18% service charge on UDP

[Moby0215]

I spoke to NCL in the UK today and this is their answer.

 

If you have an Unlimited Beverage Package as a free perk, the situation regarding the 18% gratuity is:

 

If you have booked and paid for your cruise in the US or Canada you will be charged the 18% gratuity on the value of your 'Free' perk. Sorry about that!

 

For those who book and pay for their cruise in Europe, there is nothing else to pay as your perk includes the gratuity. Mention has been made elsewhere of a sales tax (VAT/IVA to those of us in Europe), that is applied when in Spanish and Italian national waters. The advisor at NCL did state that those with the UBP as a free perk do not have to pay this tax.

 

NB An important exception occurs if you choose a drink with a value exceeding $15. As you know, the UBP covers drinks up to the value of $15. If you choose a drink of higher value, you will be charged the difference plus a gratuity of 18% on the difference only. If the ship is in the national waters of either Spain or Italy, you will also be charged the applicable sales tax/VAT/IVA at the rate applied by that particular country. Full details of this charge, including the rate and area where it applies, will be available once you are on board. The moral of the story is that to avoid the sales tax, wait until you are in International waters.

 

Please don't shoot the messenger. I have passed this information on in good faith, in the hope that it will help folk and settle, once and for all, the discussion regarding this 18% gratuity.

 

Happy cruising folks! :cool:

 

 

This is already well known information, but thank for posting it for some of the newer members. In addition to the VAT tax you mention about Spanish/Italian waters, there is also taxes when in certain US ports.

[dng6325]

The 18% specialty dining service charge was introduced in March 2015, for people who paid the cover charge on board or purchased the UDP.

 

The promotional UDP perk continued to be totally free through April 2015. The terms made no mention of service charge or gratuity, because it wasn't an issue until then.

 

In May 2015 the promo changed from UDP to a small specialty dining credit, and the terms said "Includes applicable gratuities", which meant that you could use the credit to pay for both your meal and the new 18% specialty dining charge.

 

In June 2015 the UDP perk came back, but now they added this statement to the terms: "Guest is responsible for 18% gratuities & service charges on the retail value of the Ultimate Dining Package prior to cruise."

 

Starting in August 2015, the UDP perk was replaced by the SDP, and the service charge has always been extra on the free SDP for bookings through NCL US.

 

So the answer to the OP's question is June and July 2015. If you booked with the UDP perk before that, it was completely free. If you booked after that, you didn't get the UDP.

 

Thank you so much! That's what I was looking for. We booked end of April 2015, so the 18% service charge was included in the free perk at no extra cost.

[Jetlagged787]

This is already well known information, but thank for posting it for some of the newer members. In addition to the VAT tax you mention about Spanish/Italian waters, there is also taxes when in certain US ports.

 

Not just us newbies that were in the dark Moby. Looking at some of the comments made on this and another thread on the same subject and running simultaneously to this one, there are many of the more established cruisers who also don't totally understand the differnces in implemenation of the package between North America and Europe. Hopefully, it is a lot clearer now for everyone.

[BirdTravels]

This is already well known information, but thank for posting it for some of the newer members. In addition to the VAT tax you mention about Spanish/Italian waters, there is also taxes when in certain US ports.

 

I disagree. Most people don't understand or appreciate that there are differences in the terms and conditions (in general - gratuities, cancellation fees, etc.) when booking in different countries.

[ColinIllinois]

Nm....sorry, wrong thread. :)

 

edited.

Edited November 30, 2016 by ColinIllinois

[bjlaac]

I've read this argument a thousand times and it doesn't really hold water. In your land restaurant, the diner can be reasonable assured that the tip they are giving will be going to the server. The problem is that NCL considers your "tip" a "service charge & gratuity". One cannot be reasonably certain how much, if any, actually is a tip that the server receives. The ambiguity NCL introduces into this whole process makes your comparison pointless.

