Service Charges on NCL

[NLH Arizona]

But an employees salary has nothing to do with you or I.

 

That is the role of their employer.

 

People here say it is not equal to a tip, yet people also say a tip is there as part of the salary.

 

Some people want it both ways.

 

As I said earlier, just pay the DSC and be done with it.

Unfortunately, the way the cruise lines roll, the employees salaries are in our hands. Some have a Daily Service Charges, like NCL, while others just have tips, which on many lines are added to your account on a daily basis (and if someone wants them changed or deducted, they have to go to guest services to make the change). The DSC or tips are a big portion of the crew's salary. We might not like the way they do it, but it is the way they do it.

 

I really could care less what others do with the DSC and/or tips, I'm only responsible for what I do. If someone doesn't wish to pay them, that is their business. I for one leave my DSC in place and tip those extra that go above and beyone for me, not because it is part of their salary, but because I feel it is the correct thing to do.

 

People on here can argue about the semantics of the system until the cows come home, but it won't change (1) the sytem the cruise lines choose or (2) the mind of those that feel they should not pay it. So, just do what you feel is right and let the others do what they feel is right.

Edited April 12, 2014 by NLH Arizona

[sparks1093]

But an employees salary has nothing to do with you or I.

 

That is the role of their employer.

 

People here say it is not equal to a tip, yet people also say a tip is there as part of the salary.

 

Some people want it both ways.

 

As I said earlier, just pay the DSC and be done with it.

 

I did not say 'salary' I said "income" and this is the way the employer and employee have agreed to handle employee compensation for the traditionally tipped or tipped out staff on NCL. Regardless of how the service charge is cast (tip, non-tip, rhubarb, whatever) the fact remains that in makes up most of the income for those employees that receive a share of it.

[Tutankhamen]

Stephen, Sparks, Out to sea and a few others.....I enjoyed our debate. Unfortunately the thread has gone down the road that so many threads here go. So I am going to opt out of this thread. Again, I enjoyed the debate, opened my eyes to a few of the aspects of the "service charge" but still would like to see it added to the cost of the cruise in the form of an added charge to the reservation like the port fee's.

 

For the other folks here, I only wish that you leave the "service charge" on your sign and sail account, unless there are issues that need to be addressed. In that case, hopefully NCL will rectify the issue so that the folks serving us still earn the income they deserve. Someone goes above and beyond, give a little extra.

 

BTW, Stephen, I agree with the analogy I used. I think the service fee is not meant to be an option but rather a requirement unless there was a breakdown in the service. In that case, NCL wants the opportunity to address the issue and fix it. If they can't then they are willing to refund the charge. Just like my chip analogy. And that part of the "service charge" I agree with. My argument had nothing to do with not paying. Just in how and when I pay.

 

Have a great weekend everyone!

Edited April 13, 2014 by Tutankhamen

[Out to sea!]

it is still optional and can be removed at the guests discretion.

 

Simples....

 

Feel free to show where it says it is an optional payment. Just because guests can badger GS into removing it does not make it optional or right.

[Out to sea!]

Anyone removing the DSC is not avoiding paying for any services, as those are all covered under the cruise fare and/or additional cover charges etc.

 

The DSC is not a fee for services.

 

Right. :rolleyes: The Daily Service Charge is not a fee for services. :rolleyes:

[B6ConMe]

Feel free to show where it says it is an optional payment. Just because guests can badger GS into removing it does not make it optional or right.

 

Maybe some of us should offer to replace GS's temporarily so that we can demonstrate how to tell some pax where to go and how to get there while appearing to be pleasant and happy when they request removing the DSC ... :D good idea? :p

 

I had to train reps to do just that when I worked for large cable company... ::sigh:: :eek: "No sir, I'm afraid your cable will not work after today unless you pay your bill" :D "How does that sound?" :)

[biker@sea]

The DSF has nothing to do with tipping according to NCL. As such adjusting it any amount, at any time, for any reason, in any direction has nothing to do with tipping either. I could not care less what someone else chooses to tip. Tipping 1¢ or $1,000,000 does not make someone either better or worse than anyone else.

 

Tipping a penny is the worse insult !!!!!

If you did not know .

