Prepaid Gratuities, what % goes to who?

[Nikkimouse76]

Anyone have any ideas as to how gratuities are split up. What percentage goes to who?

[Sauer-kraut]

Do you mean the Daily Service Charge? That isn't a gratuity;).

[bear3412]

Hello neighbor.

 

I haven't seen NCL break it down like other lines, but I'm sure it is similar.

From DCL;

 

Dining Room Server .......... $4.00

Dining Room Asst. Server .. $3.00

Dining Room Head Server .. $1.00

Stateroom Host ................. $4.00

 

$12.00 a day per pax per night.

 

HTH

 

ETA; An interesting old DSC discussion; http://50.57.11.189/showthread.php?t=1708288

[valleyvillage]

It is my understanding that the Discretionary Service Charge will be shared among those staff members, including the restaurant staff, stateroom stewards and other behind-the-scenes staff who provide services that enhance your overall cruise experience.

[pliskin]

I've always been curious about this myself. If the breakdown is similar to what bear states, what about bartenders, lunch waiters, etc? I do always leave a little extra for those who go above and beyond.

[SeaShark]

From the NCL website:

 

Staff members including restaurant staff, stateroom stewards and behind-the-scenes support staff are compensated by a combination of salary and incentive programs that your service charge supports.

 

 

The operative term is "supports". The DSC is used to "support" incentive programs for the crew. It is not something that is divided into shares and just given to crew members.

[cabincop]

I have to say I don't care how they are paid, I do know they work hard and have long hours. I try and tip my room steward more at the end of my cruise

[SASA13]

I have to say I don't care how they are paid, I do know they work hard and have long hours. I try and tip my room steward more at the end of my cruise

 

Same here. If he did a good job, then we always give him an extra tip at the end of the cruise. Also, I always tip extra ( on top of the included gratuity charge ) to the coffee shop workers. I don't know how they can make capuccino's all day and night, and still smile :)

 

They all work so hard, I believe they deserve an few extra bucks to show

my appreciation of a job well done.

[Nikkimouse76]

I for sure will be tipping extra where I feel it is deserved, which is part of why I asked the question that I did.

[sjbdtz]

I for sure will be tipping extra where I feel it is deserved, which is part of why I asked the question that I did.

 

 

The easy way to look at it is thusly:

 

 

The DSC covers their basic wages. No extra tipping is required, and yet everybody on the ship is happy this way. I read this to mean that the distribution is fair / equitable....otherwise they'd be hard-pressed to find people to occupy the non-equitable roles.

 

 

 

If you want to recognize somebody especially, whatever extra you give them would, I'm sure, be appreciated.

[GORDONCHICK]

I've always been curious about this myself. If the breakdown is similar to what bear states, what about bartenders, lunch waiters, etc? I do always leave a little extra for those who go above and beyond.

 

Bartenders are not included in the DSC but there is a 15% added to all orders through the bar - this includes sodas unless you have the soda card.

[luddite]

The DSC, which is not a gratuity, gets divvied among the crew. The percentages have never piqued my interest. The crew is happy knowing that most passengers will pay their bills and not stiff them.

[JuneauWhatIMean]

So any individual tip you give for exceptional service is not kept by the recipient but added to the " incentive program", which gives bonuses for certain goals being met. A MDR waiter on POA told me this a few years ago after I ordered a bottle of wine from him. He said he got extra shore days if he sold a certain amount of wine.

 

Personally, I would prefer it if the person I tipped could keep that tip for themselves. Jess sayin'.....:cool:

 

Alison

[valleyvillage]

The individual tips are turned over to the DSC only if the person tipping has adjusted their DSC. If you pay your DSC and then give some cash to an individual for whatever reason, they get to keep it!

[bear3412]

It's fascinating to me how much interest this topic generates.

 

It's like smoking and the other heated topics.. At least this topic is discussed politely. :D

 

IMO the odds of the DSC being distributed widely aboard is slim. How far can $12 go? lol. I stick by the PP #'s. Perhaps a bit of that goes elsewhere to the other servers, but it generally is distributed to those crew members mentioned. Just like other lines.

 

Remember those crew members perform many combined duties, therefore odds are most catch a bit of this DSC. Dinner Servers are at breakfast and lunch stations outside of dinner, etc.

 

I'm not suggesting they don't deserve more or anything, just figuring where the existing DSC goes, as OP requested.

 

JMT

 

Happy Sailing and Tipping to All

[johnmpcny]

yep best part is you who sail the cheap cabins pay the same as the suite cabins. Kind of like tipping the same amount at Bob's big boy as the guy who ate at Ruth Criss

[sparks1093]

So any individual tip you give for exceptional service is not kept by the recipient but added to the " incentive program", which gives bonuses for certain goals being met. A MDR waiter on POA told me this a few years ago after I ordered a bottle of wine from him. He said he got extra shore days if he sold a certain amount of wine.

