advantage to including gratuities in original booking?

[declansdad]

So, has the simple question been answered?:D

 

 

That depends.

[mwood0612]

I would not advocate charging prepaid tips on a credit card that already carries a balance, but what I would advocate is pre-paying onboard expenses little by little in advance and paying in full rather than charging it all at the end of the cruise.

 

To give you an example, for our upcoming cruise I priced out how much tips, 2 alternative dinners, a massage at the spa, and a shore excursion for a family of 4 is going to cost and the total is close to $800. I can either pre pay tips in full this month, the shore excursion in full next month, and the spa and alternative dining in full the following month, OR I can choose to wait until the last day of the cruise and take a hit for the entire $800 plus whatever other expenses I incur during the cruise. Chances are that by the time it's all said and done my credit card will be charged over $1,000 all at once.

 

I know that many will say that I can just set aside that money in my bank account every month so that it's available to me at the end of the cruise to pay the entire balance, but to me it makes more sense to just pay as I go. I'm grateful to have enough discipline to keep my credit card balance at zero every month, and I owe that discipline to the way that I charge things (little by little instead of all at once).

 

Is my system the best way to run finances? No, but it's the way that works for me. And about "losing control of money that may be needed for an emergency" by prepaying tips, that's an unfounded fear. That money is fully refundable, even if you cancel the cruise. If for some reason I need to cancel my cruise (even after final payment) and I've already prepaid tips, that amount will be refunded to me 100% , so I have nothing to worry about.

 

This is totally my thought pattern as well!!!

[suzycruiser2]

I usually don't prepay gratuities, but I booked our cruise more than a year out to get on the inaugural cruise out of Mobile and went ahead and added them. My main reason was to get that cruise paid off early so that I could possibly book another before then and my dear hubby wouldn't complain as much if I told him that one was COMPLETELY paid for except for parking.:D

[psikic]

Some of the onboard credit given for various reasons is non-refundable so if you do not spend it on board for drinks or trinkets you lose it. I once had $450 in onboard credit for a December cruise that was non refundable. So I went to the gift shop and bought a lot of my Christmas gifts on board. I'd rather have a larger sail and sign card bill to use up my onboard credit at the time of the cruise!

 

Or you could have just transferred that money to a slot machine onboard, played a quarter, then cashed out the $449.75 (or more if you were lucky) in cash at the casino cage.

[dawnjam1]

I think it is to each his own. I will say that gratuities, as they are called on cruise ships, are truly part of the cost of cruising. I hate that people think that it is negotiable because those people are there and that is their wage. It is NOT additional!

 

As a matter of choice and taking it from each persons perspective....

 

Many people are on tight budgets for cruises. Many do not have the money sitting in their accounts to cover the expenses of a cruise. Or the credit limit! It helps to be over prepared for the things to come! And most don't realize that! OVER PREPARED WITH RESEARCH AND EXTRA ON TOP OF THAT!

 

MANY people CHOOSE to not have credit cards. Even for an emergency. I am of the Dave Ramsey mindset and do EVERYTHING on cash or debit. I have a great amount of savings sitting in a bank gaining said interest. But I DO NOT cruise on it, or buy Christmas with it. I am not saying credit is bad. But as a single Mom, I wouldn't pay it off immediately and I know it! Its too easy to say next month I will...Something ALWAYS comes up! SO....I pay for my cruise up front! I only take cash (and a great deal of it). If there is an emergency, my emergency fund could take a hit. But nothing I could BENEFIT from on a cruise is an absolute emergency. I budget for spa, alcohol, kids things, excursions and even quite a bit of gambling. I have earned that week. But I am not going to go broke over it. I use the SAME envelope system that Dave teaches (not on land but on cruises). If I don't spend that days envelope in full it gets shuffled to another activity. Does it tighten my budget PRIOR to the trip! SURE! With sacrifice comes reward!

 

I just wish others did not think it is as simple as paying it in full after the trip. The newest generation of cruisers are not as established as older cruisers may be. They haven't pulled themselves out of debt a few times to prosper by living within their means. Not always their fault! Often that is how they were taught! I see it every day! But it doesn't mean that we flame them for getting expenses out of the way or not. And it doesn't mean that they, or anyone else, should be deducting grats from the initial amount either to pay their alcohol bill OR satisfy their need to feel entitled.

