Christopher Elliott's article on tipping . . .

Deb in IA

Knows that KIDS are better
Joined
Aug 18, 1999
Interesting read.

Not Disney specifically, but interesting that the automatic tipping seems to becoming an industry standard:


http://elliott.org/what/tipping-lies-cruise-lines-like-to-tell/

Tipping lies cruise lines like to tell
What Do You Know About Travel? • By Christopher Elliott on Monday, August 19th, 2013

If you thought tipping was out of control in the United States, try heading out to sea.

That’s where Jane Greene discovered the tipping economy isn’t just alive and well, it apparently sustains the crew of major cruise ships. That’s a particularly interesting revelation in light of the U.S. government’s plans to regulate the cruise industry.

“Prior to our most recent cruise, we always tipped generously — above and beyond what was recommended for individuals who showed extra initiative,” says Greene, an author from Pensacola, Fla.

But on her latest cruise on Oceania, she found a surprise charge on her final bill: it included a hefty, and automatic, tip for the crew.

Oceania’s tipping policy is spelled out in its frequently-asked questions section: For guests occupying staterooms, gratuities of $14.50 per guest, per day, will be added to the final bill. Plus, an 18 percent service gratuity is automatically added to all beverage purchases, spa services and dinner at its signature restaurant, La Reserve, it says.

That didn’t bother Greene as much as the behavior of the crew did.

“Virtually all of these people came with hands out, expecting more,” she says. “I was told by two different staff persons that what we had been charged on our final bill was for gratuity, not for tip. Like other passengers, we felt obligated to ante up once again — but it seemed wrong, and left us with a bad taste.”

She’s not alone. I’ve been a tipping critic for years (here’s my latest rant against this fundamentally unfair way of compensating employees). Seems I have at least one reader who agrees with me. But land-based tipping is really nothing compared to the automatic tips you encounter at sea.

By the way, a gratuity and a tip are more or less the same thing. Greene says she had to pay even more than regular passengers, because she had booked a suite. Customers in one of Oceania’s Penthouse, Oceania, Vista or Owner’s Suites where butler service is provided pay a mandatory gratuity of $20.50 per guest, per day.

Ouch.

Not a new policy?

Greene contacted Oceania, asking for an explanation of these fees. She received what appeared to be a personal response from a vice president, explaining the cruise line’s tipping policy.

“The entire hotel operations staff on board our ship share in the gratuities paid by our guests,” he wrote. “This ensures that each and every member of our staff embraces our service commitment to the guests. As a convenience to our guests and in order to avoid the feeling of having to constantly tip staff members, Oceania Cruises has had in place since its inception the policy of adding the suggested gratuities to guests’ shipboard account.”

That’s even more damning. Greene certainly didn’t feel as if the tips were discretionary, so if this policy has been in place since the beginning, doesn’t it make you wonder how many other cruise passengers have been broadsided by it?

And then there’s this: Starting with the 2013-14 winter cruise season, Oceania is raising its “automatic” gratuities to $15 and $22, depending on your cabin class. The only way to eliminate them is to stand in a long line at the end of the cruise, to request their removal. How convenient.

How it should be done

Years ago, when I started covering the cruise industry, I remember meeting with the president of a cruise line and asking him why he paid his employees less than the minimum wage.

“Actually,” he said, wagging his finger at me, “they make great money!”

“How?” I wondered.

“Tips,” he replied, matter-of-factly. “They can make enough money to support their families back home.”

That struck me as fundamentally unfair. Not only did it rely on the largesse of passengers — something you can’t always depend on — but it also allowed the cruise line to pay the equivalent of slave wages while also hiding the true cost of a cruise.

Restaurants are running charities by comparison.

Can it get any worse? Sure. NCL’s Pride of America had a $12 per passenger, per day “auto” gratuity before it headed to dry dock for renovations. At one time, the gratuity couldn’t be removed, but in recent years, passengers were allowed to “adjust” it at their discretion. Still, you should have seen the complaints about that one.

If you add those tips to the bill at the end of a cruise and try to guilt your passengers into paying it, that’s almost as bad as hitting you with a surprise mandatory “resort” fee at the end of their stay, which some hotels still do.