 

Personally, I would prefer it if the person I tipped could keep that tip for themselves. Jess sayin'.....:cool:

 

Alison

 

The crew aboard the POA are paid differently than the crew aboard other NCL ships because the crew of the POA are paid under US labor law.

[Tatka]

So any individual tip you give for exceptional service is not kept by the recipient but added to the " incentive program", which gives bonuses for certain goals being met. A MDR waiter on POA told me this a few years ago after I ordered a bottle of wine from him. He said he got extra shore days if he sold a certain amount of wine.

 

Personally, I would prefer it if the person I tipped could keep that tip for themselves. Jess sayin'.....:cool:

 

Alison

 

Nope. Only if you removed your DSC from your account. Then it is expected that you will tip in person. These money staff is obligated to put back into tips pool to be shared.

[rvsullivan]

yep best part is you who sail the cheap cabins pay the same as the suite cabins. Kind of like tipping the same amount at Bob's big boy as the guy who ate at Ruth Criss

 

Not quite the same! We all pay the same Daily Service Charge, but when we're in a suite, we also TIP the Concierge and Butler and usually extra for the steward. The TIP for them adds a substantial amount to what a suite pays. So not at all like going to Bob's Big Boy.

[Dr_Obbins]

First a little background. My son used to work at a restaurant (well known chain) at $2.25 per hour + tips. Due to minimum wage laws if the total tips for the shift did not add up to minimum wage, the restaurant was required to make up the difference to guarantee the minimum wage. In other words a lot of the tips were not really a tip at all - just part of overhead that the restaurant took out of the menu price.

 

Now my daughter had a minimum wage job at the mall. Tipping at the mall is not customary so no matter how good or poor of a job she does, she gets the same paycheck. Basically do you job the way your supposed to and the company pays you as they are suppose to, don't do your job and you don't get paid (fired).

 

So getting back to a cruise worker. Their basic job function is to cater to the passengers - bring food and drinks, room service, etc... Do they need the added incentive to ensure the do their job correctly? As with the mall job, doing the job correctly is the minimum requirements that they are already getting paid for. I have taken only one cruise before and there was a guy "Elvis" who did a great job maintaining our room. I couldn't have asked for anything more form him. However, that is what he is already getting paid for and his salary is already included in my ticket price. A tip should be for above and beyond the normal expectations. Now if I had a kid who got sick all over the carpet and walls that needing cleaning up, that warrants a decent tip.

 

Do the staff know who prepaid the gratuity and who didn't? If not, prepaying the gratuity kind of defeats it's purpose. I would think that a bartender for instance, would give everybody the same level of service regardless if passenger #1 tipped at the bar and passenger #2 did not. Does he know if passenger #2 pre-tipped? Once again, he is expected to do the job function correctly in the first place and treat all guests the best he can. Am I to expect that I need to pay someone more (tip) in order to get them to perform their job function correctly and pleasantly?

 

In concept, I am against tipping at all. People should do their job as they are paid to do and companies should pay their employees fairly. Leaving a tip should not be expected and already accounted for in the wages. Mandatory tips should not be a way companies keep their prices artificially low. A tip should be above and beyond the normal payment for above and beyond normal service. In reality I typically tip in the 20% range at restaurants just because I have been blessed and know that concept is not reality. As on the previous cruise, we are pre-paying the gratuity because we don't wanting to be paying as we go on an "all inclusive" vacation.

 

By the way, if any of you would like to give me money for being a well behaved and courteous passenger, I would gladly accept it to help pay for my kids college. :D

[pliskin]

Disclaimer: One of the top, if not THE top reason I love cruising is the staff. They do such a great job on NCL making you feel like a king, pampered and appreciated. I definitely feel tipping extra for those who make my vacation special is important.

 

Two points to make though, and POA is different since its registered in the US.

 

I have had many conversations with the staff and they mostly come from poor countries and cruise ships jobs are not only very coveted but a Godsend for them and their families. While they may not make a ton by our standards, they get paid a lot but the standards of their home countries. One maitre'd had a wife and four kids in India and said they were doing very well thanks to his job. They work long hours and very hard, usually on 6 months contracts with one month off, which I do not believe is paid but I'm not sure. But still far better than most options they had back home.

 

And if you do the math, take the NCL Jewel for example. If it's sold out for a month (not likely, but for math's sake), that comes out to just shy of a million dollars per month in DSC. (2376 * $12 * 31 = ~$900K) If all 1100 crew were cut in equally, that ends up being about $800 per month per person. Not a ton but when you consider that the average annual income in India is right around $1,000...yes, average annual meaning a ton of people make much less per year.

 

So a few extra bucks above the DSC really doesn't mean much to my wallet but it can mean a lot to them and they are a huge reason why every cruise I've been on has been a wonderful experience.

[sparks1093]

First a little background. My son used to work at a restaurant (well known chain) at $2.25 per hour + tips. Due to minimum wage laws if the total tips for the shift did not add up to minimum wage, the restaurant was required to make up the difference to guarantee the minimum wage. In other words a lot of the tips were not really a tip at all - just part of overhead that the restaurant took out of the menu price.

