To Tip or Not To Tip?

FROM MY own observation (mostly on line), there appears to be a lot of confusion about how the process of gratuities ("tipping") works on cruise ships, as well as substantial disagreement about the subject. Usually it starts with a question from a new cruiser, but the resulting information and opinions are all over the place. Lets try to shed some light on the process.

The entire auto-gratuity process seems to me to be a disingenous act by the cruise lines to "sugar coat" additional employee costs while making the advertised price look lower

LET ME be the first to acknowledge that I did not do a company-by-company survey on how each cruise line handles its gratuities process. I have read enough and had enough personal experience though, to know that although it varies somewhat from line to line, it is generally handled the same way. The general approach is to add a "gratuity" fee to the basic cruise price; usually on a daily basis. In addition, every time you engage an extra paid service, an additional gratuity is added. Our drink package is a daily amount with a gratuity added on. If you book a meal in a specialty restaurant, a gratuity is added. These amounts are distributed among the crew at the end of the cruise. This process looks to be pretty common. The formula for distribution, however, appears to vary a fair amount between lines. None of the lines are particularly transparent about how the gratuities are handled. It appears to be a common practice for the cruise line to subsidize their pay obligation to crew members. Each crew member signs a contract with the ship for a set period. That contract provides for a pay amount per the contract. It is my understanding that the crew member gets that amount no matter what else happens. It gets a bit more murky from there. Apparently, The crew income is based on an assumption that all passengers will pay their gratuities as assessed. If the total amount of gratuities in not enough to cover the employee's contracted amount in addition to their base pay, the line will make up the difference. If by chance the "gratuities revenue" exceeds the amount needed to meet contract, the crew will get some additional. I really don't know the minute details, but the general impression I get is that by charging a (optional - if you are aware of that) "gratuity," the cruise lines make it appear that your "base" cruise cost is lower than it actually is, all the while using the gratuity as part of their contract obligations. The quotes in the sidebar below are pretty telling:

THERE IS an articulated reason for adding the gratuity on as part of the daily cruisers' fees, rather than defaulting to leaving tipping to the individual passengers. Assessing the gratuity as part of the payments to the cruise line (theoretically) injects a fairness into the process by ensuring that all employees share in the tips rather than just the ones who are "out front." As most cruisers know, there are a lot of "behind-the-scenes" crew on cruise ships. 

these added "gratuities" (fees) are not mandatory

AS THEY say, however, "the devil is in the details." The Celebrity Edge series - which is a ship class we have sailed on many times - for example, has just under 1500 crew members. Let's assume that about 25 - 30 of them are officers, who presumably do not share in the gratuities. Think about your recent cruises. How many crew members to you regularly interact with? More to the point, what is their onboard function? They are, in general, the "face" of the ship, and include your room steward (an assistant, if applicable), wait staff, bartenders and possibly staff members at the customer service desk. That is a fraction of the crew members aboard. While once again, largely anecdotal from on-line sources, it appears that in some instances the gratuities are distributed among only some of the crew, and not necessarily in the same percentages.

HAVING WORKED in the food service industry (but always as a behind-the-scenes worker), I know there are a lot of very hard working, but unsung employees who cook, assist in the kitchen, wash dishes, do laundry, maintain the ship's appearance inside and out, and other similar jobs that we might characterized as "unskilled labor." Do they get some of the revenue? Do they deserve some of it? I think so, and I would like to think they do.

might it be more pellucid to simply charge slightly more, pay the workers commensurately, . . .  and end this little charade of "gratuities"?

IT IS not necessarily commonly known that these added "gratuities" (fees) are not mandatory. You may ask to have them removed (though it appears you may have to do that onboard at the customer relations desk in some instances). To many, it "feels" wrong to be charged this way. Many articulate the desire to decide who and when they tip. I personally don't like the fact that the ship lines dictate the amount of the tip (thought as well as having them removed, in most cases you can also simply adjust them down or up), and who gets them and how much.

