Service charge ending!

Well that did it! I can change my signature line now.

The simplest solution is to raise the price of the cruise as that gives them a marketing advantage. Any tips given to crew should of course be theirs to keep.

My other cruise line Marella have been doing this for years and it works for them.

The BIGGEST advantage is no more tipping threads

They just need to add a sensible drinks package to meet the needs of their future british market

Yipee,

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It does appear that for once they have listened to what customers have said. Both those of us who paid up and felt we were subsidising the costs for others and those who simply voted with their tip removal form.

Well done to P&O for listening to customer views (and presumably staff who were affected as well by fewer people tipping overall).

Im sure they will get the money back one way or other but at least the pricing structure will be fair to all and new cruisers won’t have to worry about not knowing about it.

We will however have to be more imaginative about thread topics on here as 33% of them will disappear in one go with the removal of tipping threads. Dress code debate anyone?😀

Flo, apparently not, this is a reply from P&O a few minutes ago on FB.

 

Hi Philip, we are not planning on increasing any of our fares. The discretionary daily Service Charge is no longer applicable. ‘Tipping’ staff is neither required nor expected but if you choose to do so then

that's entirely your decision. We hope this helps [emoji846]

 

That is a seismic change.

 

 

 

 

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Lovely, makes budgeting easier now, thank you.

Hallelujah! People power has won.

Clearly prices can't increase for those already booked but, in spite of what P&O are saying, they will obviously need to recoup the lost revenue somehow, most likely through price rises (although, due to P&O's constantly changing 'fluid pricing' it will be nigh on impossible to detect, hence their claim). I'm fine with that though, as it's only fair that everyone pays their way, something that doesn't happen at present. With the numbers currently removing the auto charge, the actual revenue that they need to recoup will probably only equate to around £3 per passenger per day and that's not really going to register.

There's no way that they would trumpet the abolition of a discretionary service charge only to impose a compulsory one. That would be a catastrophic PR own goal. They will use this as a marketing message to attract new (younger) cruisers who would find the current system completely alien to them. They are going to have to rely on that demographic to fill the vast capacities of the new mega ships, so it's a very sensible move.

Well done P&O for listening to customer feedback and responding to it. We shall continue to tip the hard working staff if they go over and above.

I imagine the timing just ahead of the release of summer 2020 cruises, means that those prices will be increased to cover the cost; and presumably fluid pricing will cover the increase for new bookings of summer 2019 cruises.

What that increase is likely to be, who knows, but it will certainly make cruise pricing a more level playing field.

Hallelujah! People power has won.

 

There's no way that they would trumpet the abolition of a discretionary service charge only to impose a compulsory one. That would be a catastrophic PR own goal. They will use this as a marketing message to attract new (younger) cruisers who would find the current system completely alien to them. They are going to have to rely on that demographic to fill the vast capacities of the new mega ships, so it's a very sensible move.

 

This is excellent news indeed, and I completely agree with this comment. It will attract younger cruisers, next to go will be the formal dress code and then P&O should be able to fill its new ships much easier. My guess is that the marketing for Iona might be a little different than previous ships.

yippee...good news for us next October and January 2020 hurrah

Hallelujah! People power has won.

 

Clearly prices can't increase for those already booked but, in spite of what P&O are saying, they will obviously need to recoup the lost revenue somehow, most likely through price rises (although, due to P&O's constantly changing 'fluid pricing' it will be nigh on impossible to detect, hence their claim). I'm fine with that though, as it's only fair that everyone pays their way, something that doesn't happen at present. With the numbers currently removing the auto charge, the actual revenue that they need to recoup will probably only equate to around £3 per passenger per day and that's not really going to register.

 

There's no way that they would trumpet the abolition of a discretionary service charge only to impose a compulsory one. That would be a catastrophic PR own goal. They will use this as a marketing message to attract new (younger) cruisers who would find the current system completely alien to them. They are going to have to rely on that demographic to fill the vast capacities of the new mega ships, so it's a very sensible move.

 

Well done P&O for listening to customer feedback and responding to it. We shall continue to tip the hard working staff if they go over and above.

If they are clever then this should be part of their new mantra for selling the company.

‘Tipping’ staff is neither required nor expected but if you choose to do so then you can.

Be very surprised if this is not used in the blurb for the new cruises on sale next month.

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oh and it will be nice to actually use the OBC for ourselves instead of it being to cover grats

A big thumbs up to P&O.

Well done

If they are clever then this should be part of their new mantra for selling the company.