Edited April 13, 2014 by biker@sea

[Out to sea!]

Maybe some of us should offer to replace GS's temporarily so that we can demonstrate how to tell some pax where to go and how to get there while appearing to be pleasant and happy when they request removing the DSC ... :D good idea? :p

 

I had to train reps to do just that when I worked for large cable company... ::sigh:: :eek: "No sir, I'm afraid your cable will not work after today unless you pay your bill" :D "How does that sound?" :)

 

Spot on!! :D

[JimS4210]

Tipping 1¢ or $1,000,000 does not make someone either better or worse than anyone else.

 

Better or worse? Probably not...

Cheaper? Definitely...

 

Jim

[cruzsnooze]

On one of our cruises where we had four in an inside cabin we chose to reduce our fee to $10 a day for the 3rd and 4th person. This brought out total to $44 a day for the cabin rather than $48. Seemed to us like a fair amount. We did not totally eliminate it for those two knowing that more than just the cabin stewards get the money. It should be noted, as is the case with a lot of people, we did individually tip for service during the cruise as well. They did ask us why we wnated to reduce it and I just told them there were four of us in the cabin and tipped along the way. Was not made to feel bad about it at all.

I agree. There is still only 1 room to clean and vacuum and one bathroom. The to extra beds were compensated with the $10 PP you left intact.

[Crusin6]

The DSF has nothing to do with tipping according to NCL. As such adjusting it any amount, at any time, for any reason, in any direction has nothing to do with tipping either. I could not care less what someone else chooses to tip. Tipping 1¢ or $1,000,000 does not make someone either better or worse than anyone else.

 

Funny you say that because I have more respect for the people that leave the dsc alone and hand the steward $20 extra at the end if the cruise than I have for those that tip at the beginning middle and end of the cruise and throw 50's and 100's around like paper

[MyNameIsJack]

Funny you say that because I have more respect for the people that leave the dsc alone and hand the steward $20 extra at the end if the cruise than I have for those that tip at the beginning middle and end of the cruise and throw 50's and 100's around like paper

 

 

Funny you should say that. What someone else chooses to do with tipping has ZERO impact on me at all. I don't waste my time worrying about how other poeple tip. It is none of my business just as it is none of heirs how I choose to tip.

[MyNameIsJack]

If you say so....

 

It is not me saying it, it is NCL. I am going by what they say since they are the ones charging the fee and distributing it. You are the one who is choosing to call it a tip.

[Crusin6]

Funny you should say that. What someone else chooses to do with tipping has ZERO impact on me at all. I don't waste my time worrying about how other poeple tip. It is none of my business just as it is none of heirs how I choose to tip.

 

Has zero impact on me as well. I just find it interesting and amusing when people go out if there way to overtip.

 

Actually I wish more people would do it

 

I am still giving 20 regardless

[Traveller20074]

]But an employees salary has nothing to do with you or I.[/b]

 

That is the role of their employer.

 

People here say it is not equal to a tip' date=' yet people also say a tip is there as part of the salary.[/b']

 

Some people want it both ways.

 

As I said earlier, just pay the DSC and be done with it.

 

 

YEAH!!!! This deserves to be repeated.

[sjbdtz]

YEAH!!!! This deserves to be repeated.

 

 

It was actually wrong, so probably didn't need to be repeated.

 

 

An employee's salary is always paid by the customer - either buried in the basic price, or split out as a service charge.

 

I have not seen any person say that this is not a tip, but a tip is part of the salary.

 

What people have said, is that the service charge is not a tip, and the service charge is a charge for service which is part of their compensation. The salary component of their compensation package is entirely paid by the cruiseline from base fares. The salary component is minimal. The bulk of their income is variable depending on how full the sailing is, and how satisfied their passengers are - as evidenced by the amounts collect in the DSC pool.

 

 

Only wanting it one way.... as it is. Just wish others would stop trying to change it.

 

 

 

.

[Shacky316]

So when I go in June, I'll use the

$4/person/day for cabin attendant,

$7/person/day for dining room servers/assistant servers

and $1/person/day for head waiter (totaling $12/person/day) that Disney recommends.

