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» Cruise Talk   » Cruise Lines   » Tipping on Costa now a compulsory service charge (Page 1)

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Author Topic: Tipping on Costa now a compulsory service charge
Steve Read (sread)
First Class Passenger
Member # 788

posted 01-22-2008 09:51 AM      Profile for Steve Read (sread)   Author's Homepage   Email Steve Read (sread)   Send New Private Message      Edit/Delete Post
I've just noticed that Costa have replaced the "gratuities added to your account which you can adjust at the purser's desk" to a compulsory service charge which you can't alter or decline.

It's not mentioned as being included in the fare, but their website says: "The entire service charge is set aside by the Company for staff who perform hotel duties on board as an incentive to continually improve the quality of service offered on board Costa ships. The service charge is an integral part of the total price of the cruise and therefore the amount cannot be altered."

As far as I know, Costa is the only line doing this. The others either have tips included in the fare, or give passengers the choice of having them added to their onboard accounts at a set rate, or going to the purser to have them removed - with the promise of tipping individuals in cash.

Costa's rates are about £3 / $6 / 4 Euro per day. By comparison, MSC charge £5 per day which can be amended; RCI charge around £6.25.

While I have no time for passengers who try to diddle crew out of their tips, I wonder whether Costa have gone too far? And, given that most pax probably don't ask for their tip charge to be reduced, does the lower rate mean Costa crew are getting less as a result?


Posts: 926 | From: Locksbottom, Kent, England | Registered: Jul 99  |  IP: Logged
Johan
First Class Passenger
Member # 4458

posted 01-22-2008 10:37 AM      Profile for Johan   Email Johan   Send New Private Message      Edit/Delete Post
What is the difference with the inclusion of the "tips" in the price ? Has this charge to be paid on board ?
in europe as you know a service charge is commonly included in the price, and sometimes an extra tip is added.
Perhaps this wording is for fiscal/legal reasons ?

I know here waiters etc pay a tax on an estimated amount received in tips. By putting a specified price on the "service charge" and stating it is received in name of the crew, the crew will pay only taxes on this amount, and the company will pay no taxes on this amount as it is only an intermediary ?

J


Posts: 1895 | From: Antwerpen, Belgium | Registered: Feb 2004  |  IP: Logged
lasuvidaboy
First Class Passenger
Member # 4527

posted 01-22-2008 12:19 PM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post
As I understand it in the States waiters are taxed on an estimate of their tips-regardless if they actually received those tips. While many people tip a proper amount there are always a few deadbeats that will give little or nothing. Those people should of course just stay home!
Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
dmwnc1
Cruise Director
Member # 3785

posted 01-22-2008 12:47 PM      Profile for dmwnc1   Email dmwnc1   Send New Private Message      Edit/Delete Post
I dont like the idea of someone telling me how much I must tip. I dont blindingly tip based on the 'proper amount', but on the service received. Then I'll start with the suggested guidelines and go from there.

If a waiter remembers to come back often and check on my drink and bread refills, smiles or engages in conversation, and is overall attentive to my needs while in their 'care', then the tip is reflective of that. I tip generously when service is outstanding. But a waiter who unenthusiastically takes my order, looks like they hate their job, returns with my food, and then never surfaces again until the check comes due, thats a whole different story. I have seen both types of service personnel and waiters on cruise ships. Tipping on a ship, especially in the dining rooms, can be a touchy topic. I never understood tipping the Maitre D because he says HI to me once in 7-days?

I believe a tip is a reward, not a gimme to be taken for granted, and should never be compulsory.

However, just like when the airlines make a major change, I imagine other cruise lines will follow suit in very short order, and by the end of the year or beginning of 2009 all cruise lines will have implemented it.


Posts: 5650 | From: Clarksburg WV | Registered: Apr 2003  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 01-22-2008 12:57 PM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post
That's interesting--Costa's North American website still states that a modest amount will be debited to your account, but you can still see the Guest Relations mgr. to change or remove that. The standard tipping amounts are $10.00 per day, and $7.50 per day for longer cruises, out of North America. The tipping amounts of course are lower for cruises in Europe and from Dubai.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
recab
First Class Passenger
Member # 1677

posted 01-22-2008 02:21 PM      Profile for recab   Email recab   Send New Private Message      Edit/Delete Post
quote:
Originally posted by sread:
I've just noticed that Costa have replaced the "gratuities added to your account which you can adjust at the purser's desk" to a compulsory service charge which you can't alter or decline.

