Cruise Ship Tipping Etiquette

Cruise Ship Tipping Etiquette

 By John Honeywell

Nobody wants to talk about tips on cruise ships. Making new friends over the dinner table, passengers are happy enough to reveal what a bargain they got with their last-minute fare and they’ll swap advice about the best place to buy duty-free cigarettes in Gibraltar or booze in the Caribbean.

But who would want to show themselves up as mean and tight-fisted over the gratuities which are in most cases an essential part of the pay-packets of cabin stewards and restaurant waiters?

That doesn’t stop the passengers queuing up at the reception desk on day one of a cruise to demand that the automatic daily charge for tips is removed from their on board account. Good luck to anyone who has a pressing problem they need to speak to the purser about. Bathroom flooded or bed unmade? Television not working or wardrobe door hanging off? Sorry, you’ll have to wait.

It might not be a subject for discussion but tipping is certainly one that raises temperatures, among the Brits at least. We’re not talking about our American cousins here; they are happy to shower dollar bills on everyone from bellboys to barbers. And I have a very good friend – as British as John Bull – who would always hand out a generous tip on day one with the promise that there was plenty more where that came from if he was looked after properly.

But try checking what the tipping arrangements will be on your next cruise and you’ll discover the cruise lines themselves are reluctant to make a song and dance about the subject.

The details are in the brochures and on the websites. It’s just that they are tucked away in the small print and hidden among the FAQs.

  • P&O’s rates are going up from £3.10 per person per day to £3.50, effective on different ships from different dates, starting with Oriana on March 28 and Aurora last to join the party on April 24.
  • Fred Olsen Cruises add £4 a day, while on Norwegian the cost is $12 (£7.50). On Royal Caribbean the extra charge is $11.65 (£7.35) per passenger, rising to $13.90 (£8.75) in a suite.
  • For Cunard’s Britannia-class passengers it’s going up from $11 a day to $11.50 (£7.25) and for those travelling in Princess Grill or Queens Grill the increase is from $13 to $13.50 (£8.50).

Cunard say it has been some time since the rates were increased, and that the charges are “benchmarked against many other leading cruise lines.”

If you’re travelling with an ultra luxury line, for example Seabourn, Crystal or Silversea, gratuities are included.

Elsewhere, Thomson, Saga, Swan Hellenic and Voyages of Discovery are also gratuity-free zones.

All of which is worth bearing in mind when working out the cost of your next cruise.

Wave season off to strong start

Wave season off to strong start

By Tom Stieghorst

Cruise ships in St. MaartenAfter last year’s aborted Wave season, the cruise industry has been counting on a good start to 2013, and most early signs point to the likelihood that it will get one.

Several suppliers and agents reported last week that the first two weeks of Wave had been positive. In fact, some were clearly beyond encouraged.

“I have put more business on the books in the first full week of January than any other January since I’ve been in business,” reported Chuck Flagg, a Cruise Holidays franchisee in Atlanta.

On the other side of the coin, some sellers said bookings were up but only modestly, while a handful reported that January has been slow.

Suppliers have offered a raft of incentives to nudge fence-sitters to pick up the phone.

Many cruise lines are owned by publicly traded companies and can’t speak to booking trends directly. But privately held lines that are free to comment said early January sales bode well for 2013.

Among them is Windstar Cruises, which just finished a major renovation of its three books for 2013 is 54% ahead of where it was this time last year, said Marketing Vice President Joe Duckett.

“We are significantly ahead of even last year’s great pace,” he reported.

Duckett said that several 2013 sailings have already sold out. Prices in general are slightly higher than last year, although Windstar has offered targeted incentives for Wave season.

At MSC Cruises, Wave season’s kickoff was in line with expectations, said Rick Sasso, president of MSC Cruises USA. He said bookings were “quite good” in the U.S., but MSC is keeping an eye on consumers in Europe, where the booking lead times are still relatively close.

“I assume they will slowly start to return to normal, but it has taken longer than what we normally see as a recovery,” Sasso said.

A greater emphasis on the Continent

Europe has assumed a bigger role in cruise bookings over the past decade, both as a source market and as a destination as more North American lines move capacity there.

The summer months are especially key, and in 2012, they were a drag on cruise line profits.