 

Like I started this.....to each his own. Same as my life is different from my sisters. Same upbringing. Different life. I hate to see people say if you can't afford it....AFFORD IT HOW YOU CAN! But cruise and LOVE it!

[sjbrown01]

I think it is to each his own. I will say that gratuities, as they are called on cruise ships, are truly part of the cost of cruising. I hate that people think that it is negotiable because those people are there and that is their wage. It is NOT additional!

 

As a matter of choice and taking it from each persons perspective....

 

Many people are on tight budgets for cruises. Many do not have the money sitting in their accounts to cover the expenses of a cruise. Or the credit limit! It helps to be over prepared for the things to come! And most don't realize that! OVER PREPARED WITH RESEARCH AND EXTRA ON TOP OF THAT!

 

MANY people CHOOSE to not have credit cards. Even for an emergency. I am of the Dave Ramsey mindset and do EVERYTHING on cash or debit. I have a great amount of savings sitting in a bank gaining said interest. But I DO NOT cruise on it, or buy Christmas with it. I am not saying credit is bad. But as a single Mom, I wouldn't pay it off immediately and I know it! Its too easy to say next month I will...Something ALWAYS comes up! SO....I pay for my cruise up front! I only take cash (and a great deal of it). If there is an emergency, my emergency fund could take a hit. But nothing I could BENEFIT from on a cruise is an absolute emergency. I budget for spa, alcohol, kids things, excursions and even quite a bit of gambling. I have earned that week. But I am not going to go broke over it. I use the SAME envelope system that Dave teaches (not on land but on cruises). If I don't spend that days envelope in full it gets shuffled to another activity. Does it tighten my budget PRIOR to the trip! SURE! With sacrifice comes reward!

 

I just wish others did not think it is as simple as paying it in full after the trip. The newest generation of cruisers are not as established as older cruisers may be. They haven't pulled themselves out of debt a few times to prosper by living within their means. Not always their fault! Often that is how they were taught! I see it every day! But it doesn't mean that we flame them for getting expenses out of the way or not. And it doesn't mean that they, or anyone else, should be deducting grats from the initial amount either to pay their alcohol bill OR satisfy their need to feel entitled.

 

Like I started this.....to each his own. Same as my life is different from my sisters. Same upbringing. Different life. I hate to see people say if you can't afford it....AFFORD IT HOW YOU CAN! But cruise and LOVE it!

 

Beautifully stated! ;)

[TaDaaa!]

Some of the onboard credit given for various reasons is non-refundable so if you do not spend it on board for drinks or trinkets you lose it. I once had $450 in onboard credit for a December cruise that was non refundable. So I went to the gift shop and bought a lot of my Christmas gifts on board. I'd rather have a larger sail and sign card bill to use up my onboard credit at the time of the cruise!

 

If you have only onboard credit that is refundable then it might be an advantage to pay off the gratuities using your Carnival MasterCard just prior to the cruise, just to get the rewards points, then get any unused portion of your onboard credit back as cash. 5000 rewards points gives you a $50 statement credit and any carnival purchases earn 2 rewards points per dollar so you end up getting 2% statement credit for every dollar you spend with Carnival. For your $168 you'll eventually receive $3.36 cash towards your credit card bill. If you pay the gratuities close to the time of sailing but before the cruise you would end up not losing any interest that you would have otherwise earned on your account at the bank.

 

I would never use the Carnival credit card as my Capitol One card is much superior in every aspect. That being said, if one has non-refundable OBC there are a million things they can spend it on. If they want to use it for their gratuities and they KNOW they will have OBC, then wait a pay the gratuities on board with the OBC. But with so many things one could buy on board with OBC one would actually have to work at losing and OBC they night have. Even as a last resort, go to the casino and charge X dollars to your account and then cash out and take the money. As I said, there really is no way one can lose any OBC unless they actually work at it.

[TaDaaa!]

Or you could have just transferred that money to a slot machine onboard, played a quarter, then cashed out the $449.75 (or more if you were lucky) in cash at the casino cage.

 

No need to even play the quarter. Just cash out as soon as you make the charge ($300 per day max so it would take 2 days to accomplish this task). ;)

[lola61]

Just wondering if there is an advantage to including gratuities in original booking or should I opt out? Thanks to anyone who has any advice on this.

