You'll get better rates at an exchange house, an ATM, or by using a credit card, but a bank provides the best rates. Although dollars are generally accepted in various resort areas, we recommend using pesos during your visit to Cabo San Lucas.
People Also Ask
The best currency to take to Mexico is the local currency, the Mexican peso. US dollars are also highly exchangeable at local banks and currency exchange offices. However, instead of converting physical banknotes, the cheapest way to pay in Mexico is to use a multi-currency travel debit card like Revolut or Wise.
In most tourist areas in Mexico, it is acceptable to tip in either pesos or dollars, though pesos are more practical for the person being tipped. If you do tip in dollars, be sure to only tip using notes and not coins as coins cannot be exchanged.
The norm for waiters is 15% to 20% of the bill, depending on service (make sure a 15% service charge hasn't already been added to the bill, although this practice is more common in resorts).
For most tourist that are in Mexico for a week and will be in tourist areas, you will find most places accept US Dollars. But there is the rate at what they will accept them. See our section below on this. Tip: Mexican law says that all prices must be marked in Pesos.
How much cash should I bring to Cabo for a week? I typically bring $1,000 to $2,000 in cash for a one-week trip. To the extent that I have leftover cash at the end of the trip (which I almost always do), I usually apply it to my outstanding bill at the resort I'm staying at.
Taxis are easy to find where ever you are traveling, although the price is usually high. Expect to pay $8-10 US to travel a mile in Cabo San Lucas or $35-40 US to travel from San Jose del Cabo to Cabo San Lucas. From the airport, expect to pay $80 US for a cab to Cabo San Lucas / Zone 3.
One thousand good Mexican pesos have the purchasing power of about $50 U.S.A. dollars. You might get a nice dinner for three, or a tankful of gasoline (gasoline is expensive there), or a bus ticket to a major city, or a night in a cheap hotel.
For traveling (even on a backpacker budget) it is perhaps better to consider what 500 pesos (or $25 will buy). That is enough to rent a car for a way (minus non-specified expenses). It is also enough for dormitory accommodation in some of the cheapest hostels in Mexico City for two nights (around $8 per night).
It's best to order pesos via your local U.S. bank before arriving in Mexico to avoid inflated fees. If this isn't an option, you can go into a reputable bank or credit union nearby. If you must use an ATM for cash, this is typically safe too, but remember to convert your currency to pesos for the best deal.
It's up to you how much you tip, but the recommended amount in Mexico is between 10% – 20% (15% is a good standard in tourist areas) of the bill or ticket price.
While tipping may not be required at some all-inclusive resorts, many guests prefer to do so. In the event that you would like to tip staff during your all-inclusive vacation, it is important to find out in advance whether staff would even be allowed to accept those tips.
While tipping is a discretionary and optional gesture, at all-inclusive resorts in Mexico, Cuba, Dominican Republic, Jamaica, and others, it is certainly encouraged.