 

If I receive the same services I received when I went on the Breakaway in January (mainly the MDR staff was slow and rude), that will be the basis for whether or not I will use my 'discretion'. I'd be more than happy to divert gratuities to the cabin staff or other staff if deserved.

 

Is that so bad?

[Ewoodspark]

So when I go in June, I'll use the

$4/person/day for cabin attendant,

$7/person/day for dining room servers/assistant servers

and $1/person/day for head waiter (totaling $12/person/day) that Disney recommends.

 

If I receive the same services I received when I went on the Breakaway in January (mainly the MDR staff was slow and rude), that will be the basis for whether or not I will use my 'discretion'. I'd be more than happy to divert gratuities to the cabin staff or other staff if deserved.

 

Is that so bad?

That is the same post as you put on here on 11th April ???

[Traveller20074]

something interesting I found...

have no idea if it will apply to cruiseships, this is just restaurants

 

 

Tip versus service charge

 

Beginning January 1, 2014, the IRS is requiring employers to classify automatic gratuities as service charges. Service charges distributed to employees are treated as regular wages, subject to normal payroll tax withholding rules. This is a change that will mean added costs and paperwork for restaurants, upfront withholding of federal taxes, and delayed time in receiving the take home pay for waiters and waitresses.

The IRS defines a tip as having the following characteristics:

 

 

 

The IRS defines a tip as having the following characteristics:

1. The payment must be made free from compulsion (the customer is not required to pay a tip but voluntarily does so);
   
2. The customer must have the unrestricted right to determine the amount (the restaurant cannot automatically calculate the gratuity);
   
3. The payment should not be the subject of negotiations or dictated by employer policy (the restaurant does not negotiate with the customer for a gratuity amount); and
   
4. Generally, the customer has the right to determine who receives the payment (as opposed to the employer.)
   

 

 

If the above criteria are not met, the amount is considered a service charge and treated for all tax purposes as regular wages. For example, if a restaurant automatically applies an 18 percent gratuity on checks for parties of six or more, the automatic gratuity is considered a service charge instead of a tip. If the customer decides to give an additional tip amount (in excess of the automatic 18 percent), that extra amount is considered a tip if the other criteria were also met. As a result, some restaurants may consider adding suggested tip amounts regardless of the party size, allowing customers to choose to tip more or less, in order to ensure that the amount will not be classified as a service charge.

 

If the automatic gratuity is considered to be a service charge rather than a tip, under federal law, service charges belong to the restaurant and become a part of the restaurant’s gross receipts and may be retained or distributed as management sees fit. Service charges distributed to employees are treated as wages and can be used to assist employers in meeting their requirement to pay employees minimum wage. Unfortunately, since automatic gratuity is a service charge and not considered a tip, employers cannot use those amounts when calculating the Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, otherwise known as the tip credit, even if management chooses to distribute the amount to the employees.

Edited April 14, 2014 by Traveller20074

[Traveller20074]

this is from about dot com

 

 

 

 

Tipping on Cruise Ships

Tipping practices vary greatly amongst the cruise lines today, ranging from a required added service charge to no tipping at all. It is very important that you know the policy of the cruise line before you cruise so you can budget accordingly. When planning your cruise, check with your travel agent or the cruise line about the tipping policy. Often the recommended tips, which run from about $10 to $15 per passenger per day, are published in the cruise brochure or on the cruise line Web page. The cruise director will also remind passengers (sometimes over and over) about how much and who the cruise line recommends you tip.

Most tips on cruise ships are really service charges, which is one of the reasons why cruise lines seem to be moving towards adding a flat fee to your onboard account rather than make the tip amount entirely optional. New cruisers need to realize that most cruise lines do not pay their service staff a living wage, and tips or service charges make up much of their compensation. In order to keep the advertised price down, passengers are expected to subsidize the service staff through these added service charges or tips.

All tips used to be given to the stewards and dining room staff on the last night of the cruise. Envelopes were passed out to the passengers and you presented the cash tip to the steward in the cabin and handed it to the wait staff at dinner. Some cruise ships still follow this policy, but others add a flat fee per day to your onboard account which may or may not be adjusted downwards, depending on the cruise line. If the fee is required and cannot be adjusted downward, it is a true service charge, and is no different than a port charge. Most cruise lines add the recommended service charge to your account, and you can adjust it if you think necessary. Personally, one of the things I love about cruising is the excellent service and wonderful attitude of the crew. I've never understood people who did not think the crew deserved at least the recommended service/tipping charge.