 

 

Paid, nothing to worry about except fun :D:o:):cool:

[sammee]

I think it is to each his own. I will say that gratuities, as they are called on cruise ships, are truly part of the cost of cruising. I hate that people think that it is negotiable because those people are there and that is their wage. It is NOT additional!

 

As a matter of choice and taking it from each persons perspective....

 

Many people are on tight budgets for cruises. Many do not have the money sitting in their accounts to cover the expenses of a cruise. Or the credit limit! It helps to be over prepared for the things to come! And most don't realize that! OVER PREPARED WITH RESEARCH AND EXTRA ON TOP OF THAT!

 

MANY people CHOOSE to not have credit cards. Even for an emergency. I am of the Dave Ramsey mindset and do EVERYTHING on cash or debit. I have a great amount of savings sitting in a bank gaining said interest. But I DO NOT cruise on it, or buy Christmas with it. I am not saying credit is bad. But as a single Mom, I wouldn't pay it off immediately and I know it! Its too easy to say next month I will...Something ALWAYS comes up! SO....I pay for my cruise up front! I only take cash (and a great deal of it). If there is an emergency, my emergency fund could take a hit. But nothing I could BENEFIT from on a cruise is an absolute emergency. I budget for spa, alcohol, kids things, excursions and even quite a bit of gambling. I have earned that week. But I am not going to go broke over it. I use the SAME envelope system that Dave teaches (not on land but on cruises). If I don't spend that days envelope in full it gets shuffled to another activity. Does it tighten my budget PRIOR to the trip! SURE! With sacrifice comes reward!

 

I just wish others did not think it is as simple as paying it in full after the trip. The newest generation of cruisers are not as established as older cruisers may be. They haven't pulled themselves out of debt a few times to prosper by living within their means. Not always their fault! Often that is how they were taught! I see it every day! But it doesn't mean that we flame them for getting expenses out of the way or not. And it doesn't mean that they, or anyone else, should be deducting grats from the initial amount either to pay their alcohol bill OR satisfy their need to feel entitled.

 

Like I started this.....to each his own. Same as my life is different from my sisters. Same upbringing. Different life. I hate to see people say if you can't afford it....AFFORD IT HOW YOU CAN! But cruise and LOVE it!

 

Perfectly said!

[Earthworm Jim]

I would not advocate charging prepaid tips on a credit card that already carries a balance, but what I would advocate is pre-paying onboard expenses little by little in advance and paying in full rather than charging it all at the end of the cruise.

 

Even if you have a credit card that carries a balance? The tips aren't due until the end of your cruise. If you are paying the tips before the cruise, that money could instead be used to pay down one's credit card balance, and save you the 15%-25% credit card interest per month in the meantime.

[Earthworm Jim]

I think it is to each his own. I will say that gratuities, as they are called on cruise ships, are truly part of the cost of cruising. I hate that people think that it is negotiable because those people are there and that is their wage. It is NOT additional!

 

As a matter of choice and taking it from each persons perspective....

 

Many people are on tight budgets for cruises. Many do not have the money sitting in their accounts to cover the expenses of a cruise. Or the credit limit! It helps to be over prepared for the things to come! And most don't realize that! OVER PREPARED WITH RESEARCH AND EXTRA ON TOP OF THAT!

 

MANY people CHOOSE to not have credit cards. Even for an emergency. I am of the Dave Ramsey mindset and do EVERYTHING on cash or debit. I have a great amount of savings sitting in a bank gaining said interest. But I DO NOT cruise on it, or buy Christmas with it. I am not saying credit is bad. But as a single Mom, I wouldn't pay it off immediately and I know it! Its too easy to say next month I will...Something ALWAYS comes up! SO....I pay for my cruise up front! I only take cash (and a great deal of it). If there is an emergency, my emergency fund could take a hit. But nothing I could BENEFIT from on a cruise is an absolute emergency. I budget for spa, alcohol, kids things, excursions and even quite a bit of gambling. I have earned that week. But I am not going to go broke over it. I use the SAME envelope system that Dave teaches (not on land but on cruises). If I don't spend that days envelope in full it gets shuffled to another activity. Does it tighten my budget PRIOR to the trip! SURE! With sacrifice comes reward!

