Special Report: The great cruise gratuities debate


I took this Photo on the Norwegian Jade, the gentleman in the front has gained a promotion. The crew that you see and don’t see work hard to make sure that we have the best possible cruise experience, they deserve our Gratuities and more.

A hike in rates by Royal Caribbean and Celebrity Cruises reignited the debate about onboard tipping. Amie Keelie and Harry Kemble report

News that Royal Caribbean International and Celebrity Cruises have upped their gratuities by 7% prompted dozens of responses from cruisers on consumer forums (Travel Weekly, January 4).

Some questioned whether the service they receive justified the hike. Some asked if charging gratuities meant cruise lines get away with paying staff low basic salaries. And some wondered if the tips even went to the staff.

Others said they were happy to reward hardworking crew for the long hours they put in to make their holidays as good as possible.

So which lines charge the most, why do gratuities even exist and are they justified?

Why do gratuities exist?

The concept of automatic gratuities stemmed from cruise ships being a cashless environment. Generally, passengers did not carry wads of cash and so were unable to reward crew members for excellent service.

It also became a way to distribute tips fairly to all the crew, including those behind the scenes working just as hard as the butler that passengers saw every day.

Lines justify the cost by claiming a superior level of customer service guests receives on a cruise ship compared with a hotel or resort on land.

“When we do our survey of guests, one of their top reasons they give to cruise is the service levels, so we stand up well against other sectors,” says Andy Harmer, Clia’s senior vice-president for membership.

“In cruise, you get to build up a relationship with the crew – you see them several times a day – compared to a hotel where you might not see the person turning down your bed at all.”

Ben Bouldin, associate vice-president of Royal Caribbean International and managing director for the UK and Ireland, agrees. “Gratuities are something our customers are comfortable with because they understand the outstanding level of service.”

However, as one agent told Travel Weekly: “If a cruise line is going to increase its gratuities, it had better make sure its customer service is impeccable”.

It is accepted that American cruisers are more than happy to pay automatic gratuities, often in advance of their cruise, but Brits much less so. Cruise lines have adapted their policies to reflect the different markets they sell in, allowing cruise customers to opt out of paying auto-gratuities at the end of their cruise when they pay their final bill.

“[In Britain] we don’t have a history of tipping in the way other cultures have,” says Harmer. “What a lot of passengers don’t realise is that if they do have issues, they should raise these on the ship so they can be dealt with and if they’re not happy they can have [the gratuity] taken off.”

Mike Hall, Cruise & Maritime Voyages’ head of marketing, says: “The reason why gratuities are such an issue is because of that cultural difference. Americans will give a staff member $50, while here in the UK, a conversation about gratuities is one we do not want to have.”

Gratuity rates

Royal and Celebrity Cruises’ recent increases now mean passengers pay $14.50 a day in standard accommodation, making it one of the highest in the sector.

“Royal and Celebrity need to be careful because it could put customers off,” the cruise agent added. “For a couple travelling on a 14-night cruise that’s an extra $400, so it needs to be better than a hotel which doesn’t have auto-gratuities.”

The agent also warned that if gratuities continued to rise on mainstream lines, luxury cruise brands, which more often than not include them in the price, would become more appealing.

By comparison, discretionary gratuity fees for P&O Cruises, MSC Cruises, Fred Olsen Cruise Lines, CMV and Carnival Cruise Line range from £4 to €13 per passenger per night and continue to be automatically added to onboard accounts. The majority of river cruise lines suggest a recommended amount to give the crew at the end of their cruise.

Last year, Norwegian Cruise Line became the first mainstream line to incorporate gratuities, among a host of other ‘extras’, into its fares, when it rolled out its Premium All Inclusive concept.

NCL’s Nick Wilkinson said: “Premium All Inclusive has driven greater simplicity for agents having to explain and sell cruises, and greater confidence in consumers having to budget.

“The biggest change since introducing Premium All-Inclusive is double-digit growth we’ve seen in the long-tail of agents we’ve never worked with before, now selling Norwegian. They are comfortable selling us.”

So could other mainstream lines follow suit? Wilkinson added: “I think it’s very telling how many mainstream lines are using the term ‘all-inclusive’ in their wave campaigns as they recognise it appeals to agents and consumers.

