Are service charges really a scheme to artificially decrease the base cruise fare?

[newmexicoNita]

some topics just keep popping up every few weeks.The same as some posters love to stir the pot. It doesn't make much difference what you call it, the fact remains, the charge is legit and should be acceptable. The DSC is not just for those who serve you but for some behind the scenes. AS for as the OP talking about how much it adds up if there are, say, 4 in a cabin: Look at it this way: when dining out,of course the tip for several in a party is higher than just one eating or when you tip the house keeper at your hotel you leave a buck or two per person, not per room. On and on, and no, I do not want to see the DSC rolled into the fare.

[Toofarfromthesea]

It's probably because they want something to complain about. :p

 

In the following scenario, all 5 are the same ship, same stateroom, same date, same itinerary, same UBP, same 3SDP, same port fees, same taxes, etc....

 

 

 

1. Cruise fare is $1,000 with $500 in service charges.
   
2. Cruise fare is $750 with $750 in service charges.
   
3. Cruise fare is $500 with $1,000 in service charges.
   
4. Cruise is free with $1,500 in service charges.
   
5. Cruise is $1,500 with zero service charges.
   

I guarantee, some people will complain about whatever price structure NCL uses and prefer it to be one of the others.

 

But for a lot of crew members there is a significant difference in their home tax liabilities between these scenarios. The whole world is not the US, the UK, nor OZ.

[WashyWashyHappyHappy95]

So if on any given NCL cruise, 75% of the DSC funds went to Miami, and only 25% actually were distributed to the crew, that wouldn't bother the people who say we're "just complaining?"

 

If NCL got verify where it goes and say something like, "While the charge is discretionary, 100% of your DSC is distributed to the hard working crew who made your cruise the vacation of a lifetime."

 

If they could say that, they would, but they can't, so they don't.

[SeaShark]

So if on any given NCL cruise, 75% of the DSC funds went to Miami, and only 25% actually were distributed to the crew, that wouldn't bother the people who say we're "just complaining?"

 

If NCL got verify where it goes and say something like, "While the charge is discretionary, 100% of your DSC is distributed to the hard working crew who made your cruise the vacation of a lifetime."

 

If they could say that, they would, but they can't, so they don't.

 

I think what "bothers" people is complaining despite the fact that you have absolutely no idea what-so-ever what percentage, if any, goes to Miami, and what percentage, if any, is distributed to the crew. It is just complaining without a foundation in facts.

 

We all pay for things every day without any clue as to how that money is distributed...how much to the company, how much to the employee, how much to the middle man...we have no idea, nor do we care.

 

Yet, bring up a service charge, and people lose their minds. Somehow "where it goes" is just a MUST KNOW.

 

 

Seriously, what difference does it make where it goes, how it is divided, and who gets what in the end? That information has no bearing on your vacation. None.

Edited April 22, 2018 by SeaShark

[WashyWashyHappyHappy95]

What part of "The reason there's a fixed service charge is an important one: Our Crew (as are the crew from other lines) is encouraged to work together as a team. Staff members including complimentary 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. How much is the charge? Onboard Service Charges are additional." don't you understand?

 

You're ignoring my main point. If the crew only gets 10% of the DSC pot on each cruise, and the rest goes to "administrative fees" or padding salaries back in Miami, you don't care?

[KeithJenner]

So if on any given NCL cruise, 75% of the DSC funds went to Miami, and only 25% actually were distributed to the crew, that wouldn't bother the people who say we're "just complaining?"

 

 

No, wouldn’t bother me one little bit.

 

I know how much the cruise is costing me. The staff have agreed a remuneration package that they are happy with. That’s fine with me.

 

Which pots different bits of money comes from is of absolutely no interest to me at all.

 

And my life seems to be so much easier than those people who spend all their time worrying about this stuff. That’s the biggest win for me. :)

 

 

 

Sent from my iPhone using Tapatalk

[jimmcg29]

Why would you want the DSC rolled into the cruise fare? If that happened you would have to pay it earlier and it would become non-refundable. If you buy insurance based on the cost of the cruise that would go up as well. And then I would feel the need to leave more of a tip.

