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Tipping is a common practice in most parts of the world. After all, service employees are generally not that well paid, and most appreciate the small token of gratitude for their care. Americans go as far as to tip 20% (it is, believe it or not, their standard!), while us Europeans will generally leave a few extra Euros or pounds in cash, or simply give the change back to the employee.
Things are, however, a little different in Italy, particularly in Venice. Airport transport transfers aside - or maybe not even in that case! - Italians do not expect or require tips. You may still tip the European way, but if you follow the American practice, you may be seen as ostentatious, not to mention you will run out of money very quickly.
Oddly enough, information on how and when to tip in the water city is conflicting, even from locals. Some say never tip, others say just tip in regular situations - a Venice airport transport transfer, a haircut, room service, and so forth. However, some situations do seem to be consensual, such as restaurants, where you should never tip.
This is because, unlike other countries, Italian restaurants already include the price of service (generally an added 12%) on the bill. The extra charge effectively serves as the tip, and you are not expected to leave more. This is especially true in the small, non-touristy trattorias, where the act of tipping generously can be seen as a crass display of wealth! Similarly, when paying by credit card at a hotel, the manager will generally not make room in the bill for the inclusion of a tip.
Venice airport transport transfers, and cab rides in general, are a murky ground. Some people advise that you should tip the cabbie by around 5-10%, as you would in any other city, while others state that this is not expected, and that water taxis in particular are already sufficiently costly without that added charge. Perhaps in this situation it is better to compromise and give a small tip - but remember that a transfer will already include extra costs for supplements, airport service, and Sunday or after-hours services.
Ultimately, in any situation, it is up to your discretion whether or not to tip, and by how much. Keep in mind, however, that tipping is not a common practice in Italy, other than on very specific situations (Venice airport transport transfers, for example). And remember, always keep your budget in mind, or you might unexpectedly find yourself coming up short! Lukas Johannes