Cruise lines should be paying their staff a living wage, not forcing them to rely on handouts — voluntary or otherwise — from guests. The only beneficiaries of such a pricing policy are cruise lines, who can legally pay their employees chicken scratch. It might be useful to dodge a few bucks on taxes, too. And the only reason anyone can continue to get away with this deceptive pricing is because we allow them to.

We shouldn’t.

It’s time for the cruise industry to do what it says — to make its product “all-inclusive.” And that should include their employees’ wages.





Should cruise lines automatically add tips to your bill?
 
Well, I guess I look at this a couple of different ways. I think it would be better if the cruise lines just adjusted the cruise fare upward and paid the staff what they should be paid, allowing passengers to "tip" as they feel compelled to do so.

Unfortunately, business nature being what it is, if the cruise lines all added $12 per person, per day (or whatever it is per line and per category) to the bill upfront starting next month, they would manage to start recognizing that as revenue within the next couple of years and we would be back where we are now. Then we'd have higher cruise costs, plus another $12 per person per day, etc.

When I plan cruises, I use a spreadsheet. There is a column for cabin cost (or two cabins, depending on if the munchkins are going) AND a column for the mandatory gratuity. Those are added together to determine the final cost of the cruise and the cost per person per day. I'm not ever surprised by the full cost of a vacation and I know the number that appears on that cruise website booking page isn't the total.
 
The cruise lines ought to add gratuities for the standard stuff into the overall price of the cuise fare. Notify passengers of this and allow them to tip at their discretion for above and beyond, or if they just want to.
 
I've said for years that tipping is absolutely the dumbest thing still in existence in the service industry across the board. You are doing a job and you should be paid a fair wage for the job at hand, period. If you go above and beyond and someone wants to add to it, that's a "benefit" but it shouldn't be quasi-mandatory or expected. That's like your boss only paying you 50-80% of your salary and then giving you a "bonus" on your pay check that MIGHT help you get to the total you should be paid if they feel like it that week. It makes no sense. Pay people what they're worth. Bonus is bonus.

I do computer work so in essence I provide service to people. When was the last time you tipped your IT guy? How about your auto mechanic? Grocery store clerk? None of these people are tipped because it's not EXPECTED that you tip them.

The basis for "tip" implies that it's something you want to do, not that you're expected to do.

Sorry if this is unpopular but "auto gratuity" irritates me in that if you're going to (for lack of better term) require that people are tipped, don't bother telling me about it and roll it into the cost.
 
Its weird to me, but (DCL not withstanding), its like the autotipping makes for even crappier service. The idea that 'everyone is sharing in the excellent customer service' to me just means 'you aren't going to tip me if I work hard for you anyway so why bother'. I have always tipped above that when the service was adequate, and when it wasn't, we left the standard tip on there and moved on.

I did appreciate DCL's breakdown of the gratuities. To call is shocking was not an exaggeration. (It shows you how much your room steward gets -or how little-, how much your waiter and asst waiter and head waiter get.) We left the tips on the bill and added cash to the envelopes, HAPPILY, because these guys were WORTH IT.

In my opinion, the autotipping is generally turning out to be crappy although the opportunity to earn more does give incentive to decent service. (cash envelopes on top of it.) CCL doesn't give them out anymore and neither do they ask for comment cards either. If the crew don't think they are going to get any more, they could care less (other cruise lines) and their feelings are read loud and clear.

But then you have the wackos who get great service and remove their tips, which is beyond lousy. So the autotipping can help protect the servers in that case. I think that the system of a base autotip plus any additional gratuity where earned seems to be the only practical way to do it so far.

If the cruise lines went AI, they would have to basically all go in on it together at the same time, or else people would just go for cheap fares and forget the ones that added it in. Not seeing that as likely any time soon...

Any other ideas?
 
I wonder how much of the auto gratuity actually makes it to the staff or does the cruise line take a cut off the top....I hate to see companies not pay a living wage.
 
I do computer work so in essence I provide service to people. When was the last time you tipped your IT guy? How about your auto mechanic? Grocery store clerk? None of these people are tipped because it's not EXPECTED that you tip them.

