Pre paid gratuities

[WestLakeGirl]

Not scaling up to the possibility of losing significant amounts of interest, and to stick to the OP's question which involves less than a dollar in interest money lost, it makes sense for some people to pay their gratuities early. If you want the peace of mind of not having that bill waiting for you at the end of the cruise, then pre-pay

[SantaFeFan]

My God it is difficult conversing with you.

 

The difficulty is only on your side. I am having no problem conversing with you. ;)

 

Obviously I am not only talking about cruises. By waitIng until bills are due (taxes, utility bills, credit card bills, cruise fares - anything you are not paying interest on while waiting to pay) until near last minute, over years, yes thousands of dollars are saved. Takes no greater time or effort to pay bills close to the due date versus paying time early. If you can't understand that I feel really bad for you.

 

Oh, you have no idea what I can or can't understand. I am amazed that you think you know me better than I know myself. :rolleyes:

 

We pay our credit card bills in full near the due date every month, as are all of our bills - so no interest is ever lost there. Our home and three vehicles are paid off. So no interest lost there either. Our upcoming cruise in June is already fully paid off. No interest lost there as well. We are retired with investment income, including social security and pensions, that total more than what we had been earning from our annual salaries. And, on top of all of that, our FICO credit score is in the top 2% at 845 out of a possible 850 (according to our last report). Plus, our credit cards earn 1.5 points for every dollar spent - something I call "free money" since we don't pay fees or interest on our credit cards. The points accrued since our last cruise have been converted into travel dollar credits, and has covered almost 2/3 of our upcoming cruise expenses.

 

So it appears that I do understand quite well how investments, money and interest work. :cool:

 

But, I hold no animosity towards your negative opinion of my abilities, nor your diligence with money matters. You are actually doing the smart thing by being careful with your finances. Too bad more people aren't as careful with theirs. According to some experts, 1 in 3 Americans have zero saved up for retirement. (source: http://time.com/money/4258451/retirement-savings-survey/) And about 50% of Baby Boomers (55 to 65) have less than 135,000 in retirement savings. (Source: https://www.fool.com/retirement/general/2016/03/26/heres-what-the-average-baby-boomer-has-saved-for-r.aspx). Those are very sobering numbers.

 

To everyone else who isn't named Gonzo70:

My apologies for the TMI (Too Much Information) in this post. Sometimes I can't help but feel the need to defend myself from inconsiderate criticism. ;)

Edited April 14, 2017 by SantaFeFan

[sanger727]

I would not prepay them; no advantage to doing so and you miss out on the little bit of interest your money accrues by sitting in the bank from now until the end of the cruise.

 

 

I think everyone can agree that outside of exchange rates, there is literally no difference between prepaying the grats a day before the cruise and having them added to your bill at the end of the trip. Especially seeing as how most everyone pays them via credit cards anyway (at least the ones financially savvy enough for interest checking since they'll have rewards cards); so the money won't actually leave their bank account until the next month when the bill is due.

 

But for budgeting reasons some prefer to prepay and some don't. Neither answer is right or wrong. To address OP, there's no benefit to prepaying, just an issue of preference.

 

 

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[Cruising_Bill]

My God it is difficult conversing with you. Obviously I am not only talking about cruises. By waitIng until bills are due (taxes, utility bills, credit card bills, cruise fares - anything you are not paying interest on while waiting to pay) until near last minute, over years, yes thousands of dollars are saved. Takes no greater time or effort to pay bills close to the due date versus paying time early. If you can't understand that I feel really bad for you.

 

 

Wow you guys love to argue. Just to let you know your logic is flawed. If you pay your bills every month the last day they are due you always pay every 30 days. If you pay the day you get the bill you pay every 30 days. You will save 1 and only 1 month for the life of the bill and that's the 1st month you wait to pay until it is due. After that no matter what you pay every 30 days.

 

 

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[Fouremco]

Wow you guys love to argue. Just to let you know your logic is flawed. If you pay your bills every month the last day they are due you always pay every 30 days. If you pay the day you get the bill you pay every 30 days. You will save 1 and only 1 month for the life of the bill and that's the 1st month you wait to pay until it is due. After that no matter what you pay every 30 days.

I see it a different way:

 

Month 1, you pay on the last day of the month rather than when you get your bill on the 15th. You get an extra couple of weeks' worth of interest on your money in the bank.

 

Month 2, you again pay on the last day of the month rather than when you get your bill on the 15th. You again get an extra couple of weeks' worth of interest on your money in the bank.

 

Months 3 - ∞, every month you get and extra two weeks of interest when you pay at the end of the month instead of the 15th.

 

It's the billing-to-payment time frame that is significant, IMHO, not the fact that you are paying every 30 days.

[SantaFeFan]

Wow you ... love to argue.

 

Yeah, my wife says the same thing. ;p :o

[varoo]

No, you will not save money. If you have on board credit it may offset how much you owe. I don't see any advantage to pre paying.

I agree with you, and see no good reason for most Americans to bother paying for anything in advance that is not required, (unless we are offered some benefit as an incentive to do so).