 

And don't forget you are already paying the DSC which covers waiters in the dining room, AND up until summer of 2015 covered the Specialty Dining waitors as well. Still never got a strait answerr out of NCL why they were no longer included but it coincided with NCL's desire to charge 18%.

 

True double dipping!

[punkincc]

I know of many places that pool tips. Mostly at bars. I have many friends that are in the service industry and actually prefer this method.

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i guess it depends on your definition of "pooled" tips. There are three forms of "pooling" and in the case of the first two methods, the "pool" method just requires the server to tip out an agreed upon percentage of her actual tips to the bussers, bartenders, etc. In the second method, the server contributes a percentage based on total food sales, which can be problematic when customers don't tip within the usual standard, or not al all.

 

In both of the above "pool" methods, after the tip out, what remains belongs to that server and that server alone.

 

If you are talking about method #3, in which the server is required to surrender all tips to a general pool, where the manager counts tips, then disburses them among wait staff, bussers, etc., from what I read, this method is recommended only in a small family type setting with few employees where employees are encouraged to work as a team. It was noted that this method was NOT recommended for large restaurants where the employee who consistently sells more than the others becomes resentful, all employees lose incentive to upsell, and some employees may "pocket" some tips rather than turn them in.

 

Getting back to the discussion, those in the US have paid 18%, but since it is simultaneously deemed a tip and a service charge, none of us know how much the server gets, and NCL puts us in the position of trying to determine what additional, if any, we should tip in cash at the time of service. Those in Europe not required to pay 18% in advance seem to be in even murkier water as you don't even know if NCL has kicked in "your" 18%, and the employee may be totally stiffed at the time of service, assuming you carry your "no tip" way of life onto the ship.

Edited November 30, 2016 by punkincc

[cruzsnooze]

Since you're paying 18% on your dinning package remember to get the form at customer service to remove the auto daily gratuity or you'll be double tipping. When I had this perk because of staying in a suite I tipped the cabin stewart in cash on the last day because he's not included in the food services tip.

[luddite]

Since you're paying 18% on your dinning package remember to get the form at customer service to remove the auto daily gratuity or you'll be double tipping. When I had this perk because of staying in a suite I tipped the cabin stewart in cash on the last day because he's not included in the food services tip.

 

For the OP--- read this post very carefully. Then it is easy to understand why taking this advice is a bad idea.

[BirdTravels]

And don't forget you are already paying the DSC which covers waiters in the dining room, AND up until summer of 2015 covered the Specialty Dining waitors as well. Still never got a strait answerr out of NCL why they were no longer included but it coincided with NCL's desire to charge 18%.

 

True double dipping!

 

Gratuities for specialty dining was never covered under the DSC. You always got a mandatory gratuity added to your bill. Prior to the summer of 2015, the cruise line included that gratuity with the price of the dining package or perk. Now they are passing along the cost as a discrete charge to the consumer.

[BirdTravels]

Since you're paying 18% on your dinning package remember to get the form at customer service to remove the auto daily gratuity or you'll be double tipping. When I had this perk because of staying in a suite I tipped the cabin stewart in cash on the last day because he's not included in the food services tip.

 

Unfortunately more crew are covered by the DSC than the 3 free meals you get with the SDP. I assume that you did not skip the other 18 meals during your cruise. And you didn't forego the use of any of the other ship's services. All who would be cheated by this very poor and misinformed analysis. And I certainly hope that you tipped your butler and concierge.

[punkincc]

Gratuities for specialty dining was never covered under the DSC. You always got a mandatory gratuity added to your bill. Prior to the summer of 2015, the cruise line included that gratuity with the price of the dining package or perk. Now they are passing along the cost as a discrete charge to the consumer.

 

Ah, no. All servers were once covered under the DSC, even the ones in the Specialty restaurants. You paid a flat cover charge in the specialty, which covered the price of the meal only. The waiter got his tip from the DSC. Whether or not you left an additional gratuity was up to the individual.

