Service Charge (Tips) Increase

[Boytjie]

Collecting the HSC as a portion of the fare does not mean that you are increasing the crews' wages. It just changes the timing of the collection, that's all. Other cruise lines do it by requiring the pre-payment of tips upfront and it seems to work fine.

 

I have sailed on HAL, Princess, Cunard, NCL and MSC and they all charged the HSC to our onboard account.

Edited September 29, 2015 by Boytjie

[kazu]

True. You can have the VAT refunded, but it's much more complicated than removing the HSC.

 

It certainly is and it is not all refunded - a portion. You need to get to the right place at the airport. And you need to spend X dollars on each purchase. The rest is not refundable.

 

If you are sailing out of the country and heading across the pond there is no way I know of to get the VAT refunded. Sad, but true.

 

I will do some asking again this year for sure.

[sail7seas]

It certainly is and it is not all refunded - a portion. You need to get to the right place at the airport. And you need to spend X dollars on each purchase. The rest is not refundable.

 

If you are sailing out of the country and heading across the pond there is no way I know of to get the VAT refunded. Sad, but true.

 

I will do some asking again this year for sure.

 

Yes, this. ^^

 

There were times even when we flew home from Europe, it was so convenient to apply for VAT refund that it made it impractical and we forfeited the refund. Of course, it was intended for that to be the hoped for result.

 

[3rdGenCunarder]

It certainly is and it is not all refunded - a portion. You need to get to the right place at the airport. And you need to spend X dollars on each purchase. The rest is not refundable.

 

If you are sailing out of the country and heading across the pond there is no way I know of to get the VAT refunded. Sad, but true.

 

I will do some asking again this year for sure.

 

You're right, there is a minimum purchase. And it's only for items you take home with you, not things you've "consumed," like food, hotel rooms, or theater tickets. I've sailed home many times, boarding at all three Southampton terminals over the years, and I never saw a way to do the VAT refund. Somewhere I went had a form you could just mail in, but I don't think it was the UK.

[cbr663]

I have sailed on HAL, Princess, Cunard, NCL and MSC and they all charged the HSC to our onboard account.

 

Passengers of Royal Caribbean and Celebrity who select My Time Dining are required to prepay their gratuities. When we sailed with X this past January, we did not have My Time Dining and did not have to prepay. Instead, three days prior to sailing X made us an offer to prepay our gratuities using CAD$ instead of US. I jumped at this offer and appreciate that X makes the extra effort to encourage passengers to pay the gratuities. This is something that I wished HAL would adopt.

Edited September 29, 2015 by cbr663

[Lizzie68]

It certainly is and it is not all refunded - a portion. You need to get to the right place at the airport. And you need to spend X dollars on each purchase. The rest is not refundable.

 

If you are sailing out of the country and heading across the pond there is no way I know of to get the VAT refunded. Sad, but true.

 

I will do some asking again this year for sure.

 

You get the forms at the airport before flying back. Keep receipts for your purchases.

Edited September 29, 2015 by Lizzie68

[Stratheden]

How does P&O Australia handle the service charges? Paid up front? Built into the fares?

 

I've not travelled on P&O Australia so I don't know offhand.

 

I have searched the website and can't find any mention of a HSC. They do say that if you want to tip a crew member you can add it to your Onboard account.

 

I have asked a question on CC on the P&O Australia forum.

[POA1]

I've not travelled on P&O Australia so I don't know offhand.

 

I have searched the website and can't find any mention of a HSC. They do say that if you want to tip a crew member you can add it to your Onboard account.

 

I have asked a question on CC on the P&O Australia forum.

 

Thanks. I was just curious to see if they have a policy that's more acceptable to Australians.

[3rdGenCunarder]

You get the forms at the airport before flying back. Keep receipts for your purchases.

 

Kazu was talking about sailing home. Ship terminals don't have this service.

[Stratheden]

Thanks. I was just curious to see if they have a policy that's more acceptable to Australians.

 

This is the reply that was posted. :)

You bought your fare in Australia . It is usually included in the cruise price.

The same cruise bought in the US or Canada the charge isn't included.

[GUT2407]

I've only sailed P&O once and I am all but certain the grats were in the fare and not added daily to your account.

[GUT2407]

I've only sailed P&O once and I am all but certain the grats were in the fare and not added daily to your account.

 

That was about 7 years ago though.

[POA1]

This is the reply that was posted. :)

You bought your fare in Australia . It is usually included in the cruise price.

The same cruise bought in the US or Canada the charge isn't included.

Thanks. That would make sense. You're still paying it, but it's administered in such a way as to account for cultural differences.

[dfish]

You're right, there is a minimum purchase. And it's only for items you take home with you, not things you've "consumed," like food, hotel rooms, or theater tickets. I've sailed home many times, boarding at all three Southampton terminals over the years, and I never saw a way to do the VAT refund. Somewhere I went had a form you could just mail in, but I don't think it was the UK.

 

in 2013 when I was in Ireland we had forms that we could drop in any mailbox. It was very convenient and the first time I took advantage of being able to have a portion of the VAT returned to me.