___________

 

In reply to comments of others:

 

For other nationalities, it is understandable that the exchange rate may be a consideration in determining when you want to pay.

I don't see how there would be anything to "worry about" later if someone doesn't prepay the standard gratuities.

They are not going to raise the price and charge you more after the cruise if you didn't prepay them.

At the end of the cruise, all we do is pack up and leave the ship without needing to pay anything.

It couldn't be easier.

Only one transaction, the final remaining balance on our stateroom account (whether credit or debit) gets posted to our credit card account, which is set up to auto-pay a month later on the due date.

 

So we have no need for concern about payment of the standard gratuities, or any other shipboard expenses, or any late payment fees.

Only 2 or 3 payments to Celebrity are necessary for each cruise:

1- the initial down payment

2- final payment (which may be the only initial payment for a last minute booking)

3- final shipboard account balance (which may sometimes even be a credit)

 

This is the method that is easiest and works best for us and for many others, but it is not for everyone, as we all have different circumstances.

Edited April 15, 2017 by varoo

[HardyVA]

I never thought I'd create such a lively conversation when I asked about prepaying the gratuities.

[varoo]

I never thought I'd create such a lively conversation when I asked about prepaying the gratuities.

That's because you asked a very good question to which there are "it depends" type answers that can vary according to people's differing circumstances.

But it did generate some quite amusing heated replies, that would not have been nearly as entertaining if everyone had responded only with a simple Yes or No.

This is just not the type of question to which there is a single correct "one size fits all" Yes or No answer, which may have been what you were expecting.

Actually, the arguments and insults here are relatively mild compared to some other threads, such as the dress codes threads.

To give a brief summation, they essentially come down to: You are a stupid, inconsiderate fool (and either a grubby, ignorant slob or a pretentious, pompous snob) if you don't agree with me.

In any case, whichever way you choose to pay the gratuities, hope you have a wonderful cruise!

[fshagan]

I don't see how there would be anything to "worry about" later if someone doesn't prepay the standard gratuities. They are not going to raise the price and charge you more after the cruise if you didn't prepay them.

 

Depends on the cruise line. NCL has raised the prices of gratuities three times in the last three years, and you avoided the increase if you prepaid the gratuities. Wait until you board the ship and you're paying more. It's been that way for the last three out of four cruises we booked with them, so I would say that's a pattern.

 

But we're talking small amounts, $1.50 pp/pd with the first increase, then another .49 pp/pd, then another .49 pp/pd (or something like that; I have lost track of the changes they have made). So it's still "cruiser's choice" and there is no overall compelling reason to prepay or not prepay.

[varoo]

Depends on the cruise line. NCL has raised the prices of gratuities three times in the last three years, and you avoided the increase if you prepaid the gratuities. Wait until you board the ship and you're paying more. It's been that way for the last three out of four cruises we booked with them, so I would say that's a pattern........

But we are talking about Celebrity here, not NCL, and Celebrity has always let us know about upcoming price increases well in advance.

Possibly you just missed my first sentence:

 

I agree with you, and see no good reason for most Americans to bother paying for anything in advance that is not required, (unless we are offered some benefit as an incentive to do so).....

 

Under these circumstances, Celebrity is offering us the benefit of the lower price as an incentive to pay the gratuities in advance.

The choice is ours.

 

So the two of us are in full agreement here. ;)

Edited April 15, 2017 by varoo

[Kingofcool1947]

We're sailing on Summit in June. Should I prepay the gratuities ($180) ?

 

Yes.

[disfan13]

How is it much easier to prepay? What is the process either way?

I guess "easier" was the wrong term - my intention was to say it's all done in advance - start with a clean - zero balance on your sign & sail account. That's all - sorry for the confusion.

[Fish Lover]

I agree with you, and see no good reason for most Americans to bother paying for anything in advance that is not required, (unless we are offered some benefit as an incentive to do so).

___________

 

In reply to comments of others:

 

I don't see how there would be anything to "worry about" later if someone doesn't prepay the standard gratuities.

They are not going to raise the price and charge you more after the cruise if you didn't prepay them.

 

I think there is a misunderstanding. If the current rate for gratuities for your cabin is $13/per person per day and you book your cabin with pre-paid gratuities....your overall price will not change should the gratuities rate go up between now and when you take your cruise. That of course is a benefit of booking with pre-paid gratuities.

 

Additionally, pre-paid gratuities just like a pre-paid drink package give a person a sense of freedom that by the time you embark, you have full paid all expenses with the cruise. The OBC gives you a little discretionary spending money. That should not be underestimated as being of value, even though not monetary.

[varoo]

I think there is a misunderstanding. If the current rate for gratuities for your cabin is $13/per person per day and you book your cabin with pre-paid gratuities....your overall price will not change should the gratuities rate go up between now and when you take your cruise. That of course is a benefit of booking with pre-paid gratuities

It would be if Celebrity had a practice of suddenly raising gratuity prices unexpectedly and unannounced.

But they have always given us advance warning, letting us know the exact date that each new increase will take effect.

