advantage to including gratuities in original booking?

[Tapi]

Who worries about it? If you didn't prepay, then that money is still in your checking account. When the credit card bill comes after the cruise, you pay it. Why would you worry about something you already had the money to pay for in your checking account?

 

 

That sounds very responsible and coherent, but based on national statistics, most people carry a balance on their credit cards simply because they charge more than what they make. Simply stated, they don't have enough money in their checking accounts to pay off their credit card balance in full.

 

Although there's plenty of people here on Cruise Critic that say how they pay their credit cards in full every month, or how they pay cash for everything and don't use credit cards, there are many more people out there who live on credit. One of my good friends who is a former Carnival PVP used to tell me how frequently many of his clients would apply for a new credit card just to pay the deposit because their other credit cards were maxed out or didn't have enough cash to make the payment. What makes you think that they have money sitting in their checking accounts to pay for tips and other items in their sail and sign account when the cruise is over?

 

For many passengers, chances are that they'll be returning from their cruise with yet another large charge on their credit card which will accrue finance charges for months before they can pay it in full. For them and for many others, it makes sense to pre pay as much as possible little by little instead of letting tips, onboard expenses, excursions, etc accumulate and be charged all at once at the end of the cruise.

 

I understand that the responsible thing to do is to spend less than what one makes, and to save some money in advance. But once again, that's not the way many live their lives. To answer your question, those who DON'T worry about it are most likely the ones that SHOULD.

Edited January 30, 2016 by Tapi

[USNUZULOOSE]

For me it makes it better. At least I know my tips are already paid for. I don't buy much once on the ship. I would rather also pay for my soda packages as well.

 

We don't do excursions. We like the shopping on the islands. So the only thing to pay for is if I buy a key chain or an alcoholic drink. And save for the extra tips we give out. But that is just me.

[n6uqqq]

That sounds very responsible and coherent, but based on national statistics, most people carry a balance on their credit cards simply because they charge more than what they make. Simply stated, they don't have enough money in their checking accounts to pay off their credit card balance in full.

 

Although there's plenty of people here on Cruise Critic that say how they pay their credit cards in full every month, or how they pay cash for everything and don't use credit cards, there are many more people out there who live on credit. One of my good friends who is a former Carnival PVP used to tell me how frequently many of his clients would apply for a new credit card just to pay the deposit because their other credit cards were maxed out or didn't have enough cash to make the payment. What makes you think that they have money sitting in their checking accounts to pay for tips and other items in their sail and sign account when the cruise is over?

 

For many passengers, chances are that they'll be returning from their cruise with yet another large charge on their credit card which will accrue finance charges for months before they can pay it in full. For them and for many others, it makes sense to pre pay as much as possible little by little instead of letting tips, onboard expenses, excursions, etc accumulate and be charged all at once at the end of the cruise.

 

I understand that the responsible thing to do is to spend less than what one makes, and to save some money in advance. But once again, that's not the way many live their lives. To answer your question, those who DON'T worry about it are most likely the ones that SHOULD.

 

If one is carrying a credit card balance then paying money to Carnival in advance makes zero sense. You will not save anything by prepaying Carnival but if you apply that to an outstanding principal balance on a credit card then your savings will typically be 15-20 percent interest that is being charged by credit card company. If one does not carry credit card balances then prepaying Carnival would be neutral in today's zero interest rate environment for savings accounts. You are losing control of money that may be needed for an emergency. So I personally still see prepaying as a slight negative.

[nissach]

This entire statement is ridiculous. I am 100% in agreement that for the most part they deserve the tips. But to say even if you get poor service you should pay the recommended and not tip extra is stupid. If someone receives poor service they should complain. If the issue isn't corrected than absolutely I would agree with reducing the tipped amount.

 

The fact that they depend on this money or send money home has no relevance to anything. If they are crappy at their job I'm not going to reward them for it. Though I haven't experienced poor service on a cruise ship.

 

I was thinking the exact same thing.

[Plant]

We've never prepaid gratuities, but we might next cruise. We haven't in the past because our money was making interest in our accounts. Now that the interest rate is negligible, it sadly doesn't make much difference :( .

[cruizinisthebest]

I'm getting in the habit of prepaying. I like to look at my S&S account sans those charges placed on it. I count it as part of my cruise cost. In the past I would prepay after final payment. For my next two cruises in 2017, I added the tips right then at booking. Way I see it, by then the daily amount might be increased. Maybe that will shield me from being subjected to that increase.

