Royal Caribbean switches to automatic gratuities

Posted on 18 February, 2013 by Spacejunkie2

Royal Caribbean switches to automatic gratuities

By Phil Davies

Royal Caribbean International is to charge passengers an automatic daily gratuity for crew members in the dining room and housekeeping staff who are traditionally tipped.

The line will join others in including automatic gratuities in bills from March 1. The company confirmed that the new policy will apply fleet-wide.

Royal Caribbean will add an automatic daily gratuity of $12 or $14.25 for passengers in suites to onboard accounts of each guest to be shared by waiters, stateroom attendants and other housekeeping services personnel. This new gratuity replaces the previously optional tipping guidelines.

The line previously recommended a total of $11.65 per passenger, per day or $13.90 for suite guests and they could pay via their onboard account or in cash.

The change brings the company into line with a policy adopted by rivals Carnival Cruise Lines, P&O Cruises, Cunard, Princess Cruises, Holland America Line and Norwegian Cruise Line.

All of the competitor cruise lines allow passengers to go to the guest relations desk onboard and ask to change the automatic gratuity charges if they feel service is not up to the expected levels.

Staff on a number of lines have suffered from a reduction in voluntary tips, with British passengers known to be among the most reluctant to pay gratuities.

Royal Caribbean passengers who have previously pre-paid their gratuities for forthcoming cruises will not be affected by the change.

Norwegian reports improved profits despite ‘unexpected challenges’

Posted on 13 February, 2013 by Spacejunkie2

Norwegian reports improved profits despite ‘unexpected challenges’

By Phil Davies

Norwegian Cruise Line has delivered improved profits for 2012 of $169 million against $127 million the previous year despite the year’s “unexpected challenges”.

The result for a period when the cruise industry had to deal with the impact of the Costa Concordia disaster was announced after the company’s recent move to become a public company.

Full year revenue was up by 2.6% to $2.27 billion with an improvement in yields put down to increased fares and onboard revenue.

Norwegian posted a fourth quarter net profit of $5.6 million against a loss of $1.9 million in the same period in 2011, despite a rise in fuel costs.

Looking forward, the company expects a further improvement in net yields of between 3.5% and 5.5%.

The line takes delivery of Norwegian Breakaway, the first of two new ships, in April, along with a Breakaway Plus vessel due to enter service for in autumn 2015.

President and chief executive Kevin Sheehan said: “While 2012 included some unexpected challenges in the macro environment, our results demonstrate our ability to manage our operations through these external factors and report healthy growth.

“We are very pleased to begin our journey as a public company by posting strong results for 2012.

“In addition, our fourth quarter results marked our 18th consecutive quarter of year-over-year adjusted EBITDA growth.

“2013 marks the beginning of the next chapter of Norwegian’s growth story,” he added.

“The delivery of our Breakaway and Breakaway Plus class vessels, designed to improve on the already successful platform of Norwegian Epic, along with our strong product proposition that offers a consistent experience throughout our fleet, has Norwegian well positioned for 2013 and beyond.”