Reports on European sales from travel agents were a mixed bag, with some saying airfares are still a sticking point and others saying lines are successfully countering high fares with incentives.

“I am finding a few prospective clients,” said Carolyn Nemia, a Cruise One agent in Mays Landing, N.J. But she added, “The air is a killer.”

Nemia said January started slow for her, better than last year but nowhere near January 2011.

Windstar said that one of its runaway best-sellers is a Baltic Sea itinerary. The company has shifted capacity to Northern Europe, taking it from a variety of other itineraries, and the move has paid off.

Windstar has also seen better-than-expected demand for cruises in Turkey and Greece, ground zero for last year’s European economic crisis.

One incentive that has proven successful for Windstar is a two-for-one fare plan that includes two free nights in a hotel pre- or post-cruise. “We tested a lot of offers, and this one appears to be doing well for us,” Duckett said.

In the Caribbean, Windstar offers two-for-one fares with bonus savings of up to $1,000 per cabin. Both offers expire March 2.

“We built these offers specifically for Wave season,” Duckett said.

Agents cited Celebrity Cruises’ “1-2-3-Go!” promotion as another that they have found to be effective with clients. It lets passengers choose from a menu of incentives, either a free drinks package, free gratuities for two or shipboard credits of up to $300 per person.

Scott Koepf, vice president of sales for Avoya Travel, said he has seen a shift in what kind of incentives work best.

“A shipboard credit is not as much of a trigger as it used to be,” he said. “It got saturated.”

Koepf said free or reduced airfares seem to be working better this year.

Avoya, a network of hundreds of independent agencies (ranked No. 41 on Travel Weekly’s 2012 Power List), is seeing a stronger first half of January than it saw in 2012, Koepf said. He cited escorted tours and river cruises as particularly strong.

“We all know that river cruise is the sweet spot in the industry right now, and we’re doing a tremendous amount of river cruises,” he said.

Booking further out

One of the key dynamics in cruise revenue is to lengthen the booking window to reduce discounting as ships near departure. Koepf said that travelers do seem to be booking further in advance, but it is hard to tell because Wave season bookings by their nature tend to skew longer.

“You have people where on the second of January, they plan their vacation every single year,” he said.

Travelers booking Europe and Alaska also tend to jump early because those cruises are limited to the summer months. “I don’t think it portends to any particular trend,” Koepf said.

Several agents said Alaska is doing well and they already see prices heading higher there.

“I see a huge uptick in Alaska,” said Shari Marsh, a Cruise Holidays agent in Durham, N.C. “Of the [clients] who have already inquired and booked, almost all of them are Alaska.”

Marsh said the phones started ringing on Jan. 3 and haven’t let up, but the inquiries outnumber actual sales.

“There’s a whole lot of talking and not a lot of pulling the trigger,” she said.

Marsh said she is optimistic that with the number of quotes she has on her desk, some will become sales by February.

“I’ve got a lot of new clients that are coming through the front door,” she said.

Sarah Waxler, president of Travel Leaders Durham, in Durham, N.C., echoed Marsh’s observation.

“Inquiries are definitely up,” she said, adding that close-in prices are low enough to attract attention, while “prices are not as good for later in the year when most people want to go.”

Some cruise network executives said it was too early to offer meaningful comment on how strong the Wave season is or what it means for 2013.

Traditionally, Wave-related early bookings extend through February.

The initial verdict on Wave season will likely come from Royal Caribbean Cruises Ltd., which will be the first of the major publicly traded cruise companies to host a conference call for analysts when it issues its Q4 and annual results.

Last year, Royal’s results were released on Feb. 2. A spokeswoman said a date for this year’s earnings call has not yet been set.

World cruise means prestige for lines, profitability for agents

World cruise means prestige for lines, profitability for agents

By Tom Stieghorst
January is world cruise season, and this year a dozen ships are sailing on three- to four-month voyages around the world. It’s a time-honored tradition, especially for luxury lines.

So leave it to one of the industry’s iconoclasts to question whether the tradition makes sense.

“In my view, the world cruise is the itinerary of last resort,” said Frank Del Rio, chairman of Prestige Cruise Holdings. FrankDelRio

He said the long stretches of blue water and high costs make a world cruise less profitable than it might appear.

