wonder the country is in the mess it is…

  34. Just was talking about this today. I live in Socal. Tip jars in the make your own yogurt shop. Gas stations. Even a 7-11. My fav breakfast place got the screens after Covid. First , the minimum started at 10, rose to 15, then 18 now is 20%. I stopped going there and I yelped it. Also, cashier’s now don’t give out small amounts of change. I don’t care if it’s 2cents like yesterday, I made the cashier open the drawer again and give it to me.
    YES I want my change. BTW, I make a good living, and up until 2 years ago was always a 20% or more tipper. Now I’m a cheap cranky bastard.

  35. Yes absolutely bring an empty bottle through security. You drink whatever you have on the way to the airport… water, Gatorade, iced tea, juice, etc and then fill it up with water once you get past the gatekeepers

  36. The sad part is that this is starting to catch on outside of the US now… expected tips have increased in Canada, europe, and South America now.

  37. THis burger joint has a 75% TIP OPTION. You order at the counter and then they call your name & number. They don’t even bring it to you like some gourmet burger places, I could not believe 75% is an option.

  38. How about paying a decent wage and removing tipping and already displaying the final price including taxes – works in many parts of the world 😉

  39. New Zealand, Singapore, Japan, etc. prove that tipping is not a necessary part of life.

    Paying $20 an hour and still mandating tips reflects a mafia shakedown culture run amok.

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