Gratuities to be added to sea pass account daily.

[Clagmeister]

They don't make it part of the fare because then it would become commisionable.

 

And if booked in the UK would attract 20% value added tax (VAT) on top. :eek:

[setsail]

RCL stands to clear millions on the operational and processing float once this is fully implemented, so I doubt there's any "skimming" going on. When you think about it, the funds float for almost 90 days before the crew's payday from your cruise ever hits their wallets.

 

RCI is a publicly traded company. Please, show me here what you are talking about

 

http://www.rclinvestor.com/phoenix.zhtml?c=103045&p=irol-newsArticle&id=1780892

[pepsicruiser]

What RCCL and th eother shoudl do is just raise everyone's fare by $12.00 per day and quietly give this to staff in same distribution manner and no longer call it out as a service charge, tip, or anything else. It is part of your fare and cannot be changed/deleted. It would be a done deal and part of the cost of your cruise - only choice is book and pay or walk away. end the constant whining, complaining, and debates.

 

Then it would also eliminate the cheapos that line up at GS to remove it claiming they are going to tip in cash which occurs on the lines with the autotips.

 

I have always prepaid on RCL, NCL, Princess, HAL, Carnival, and Disney anyway as find the little enevelopes a bit tacky anyway and just consider and factor it as part of trip cost.

 

 

I Aree With This

[orville99]

RCI is a publicly traded company. Please, show me here what you are talking about

 

http://www.rclinvestor.com/phoenix.zhtml?c=103045&p=irol-newsArticle&id=1780892

 

From their latest 10K:

- Ships sail at 104+% capacity

- RCL Brands (22 ships) have 60,000 capacity (double occupancy)

- that gives 62,400 pax/cruise

- all-pay standard 3/1/13 at an average of $90/week/pax (Average which includes both suites and regular cabins)

 

- 62,400X$90X52 = $292,030,000

 

At a rather conservative commercial paper yield of 2% (they can probably find 3+% without too much difficulty), that equates to $5,840,640 in float interest/year, and that doesn't factor in the impact of the company's other brands.

[BrMtnLover]

On our next cruise we are planning to eat in Speciality restaurants 4 or 5 days. The remaining days either Johnny Rockets or room service. At all of these venues we always tip them extra for great service although we are already charged a fee for going and tips are already included. I do not have plans to go to the MDR. I have no problem prepaying for my room steward but I will be visiting guest services to have the gratuity adjusted. Not because I'm cheap or stiffing anyone but because I will be providing tips to those who provide us service at those speciality areas. If asked why I will gladly explain and provide them with my dinner reservation information.

 

What he said...we are not cheap and love to put the extra $15 or so in with the ticket at the specialty restaurant. We always receive good service in Chops/Portofinos/Giovanni's Table and want to recognize our wait staff's excellent service. We never visit the MDR....abhor it and the whole atmosphere (that goes double for the Windjammer). We book every nite in a specialty restaurant and am afraid we will seem ungrateful for not leaving an extra tip, but we're not patsies, either. I only hope the crew understand that Corporate now feels they know better how to allocate our gratuities.

[cruzincurt]

From their latest 10K:

- Ships sail at 104+% capacity

- RCL Brands (22 ships) have 60,000 capacity (double occupancy)

- that gives 62,400 pax/cruise

- all-pay standard 3/1/13 at an average of $90/week/pax (Average which includes both suites and regular cabins)

 

- 62,400X$90X52 = $292,030,000

 

At a rather conservative commercial paper yield of 2% (they can probably find 3+% without too much difficulty), that equates to $5,840,640 in float interest/year, and that doesn't factor in the impact of the company's other brands.

And all fares are paid well in advance of services delivered. Just like airlines, we pay before we receive the product or service. Nice arrangement.

[orville99]

And all fares are paid well in advance of services delivered. Just like airlines, we pay before we receive the product or service. Nice arrangement.

 

True. In fact, on the latest 10Q they show more than $1.5 Billion in advance deposits on the books. Ships aren't the only things they float;)

[Mark_K]

From their latest 10K:

- Ships sail at 104+% capacity

- RCL Brands (22 ships) have 60,000 capacity (double occupancy)

- that gives 62,400 pax/cruise

- all-pay standard 3/1/13 at an average of $90/week/pax (Average which includes both suites and regular cabins)

 

- 62,400X$90X52 = $292,030,000

 

At a rather conservative commercial paper yield of 2% (they can probably find 3+% without too much difficulty), that equates to $5,840,640 in float interest/year, and that doesn't factor in the impact of the company's other brands.