[njhorseman]

something interesting I found...

have no idea if it will apply to cruiseships, this is just restaurants

 

 

IRS regulations (or any other US laws and regulations regarding wages, taxes, employment conditions and pretty much anything else you can name regarding employees and employment) don't apply to foreign-flagged cruise ships, so the only major cruise line ship to which such laws and regulations might apply is the US-flagged Pride of America.

[Traveller20074]

here's Carnival's policy

 

 

 

Frequently Asked Questions

What is the tipping policy onboard?

Service Gratuities

For your convenience, we automatically charge the gratuities for dining and stateroom staff to your onboard Sail & Sign account. The total amount is $10.00 per guest, per day (our recommended guideline) as follows:

$ 3.50 Per Day Stateroom Services

$ 5.50 Per Day Dining Room Services

$ 1.00 Per Day Alternative Services: distributed to other kitchen and hotel service staff

For Cruises-To-Nowhere, gratuities of $10 per guest, per day must be prepaid.

Our Staff is totally committed to exceed your expectations in every way possible. If you are not satisfied with the service you receive, we encourage you to contact the Guest Services desk while onboard. This will allow us to address your concerns in a timely and appropriate fashion. At your discretion, you may adjust the gratuities at any time while onboard. Gratuities will be deemed undisputed unless a request to modify is received prior to disembarking the ship.

For beverage purchases, fifteen percent of the bill is automatically added to the Sail & Sign charge. Room Service staff may be tipped as service is rendered. Tipping your Maître d’ is at your discretion, based upon the service you receive.

NOTE: BARBADOS CRUISES

All gratuities are pre-paid and automatically added during the booking process for Barbados itineraries.

 

 

here's Oceana's policy.

 

funny how vague NCL is on this "service charge" thing on their website. Everyone else calls it a tip, from what I can tell.

 

 

How much you choose to tip is a personal matter and completely at your discretion. For your convenience, gratuities of $12.50 per guest, per day are automatically added to your shipboard account. An additional $4.00 per guest, per day will be added for guests occupying Penthouse, Vista or Owner's Suites where Butler Service is provided. Naturally, guests may adjust gratuities at their sole discretion.

 

 

Here's Princess

 

 

During your cruise, you will meet staff throughout the ship who provide you with excellent service. Many more crew support those who serve you directly. To save you the worry of who to tip and how much, Princess makes it easier for you to reward excellent service by automatically adding a discretionary Hotel and Dining charge of $11 USD for suites and mini-suites and $10.50 USD for all other staterooms per person per day (including children) to your shipboard account on a daily basis. This charge will be shared amongst those staff who help provide and support your cruise experience, including the wait staff, stateroom stewards, buffet stewards, galley staff, laundry staff and others. Casino dealers and Lotus Spa personnel do not share in the Hotel and Dining charge as not all passengers utilize these services.

 

 

Royal Caribbean

 

 

As of March 1, 2013, Royal Caribbean will automatically add a $12.00 USD gratuity ($14.25 USD for Suite guests) to each guest’s onboard SeaPass® account on a daily basis. This gratuity is shared by Dining Services staff, stateroom Attendants other Housekeeping Services Personnel that work to enhance your cruise. The daily automatic gratuity amounts are recommended and are based on customary industry standards

 

 

 

 

gra·tu·i·ty

 

 

/grəˈt(y)o͞oitē/

 

 

noun

 

noun: gratuity; plural noun: gratuities

 

 

 

1.

 

 

 

a tip given to a waiter, taxicab driver, etc.

Edited April 14, 2014 by Traveller20074

[Traveller20074]

IRS regulations (or any other US laws and regulations regarding wages, taxes, employment conditions and pretty much anything else you can name regarding employees and employment) don't apply to foreign-flagged cruise ships, so the only major cruise line ship to which such laws and regulations might apply is the US-flagged Pride of America.