 

Bad service, not worried about it. And I'm also not worried about any interest that would accrue by holding on it. I buy gift cards, so the money has already been spent. Credit cards are for holding reservations and emergencies when we travel. I rarely use a credit card against my s&s. Works for us.

[Tapi]

If one is carrying a credit card balance then paying money to Carnival in advance makes zero sense...

 

...You are losing control of money that may be needed for an emergency...

 

 

I would not advocate charging prepaid tips on a credit card that already carries a balance, but what I would advocate is pre-paying onboard expenses little by little in advance and paying in full rather than charging it all at the end of the cruise.

 

To give you an example, for our upcoming cruise I priced out how much tips, 2 alternative dinners, a massage at the spa, and a shore excursion for a family of 4 is going to cost and the total is close to $800. I can either pre pay tips in full this month, the shore excursion in full next month, and the spa and alternative dining in full the following month, OR I can choose to wait until the last day of the cruise and take a hit for the entire $800 plus whatever other expenses I incur during the cruise. Chances are that by the time it's all said and done my credit card will be charged over $1,000 all at once.

 

I know that many will say that I can just set aside that money in my bank account every month so that it's available to me at the end of the cruise to pay the entire balance, but to me it makes more sense to just pay as I go. I'm grateful to have enough discipline to keep my credit card balance at zero every month, and I owe that discipline to the way that I charge things (little by little instead of all at once).

 

Is my system the best way to run finances? No, but it's the way that works for me. And about "losing control of money that may be needed for an emergency" by prepaying tips, that's an unfounded fear. That money is fully refundable, even if you cancel the cruise. If for some reason I need to cancel my cruise (even after final payment) and I've already prepaid tips, that amount will be refunded to me 100% , so I have nothing to worry about.

Edited January 31, 2016 by Tapi

[riclop]

Just wondering if there is an advantage to including gratuities in original booking or should I opt out? Thanks to anyone who has any advice on this.

Less $$$ at the end.

[bingo3]

I just prefer to not give any more of my money to them than I have to, up front, I can save and make interest on it myself rather than give it to them to do the same. :D

[Jana60]

I don't understand why topics like this come up. You have to pay them, so who cares when?

 

I owe the IRS $500. Who cares if I pay it today or wait until 4/15, I still have to pay it.

 

Difference is I earn interest on my money so the longer it stays in my position the better!

[declansdad]

I just prefer to not give any more of my money to them than I have to, up front, I can save and make interest on it myself rather than give it to them to do the same. :D

 

Difference is I earn interest on my money so the longer it stays in my position the better!

 

The amount of interest you would receive on your gratuities is negligible at best, but if that is your reason, that is your reason.

[LMaxwell]

I think everyone needs to re-read the title of the thread.

[Jana60]

I think everyone needs to re-read the title of the thread.

 

I did read the title! I reported that I disagree with paying more than I have to prior to the cruise because no matter how small the amount I prefer to keep my money in my account. If you add together all those too small to worry about amounts it adds up to quite a large amount! I just calculated and depending upon the number of cruises I have booked and how far into the future they are booked I earn anywhere from $0.50 to $2 per month interest on the money that others are paying in prepaid gratuities. Even if it is only $0.50 a month it's my $0.50!

Edited February 1, 2016 by Jana60

[RiotAct]

I agree with this. I never understood the "worry" part. Either you have the money to pay or you don't. We bring cash with us and pay it off at customer service, no CC bill no worries.

 

 

... and miss out on credit card rewards?

[LMaxwell]

I did read the title! I reported that I disagree with paying more than I have to prior to the cruise because no matter how small the amount I prefer to keep my money in my account. If you add together all those too small to worry about amounts it adds up to quite a large amount! I just calculated and depending upon the number of cruises I have booked and how far into the future they are booked I earn anywhere from $0.50 to $2 per month interest on the money that others are paying in prepaid gratuities. Even if it is only $0.50 a month it's my $0.50!

 

I am in agreement with you, I generally only pre-pay anything if there is an advantage to doing so, like a discount or a superior rate. Otherwise I'd rather have the control of my money for as long as possible.

 

Even if I had to cancel the cruise, why wait on a refund of more money than was necessary to lay out? No advantage for me as the consumer.

 

The OP asked if there is an advantage to pre-paying. There is not. At least no tangible benefit. As I've said earlier, if it makes someone more comfortable to do so they can go right ahead and pre-pay, but their soothed nerves does not an actual advantage make.

 

There's certainly no downside to paying as late as possible / allowable that I can think of.