 

Now my daughter had a minimum wage job at the mall. Tipping at the mall is not customary so no matter how good or poor of a job she does, she gets the same paycheck. Basically do you job the way your supposed to and the company pays you as they are suppose to, don't do your job and you don't get paid (fired).

 

So getting back to a cruise worker. Their basic job function is to cater to the passengers - bring food and drinks, room service, etc... Do they need the added incentive to ensure the do their job correctly? As with the mall job, doing the job correctly is the minimum requirements that they are already getting paid for. I have taken only one cruise before and there was a guy "Elvis" who did a great job maintaining our room. I couldn't have asked for anything more form him. However, that is what he is already getting paid for and his salary is already included in my ticket price. A tip should be for above and beyond the normal expectations. Now if I had a kid who got sick all over the carpet and walls that needing cleaning up, that warrants a decent tip.

 

Do the staff know who prepaid the gratuity and who didn't? If not, prepaying the gratuity kind of defeats it's purpose. I would think that a bartender for instance, would give everybody the same level of service regardless if passenger #1 tipped at the bar and passenger #2 did not. Does he know if passenger #2 pre-tipped? Once again, he is expected to do the job function correctly in the first place and treat all guests the best he can. Am I to expect that I need to pay someone more (tip) in order to get them to perform their job function correctly and pleasantly?

 

In concept, I am against tipping at all. People should do their job as they are paid to do and companies should pay their employees fairly. Leaving a tip should not be expected and already accounted for in the wages. Mandatory tips should not be a way companies keep their prices artificially low. A tip should be above and beyond the normal payment for above and beyond normal service. In reality I typically tip in the 20% range at restaurants just because I have been blessed and know that concept is not reality. As on the previous cruise, we are pre-paying the gratuity because we don't wanting to be paying as we go on an "all inclusive" vacation.

 

By the way, if any of you would like to give me money for being a well behaved and courteous passenger, I would gladly accept it to help pay for my kids college. :D

 

Crew members that are compensated through tips do not receive a great deal of compensation from the cruise line that is paid for by your ticket price. From what I understand the base salary is $100 with the remainder of their wages coming from the DSC or tips depending on the cruise line. Unlike your son the cruise line does not make up any short falls from people removing or reducing tips- the crew member eats that loss (crew members are not covered by US wage and hour laws). If too many people remove or reduce the tips then the crew member faces termination because managment will assume they are not performing their job.

[SeaShark]

NCL does not, at any time, refer to the DSC as a "tip" or "gratuity". NCL does not use the term "pre-paid gratuities". There is a reason for this.

 

NCL does not, at any time, state that the DSC collected is divided up into shares and handed to crew members. They say that it "supports incentive programs". Again, there is a reason for this.

 

 

From an online article (the emphasis is mine):

 

Staci on Facebook asks: Love watching your tidbits. Just watched one on tipping. One subject not mentioned -- service fee! Where I work, events are charged a service fee that goes directly to the "house" or business; the staff does not receive any gratuity. How should that be addressed since [patrons] think they have already paid a ‘tip’?

 

This is a really good -- and tricky -- question, so I tapped experts in the fields of catering and event planning, as well as etiquette.

 

To your point, patrons should understand the difference between a tip, a gratuity and a service fee or charge, says Lisa Hopkins, president of the National Association for Catering and Events, “all of which are different.” A tip is completely optional, while a gratuity is automatically added (usually for larger parties), and implies that the entire amount goes to the service staff. “

A service charge is neither a tip nor gratuity. It is automatically added, and is retained by the house and any or all of it used for payroll or commissions, depending on the business model the house decides to use

,” says Hopkins. “There are many ways to use service charges or fees, and they can vary from business to business.” Hopefully, your company offers a fair and competitive wage, so if customers don’t leave you a tip, you’re still compensated well.

 

 

This entire topic becomes easier to understand once people know the difference between gratuities and service charges and realize which one they are actually paying.

 

To answer the OP's main question: As it is a service charge, NCL gets to decide which actions result in payments (incentive programs), NCL gets to decide how much is awarded for each achievement, and NCL gets to decide which employees (out of those eligible) get to be paid from the DSC collected.

 

By moving from a gratuity-based model to a service charge-based model, NCL (and others, of course) gets to define "desired service behaviors" instead of having individual guests doing so by awarding behaviors with tips.

 

This helps them ensure a more consistent service model that will be driven primarily by company standards...and is the reason why so many of us LOVE the staff on NCL ships.

[Tatka]

They used to make $50 salary plus rest in tips before a switch to automated tips. Now they are making standard salary plus sometimes bonuses. Salaries for wait staff and stewards are around 1700 a month, which is good in poor countries, but they do work longer hours and very hard.

[SeaShark]

As a follow up, here is an article on an actual case study for a business that replaced tips with service charges.

 

http://www.slate.com/articles/life/culturebox/2013/08/tipless_restaurants_the_linkery_s_owner_explains_why_abolishing_tipping.single.html

 

 

It is an interesting read.