I know what you are saying, however, there are some instances where we do pay extra. For instance, my Jetta's headliner fell down completely and the local upholstery interior guys gave us a quote. When we picked it up, they said that it was the cheapest VW headliner we ever would have gotten done (Dealer was $600! he was less than 1/3rd of that.) Anyway something about the screws or bolts or something gave this guy major grief, and we believed him, but he stuck with his original quote and didn't charge us any more so we gave him extra cash as a tip.

Good work does mandate a reward where possible, but like you say, he still charged the normal fee and we chose to tip him on top of that.

Is it a tip or a service? But restaurants get away with it all the time, and so do some beauty shops etc...
 
Its weird to me, but (DCL not withstanding), its like the autotipping makes for even crappier service. The idea that 'everyone is sharing in the excellent customer service' to me just means 'you aren't going to tip me if I work hard for you anyway so why bother'. I have always tipped above that when the service was adequate, and when it wasn't, we left the standard tip on there and moved on.

[SNIP]

I agree 100%. I don't know if it is cost cutting and fewer staff or the auto gratuities, but I've noticed service declines in recent years on ALL cruise lines. Nothing egregious, but certainly noticeable.
 
If the cruise lines went AI, they would have to basically all go in on it together at the same time, or else people would just go for cheap fares and forget the ones that added it in. Not seeing that as likely any time soon...

Any other ideas?

I think this will be an intersting issue, as the US government is looking to regulate the industry more. I wonder if it will come down to legislation to require the cruise industry as a whole to pay the employees a realistic wage, and not make them dependent on "tips".
 
In my opinion if the government got rid of the double standard for the service industry insisting that minimum wage was across the board, the problem would sort itself out. Sure there would be a year or maybe two of transition period but short term suffering for long term gain (on the side of the customer).
 
this has all been hashed over before but.....i like the auto tip. it annoyed me that i had to fill out a form and turn it in to get the chits to give everyone. i always tried to do it in the early days and was always, always told to come back on wednesday, that they weren't ready to bill tips yet. now i don't have to stand in line or fill out a form, they do it for me. its not very often i would find a cm that did so little or was so bad i would not tip the regular. if they are better we can always add cash to the envelope.
yes, i'm pleased that now the shoe is on the other foot, that its the people who want to remove the tip that have to wait in line. i'm no longer wasting my time. :banana:
jmo, i know its not how everyone feels.

one last point....if they added the tip to the cost of the cruise i would still feel like i had to leave something so for this reason i would not like to see it go that way. its like the all inclusives. we still leave the maid and bartenders tips even though its 'included'.
 
I think this will be an intersting issue, as the US government is looking to regulate the industry more. I wonder if it will come down to legislation to require the cruise industry as a whole to pay the employees a realistic wage, and not make them dependent on "tips".

Hard to regulate employee benefits for ships registered in other countries.
 
I've said for years that tipping is absolutely the dumbest thing still in existence in the service industry across the board. You are doing a job and you should be paid a fair wage for the job at hand, period. If you go above and beyond and someone wants to add to it, that's a "benefit" but it shouldn't be quasi-mandatory or expected. That's like your boss only paying you 50-80% of your salary and then giving you a "bonus" on your pay check that MIGHT help you get to the total you should be paid if they feel like it that week. It makes no sense. Pay people what they're worth. Bonus is bonus.

I do computer work so in essence I provide service to people. When was the last time you tipped your IT guy? How about your auto mechanic? Grocery store clerk? None of these people are tipped because it's not EXPECTED that you tip them.

The basis for "tip" implies that it's something you want to do, not that you're expected to do.

Sorry if this is unpopular but "auto gratuity" irritates me in that if you're going to (for lack of better term) require that people are tipped, don't bother telling me about it and roll it into the cost.

Amen. I'm tired of the idea that the only way to get good service is to hold the promise of a tip over someone. Everyone should be paid fairly for whatever service they provide and should perform their job to the best of their ability like required of those in non-tipped positions. I've heard arguments that some people love the idea of tipping (in the U.S. in particular) because they believe the service they receive will somehow be better if the one providing the service is trying to earn a tip. I don't buy it. Make all tipping a thing of the past.
 