EVEN SO, we always leave them on. I am not sure I know any other way to ensure that those "unsung" employees share in the tip, even though I have little say in the application of those fees. The entire auto-gratuity process seems to me to be a disingenous act by the cruise lines to "sugar coat" additional employee costs while making the advertised price look lower. I begrudge the company a fair profit, but I do think they ought to be transparent about the processes that involve customers' money - especially when it is a discretionary decision by the customer. To me, many of these crew members are well underpaid (more on that below), and mighten it be more pellucid to simply charge slightly more (I am confident that most cruisers leave the gratuities on - for various reasons), pay the workers commensurately, and end this little charade of "gratuities"?

What I am certain of is that their standard of living is multiples below mine

KNOWING THE variables and uncertainties of the daily "gratuities," should you engage in additional tipping? Lots of "for" and "against" here on the online chatter. We do. Many don't, their thinking being that the cruise is supposed to (resemble?) be an all-inclusive experience, and gratuities have already been paid as part of their daily cruise fees. They are not wrong (in fact, like so many parts of this equatioin, there are no absolutely right or wrong answers here). Much of our justification for "extra" tipping is based on two factors. In the beginning, it was our belief that if we got to know some of the wait staff (mostly bartenders) at the beginning of the cruise and were generous with tips, we would be remembered and treated accordingly. I continue to believe that is true (it is not that we want to think of ourselves as "special" or entitled, but we do appreciate the attentive service and we are somewhat particular about our coctails). We also wanted to show some appreciation to room attendants and "regular" wait staff (with the move away from set dining options, we are less likely to do that these days). The second line of though is perhaps more sentimental. We spend a fair amount of time in a couple of the bars (me usually in the cigar smoking area), on board and become "regulars" to some of the bartenders/servers there. Enough so to become friends with some of them (I facebook friends with two bartenders who we have actually seen on multiple cruises). We learn things about them.

THERE ARE, of course, cultural differences. Most Americans - think of tipping as a reward for good service (though that may be a generational thing whose time has come and gone), and should not be treated as a component of overall compensation In the U.S. for certain jobs in the food service industry like wait staff  it has (unfortunately in my view) become at least a partial component of compensation. U.S. employers often pay wait staff below the normal "living wage" for other workers, anticipating that it will be made up by a certain average amount of tips. Other cultures we have experienced in places like Asia and Europe, look at it differently. In most of those cases the service providers are paid a reasonable living wage. In Japan, tipping is not only not done, but can in some instances actually considered an insult. In Europe it is not expected (though with the explosion of worldwide tourism, that is actually changing) and when it is done it is as a measure of appreciation for great service - and it is generally not done in the amounts we do in the U.S. This comes into play because on many cruises the passenger mix these days is multi-national, making attitudes toward gratuities in general, varied.

If you remove the "gratuities" portion of your cruise daily costs, you might be penalizing many of the crew, who you don't see (perhaps ever) and don't directly tip

BEFORE YOU come to any conclusions about your own tipping practices, there are are a few things to think about. If you remove the "gratuities" portion of your cruise daily costs, you might be penalizing many of the crew, who you don't see (perhaps ever) and don't directly tip. Why should it matter? Here is my thinking: Over the years I have cruised I have found that a substantial percentage of the crew come from what we might euphemistically call "third world countries." I will use Indonesia as an example because I have gotten to know a few Indonesian crew members. According to my online sources, the typical Indonesian makes the equivalent of $300 to $500 per month (sources were a little confusing, as what I could find suggested that this is under what the cost of rent for a dwelling would be. Perhaps many if not most Indonesian families share a dwelling between 2 or more families)? What I am certain of is that their standard of living is multiples below mine (and I would classify myself as "middle class"). I have read that these crew get paid $15 - 20 per day (which is in line with their home country standards, but certainly not tearing it up). Think about what an extra $5 - $20 from just one of us passengers means to them. The two guys I had the most in-depth conversations with over the past couple years shared that they have families with young children back home. These amounts are really nothing to us (in the great scheme). But they mean a lot to the crew members. For sure, we are not going to "save the world" by tipping a handful of persons on the ship. But it gives us a good feeling to do more than just expect to be served. And we do see that most crew members go over and above to make the experience fun and enjoyable.

I AGREE with the ex-management comment above about how to tip. We always tip in cash. Right or wrong, we feel that the intended recipient is more likely to benefit from it that way. Right or wrong, we believe additional cash tipping is a good thing.