It's not mentioned as being included in the fare, but their website says: "The entire service charge is set aside by the Company for staff who perform hotel duties on board as an incentive to continually improve the quality of service offered on board Costa ships. The service charge is an integral part of the total price of the cruise and therefore the amount cannot be altered."

As far as I know, Costa is the only line doing this. The others either have tips included in the fare, or give passengers the choice of having them added to their onboard accounts at a set rate, or going to the purser to have them removed - with the promise of tipping individuals in cash.

Costa's rates are about £3 / $6 / 4 Euro per day. By comparison, MSC charge £5 per day which can be amended; RCI charge around £6.25.

While I have no time for passengers who try to diddle crew out of their tips, I wonder whether Costa have gone too far? And, given that most pax probably don't ask for their tip charge to be reduced, does the lower rate mean Costa crew are getting less as a result?


So what´s new Steve??
We have had the policy you describe up here in Scandinavia for years!


Posts: 730 | From: Aland, Finland | Registered: Nov 2000  |  IP: Logged
r.fiebig
First Class Passenger
Member # 5240

posted 01-22-2008 03:11 PM      Profile for r.fiebig   Author's Homepage     Send New Private Message      Edit/Delete Post
It's been like that in continental Europe for quite some time, as well.


Best,

Raoul


Posts: 775 | From: Paderborn, Germany | Registered: Dec 2004  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 01-22-2008 07:19 PM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post
What bothers me most about the cruise tipping system is that it is almost a hidden cost. I certainly always forget about the additional cost of tips when I book a cruise.

The Costa 'service charge' is a compulsory hidden cost. The fare should simply be adjusted up to make it clear what the total cruise cost will be. That of course would not make their cruises not look so competitive.


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
dougnewman
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Member # 11349

posted 01-22-2008 08:53 PM      Profile for dougnewman   Author's Homepage     Send New Private Message      Edit/Delete Post
quote:
Originally posted by Malcolm @ cruisepage:
That of course would not make their cruises not look so competitive.
If they raised their fares a whopping €4 pppd and then advertised 'gratuities included' I think they would hardly look uncompetitive.

Posts: 2072 | From: Long Island, NY, USA | Registered: Sep 2007  |  IP: Logged
Ernst
First Class Passenger
Member # 5369

posted 01-22-2008 09:05 PM      Profile for Ernst   Author's Homepage   Email Ernst   Send New Private Message      Edit/Delete Post
quote:
Originally posted by dougnewman:
If they raised their fares a whopping €4 pppd and then advertised 'gratuities included' I think they would hardly look uncompetitive.

I would not underestimate that - it all adds up. If all surcharges (port taxes etc.) were included the prices would be noticeably higher - and this would be an competitive disadvantage. Personally I hate these 'hidden' costs but I guess for a cruise line it can make sense to shift as much of the costs from the fare to onboard spendings. Beside that, I am not sure how much the fare would have to be raised so that the cruise line gets the same amount as via these surcharges. I assume that e.g. travel agents get a share on the fare but not on the 'gratuities'.


Posts: 9746 | From: Eindhoven | Registered: Jan 2005  |  IP: Logged
DAMBROSI
First Class Passenger
Member # 100

posted 01-22-2008 09:35 PM      Profile for DAMBROSI   Author's Homepage     Send New Private Message      Edit/Delete Post
We always tipped, no matter how good or bad the service. Bad service was pretty rare. But, when my husband had a travel agency, he had a lady who would go on cruises. Eat her breakfast/lunch at the buffets; then have a small meal sent to her cabin. It was her way of cheating the stewards out of what they deserved and this lady had money too.
Posts: 2554 | From: Florida, USA, Where the Legend SS NORWAY sailed from. Moving back to FL next yr. | Registered: May 99  |  IP: Logged
jeffrossatsea
First Class Passenger
Member # 2962

posted 01-22-2008 10:11 PM      Profile for jeffrossatsea   Email jeffrossatsea   Send New Private Message      Edit/Delete Post
costa (carnivore) is beginning to realise little or no tip's for the bad service....jeff
Posts: 1118 | From: vancouver | Registered: Apr 2002  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 01-23-2008 03:38 AM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post
quote:
Originally posted by Ernst:

I would not underestimate that - it all adds up.


Exactly! I would imagine given the number of lines and ships, cruising is becoming very price sensative. A fare of £999 is more attractive than £1049, for example.