They don't get to keep all the money for a year before they disburse it to staff. From what I recall from talking to staff, credit card tip money is disbursed in their next check after it is received by RCI. I'd guess it averages 4-6 weeks, so I'd estimate your number should be divided by ten.

[orville99]

They don't get to keep all the money for a year before they disburse it to staff. From what I recall from talking to staff, credit card tip money is disbursed in their next check after it is received by RCI. I'd guess it averages 4-6 weeks, so I'd estimate your number should be divided by ten.

 

Not really. Because money is infinitely fungible, the reality is the crew can easily be paid from funds that were collected as much as 90 days before the people who made those deposits ever get on the ship. There will be approximately $300MM in constant cash flow. When a paycheck's worth is withdrawn, another paycheck's worth is added almost instantaneously. That's how float works.

[joe6666]

The letter I got doesn't say anything about a guest being able to remove gratuities from their Sea Pass account.

 

"We look forward to welcoming you onboard for your upcoming Royal Caribbean International cruise vacation!

 

As you prepare to set sail, we wanted to notify you of a change to our gratuity policy. As of March 1, 2013, Royal Caribbean will add an automatic daily gratuity of $12.00 USD ($14.25 USD for Suite guests) to the onboard account of each guest to be shared by Dining Services Staff, Stateroom Attendants and Other Housekeeping Services Personnel that work to enhance your cruise. This gratuity replaces our previously recommended gratuity guidelines.

 

If you have already prepaid gratuities for your upcoming cruise, this policy change will not affect you. Accordingly, we will not apply the daily gratuity to your account while you are onboard. If you have not prepaid your gratuities, you will see the daily automatic gratuity applied to your onboard SeaPass® account during your upcoming cruise.

 

Please contact your travel agent with any questions and thank you for choosing to cruise with us.

 

Sincerely,

 

Royal Caribbean International "

[phish tales]

I knew that. Did you know that 83.5% of statistics are made up by the people relating them?

 

i also knew that. did you know that 38.5% of people that are relating those statistics are only correct approx. 16.7% of the time...:confused:

[setsail]

From their latest 10K:

- Ships sail at 104+% capacity

- RCL Brands (22 ships) have 60,000 capacity (double occupancy)

- that gives 62,400 pax/cruise

- all-pay standard 3/1/13 at an average of $90/week/pax (Average which includes both suites and regular cabins)

 

- 62,400X$90X52 = $292,030,000

 

At a rather conservative commercial paper yield of 2% (they can probably find 3+% without too much difficulty), that equates to $5,840,640 in float interest/year, and that doesn't factor in the impact of the company's other brands.

 

Interesting stuff if so, but I do not see that reported at all. Most any public traded company might or should have operating funds funnel into at the least a mm account, not unheard of at all for employee saleries, but tips:confused:. As you can see rci's income is, 75 % from cabin bookings, about 25% ob spending and other. The other is mostly listed, the big items, so to speculate on tip money, which is not even an expense, is something I could not do, but crew salaries, etc. are listed. Also, as a publicly traded co. Somewhere if all tip money collected is invested for co. Profit, then an accounting of that money would be included. I fully expect some placement of money in interest bearing acc. But all of that is paid out to employee's, not co. Profit or operating funds. If so, there would be an accounting.

 

I would add though, after reading rci financial statements for many years I have never seen a reference to tip monies, but we now have a new plan, where more monies will be collected, monies for tips, so, when the first qtr statement comes out for 2013 I will be reading to see if tips are in the mix now

[Jenn31708]

At least they notified you.:)

 

 

 

 

Actually they didn't, and neither has my travel agent.

[crusinmama06]

Well this ridiculous change of policy won't affect us as we are taking our business elsewhere.

 

Buh bye, Royal.

 

LOL .. and where might that be .. I know Princess and HAL already do the same thing :eek::D:rolleyes:

 

...or Carnival....or Norwegian

 

That's ok - I will take your place. I cruise in suites and tip well ;)

 

You will be missed.