 

I just wish others did not think it is as simple as paying it in full after the trip. The newest generation of cruisers are not as established as older cruisers may be. They haven't pulled themselves out of debt a few times to prosper by living within their means. Not always their fault! Often that is how they were taught! I see it every day! But it doesn't mean that we flame them for getting expenses out of the way or not. And it doesn't mean that they, or anyone else, should be deducting grats from the initial amount either to pay their alcohol bill OR satisfy their need to feel entitled.

 

Like I started this.....to each his own. Same as my life is different from my sisters. Same upbringing. Different life. I hate to see people say if you can't afford it....AFFORD IT HOW YOU CAN! But cruise and LOVE it!

 

Hey, no harm done using your plan since you don't carry a credit card balance. More power to you. Sounds like you're keeping your finances straight.

 

But if you're a disciplined saver toward a goal as you seem to be, if you had that money saved in an envelope at home to pay your credit card bill after the cruise, that would work too. And you might get some points/cash back, depending on your credit card.

 

But the most important thing is to have the money to pay for your cruise, which your system allows, so good for you.

[Jana60]

It's not a matter of being rich it's a matter of being disciplined. If I have enough money to pay gratuities 6 months in advance then that same money can sit in the bank account earning interest for those 6 months! If you're one of those people who books a cruise a long time in advance you could even set up a separate savings account that bears higher interest to put deposits towards your cruise into. That might also help in the self discipline department since the money would not be mixed in with the money that you are running your household on. But if you lack the self discipline to do these things then I agree you should pay in advance.

[declansdad]

It's not a matter of being rich it's a matter of being disciplined. If I have enough money to pay gratuities 6 months in advance then that same money can sit in the bank account earning interest for those 6 months! If you're one of those people who books a cruise a long time in advance you could even set up a separate savings account that bears higher interest to put deposits towards your cruise into. That might also help in the self discipline department since the money would not be mixed in with the money that you are running your household on. But if you lack the self discipline to do these things then I agree you should pay in advance.

 

 

I would love to know where you all bank to earn any worthwhile amount of interest on the small amount you bank for gratuities.

[dawnjam1]

I do place my cruise money into a savings account but I don't earn enough interest on it to not pull it out and prepay gratuities.... this will kill some of y'all.....PARKING.....or a deposit on the yacht we rented in one of the ports for the day.....new clothing expenses.....all built into this well oiled machine. Even saving it to pay a credit card off leaves room for misuse for some people. For me it works because I can then go on vacation KNOWING I have many of the additional things paid for. Face it.....cruises are much more expensive than the cruise fare. This alleviates much of the hassle or concern. You should see the spreadsheets that keep it all together! It is a very fined tuned process. I CHOOSE no credit cards. I carried a black Am Ex until 3 years ago when I decided that green is much prettier than a white bill or that black card! To each his own.

[dominichunter]

I would love to know where you all bank to earn any worthwhile amount of interest on the small amount you bank for gratuities.

 

My WF savings account earns .01 APY. for 100k you get 10 bucks. wow!

[dawnjam1]

Lol! And in addition....I do not want it mistaken that I said anyone was rich because they pay off the cruise after OR before! For some it is peace of mind that the big things are handled with no surprise bill they will have to handle after! For anyone who has ever pulled themselves out of even something like divorce knows that it wasn't done on credit. Not effectively. I don't book more than 6 months out either. I virtually start my booking with deposit saved only and save it as I get closer. My money isn't sitting long enough to matter!

Edited February 3, 2016 by dawnjam1
Spelling

[Leo's Rule]

Just wondering if there is an advantage to including gratuities in original booking or should I opt out? Thanks to anyone who has any advice on this.

 

For me, I prepay simply because it's one less thing to worry about in the end. Who wants to have an extra dollar amount added to their S&S account at the end of a cruise? I don't, but that's just me.

 

I know at the end of the day it's the same money that is going to be spent, but I would rather have it paid off before my vacation begins.

[Jana60]

I would love to know where you all bank to earn any worthwhile amount of interest on the small amount you bank for gratuities.

 

I earn 1.49% interest on my checking account with the Credit Union. It's called a click account. Also if you book a cruise a year in advance you could even put that money into a CD or Treasury note.

[loxley]

For me' date=' I prepay simply because it's one less thing to worry about in the end. Who wants to have an extra dollar amount added to their S&S account at the end of a cruise? I don't, but that's just me.

 

I know at the end of the day it's the same money that is going to be spent, but I would rather have it paid off before my vacation begins.[/quote']

I don't understand all this worrying everyone does over what their final will look like.