The whole aim of the cruise 'tipping system' is that the fare paid does not include the wait and cleaning staffs wages, so it is artificially lower. It is the passengers pay the crew wages onboard, not the cruise lines.

Of course the argument from the lines is that the 'tipping system' increases productivity and levels of service. However now that many cruise lines add tips to your onboard account, I don't suppose too many pax reduce them and I doubt if too many passengers give much/any extra.

As I've said before I prefer staff productivity to not be based on primitive ‘carrot and stick’ methods but good management and training. And if you think that is a pipe-dream for semi-skilled workers, Thomson cruises have a 'no tipping required policy' and their staff are excellent. They also offer budget fares – so it can be done.

There’s nothing like the subject of ‘tipping’ to get some hot debate going.

[ 01-23-2008: Message edited by: Malcolm @ cruisepage ]


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
r.fiebig
First Class Passenger
Member # 5240

posted 01-23-2008 07:49 AM      Profile for r.fiebig   Author's Homepage     Send New Private Message      Edit/Delete Post
Malcolm,

it is a hidden cost and hence is in violation of EU regulations stating that hidden costs are not permitted. But while the EU has put pressure on low-cost airlines to do away with the hidden costs, it appears that they are - at least at this point - not interested in forcing Costa to comply with EU regulations.


Best,

Raoul


Posts: 775 | From: Paderborn, Germany | Registered: Dec 2004  |  IP: Logged
Linerrich
First Class Passenger
Member # 4864

posted 01-23-2008 08:06 AM      Profile for Linerrich   Email Linerrich   Send New Private Message      Edit/Delete Post
quote:
Originally posted by r.fiebig:
Malcolm,

it is a hidden cost and hence is in violation of EU regulations stating that hidden costs are not permitted.
Best,
Raoul


I don't see how you can think gratuities are a 'hidden cost', when they are clearly defined as one of the items NOT included in the cruise fare, just as are a multitude of other things, including govt. fees and fuel surcharges, and any onboard purchases of a personal nature.

Rich


Posts: 4210 | From: Miami, FL | Registered: Jul 2004  |  IP: Logged
Ernst
First Class Passenger
Member # 5369

posted 01-23-2008 08:44 AM      Profile for Ernst   Author's Homepage   Email Ernst   Send New Private Message      Edit/Delete Post
quote:
Originally posted by Linerrich:

I don't see how you can think gratuities are a 'hidden cost' [...]


As Raoul said, there were issues with airlines advertising with fares not including surcharges like airport fees etc. As far as I know this is not allowed anymore - they have to state the complete price including all surcharges, taxes and fees.

[ 01-23-2008: Message edited by: Ernst ]


Posts: 9746 | From: Eindhoven | Registered: Jan 2005  |  IP: Logged
Malcolm @ cruisepage
Cruise Director
Member # 301

posted 01-23-2008 09:08 AM      Profile for Malcolm @ cruisepage     Send New Private Message      Edit/Delete Post
quote:
Originally posted by Linerrich:

I don't see how you can think gratuities are a 'hidden cost', when they are clearly defined as one of the items NOT included in the cruise fare...


Rich, if you look at any cruise Brochure or web site you will see cruise fares such as £999 in big print. However in small print, possibly even on another page gratuities and fuel surcharges etc. are mntioned. Sometimes it can even be difficult to find out what level the gratuities are fixed at.

It is worth noting that all UK prices Brochues and shop always include our purchase tax (VAT). So if the price is £100 we pay £100. Sellers do not generally use the trick of saying £85 (+ tax).


Posts: 19210 | From: Essex (Just Outside London) | Registered: A Long Time Ago!  |  IP: Logged
r.fiebig
First Class Passenger
Member # 5240

posted 01-23-2008 10:53 AM      Profile for r.fiebig   Author's Homepage     Send New Private Message      Edit/Delete Post
Exactly, Ernst.


Best,

Raoul


Posts: 775 | From: Paderborn, Germany | Registered: Dec 2004  |  IP: Logged
Sutho
First Class Passenger
Member # 6234

posted 01-23-2008 05:52 PM      Profile for Sutho   Email Sutho   Send New Private Message      Edit/Delete Post
I have posted about tipping before. Yes I tip, but as for myself and allot of people I know do not like being dictated to on how much, how and when to tip.

Intruding into someones financial affairs is wrong I feel and I dont like the idea of anyone saying you are paying this much and I am taking it from your account.

When on Princess I remved the automatic tipping option and took care of tips myself on the final day.

