Prepaid Gratuities

[donaldsc]

When you go to a restaurant, do you pay the tip before the meal is served? When you take a cab ride, do you tip the driver when you get into the cab? When you do anything else where a tip is expected, do you tip before the service is provided?

 

Prepaying your cruise tips is the equivalent of doing these things. To those you say that you can plan ahead for your tip, I say hogwash. If there are 2 of you on a 7 day cruise and the tips are $12.50 per day, the total expected tip will be $175. How hard is that to calculate ahead of time?

 

DON

[navybankerteacher]

Don't agree with the cheap point of view? Cheating the crew? I have paid for their service with their company.

 

No, you most certainly have not paid for their services. You have paid your cruise fare, which includes a minimal portion of the compensation the service providers may expect if they do provide the sort of service expected.

 

It is an incentive compensation approach--- if a passenger advises the line of the inadequacy of service, he is entitled to reduce/remove he service charge. If the quality of the service is as expected, then the service charge should be left in place. If any of the staff provides very good service, it would be appropriate to give an additional tip, over and above the standard service charge.

 

The point is that cruising is not just about floating around on a ship - it includes receiving personal service - which can vary from unsatisfactory, to satisfactory, to superlative. What is wrong with a compensation system which rewards the workers who make the effort to do their job very well?

 

If you remove the service charge just because you can, you are not just cheap -- your are a mean, selfish, self-absorbed sort willing to stiff people just because you can.

[allhamm]

We prefer P&O as you can opt out of their automatic gratuity scheme and do your own thing. (Their policy is to reward staff on the basis of reviews from passengers but that is not fair .. We have met many moany joanies that complain about petty things). We also watched a documentary that proved all the gratuities on cruise lines do not go to staff as tips ... Only as wages. Thomson cruises now include all gratuities including bar purchases. I found the hard sell of alcohol and the 20% tip on other cruise liners very off-putting! Royal Caribbean combined this with tannoy messages every half an hour, advertising activities and shop specials. NEVER again!

[ams1130]

Only one cruise under our belts, so take it for what it's worth.

 

I would have felt CHEAP leaving ONLY the prepaid gratuities. Those people work.

[freezingineurope]

Sorry for beating the dead horse, but a few things prompted my questions since I'm going for my first cruise soon:

 

No, you most certainly have not paid for their services. You have paid your cruise fare, which includes a minimal portion of the compensation the service providers may expect if they do provide the sort of service expected.

 

This approach always leaves me puzzled:

 

1. Are you essentially saying that no services are included into cruise fare? Or just some services are not included? Am I supposed to tip captain, ship engineer, security, or anyone from the crew who said "hi" to me?

 

2. My understanding was that even in America tipping still has some relationship to services performed. Even in America when I enter a bar which has a dining portion, if I sit at the bar and order a drink, I only tip the bartender and not waiters. Am I supposed to tip a waiter too? This is ridiculous, but this is similar logic.

 

3. If I decide to skip the cruise without cancelling (my fare is non-refundable), meaning my cabin would be empty, would it be cheap for me not to send a check (to whom?) with tips too? After all, the fare I paid doesn't cover everything, right?

 

It is an incentive compensation approach--- if a passenger advises the line of the inadequacy of service, he is entitled to reduce/remove he service charge.

 

Here I disagree. Usually if the service is so bad that it requires a complain, I'd be certainly asking for more than simply removing tips.

 

If the quality of the service is as expected, then the service charge should be left in place. If any of the staff provides very good service, it would be appropriate to give an additional tip, over and above the standard service charge.

 

What if I don't care about very good service at all?

 

The point is that cruising is not just about floating around on a ship - it includes receiving personal service - which can vary from unsatisfactory, to satisfactory, to superlative. What is wrong with a compensation system which rewards the workers who make the effort to do their job very well?

 

Many, many things.

 

1. First, if you argue for the service level - compensation approach, it should be up to me to choose the level of service I'm willing to pay for. Same as in a plane I can pay extra for a lot of service, or pay less and receive little/no service. What you're advising is essentially the airline should decide whether to put me in the business class, and if put, I should pay them for that extra service I've received.

 

2. It is fairly burdensome to adjust automatic gratuities - and it has been made like that intentionally. You cannot adjust the amounts online or through the system - you have to walk, and wait in line. This is the main reason I decided to remove them as soon as I'm on the ship - this way I'm in control, and if I decide to tip I can do it right away.