[orville99]

Interesting stuff if so, but I do not see that reported at all. Most any public traded company might or should have operating funds funnel into at the least a mm account, not unheard of at all for employee saleries, but tips:confused:. As you can see rci's income is, 75 % from cabin bookings, about 25% ob spending and other. The other is mostly listed, the big items, so to speculate on tip money, which is not even an expense, is something I could not do, but crew salaries, etc. are listed. Also, as a publicly traded co. Somewhere if all tip money collected is invested for co. Profit, then an accounting of that money would be included. I fully expect some placement of money in interest bearing acc. But all of that is paid out to employee's, not co. Profit or operating funds. If so, there would be an accounting.

 

 

RCCL is not a US Corporation, and doesn't have to fully comply with SarbOx, they follow different rules on what (and how) they report. They are noy likely to publish their roll-ups at the level of detail that a US Corporation would be required to do. You need to be able to read the white parts of the page to figure out what goes where.

[Jenn31708]

Why not? Did you not already plan for the amount in your budget?

 

 

I did, as its just my husband and I. However there's a party of 7 in my group, that's almost $1000 in tips.

 

And before everyone's head exploded, they did plan on tipping but not that much. Yes I know the common thought arund here is don't go if you can't afford to go.... I get it. But there's 5 children. How will they charge the tips to the seapass of children that don't have a credit card attached?

[crusinmama06]

Actually they didn't, and neither has my travel agent.

 

To be fair - the email yesterday from RCI didn't headline that they were changing grats. The title of the email said "extended sales event" and it was a 4th bullet point down that said "revised gratuity program".

 

If I wasn't on Facebook I would have missed it too. But I saw the news start to hit Facebook so I went looking for the email.

[middvillmom]

I have not gotten an email like that yet, and I have a cruise on the books. I notice both of you are from Europe, I wonder if it is regional?

 

 

I am from New Jersey and just received the email re the gratuity policy change this morning. This is the email:

 

We look forward to welcoming you onboard for your upcoming Royal Caribbean International cruise vacation!

 

As you prepare to set sail, we wanted to notify you of a change to our gratuity policy. As of March 1, 2013, Royal Caribbean will add an automatic daily gratuity of $12.00 USD ($14.25 USD for Suite guests) to the onboard account of each guest to be shared by Dining Services Staff, Stateroom Attendants and Other Housekeeping Services Personnel that work to enhance your cruise. This gratuity replaces our previously recommended gratuity guidelines.

 

If you have already prepaid gratuities for your upcoming cruise, this policy change will not affect you. Accordingly, we will not apply the daily gratuity to your account while you are onboard. If you have not prepaid your gratuities, you will see the daily automatic gratuity applied to your onboard SeaPass® account during your upcoming cruise.

 

Click Here for more details on this policy. Thank you for choosing to cruise with us.

 

Sincerely,

 

Royal Caribbean International

[setsail]

I did, as its just my husband and I. However there's a party of 7 in my group, that's almost $1000 in tips.

 

And before everyone's head exploded, they did plan on tipping but not that much. Yes I know the common thought arund here is don't go if you can't afford to go.... I get it. But there's 5 children. How will they charge the tips to the seapass of children that don't have a credit card attached?

 

To the setsail pass that the children's name is on.

[crusinmama06]

I did, as its just my husband and I. However there's a party of 7 in my group, that's almost $1000 in tips.

 

And before everyone's head exploded, they did plan on tipping but not that much. Yes I know the common thought arund here is don't go if you can't afford to go.... I get it. But there's 5 children. How will they charge the tips to the seapass of children that don't have a credit card attached?

 

When you check in - the kids will be linked to your account. You can shut their passes down but their grats will be added to their sea pass folio and the credit card linked to the cabin will pay for the grats. You can assign that during online check in. I have my kids passes shut down but I have their grats added to my folio so I pay for them.

 

And yes - I always pay for kids. And yes, you are expected to budget that in when you cruise. Will you have a drink budget? A photo budget? A souvenir budget? Take from THAT and pay for the auto tips.

 

I think it's ridiculous that the crew fall all over children for the week and then get stiffed by people like you. And it makes my life harder as I try to tell cruisers that people who cruise with kids bring just as much money to the cruise line. Then you post that you intend not to tip for the children.