[SeaShark]

Where did you read anything that even slightly says that less than 100% of the DSC goes to the program? That's right. It does not.

That isn't correct. NCL clearly states that a portion os the DSC supports crew salaries. So whatever percentage goes to support salaries does NOT go to crew incentive programs.

[Two Wheels Only]

But for a lot of crew members there is a significant difference in their home tax liabilities between these scenarios. The whole world is not the US, the UK, nor OZ.

Unless you are a member of the crew, it makes no difference.

 

We (the guests) pay the same amount in all 5 scenarios.

[rbt001]

So if on any given NCL cruise, 75% of the DSC funds went to Miami, and only 25% actually were distributed to the crew, that wouldn't bother the people who say we're "just complaining?"

 

If NCL got verify where it goes and say something like, "While the charge is discretionary, 100% of your DSC is distributed to the hard working crew who made your cruise the vacation of a lifetime."

 

If they could say that, they would, but they can't, so they don't.

 

Quite simply, the service charge is a way for NCL to offset the cost of labor.

 

That's it.

 

Just like airlines on occasion impose a fuel surcharge. The difference is that when airlines do this, participants on the Flyer Talk forums don't feel the need to whine and complain about it or demand to know why type of jet fuel or what brand.

Edited April 22, 2018 by rbt001

[Zeno]

DSC is common across most cruise lines.

 

I don't recall saying that it wasn't. On every cruise I have taken there as been a service charge and of course it's to keep the base fare looking low. And I still wish that it was part of the cruise fare regardless of which cruiseline. BTW I don't object to the DSC, I would just prefer to have it rolled into the cruise fare.

[rbt001]

You're ignoring my main point. If the crew only gets 10% of the DSC pot on each cruise, and the rest goes to "administrative fees" or padding salaries back in Miami, you don't care?

 

The operative word in your statement is IF.

 

What if the sun doesn't rise tomorrow?

 

NCL tells us it goes towards labor costs.

 

NCL omits all the other details because, bluntly, it's between themselves and their staff.

 

If you don't have faith and confidence in NCL's ability to manage and operate their cruise line, then apply to work their and make your opinions count.

 

Or simply choose a different cruise line to patronize-- and a different forum to haunt.

 

But doesn't common sense tell you that if NCL were mistreating their employees, or misappropriating funds, that employees would flock to a line where they were treated fairly?

[rbt001]

Close. It is an accounting issue to identify the funds for the crew incentive program and not co-mingle those funds with the general cruise revenue. It is a VERY basic accounting/audit concept.

 

You're close, but NCL's wording and lack of punctuation allows for a broader interpretation:

 

Staff members including complimentary 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.

"that your service charge supports." could mean that the service charge supports both the salary and incentive programs.

 

By allowing for this interpretation, NCL is given greater flexibility as to the application and accounting of those funds.

 

Simply, the service charge collected is a labor offset.

[tef43]

It's quite simple really.

 

Don't like the DSC? Sail with another cruise line. Problem solved.

[rbt001]

You can read into anything whatever you want. If it makes you feel happy to believe that something underhanded is going on, then by all means keep believing that. Please let me know what address I should use to ship your tin foil hat.

 

Just as you misinterpreted the FAQ regarding DSC as I've already pointed, you really botched it to believe I feel there's something underhanded going on.

 

I fully understand DSC is a labor cost offset for NCL.

 

I also fully understand that how NCL compensates their employees is a matter between NCL and their employees.

 

I trust NCL to treat their employees fairly and believe that they do so.

[WashyWashyHappyHappy95]

Quite simply, the service charge is a way for NCL to offset the cost of labor.

 

That's it.

 

Just like airlines on occasion impose a fuel surcharge. The difference is that when airlines do this, participants on the Flyer Talk forums don't feel the need to whine and complain about it or demand to know why type of jet fuel or what brand.