 

3. Automatic gratuities assume too much, and I don't understand why should I tip for the service I don't receive. For example I don't intend to ever eat in the MDR, why should they get any of my tips?

 

If you remove the service charge just because you can, you are not just cheap -- your are a mean, selfish, self-absorbed sort willing to stiff people just because you can.

 

Well, stiffing is what American companies do - when you're being advertised one price, and then get a bunch of non-optional "charges" on top of it, making the final cost going up 2-3x. Opting out of extra charges would at least bring the price closer to what was advertised. If cruise companies posted the full price (with all service charges included) upfront, then your statement would make sense.

 

In my opinion service charge belongs to where the service is actually performed. It already happens - in the bars they add 15% to the tab (and note that you cannot opt out of this charge). I see no reason why can't they do this for a served dinner as well.

[Cuizer2]

Is it better to prepay these when booking our cruise, or to wait and pay them on the ship? Also if we prepay, who dont we have to tip, and who do we have to tip.

Thanks!

 

From both a financial point of view and a practical point of view, you should not prepay gratuities.

 

From a financial point of view, why make payments before you have to? Do you make a habit of making interest free loans to billion dollar corporations? Sure, the interest you earn on that money might be small, but still it is something. How many billion dollar corporations make interest free loans to you?

 

From a practical point of view, when you go to a restaurant, do you give the waiter or waitress a tip before they serve you? Do you give the taxi driver a tip before (s)he drives you to your destination?

 

If not, then why would you suddenly decide to pay your tips in advance just because you are on a cruise?

 

If you want to prepay the tips because the money would otherwise burn a hole in your pocket, the money goes toward the cabin steward and the wait staff, which includes the maitre 'd (who is in a management position and should not be tipped unless (s)he does something special for you (like get you a special table). So these are the people you would not tip.

[luddite]

Sorry for beating the dead horse, but a few things prompted my questions since I'm going for my first cruise soon:

 

 

 

This approach always leaves me puzzled:

 

1. Are you essentially saying that no services are included into cruise fare? Or just some services are not included? Am I supposed to tip captain, ship engineer, security, or anyone from the crew who said "hi" to me?

 

2. My understanding was that even in America tipping still has some relationship to services performed. Even in America when I enter a bar which has a dining portion, if I sit at the bar and order a drink, I only tip the bartender and not waiters. Am I supposed to tip a waiter too? This is ridiculous, but this is similar logic.

 

3. If I decide to skip the cruise without cancelling (my fare is non-refundable), meaning my cabin would be empty, would it be cheap for me not to send a check (to whom?) with tips too? After all, the fare I paid doesn't cover everything, right?

 

 

 

Here I disagree. Usually if the service is so bad that it requires a complain, I'd be certainly asking for more than simply removing tips.

 

 

 

What if I don't care about very good service at all?

 

 

 

Many, many things.

 

1. First, if you argue for the service level - compensation approach, it should be up to me to choose the level of service I'm willing to pay for. Same as in a plane I can pay extra for a lot of service, or pay less and receive little/no service. What you're advising is essentially the airline should decide whether to put me in the business class, and if put, I should pay them for that extra service I've received.

 

2. It is fairly burdensome to adjust automatic gratuities - and it has been made like that intentionally. You cannot adjust the amounts online or through the system - you have to walk, and wait in line. This is the main reason I decided to remove them as soon as I'm on the ship - this way I'm in control, and if I decide to tip I can do it right away.

 

3. Automatic gratuities assume too much, and I don't understand why should I tip for the service I don't receive. For example I don't intend to ever eat in the MDR, why should they get any of my tips?

 

 

 

Well, stiffing is what American companies do - when you're being advertised one price, and then get a bunch of non-optional "charges" on top of it, making the final cost going up 2-3x. Opting out of extra charges would at least bring the price closer to what was advertised. If cruise companies posted the full price (with all service charges included) upfront, then your statement would make sense.

 

In my opinion service charge belongs to where the service is actually performed. It already happens - in the bars they add 15% to the tab (and note that you cannot opt out of this charge). I see no reason why can't they do this for a served dinner as well.

 

The service charge is an unincluded cost of the trip.

It is a charge for service. It is how the crew gets paid.

You are expected to pay it.