“We do very well in the winter without a world cruise,” he said.

Del Rio is swimming against the tide. At least nine cruise lines will offer world cruises this year, including six that will circumnavigate the globe. Three will last 115 days.

Proponents say a long, slow winter cruise to exotic ports is just the thing many cruise fans aspire to. Having the option of a world cruise cements loyalty with top customers, just as not having a world cruise opens the door for other cruise lines to steal a valued client, perhaps for good.

For travel agents, a world cruise sale is a nice bonus.

“It’s not that common an item, but it’s very profitable,” said Cruise Brothers agent Bob Newman, who has sold four world cruises in 15 years. “People love them.”

World cruises date at least to 1923, when Cunard Line’s Lanconia completed a 130-day trip that visited 22 ports. The institution remains strongest in the U.K., where two Cunard ships and three P&O Cruises ships leave Southampton, England, on world cruises this year.

2013 WORLD CRUISE MAPThe longest world cruises, at 115 days, are those operated by Holland America Line, Seabourn Cruises and Silversea Cruises. (Click here or on the image, right, for a view of a map of 2013 world cruise offerings.)

Last year, Crystal Cruises simultaneously offered for sale world cruises in 2013, 2014 and 2015, including a full 108-day circumnavigation in 2015 that will mark the line’s 25th anniversary.

Mimi Weisband, a spokeswoman for Crystal, said about 400 passengers have booked the full 2013 world cruise aboard the Crystal Serenity, while the balance are taking one or more segments of the cruise.

“There are hundreds of guests for whom Crystal Serenity is their winter home,” Weisband said.

Those guests tell other guests about the voyage and act as brand ambassadors, she said.

A full world cruise has a rhythm all its own, Weisband said. Lines offer progressive enrichment programs that encourage passengers to take all segments of the cruise.

Weisband said today’s world cruise customer often doesn’t fit the stereotype. Some are entrepreneurs who can operate their businesses remotely. Others have children and tutors in tow.

“Years ago the image was some elderly person sitting on a deck with the blanket in their lap,” she said, but today’s world cruise passenger “is active and engaged.”

An active and engaged passenger is just the kind of cruiser targeted by Oceania Cruises and Regent Seven Seas Cruises, the two brands operated by Del Rio’s Prestige Cruise Holdings. And neither line is offering a traditional world cruise this year.

Del Rio said world cruises are hard to fill and that segments are more popular than the cruise as a whole.

“The most successful world cruise Regent had was only 40% full for the world cruise,” he said.

In 2011, Regent offered a world cruise from San Francisco to Southampton that ran from January to June. But this year, two of Regent’s ships are doing long cruises in South America and Asia, while the third is doing 10-day Caribbean trips from Miami.

Del Rio said that is a more efficient deployment than a world cruise, despite its eye-popping price. “Yes, it is a longer cruise, so they’re writing a bigger check, but the per diem yields are not as high,” he said.

Mary KleenFor travel agents, a world cruise can be a big payday.

“We love them,” said Mary Kleen, general manager at Pisa Brothers Travel, New York. “There’s no better sale in cruise travel.”

Pauline Power, director of cruises at Altour in New York, said the commission on a Queen’s Grill cabin on the Queen Mary 2 can amount to $30,000 to $35,000. “Those sort of bookings don’t come along every day,” she said.

The trade-off is that agents must be knowledgeable about a large number of ports and supply the kind of detailed, personalized service clients expect when they’re spending $250,000 on one super-long sailing.

“If you don’t know what you’re talking about with the client, they’re just going to go elsewhere,” said Newman of Cruise Brothers.

And even Del Rio agreed that once a cruise line has eight or nine ships, it can afford to deploy one of them on a world itinerary. At Seabourn, world cruising started in 2009 when it doubled its fleet from three to six ships, said John Delany, senior vice president of marketing and sales.

“We do one a year,” Delany said. This year, the Seabourn Quest will make a 115-day, westward sailing from Fort Lauderdale to Venice.

Delany said it is not only the size of the fleet but the size of the ships that can determine the profitability of a world cruise. Seabourn only has to fill 225 cabins on the Quest, he noted.

“Because our ships are small, we may not have the challenge of filling them to the same extent as some competitors,” Delany said.