 

I've never seen an airline offer a fuel surcharge that they claim is "discretionary" and used to support their hard working crew.

[Love my butler]

What size tin foil hat do you wear? Please do not post unsupported opinions as if they were fact.

 

Like your unsupported opinion has any bearing on what I do or don't post. In other words, you don't matter.

[Love my butler]

It's quite simple really.

 

Don't like the DSC? Sail with another cruise line. Problem solved.

 

It's even more simple than that. Don't like the DSC? Adjust it. Problem solved.

[rbt001]

After just reading the above, why am I reminded of my childhood days in school and that one student the teachers just gave up on? A teachers aid, tutors, nothing worked.

 

As students we, too, learned to ignore the occasional incoherent outbursts. We focused on our reading and comprehension skills.

 

So that today when we read something that appears inaccurate, such as false claims about NCL's service charge, we learned in school how to do research, how to read and comprehend what NCL has written concerning the reason for the service charge. When we read this:

 

Staff members including complimentary 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.

 

we easily comprehend that our service charge is used towards labor costs.

 

Me and my fellow classmates learned the difference between a "service charge" that's imposed and a "discretionary charge" that's optional. In fact, that was a day hard to forget. Most of us were leaning forward at our desks straining to hear our teacher over the gurgling and nonsensical noise coming from the one helpless student. But we got it. We learned our lesson that day.

 

Yes, I used to wonder what happened to that one, babbling mess of a student.

 

But I don't have to anymore.

[Tigerlily75]

If you want the answer just look to Australia. Royal Caribbean, Carnival and Princess charge NO gratuities to Australian guests on Australian cruises. Instead, our cruise fare is higher, and the crews wages are higher.

 

Taxes and fees are also incorporated. So for us, the price you see is the price you pay, and that's it, no additional charges.

 

In the end, it all works out the same.

[rbt001]

If you want the answer just look to Australia. Royal Caribbean, Carnival and Princess charge NO gratuities to Australian guests on Australian cruises. Instead, our cruise fare is higher, and the crews wages are higher.

 

Taxes and fees are also incorporated. So for us, the price you see is the price you pay, and that's it, no additional charges.

 

In the end, it all works out the same.

 

Yes, it seems some of the lines have adapted their pricing policy to the local culture. As someone else pointed out, in both Australia and the United Kingdom (and I'm sure other countries) the price is expected to be the price.

.

In the USA, it's just not the case and it can be frustrating to some.

 

The frustration airline passengers experienced with this issue was met with legislation a few years back. It used to be that one could click excitedly on the $180 fare they thought was a great deal-- only to find that after taxes, fees, charges, etc. the bottom line was close to twice the price. Now, airlines must display the "all-inclusive" price up front.

 

Will cruise lines follow? Probably not-- unless there is legislation.

[SeaShark]

They do not even come close to that. Please post where NCL states that only a portion of the DSC is use for the crew. That's OK, I'll wait!

It is clearly stated in both the NCL website FAQ and in the guest ticket contract. It has also been c&p'd a number of times in this very thread.

 

How could you have missed it???

[KeithJenner]

This is a fantastic argument. Totally pointless and originating from a slight confusion of words.

 

It really is great entertainment, which is a bonus because otherwise it serves absolutely no purpose at all.

[Sam Ting]

It’s very easy to remove the extra fee. Once we pay our fare, why would we donate our hard earned money to a billion dollar corporation so it could pay its employees?

[SeaShark]

You saying it is so, no matter how may times you do so, does not make it fact. Please post the quote.

Of course not, but then again I'm not the one saying it...NCL is. You can see for yourself. I've noted two places where you can see NCL's statement for yourself.

 

Or...you can see one of the reposts of that very information on this very thread. For example, it is in Post #32...perhaps you could argue the point with that poster?

 

Or you could provide something to support your contention that none of the DSC goes to the crew.