Your opinion of whether it is fair or OK with you isn't part of the equation, neither is how they do it where you live.

Pay your bills.

[Host Walt]

The subject of tipping has come up regularly and, as happened here, for some reason brings up personal squabbles.

 

Several posts have been removed for that reason, so please, keep the discussion civil.

 

Thanks.

[Ahall2015]

In the past year, Royal Caribbean added the option to prepay your tips when you book. I don't do this myself because you cannot adjust the tips if necessary when you prepay. BUT, a lot of people like this option, because it allows to have another portion of their vacation paid off in advance and it is one less thing to worry about on the cruise

 

 

IF we missed doing this when booking can we call the cruiseline and pay it now? I like many others missed that part during booking and would like to pay it now so its taken care of.

[jb456]

Prepaid gratuities are ridiculous! As is the 15% on alcohol drinks.

 

$3.45 tip for a slow a$$ bartender to put 4 beers in a bucket and open one is crazy..

 

Same as port days. Example - A family of 4 wake up, walk off the boat, spend the entire day in port, eat a meal in port, get back on the boat, relax on their balcony then go to bed. Almost $50 in tips for what? For them to make the bed? ridiculous!

Edited March 16, 2015 by jb456

[GUT2407]

Prepaid gratuities are ridiculous! As is the 15% on alcohol drinks.

 

$3.45 tip for a slow a$$ bartender to put 4 beers in a bucket and open one is crazy..

 

Same as port days. Example - A family of 4 wake up, walk off the boat, spend the entire day in port, eat a meal in port, get back on the boat, relax on their balcony then go to bed. Almost $50 in tips for what? For them to make the bed? ridiculous!

 

 

Well remove them then.

 

What you don't eat breakfast, or diner the steward doesn't clean the toilet and make the bed and vac the floor and replace the towels and turn down the bed just because you are in Port, the only thing I can see different is you aren't eating lunch on board that day [that is if your not].

[jb456]

Well remove them then.

 

What you don't eat breakfast, or diner the steward doesn't clean the toilet and make the bed and vac the floor and replace the towels and turn down the bed just because you are in Port, the only thing I can see different is you aren't eating lunch on board that day [that is if your not].

 

Brunch and dinner in port... Close to $50 in tips to turn down the bed, replace towels, quick room cleaning. As I said ridiculous! Even with a quick breakfast buffet on ship it's absurd. Not to mention those that don't use the MDR at all.

 

A gratuity is not obligatory, it's the consumers choice based on service rendered. How can you prepay tips without even receiving the service? In any company the person is hired to do their job, whatever job that may be, if they do a good job (above and beyond their job description) and the consumer is happy they might be rewarded with a gratuity. Prepaying is ridiculous.

 

It's a cruise line racket and they must love these forums. Hundreds of FREE secretaries for the cruise line telling people to prepay gratuities.

 

Big cruise ships that hold 3000 - 4000 passengers pulling in $36,000 to $48,000 a day for everyone to be off the ship in a port. LoL ya ok! :cool:

 

Edit - And don't forget to add $10,000 PLUS in gratuities a day on alcoholic drinks. Equals cruise ship laughing straight to the bank at all the consumer fools.

Edited March 16, 2015 by jb456

[GUT2407]

Brunch and dinner in port... Close to $50 in tips to turn down the bed, replace towels, quick room cleaning. As I said ridiculous! Even with a quick breakfast buffet on ship it's absurd.

 

A gratuity is not obligatory, it's the consumers choice based on service rendered. How can you prepay tips without even receiving the service? In any company the person is hired to do their job, whatever job that may be, if they do a good job (above and beyond their job description) and the consumer is happy they might be rewarded with a gratuity. Prepaying is ridiculous.

 

It's a cruise line racket and they must love these forums. Hundreds of FREE secretaries for the cruise line telling people to prepay gratuities.

 

Big cruise ships that hold 3000 - 4000 passengers pulling in $36,000 to $48,000 a day for everyone to be off the ship in a port. LoL ya ok! :cool:

 

 

Did you even read the 1st lne of my post.

 

What do they do extra on a sea day? if $12 is too much on a Port day it's too much every day isn't it.

[jb456]

So when cruise lines offer free prepaid gratuities do they really take the money out of their pocket to pay all these employees? Or do they just hit a button in the computer to mark zero?