 

My children get MORE service than I do. They walk on water when they come into the dining room. Their chairs are pulled out. Their drinks are waiting for them when we arrive. They have appetizers WAITING for them as we arrive. We have towel animal ZOOS in our cabins. The crew go above and beyond for my children - if anyone SHOULD tip - it's parents of children.

 

So please don't make any excuses. Over a dozen cruises with my girls and counting. Tipping is part of my budget.

[Jenn31708]

And yes - I always pay for kids. And yes, you are expected to budget that in when you cruise. Will you have a drink budget? A photo budget? A souvenir budget? Take from THAT and pay for the auto tips.

 

I think it's ridiculous that the crew fall all over children for the week and then get stiffed by people like you. And it makes my life harder as I try to tell cruisers that people who cruise with kids bring just as much money to the cruise line. Then you post that you intend not to tip for the children.

 

 

So please don't make any excuses. Over a dozen cruises with my girls and counting. Tipping is part of my budget.

 

People like me? Honey, you don't know me. I don't even have kids so take it down a notch. I was asking about other members in my party.

[setsail]

RCCL is not a US Corporation, and doesn't have to fully comply with SarbOx, they follow different rules on what (and how) they report. They are noy likely to publish their roll-ups at the level of detail that a US Corporation would be required to do. You need to be able to read the white parts of the page to figure out what goes where.

 

Where did I say that RCI is a us co. Or use the word US. I said they are a public traded company and that they are.

 

It is pure speculation period to say what will be done with tip money in the future for a plan that will not even start until march. I already said I will be reading the 1st qtr statement for changes. If there is a profit being made on "tip" money, somewhere it will have to be reported.

 

By the way, RCI UK is also a public co. But on my statements it's listed as foreign , but all our other is not listed as such. Investing in RCI is fun, it's a great hedge for cruising. And, I am not talking about stock. None of it says "US"

[ARCruisinNana]

When you check in - the kids will be linked to your account. You can shut their passes down but their grats will be added to their sea pass folio and the credit card linked to the cabin will pay for the grats. You can assign that during online check in. I have my kids passes shut down but I have their grats added to my folio so I pay for them.

 

And yes - I always pay for kids. And yes, you are expected to budget that in when you cruise. Will you have a drink budget? A photo budget? A souvenir budget? Take from THAT and pay for the auto tips.

 

I think it's ridiculous that the crew fall all over children for the week and then get stiffed by people like you. And it makes my life harder as I try to tell cruisers that people who cruise with kids bring just as much money to the cruise line. Then you post that you intend not to tip for the children.

 

My children get MORE service than I do. They walk on water when they come into the dining room. Their chairs are pulled out. Their drinks are waiting for them when we arrive. They have appetizers WAITING for them as we arrive. We have towel animal ZOOS in our cabins. The crew go above and beyond for my children - if anyone SHOULD tip - it's parents of children.

 

So please don't make any excuses. Over a dozen cruises with my girls and counting. Tipping is part of my budget.

 

"Like" Thanks:)

[crusinmama06]

People like me? Honey, you don't know me. I don't even have kids so take it down a notch. I was asking about other members in my party.

 

Well you are asking for them. And I stand by what I said. We don't give a "pass" for ages.

 

You are saying its "$1,000 in tips" that no one budgeted for. So then someone in your party was planning on denying the crew $1,000 for that week.

 

If this is your group - and you are the organizer - then it's up to you to explain the way things work on a cruise.

 

As I said - take it away from the alcohol money - there always seems to be a budget for that.

[galavant3]

My children get MORE service than I do. They walk on water when they come into the dining room. Their chairs are pulled out. Their drinks are waiting for them when we arrive. They have appetizers WAITING for them as we arrive. We have towel animal ZOOS in our cabins. The crew go above and beyond for my children - if anyone SHOULD tip - it's parents of children.

 

This has been our experience also! And exactly why cruising is my kids' favorite way to vacation. We have always had service well above and beyond what is expected. In fact, post cruise, the service we get is usually what we remember and talk about the most. Our first was cruise in 2004 and my kids still remember Gurhan, Bien, Jo Jo John and Roy from the dining room. Almost 9 years later and they are still talking about them!! I wouldn't be able to sleep at night if we didn't show our gratitude to these hard working people!