“But we are the only mainstream line offering a truly all-inclusive product, including gratuities.”

Full breakdown by cruise line here

Views on gratuities

“Gratuity fees should be phased out, not increased. They are an archaic way of paying salaries, they should be included in the fare.”

David Speakman, chairman, Travel Counsellors

“I wish all cruise companies would include them [gratuities], then everyone would pay the same. It would stop a lot of people asking for them to be taken off once on board.”

Travel agent, name withheld

“As customers, we would never take off service and hotel charges but, in a way, I hope many do. You never know, we might yet see the dawn of non-deductible service or all-inclusive charges on cruises. If all passengers paid their gratuities on a two-week cruise, that would be $578,000 on Eclipse – getting a little silly, don’t you think? The cruise lines are cutting back and increasing gratuities.”

Shipyard De Hoop scoops Celebrity Cruises expedition ship contract

Shipyard De Hoop scoops Celebrity Cruises expedition ship contract

A rendering of Celebrity Cruises’ Celebrity Flora, which is being built by Shipyard De HoopCelebrity Cruises has struck a contract with Shipyard De Hoop for the design and construction of an expedition cruise ship.

The 5,635 GT 100 passenger-capacity vessel, to be named Celebrity Flora will have a keel laying ceremony later this year and is due to be delivered in May 2019.

De Hoop said the cruise vessel is “optimised for experiencing the land and marine environment of the Galapagos in high comfort”. Celebrity Flora will be the first vessel to be built to two-compartment damage stability regulations and additionally complies with the relevant damage stability requirements planned for implementation during 2020. De Hoop said the vessel also commits to specific Galapagos National Park Directorate Regulations, whereby explicit environmentally low-impact features were applied.

As this vessel is expected to be stationary – in a bay or near one of the islands – for 66% of the operational time, “considerable thought went into the design and selection of equipment, allowing the ship to perform efficiently under dynamic positioning (DP)”. Combined with a zero-speed stabiliser system, the DP system will choose a heading to minimise the roll and heave motions on the vessel, significantly improving passenger comfort.

The power and propulsion plant of Celebrity Flora is duplicated and housed in two separate engine rooms.

De Hoop said the introduction of an advanced propulsion system, its hull configuration (improved with CFD calculations) and specially designed diesel engines, guarantee an average 25% reduction in hull resistance, 15% reduction of overall fuel consumption and equivalently fewer air emissions.

The ship’s bow shape features a straight, wave-piercing stem, with an integrated bulb at the waterline. De Hoop said, “This characteristic bow both reduces resistance in waves when in transit and saves energy when staying in position, due to the highly efficient short bow thruster tunnel.”

Cruise ‘breaking through glass ceiling’ as it goes mainstream

Image result for norwegian bliss construction

The cruise industry is “breaking through the glass ceiling” and is finally being recognised as a mainstream holiday.

David Dingle, Clia Europe’s deputy chair, also said the number of UK cruise passengers will hit two million by 2020.

He said: “We are getting to that two million figure. We hit 1.9 million passengers in 2016, so I definitely think we will hit two million by 2020.

“We are really breaking through the glass ceiling. I think we are at the stage where cruising is being recognised as a mainstream holiday.

“Whether we see the same year on year growth yield as we did this year that will unfold, but at the moment we are seeing further growth.”

The cruise industry is undergoing a “significant” new shipbuilding programme following the financial slump in 2008.

“During that period there has been a lag in the introduction of new capacity,” Dingle said. “So as much as anything we are going through a catching up exercise.”

There are 72 ships on order all of which are set to be built before 2025. The value of that order is $50billion.

All the major lines, including Royal Caribbean, Celebrity Cruises, Norwegian Cruise Line and MSC Cruises and Carnival, have ships launching in 2018.

Marella and AIDA Cruises, Germany’s largest line, also have new vessels due to launch.

“The year of 2017 has been a very good year for yield growth but whether we can have that much growth year on year remains to be seen,” Dingle added. “At the moment they are good indicators.”

Dingle pointed to the role of the trade press in helping to boost the cruise sector and also highlighted how comedian Rob Brydon might not have fronted a P&O Cruises television advertisement campaign “five or 10 years ago”.