 

If as some say "it's the gratuities that pay the employees salary" and the cruise line turns around and offers free prepaid gratuities to everyone. Sounds like the cruise line would loose a lot of money or there would be lots of angry workers not getting paid. Either of those happen? Never, why? All a gimmick. Cruise lines are in the biz to make money and they do a darn good job at doing this. Marketing 101 on their prepaid gratuities gimmick.

[jb456]

Did you even read the 1st lne of my post.

 

What do they do extra on a sea day? if $12 is too much on a Port day it's too much every day isn't it.

 

Seems like you can't read. I'll try this again.

 

Do they deserve $48 tip to make the bed and put fresh towels in the bathroom? Yes or No?

 

No other ship amenities used the entire day or night. No meals on the ship, no MDR, no service. Wake up, shower, off the boat, eat off the boat, get back on the boat, go to the room and go to bed.

 

Would not even see a reason they would have to vacuum the room, were not messy and don't even use the room other to sleep so it would have been in the exact same condition as it was the day prior that they cleaned it.

 

Sea day or when using lots of amenities, meals on ship of course a different story with gratuities. I am talking about a port day if your hardly using nothing on the ship.

 

How much goes to the MDR staff? If I never use the MDR why should I pay that portion?

 

And again why prepay for a service you have not even received yet?

Edited March 16, 2015 by jb456

[GUT2407]

Well I'll say it again remove them.

 

Or don't pre-pay them unless you have MTD they aren't mandatory.

 

Pretty simple really.

[jb456]

Well I'll say it again remove them.

 

Or don't pre-pay them unless you have MTD they aren't mandatory.

 

Pretty simple really.

 

The point still is why would you prepay for a service you have not received? As it's a gratuity.

 

The workers are just doing their job but know they have already been tipped for it. So now gratuities are already paid and the workers know if they are having a bad day and treat 10 travelers poorly there still going to be making the tip from probably all those travelers. They know most likely all the travelers that received poor service would not be bothered taking time out of vacation to go down to guest services and complain to get their tip removed. Maybe 1 out of the 10 will if it was really bad but what does that worker care ? He doesn't as he knows everyone paid the tips in advance so chances are he is still winning and will come out ahead.

 

So workers now can do as they please as they have the upper hand - when the consumer should have the upper hand and receive the exceptional service (above and beyond their STANDARD WORK DESCRIPTION) to give the gratuity.

 

Just like the bartenders, what do they care? They can take 20 minutes to serve you, why should they care about how you feel when that gratuity is automatically added anyways.

 

Genius idea these cruise lines discovered with these "auto tips" as they know 90% of passengers will not be bothered removing them and the others they can sell the "prepaid" in advance gimmick to. All a big marketing gimmick just like Carnivals 110% guarantee as they also know hardly anyone will use it.

 

Marketing marketing marketing, for their financial gain. Whats going to be next? A surcharge on more then 2 bags like airlines? lol

Edited March 16, 2015 by jb456

[jb456]

At home do you tip before being seated at a restaurant? NO

 

When you check in a hotel do you pay tips at time of booking for the maid? NO

 

Do you go to a bar and tip based on service or fixed based on cost?

 

 

So why do it on a cruise?

[Flatbush Flyer]

At home do you tip before being seated at a restaurant? NO

 

 

 

When you check in a hotel do you pay tips at time of booking for the maid? NO

 

 

 

Do you go to a bar and tip based on service or fixed based on cost?

 

 

 

 

 

So why do it on a cruise?

 

 

Travel much? In some countries, there are service/cover charges automatically added to the bill (minimally to cover the expense of place setting).

Here in the San Francisco Bay Area, there is a growing practice of including that kind "service charge" vs making tips optional and, at least in SF, there is also a health benefits surcharge added to the bill.

 

Whether it's a cruise line or an eatery in North Beach, they're not hurting for clientele willing to pay the premium. Sounds like you may want to skip cruising and go camping instead.

[donaldsc]

Travel much? In some countries, there are service/cover charges automatically added to the bill (minimally to cover the expense of place setting).

Here in the San Francisco Bay Area, there is a growing practice of including that kind "service charge" vs making tips optional and, at least in SF, there is also a health benefits surcharge added to the bill.

 

Whether it's a cruise line or an eatery in North Beach, they're not hurting for clientele willing to pay the premium. Sounds like you may want to skip cruising and go camping instead.