I think it should be up to the individual on how much, who and when they tip.

Tipping is almost non existant in Australia, there are exceptions to this, but unlike other countries Australia is a place where tipping is not customary or compulsary and people do not expect it.


Posts: 1055 | From: Newcastle, Australia | Registered: Feb 2006  |  IP: Logged
Globaliser
First Class Passenger
Member # 4153

posted 01-24-2008 03:58 AM      Profile for Globaliser     Send New Private Message      Edit/Delete Post
quote:
Originally posted by Sutho:
When on Princess I remved the automatic tipping option and took care of tips myself on the final day.

I think it should be up to the individual on how much, who and when they tip.


A pointless exercise on Princess (at least mainline), because the people whom you tipped simply had to turn the money in. The money was then redistributed in the same way as if you had let it be taken from you automatically.

If you wanted to personally reward those who had done well by you, you should have left the automatic tip on. Then any extra money you give can be kept by the individual to whom you've given it.


Posts: 1869 | From: UK | Registered: Sep 2003  |  IP: Logged
Johan C
First Class Passenger
Member # 1201

posted 01-24-2008 04:19 PM      Profile for Johan C   Email Johan C   Send New Private Message      Edit/Delete Post
Cruisecompanies very like split the costs between different kind of issues:
Last week I made a reservation trough The RCI website, who redirected me (after the purchase) to the Belgiam general agent, who again told me to take a TA.
The price was(PP):
1) 377 eur cruise
2) 10.29 eur VAT (but I think this is the TA's commission)
3) 0.57 eur guarantee fund (if the TA faces bankrupcy
4) 122 eur port charges
5) 75 eur taxes/fees (??????)
6) 52.55 eur prepaid tips
7) 24.50 eur fuel surcharge

so the total price is almost twice the price of the cruise. Nice done RCI


Posts: 256 | From: Ghent, historic city in Belgium | Registered: Mar 2000  |  IP: Logged
claudio
First Class Passenger
Member # 1214

posted 01-27-2008 08:26 PM      Profile for claudio   Email claudio   Send New Private Message      Edit/Delete Post
as sutho said we dont tip in oz at all and to counter this p and o in oz put the 6 or so dollars a day against your shipboard account most passengers pay this and walk off the ship last day and dont give thier stewards etc anything extra. on funchal out of fremantle tips are include in your fare and i noticed last nite on ship most people just walked out without giving thier waiter nothing extra my waiter marion from romania was fantastic he worked so hard and was always polite and helpful he never hinted towards anything extra i gave him i suppose the eqiuivelant to one months wages in romania as an additional tip not much by our standards. next morning at bfast he was still same guy
Posts: 468 | From: melbourne australia | Registered: Apr 2000  |  IP: Logged
lasuvidaboy
First Class Passenger
Member # 4527

posted 01-27-2008 08:39 PM      Profile for lasuvidaboy     Send New Private Message      Edit/Delete Post
quote:
Originally posted by Johan C:

1) 377 eur cruise
2) 10.29 eur VAT (but I think this is the TA's commission)
3) 0.57 eur guarantee fund (if the TA faces bankrupcy
4) 122 eur port charges
5) 75 eur taxes/fees (??????)
6) 52.55 eur prepaid tips
7) 24.50 eur fuel surcharge

so the total price is almost twice the price of the cruise. Nice done RCI



Of the above 7 points, which ones do RCI have direct control of?


Posts: 7654 | From: Hollywood Hills/L.A. | Registered: Mar 2004  |  IP: Logged
dougnewman
First Class Passenger
Member # 11349

posted 01-27-2008 09:02 PM      Profile for dougnewman   Author's Homepage     Send New Private Message      Edit/Delete Post
quote:
Originally posted by lasuvidaboy:
Of the above 7 points, which ones do RCI have direct control of?
Cruise fare, tips and fuel surcharge.

Posts: 2072 | From: Long Island, NY, USA | Registered: Sep 2007  |  IP: Logged
Brian_O
First Class Passenger
Member # 3910

posted 01-28-2008 12:09 AM      Profile for Brian_O     Send New Private Message      Edit/Delete Post
quote:
Originally posted by dougnewman:
Cruise fare, tips and fuel surcharge.

And those pre-paid tipe are 20% of the cruise fare which is somewhat excessive.

Brian


Posts: 2698 | From: Pointe-Claire, QC Canada | Registered: Jun 2003  |  IP: Logged

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