Automatic charging of gratuities is not that new on most cruise lines. It should not be a surprise either as this is listed in several places on cruise line websites.

I would prefer to tip myself at cruise end, as I feel service has diminished a bit due to the automatic charging. Hopefully, this deters those guests (and I use that term loosely) who would remove the gratuities.

"Resort fees" are listed on websites and frequently on reservation confirmations. Don't like them, don't stay with that hotel!

Since when are cruises "all inclusive"? Sure main dining room food is included, and some entertainment, but everything else is a' la carte! Shore excursions, bingo, gambling, tastings, alcohol, soda, shopping, flowers, tux rental, photos, it goes on ad infinitum.

Why do I have the feeling that Mr. Elliott is a crappy tipper, along with having many unreasonable requests?
 
Another thought:

Right or wrong, the promise of additional money does tend to produce additional results. For years, I ran collection agents and I promise you...the good ones were good because they wanted the extra bonuses. It's human nature to step it up a notch to get more cash. How many parents pay their kids for straight As? Obviously if the kid can get straight As, they are always capable of it.

I think servers should get paid whatever it is that a business deems appropriate to serve its clientele (without factoring in tips). Not to get into an argument about which restaurant is better but simply to illustrate my point; Applebees servers get paid $10 per hour while servers at The Palm make $15 per hour. Or whatever. Then, the patrons could tip, if they choose, for service that goes above and beyond simply refilling water glasses and asking if the food is okay. This allows for the really good servers to make a better wage and those who are content to provide the minimum necessary service to make the minimum.

I don't see tipping as any different that the concept behind quarterly bonuses for executive management, as long as the employees are compensated fairly to begin with (which US servers and cruise ship servers currently aren't). Produce better results = make more money.

I do agree that mandatory tipping isn't tipping at all; it's a service charge and should be called that.
 
Just so you are all aware this is not exclusive to the cruise industry that the workers are paid less then min wage and use tips to make up for it. If you look at the U.S. Department of Labors website http://www.dol.gov/whd/state/tipped.htm (scroll down to see, starting with Arizona) you can see that many states allow for "Tip Credit" in which the employer can pay less than min wage assuming that the tips will bring the employee up to at least that level. So to state that the Federal Government is going to require "full wages" to be paid in the cruise industry I think is incorrect as they dont do it now in many States.
 
Hard to regulate employee benefits for ships registered in other countries.

Not hard to either tax or fine them, if they use US Ports, if they aren't in compliance.

There was a 60 Minutes piece on the unregulated cruise industry, and that basically congress backs off because we cruisers want cheap cruises. All they have to do is deny docking privileges if a ship is not in compliance or if we aren't friendly with that country. You don't see cruise ships based out of Cuba sailing into Miami, do you? One of the big points of the 60 Minutes piece was the amount of money the Coast Guard spends rescuing the ships and passengers, and that congress has considered changing the laws and assessing costs.

Nancy
 
I used to work for a small cruiseline based out of Seattle and the wages they paid the employees was sooooo little. I mean it was probably less than half of what I made and these people worked their butts off!! They definitely DID rely on tips and though it was definitely not encouraged to tip them, everyone on the cruises did. And they would hand the envelope directly to that person, so there was no sharing going on. And the fact that these people knew that their service was going to get them a tip, IMO, made them work even harder.

How does Disney work in terms of tipping? Do you tip your stateroom attendant every day? And then tip your servers at the end of your cruise?
 
I can tell you paying a standard minimum wage to restaurant servers has done nothing to curb the tipping culture in Canada. All employees are paid the same minimum wage (currently slightly over $10/hr). What has this done? It has made eating in nice restaurants very prohibitive for most people. Restaurant prices are higher, sales tax is higher, and the tips are still expected.
 
I don't mind the daily tip thing so long as the attitudes of the CMs are not based on getting further tips. Although bigger tips are nice, they should not be "expected" and I'm lucky to not have had any Disney CMs blatantly ask for tips or talk about their financial circumstances.

We've been hounded on the "Excellent" thing re comment cards, but thankfully not tips yet. FWIW, we always tip extra when they deserve it, even if it is just a few bucks.
 

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