 

Then it is up to us to decide each time whether or not prepaying the gratuities will be to our advantage.

They don't suddenly surprise you by raising gratuity prices in the middle of your cruise with no advance warning, saying if you didn't prepay, gotcha, too bad. :evilsmile:

 

 

 

........Additionally, pre-paid gratuities just like a pre-paid drink package give a person a sense of freedom that by the time you embark, you have full paid all expenses with the cruise. The OBC gives you a little discretionary spending money. That should not be underestimated as being of value, even though not monetary.

It looks like different people get a sense of freedom different ways.

I get more of a "sense of freedom" having our money in our own bank account, not from giving it to a commercial company in advance unnecessarily.

 

Another good reason not to prepay gratuities is that we prefer to use nonrefundable OBC to pay them (unless we have also received the gratuities as a perk)..

Non-refundable onboard credit gives passengers extremely limited discretionary spending money because it is only good for things we buy from the cruise line.

 

So we try to use it for expenses that we would be paying anyway, such as gratuities, whenever possible.

They make it non-refundable to incentivize us to buy things on the ship that we really don't want or need and would never buy otherwise, trying to give us the impression that we are getting them free. .:')

Edited April 17, 2017 by varoo

[nomadguy]

Very interesting comments on why/why not pay early. Reminds me of the philosophy folks have toward paying their federal income taxes - some pay their taxes as soon as their annual tax bill is calculated vs. others who wait until April 15th (18th this year) to pay their tax bill.

 

Anyway, back to the question - I wait. My reason... IF I PAY IN ADVANCE, and need to cancel the cruise for some reason (e.g., my 91 year old mother takes a turn for the worse), I have struggle to be reimbursed through the trip insurance provider; however, if I HAD NOT PAID IN ADVANCE, that would be one less thing to worry about retrieving with a trip insurance plan. (Plus, many policies state that you must cover the full amount of unreimbursed expenses so if I paid the cruise in total but didn't pay the gratuities at the same time but did so prior to the cruise setting sail, technically I "should" call the insurance company to tell them that my unreimbursed expenses increased to ensure I'm covered for the total amount and can get those gratuity dollars back.

 

(BTW, there recently was another thread where some speculated that folks don't prepay because they want to short change the staff; however, that is farthest from the truth - at least in my case. I just want to make sure that it's my money until it's deserved earned by someone else - but not a moment before.)

[Can'tstopcruising]

Am I missing something here? We have had to prepay ever since Select Dining.

Have they changed that?

[SantaFeFan]

Anyway, back to the question - I wait. My reason... IF I PAY IN ADVANCE, and need to cancel the cruise for some reason (e.g., my 91 year old mother takes a turn for the worse), I have struggle to be reimbursed through the trip insurance provider; however, if I HAD NOT PAID IN ADVANCE, that would be one less thing to worry about retrieving with a trip insurance plan. (Plus, many policies state that you must cover the full amount of unreimbursed expenses so if I paid the cruise in total but didn't pay the gratuities at the same time but did so prior to the cruise setting sail, technically I "should" call the insurance company to tell them that my unreimbursed expenses increased to ensure I'm covered for the total amount and can get those gratuity dollars back.

 

If you had to cancel, pre-paid gratuities would be refunded just like pre-paid shore excursions, pre-paid specialty dining reservations, port fees, and taxes. Travel insurance would not come into affect for these charges since they would be refunded in full.

[cruisestitch]

Cantstopcruising, Some passengers, most notably those from Australia, are now required to prepay the gratuities.

[britsbest]

Am I missing something here? We have had to prepay ever since Select Dining.

Have they changed that?

A good 18 months ago this was changed.

We have not prepaid for last 3 cruises and always go anytime

 

Bob

[Fish Lover]

To the OP.

Personally, I prefer to pay in advance. I have peace of mind that everything is taken care of. I also don;t care about the few dollars paying in advance may cost me because I paid in advance instead of banking the money (which I consider negligible). Then again, I prefer to get a modest refund rather than pay taxes with my return every year.

 

However, that's just me. If you prefer to pay later, then you should feel free to do so. But please do pay them.

[Can'tstopcruising]

A good 18 months ago this was changed.

We have not prepaid for last 3 cruises and always go anytime

 

Bob

 

 

Thanks.

In that case, I guess they will charge daily.

To me, it makes no difference.

[bbappel]

The reason a few people have mentioned here isn't financial but psychological. Even though the costs are the same, for some of us, prepaying as much as we can gives us a calmer cruise. It is also the reason I love having a drinks package, not for the money it saves - we may break even when we are paying for it, though with the "free" package and a paid-for upgrade we are ahead a bit - but because it is one thing I don't have to think about on a relaxing vacation. I budget for the cruise, for the tips, for the drinks. and a bit extra. Then I don't have to keep a daily mental account of spending. Before I step foot on the ship I know that I can just enjoy without worries.

I believe when you cancel a cruise after final payment, you are refunded the gratuities, any shore excursions you have prebooked and paid (not with OBC), and maybe even port fees.

Happy faces, everyone.