[doublebzz]

Collecting the HSC as a portion of the fare does not mean that you are increasing the crews' wages. It just changes the timing of the collection, that's all. Other cruise lines do it by requiring the pre-payment of tips upfront and it seems to work fine. If you have to pre-pay something upfront, obviously the cruise line has to be transparent about it.

 

The argument that HAL should never increase wages as the crew would have to pay more to landing agents is absurd imo. That's akin to refusing a pay raise from your boss as you would now have to pay more income taxes. Under that argument, crew wages would never increase.

 

As for 3rd or 4th guests travelling for free and not having a fare, that is just a simple accounting function. Debit the account the cost of the fare and HSC, and then simply credit the account the fare amount leaving the HSC as the only amount owing.

 

Other cruise lines have shown that it can work. Really, it's not all that hard.

 

Your analysis is right on.

 

Also, the argument that the cruise line would have to pay TA commissions on tips collected is equally absurd. First, the cruise line determines what items are commission-able and what are not. When lines charge "pre-paid gratuities", that portion of the cruise fare is non-commission-able; likewise port fees and taxes.

[sail7seas]

While I agree the cruise line could make pre-paid HSC non-commissionable that does nothing about the fact we've been told the crew that receive tips must report them and are taxed or charged a percentage to the agency that placed them as seamen. The same amount of HSC becomes 'declarable' and fees are charged against it so the crew net a lower amount.

[Hows the Serenity]

While I agree the cruise line could make pre-paid HSC non-commissionable that does nothing about the fact we've been told the crew that receive tips must report them and are taxed or charged a percentage to the agency that placed them as seamen. The same amount of HSC becomes 'declarable' and fees are charged against it so the crew net a lower amount.

 

 

 

Interesting post. Does anyone know if the cruise companies also pay fees to these agencies, or is it just the employees????

Chris

 

 

Sent from my iPad using Tapatalk

[doublebzz]

While I agree the cruise line could make pre-paid HSC non-commissionable that does nothing about the fact we've been told the crew that receive tips must report them and are taxed or charged a percentage to the agency that placed them as seamen. The same amount of HSC becomes 'declarable' and fees are charged against it so the crew net a lower amount.

 

Sorry - don't follow this. Whether the crew gets a portion of the service charge before the cruise; i.e. pre-paid gratuities, or upon cruise completion, how does that affect the percentage it pays the agency.

[emmieepoo]

But you agree to pay the cruise fare... Hope you have family members that work for tips and feel the same wat.. Hope the money you save will make you happy.But HAl staff that bent over to serve you will not be fired because you refused to tip

 

 

I do like the money in my pocket instead of theirs!

[RuthC]

Sorry - don't follow this. Whether the crew gets a portion of the service charge before the cruise; i.e. pre-paid gratuities, or upon cruise completion, how does that affect the percentage it pays the agency.

If the HSC were to be added to the fare, which is what many people suggest should be the procedure, then the crew would have to include that money in the amount on which their agency fees are calculated.

When it is distributed as HSC, it is not counted as part of the amount on which the crew pays the agency fee.

 

Either the crew would net less money, or the passengers would have to pay more for them to net the same amount. The rest would be going to the agencies that place them.

[sail7seas]

Sorry - don't follow this. Whether the crew gets a portion of the service charge before the cruise; i.e. pre-paid gratuities, or upon cruise completion, how does that affect the percentage it pays the agency.

 

If the HSC were to be added to the fare, which is what many people suggest should be the procedure, then the crew would have to include that money in the amount on which their agency fees are calculated.

When it is distributed as HSC, it is not counted as part of the amount on which the crew pays the agency fee.

 

Either the crew would net less money, or the passengers would have to pay more for them to net the same amount. The rest would be going to the agencies that place them.

 

Exactly. ^^

 

 

[GUT2407]

And of course the lines could negotiate a lower % on the agencies.

[sail7seas]

They must think the system is fine just the way it is. ??

 

[GUT2407]

While I agree the cruise line could make pre-paid HSC non-commissionable that does nothing about the fact we've been told the crew that receive tips must report them and are taxed or charged a percentage to the agency that placed them as seamen. The same amount of HSC becomes 'declarable' and fees are charged against it so the crew net a lower amount.

 

Well why don't those same agencies charge on tips now, after all they know how much a day each crew gets on auto tips.

[POA1]

Well why don't those same agencies charge on tips now, after all they know how much a day each crew gets on auto tips.

The fare is commissionable. The taxes, fees, and service charges are not.

 

<RANT>

 

To be quite frank, if I were as bothered as some of you are by the HSC, I'd be taking some other sort of vacation. If you are concerned about living wages, and making sure that the employees are taken care of, tip extra. Make it rain for crying out loud.

 

Once you are here, participating in the discussion, you're clearly aware and utterly unsurprised when you are charged HSC on your next cruise. Some of you have been at this for years. You know there's a hotel service charge. Figure it in to your cruise cost. If the math gives you pause, calculators are really inexpensive and astonishingly easy to operate.

 

</RANT>