[cruizinisthebest]

Advantages don't have to be measured in tangible terms. Not everything is about gaining something material back. Anything that I plan to pay anyway that be can paid in advance is an advantage to me, because it reduces what I have to pay during my cruise. If it soothes my nerves as you put it, that is an advantage, why? Because I see it as one.

 

I also answered the question saying that by the time my 2017 bookings get here, Carnival may very well increase the daily amount. So adding them in during booking may shield me from that increase. I would have prepaid anyway but not necessarily at booking until I thought of that.

 

The reasons yay or nay are not that complex. People can do whatever they want.

[TaDaaa!]

Not saying I've done this, but if you prepay gratuities, you cannot adjust the number down if you receive poor service. Handling gratuities after on board gives you control over the purse strings.

 

That is incorrect. Either way, you can adjust your gratuities on board for poor service.

[TaDaaa!]

Listen to Natty on this! Especially reason #2. If there is *any* chance - even one in a hundred- that you will not use all your OBC (onboard credit) then you're want the OBC going toward your gratuity. Otherwise your OBC is simply forfeited.

 

How is the OBC forfeited if you don't spend it on gratuities? Ever time I've been on board they've used my OBC to cover my drinks and trinkets. :rolleyes:

[TaDaaa!]

You're giving them your money long before it's due. You could leave it in the bank and draw a little interest. It's like how some people want a big income tax return. The object would be to give the government as little of your money as necessary for all that time and get a smaller refund.

 

At my credit union, $164 a month gets me 3 cents in interest a month. Where would I spend it all? :p

[lizardhowson]

at my credit union, $164 a month gets me 3 cents in interest a month. Where would i spend it all? :p

lol

[srlafleur]

Realistically, we should all be encouraging everyone to prepay as much as possible, so the cruise lines can make more interest (relatively painless for us, could add up to a fair amount for them, cumulatively) to help keep the price of cruises low enough for us all to afford them.

 

Just saying...

 

I don't understand why some people seem to begrudge a company that provides a pleasurable service making a profit. It's not like they're a charity.

Edited February 1, 2016 by srlafleur

[declansdad]

I am in agreement with you, I generally only pre-pay anything if there is an advantage to doing so, like a discount or a superior rate. Otherwise I'd rather have the control of my money for as long as possible.

 

Even if I had to cancel the cruise, why wait on a refund of more money than was necessary to lay out? No advantage for me as the consumer.

 

The OP asked if there is an advantage to pre-paying. There is not. At least no tangible benefit. As I've said earlier, if it makes someone more comfortable to do so they can go right ahead and pre-pay, but their soothed nerves does not an actual advantage make.

 

There's certainly no downside to paying as late as possible / allowable that I can think of.

 

They may not be tangible to you but that doesn't mean it isn't tangible to someone else. For anyone not in the US, the changing value of currency could easily make it advantageous to pay early.

 

 

At my credit union, $164 a month gets me 3 cents in interest a month. Where would I spend it all? :p

 

 

You are living the dream!

[LaCal]

We started prepaying ours at final payment and couldn't be happier

 

One less thing to have on the final bill onboard

 

Interest would be sooooo ridiculously low as in pennies I don't worry about trying to make that extra money.....

[Jana60]

How is the OBC forfeited if you don't spend it on gratuities? Ever time I've been on board they've used my OBC to cover my drinks and trinkets. :rolleyes:

 

Some of the onboard credit given for various reasons is non-refundable so if you do not spend it on board for drinks or trinkets you lose it. I once had $450 in onboard credit for a December cruise that was non refundable. So I went to the gift shop and bought a lot of my Christmas gifts on board. I'd rather have a larger sail and sign card bill to use up my onboard credit at the time of the cruise!

 

If you have only onboard credit that is refundable then it might be an advantage to pay off the gratuities using your Carnival MasterCard just prior to the cruise, just to get the rewards points, then get any unused portion of your onboard credit back as cash. 5000 rewards points gives you a $50 statement credit and any carnival purchases earn 2 rewards points per dollar so you end up getting 2% statement credit for every dollar you spend with Carnival. For your $168 you'll eventually receive $3.36 cash towards your credit card bill. If you pay the gratuities close to the time of sailing but before the cruise you would end up not losing any interest that you would have otherwise earned on your account at the bank.

[RuthlessBoss]

Just wondering if there is an advantage to including gratuities in original booking or should I opt out? Thanks to anyone who has any advice on this.

 

So, has the simple question been answered?:D