 

Or take your cruise on the Staten Island Ferry where you do not have to worry about tips as no meals are served - http://www.siferry.com/index.html. The views are great however and the price is great - free.

 

DON

[NMLady]

The point still is why would you prepay for a service you have not received? As it's a gratuity. ...

 

lol

 

Since I always pay the gratuity I prepay it for two reasons: makes budgeting easier since it is paid on different billing period than onboard charges. And it makes reading the final bill a lot easier since there aren't those two charges for hubby and me every day.

 

We started cruising when tips were given in envelopes the last night and many people skipped MDR so they wouldn't have to give that envelope to waiters.

 

We have not noticed a lessening of service now that tips are automatic. On the contrary service is as good as or better than the days of the envelope system because the stewards, waiters etc know they will not be stiffed for the service they provide.

[Flatbush Flyer]

Or take your cruise on the Staten Island Ferry where you do not have to worry about tips as no meals are served - http://www.siferry.com/index.html. The views are great however and the price is great - free.

 

 

 

DON

 

 

Funny you should mention the Staten Island Ferry. When I was at Brooklyn College in the late 60's, my best cheap date was to take the young lady to an Italian Restaurant named Gregnano's, which had singing waiters and dirt cheap appetizers. We followed that with a "harbor cruise" on the Staten Island Ferry. I don't remember paying much more that $5-10 for dinner (with entertainment) and a cruise.

[Elaine5715]

From both a financial point of view and a practical point of view, you should not prepay gratuities.

 

From a financial point of view, why make payments before you have to? Do you make a habit of making interest free loans to billion dollar corporations? Sure, the interest you earn on that money might be small, but still it is something. How many billion dollar corporations make interest free loans to you?

 

From a practical point of view, when you go to a restaurant, do you give the waiter or waitress a tip before they serve you? Do you give the taxi driver a tip before (s)he drives you to your destination?

 

If not, then why would you suddenly decide to pay your tips in advance just because you are on a cruise?

 

If you want to prepay the tips because the money would otherwise burn a hole in your pocket, the money goes toward the cabin steward and the wait staff, which includes the maitre 'd (who is in a management position and should not be tipped unless (s)he does something special for you (like get you a special table). So these are the people you would not tip.

 

Just because you prepaid for your convenience, the crew does not get the money until after your cruise and they are painfully aware that the tips can be removed for the slightest offense. The Maitre ds are NOT part of the prepaid or recommended daily gratuities so you would indeed tip them directly if you have received a personal service.

Your examples are only pertinent if you were willing to tip each crew immediately as the service was rendered. The option to prepaid gratuities was a response to customer wishes for customer convenience.

[Debala715]

Interesting subject. We just booked our first cruise this past Saturday. We booked through United Vacations because I could earn 4 reward miles for every dollar spent for the cruise. We will be crushing on NCL. The United Cruise agent that I spoke to asked me if we wanted to prepay our gratuities or pay them at the conclusion of the trip "as you will not be allowed off the ship without paying them". I thought this was very odd, but we decided to prepay them. Since this was the one area I hadn't done research on, I didn't realize that what she said was false. To us it sounded like it must be done. Now, keep in mind, while I'm a good tipper and routinely tip at minimum 20%, my husband is an excellent tipper and more often tips at around 30%. So the tipping isn't an issue for us, but finding out now that I was lied to makes me a bit angry. Live and learn. I won't make the same mistake on our next cruise (which even though we haven't gone yet, there will be a next cruise!)

[Cuizer2]

Just because you prepaid for your convenience, the crew does not get the money until after your cruise and they are painfully aware that the tips can be removed for the slightest offense. The Maitre ds are NOT part of the prepaid or recommended daily gratuities so you would indeed tip them directly if you have received a personal service.

Your examples are only pertinent if you were willing to tip each crew immediately as the service was rendered. The option to prepaid gratuities was a response to customer wishes for customer convenience.

 

On both Royal Caribbean and Carnival the Maitre d or the head waiter is part of the tip pool. It may be only 25¢ or 75¢ per person per day, but with 3000 people on the ship, even at 25¢ per day, that amounts to $750 / day or $5,250 per week or $273,000 per year.

 

As to convenience, since everyone establishes an on board account, having the tips added to the on board is very convenient, since you have to pay it anyway.