 

yeah, that's kind of what I figured, I was just looking at the different wordings that people use for "tipping" or "service charges"

Edited April 14, 2014 by Traveller20074

[njhorseman]

here's Carnival's policy

 

 

 

Frequently Asked Questions

What is the tipping policy onboard?

Service Gratuities

For your convenience, we automatically charge the gratuities for dining and stateroom staff to your onboard Sail & Sign account. The total amount is $10.00 per guest, per day (our recommended guideline) as follows:

$ 3.50 Per Day Stateroom Services

$ 5.50 Per Day Dining Room Services

$ 1.00 Per Day Alternative Services: distributed to other kitchen and hotel service staff

For Cruises-To-Nowhere, gratuities of $10 per guest, per day must be prepaid.

Our Staff is totally committed to exceed your expectations in every way possible. If you are not satisfied with the service you receive, we encourage you to contact the Guest Services desk while onboard. This will allow us to address your concerns in a timely and appropriate fashion. At your discretion, you may adjust the gratuities at any time while onboard. Gratuities will be deemed undisputed unless a request to modify is received prior to disembarking the ship.

For beverage purchases, fifteen percent of the bill is automatically added to the Sail & Sign charge. Room Service staff may be tipped as service is rendered. Tipping your Maître d’ is at your discretion, based upon the service you receive.

NOTE: BARBADOS CRUISES

All gratuities are pre-paid and automatically added during the booking process for Barbados itineraries.

 

Every cruise line has its own policy.

 

We're discussing NCL's policy here. Carnival's (or any other cruise line's) policy is of no direct relevance.

 

NCL does not specify how the service charge is distributed.

Edited April 14, 2014 by njhorseman

[sjbdtz]

So when I go in June, I'll use the

$4/person/day for cabin attendant,

$7/person/day for dining room servers/assistant servers

and $1/person/day for head waiter (totaling $12/person/day) that Disney recommends.

 

If I receive the same services I received when I went on the Breakaway in January (mainly the MDR staff was slow and rude), that will be the basis for whether or not I will use my 'discretion'. I'd be more than happy to divert gratuities to the cabin staff or other staff if deserved.

 

Is that so bad?

 

Umm..... you don't get to re-direct... you can only stiff everybody, not just Disney's breakdown of what they recommend, for their staff, based upon their staffing architecture.

 

You leave it at $12, it gets distributed according to NCL's processes. If you decide you didn't like the room steward, and you reduce it to $8, everybody gets their proportion of the lowered amount.

 

So, yes....it's awful.

 

 

 

this is from about dot com

 

 

 

 

Tipping on Cruise Ships

Tipping practices vary greatly amongst the cruise lines today, ranging from a required added service charge to no tipping at all. It is very important that you know the policy of the cruise line before you cruise so you can budget accordingly. When planning your cruise, check with your travel agent or the cruise line about the tipping policy. Often the recommended tips, which run from about $10 to $15 per passenger per day, are published in the cruise brochure or on the cruise line Web page. The cruise director will also remind passengers (sometimes over and over) about how much and who the cruise line recommends you tip.

Most tips on cruise ships are really service charges, which is one of the reasons why cruise lines seem to be moving towards adding a flat fee to your onboard account rather than make the tip amount entirely optional. New cruisers need to realize that most cruise lines do not pay their service staff a living wage, and tips or service charges make up much of their compensation. In order to keep the advertised price down, passengers are expected to subsidize the service staff through these added service charges or tips.

All tips used to be given to the stewards and dining room staff on the last night of the cruise. Envelopes were passed out to the passengers and you presented the cash tip to the steward in the cabin and handed it to the wait staff at dinner. Some cruise ships still follow this policy, but others add a flat fee per day to your onboard account which may or may not be adjusted downwards, depending on the cruise line. If the fee is required and cannot be adjusted downward, it is a true service charge, and is no different than a port charge. Most cruise lines add the recommended service charge to your account, and you can adjust it if you think necessary. Personally, one of the things I love about cruising is the excellent service and wonderful attitude of the crew. I've never understood people who did not think the crew deserved at least the recommended service/tipping charge.

 

 

You do know that About dot com is just a bunch of people like us, who answer questions...it's not an authority.

 

It's no more germane to the discussion, than Carnival's policy.

 

 

 

.