 

The day I decide to book the cruise, I have the money. Maybe that is the difference. I don't thunk gee, I better use this money to pay for tips instead of having to worry about where the money will come from to pay the tips after the cruise.

 

If I pay it now our pay it later, the money is there. No reason to try to juggle it.

 

I don't care when you pay it, it just puzzles me how many post say they do it do so they don't have to worry about it later.

 

Sent from my SM-N910V using Tapatalk

[TaDaaa!]

It's not a matter of being rich it's a matter of being disciplined. If I have enough money to pay gratuities 6 months in advance then that same money can sit in the bank account earning interest for those 6 months! If you're one of those people who books a cruise a long time in advance you could even set up a separate savings account that bears higher interest to put deposits towards your cruise into. That might also help in the self discipline department since the money would not be mixed in with the money that you are running your household on. But if you lack the self discipline to do these things then I agree you should pay in advance.

 

I am very disciplined with my finances (paid cash for my home and everything else......have no debt whatsoever) and the money spent solely on gratuities for 2 people for a 7 night cruise equates to 18 cents in interest over 6 months (and I bank at a credit union.....interest at a regular bank would be less that 18 cents over that timeframe). I nor anyone else should be worrying over 18 cents so if it costs someone 18 cents to have a little peace of mind knowing they won't have a bill when they walk off the boat, IMO, that's 18 cents well spent. For those who want to wallow around in their 18 pennies like Duck McScrooge, well, that's all fine and dandy but don't begin to tell others that they lack self discipline because 18 cents doesn't get their heart racing.

Edited February 3, 2016 by TaDaaa!

[TaDaaa!]

I do place my cruise money into a savings account but I don't earn enough interest on it to not pull it out and prepay gratuities.... this will kill some of y'all.....PARKING.....or a deposit on the yacht we rented in one of the ports for the day.....new clothing expenses.....all built into this well oiled machine. Even saving it to pay a credit card off leaves room for misuse for some people. For me it works because I can then go on vacation KNOWING I have many of the additional things paid for. Face it.....cruises are much more expensive than the cruise fare. This alleviates much of the hassle or concern. You should see the spreadsheets that keep it all together! It is a very fined tuned process. I CHOOSE no credit cards. I carried a black Am Ex until 3 years ago when I decided that green is much prettier than a white bill or that black card! To each his own.

 

I CHOOSE to use a credit card for EVERYTHING as I pay it off every month, in full, and I earn rewards on it. No one has ever given me a reward for paying in cash but I average about $700 a year in reward gift cards from my CC without having paid 1 cent in interest.

[TaDaaa!]

I earn 1.49% interest on my checking account with the Credit Union. It's called a click account. Also if you book a cruise a year in advance you could even put that money into a CD or Treasury note.

 

Uh, yea, unless you can post a publicly accessable website I call BS on 1.49% on a checking account. I too am with a credit union and on my checking account I get 0.10%. Most banks give nothing on a checking account these days. My savings account is 0.25%. Interest on a 1 year loan is around 0.7%. So suffice it to say unless you can post a link I simply do not believe you when you say you get 1.49% interest these days on a checking account. As you can see below you have to go to a 5 year CD to break 1.49% on anything.

 

https://vystarcu.org/Rates/Deposit-Account-Rates

 

https://vystarcu.org/Rates/Certificate-Account-Rates

Edited February 3, 2016 by TaDaaa!

[franknberry]

Just wondering if there is an advantage to including gratuities in original booking or should I opt out? Thanks to anyone who has any advice on this.

 

None at all.

[Jana60]

Uh, yea, unless you can post a publicly accessable website I call BS on 1.49% on a checking account. I too am with a credit union and on my checking account I get 0.10%. Most banks give nothing on a checking account these days. My savings account is 0.25%. Interest on a 1 year loan is around 0.7%. So suffice it to say unless you can post a link I simply do not believe you when you say you get 1.49% interest these days on a checking account. As you can see below you have to go to a 5 year CD to break 1.49% on anything.

 

https://vystarcu.org/Rates/Deposit-Account-Rates

 

https://vystarcu.org/Rates/Certificate-Account-Rates

 

OK here is screen shot from my credit union!

https://www.tinkerfcu.org/index.php/savings/current-savings-rate/

Edited February 3, 2016 by Jana60