 

‘Tipping’ staff is neither required nor expected but if you choose to do so then you can.

 

Be very surprised if this is not used in the blurb for the new cruises on sale next month.

 

 

 

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Completely agree. Whenever I see messages like that elsewhere I am always impressed - and these statements are often made in places that give excellent service. It's a very strong marketing message.

Yay - no more tipping threads!

Except there will be some, because people will want to express their thanks to cabin steward, waiter etc. and will seek advice as to how much.

But hopefully a lot less. :D

I wish Cunard would follow suit.

oh and it will be nice to actually use the OBC for ourselves instead of it being to cover grats

Agreed, although a slight reduction in OBC may well be the way that P&O recoup the revenue, rather than through the advertised prices.

Except there will be some, because people will want to express their thanks to cabin steward, waiter etc. and will seek advice as to how much.

But hopefully a lot less. :D

I wish Cunard would follow suit.

Well it is rumoured that Cunard are trialling a drinks package on QM2 so you never know they might follow suit.

I wonder if this will affect the share price? If so there could be a few moans from share holders, especially as they get extra OBS and that gets affected too.

Sam.

I wonder if this will affect the share price? If so there could be a few moans from share holders, especially as they get extra OBS and that gets affected too.

Sam.

Unlikely. The share price would only drop if the change would result in a drop in revenues. P&O will cover this income off elsewhere (pricing / OBC etc) and the ability that they now have to market their cruises as 'Service inclusive' will be highly lucrative to them IMO. Besides, P&O UK is but a tiny part of Carnival Group. Why is shareholder OBC affected? I see no link between the two?

I wonder if this will affect the share price? If so there could be a few moans from share holders, especially as they get extra OBS and that gets affected too.

Sam.

Doubt it really as P&O are a small part of Carnival and unlikely to impact on their overall profitability. And as already mentioned - a small reduction in the obc offered, a small increase on future cruise prices, 25p/50p on a bottle of wine - lots of ways to recoup in small ways that the customer might not notice or even if they do, won't find as obvious or annoying as the huge % increases in the service charge which has been the case in the last couple of years or so. I really think it was the speed of increases and the fact that more people were removing the charges as a consequence which has tipped the balance in the minds of many, leaving fewer and fewer paying the gratuities in full. At least now, however they recoup some/all of the lost revenue at least it will be fairly spread across all passengers.

I expect they have been planning this for a while so any price increases have already been added, which probably explained why some people have been saying prices have risen. Which I don’t mind at all as it means we are not subsidising others who were removing the tips.

What I am hoping is not going to happen is for them to move to all inclusive as I certainly don’t want to be paying for alcohol we don’t want to drink or indeed being on a ship full of people trying to knock back as much alcohol as they can, morning, noon and night.

Yay!

I wonder if this will affect the share price? If so there could be a few moans from share holders, especially as they get extra OBS and that gets affected too.

Sam.

I really do not think it will effect profit. As others said P&O is only a small part of the larger corporation. Cruise lines start with a higher price on a cruise when first listed and then drop the price if cabins are unsold. The price drop is not always in lower cruise fares, many times it is in added benefits. But if they sell more cabins before needing to adjust the pricing then in theory they could make more money.

I believe that a main line cruise company that does not charge a service fee will attract more guests at a higher overall cruise fare. Which is to the benefit of guest booking early, if you like to wait and grab last minute deals you could be out of luck because the cabins will be sold out.

if the tips are an 'extra' for staff how will P and O need to recoup the 'loss' There is no loss to P and O. the loss is to

the staff isn't it?

P&O state that "the discretionary daily Service Charge on board will be removed in May 2019"

Psychic Sally says;

What they've failed to mention is that "a compulsary daily gratuity will be added from September 2019" :rolleyes:

P&O state that "the discretionary daily Service Charge on board will be removed in May 2019"

 

 

Psychic Sally says;

 

 

 

What they've failed to mention is that "a compulsary daily gratuity will be added from September 2019" :rolleyes:

It's way more likely they would just increase future fares to cover it, as that isn't so obvious and will cause less complaints.

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if the tips are an 'extra' for staff how will P and O need to recoup the 'loss' There is no loss to P and O. the loss is to

the staff isn't it?

The loss to P & O will be because they may no longer use these fees to show a higher wage to the crew. Under the current system they can quote a lower wage plus monthly share of the service charge. So the monthly pay looks better to the crew. And if as many have said not all these frees go to the crew that would be a loss to the corporation.