 

And there was never a mandatory gratuity added to the bill, that only started after the 18% Gratuity & Service Charge came into being for diners without a package where it was added to the final bill, or upfront for package buyers or those who got a promo.

 

After the 18% was instituted and there were complaints about double dipping, or double tipping, with both the DSC and 18%, NCL came out with some vague statement about the DSC which many interpret to confirm that Specialty servers are no longer part of the DSC pool.

[4774Papa]

Hi,

 

Can any of you remember when NCL started charging 18% service charge on the UDP that passengers get as a free perk?

 

Thanks!

 

We booked our Sun cruise to Alaska for September 2016 in early 2015, as I recall and at that time there was no assessment of the gratuity on the Beverage Package. I think that changed shortly after we booked.

 

We are moderate drinkers, mainly wine and as Platinum members we get a free bottle of wine the first day of the cruise then two more for meals at Le Bistro. After paying the gratuities on the Beverage Package, we would be better off gong with another promo than the Beverage Package, probably the paid daily gratuities.

[hawkeyetlse]

Gratuities for specialty dining was never covered under the DSC. You always got a mandatory gratuity added to your bill.

Incorrect.

 

The only mandatory charge prior to March 2015 was the cover charge. Some people tipped on top of that, some did not; it was completely up to the customer.

[Moby0215]

i guess it depends on your definition of "pooled" tips. There are three forms of "pooling" and in the case of the first two methods, the "pool" method just requires the server to tip out an agreed upon percentage of her actual tips to the bussers, bartenders, etc. In the second method, the server contributes a percentage based on total food sales, which can be problematic when customers don't tip within the usual standard, or not al all.

 

In both of the above "pool" methods, after the tip out, what remains belongs to that server and that server alone.

 

If you are talking about method #3, in which the server is required to surrender all tips to a general pool, where the manager counts tips, then disburses them among wait staff, bussers, etc., from what I read, this method is recommended only in a small family type setting with few employees where employees are encouraged to work as a team. It was noted that this method was NOT recommended for large restaurants where the employee who consistently sells more than the others becomes resentful, all employees lose incentive to upsell, and some employees may "pocket" some tips rather than turn them in.

 

Getting back to the discussion, those in the US have paid 18%, but since it is simultaneously deemed a tip and a service charge, none of us know how much the server gets, and NCL puts us in the position of trying to determine what additional, if any, we should tip in cash at the time of service. Those in Europe not required to pay 18% in advance seem to be in even murkier water as you don't even know if NCL has kicked in "your" 18%, and the employee may be totally stiffed at the time of service, assuming you carry your "no tip" way of life onto the ship.

 

 

 

Just to be clear. I do not have a "no tip" way of life. I will tip a couple bucks cash for every drink and meal I have. I don't necessarily think you mean me when you said "your no tip way". But I just wanted to clarify that.

 

 

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[EmeraldCoastCruisers]

We just came off the Dawn and had the UBP. We were charged the 18% gratuities ahead of time and I was fine with that. However, friends we met weren't, but were charged gratuities for each beverage purchased even though they had an UBP also. Thought it was odd there were two different ways of charging gratuities for the package.

 

 

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[pokerpro5]

These are not gratuities.

 

Service employees in the 18% pool get a fixed rate of pay, unless additional tips are left voluntarily -- and THOSE are pooled.

 

So yes, it's not really a free perk. It's a heavily discounted perk, but you're still paying 15.25% of the cost (since you're paying 18% instead of 118% of the posted price).

[njhorseman]

We just came off the Dawn and had the UBP. We were charged the 18% gratuities ahead of time and I was fine with that. However, friends we met weren't, but were charged gratuities for each beverage purchased even though they had an UBP also. Thought it was odd there were two different ways of charging gratuities for the package.

 

 

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There aren't two different ways of charging gratuities for the package. You're charged the 18% up front (unless you're a Haven or suite passenger, in which case you are not charged the 18% at all). In no case do you pay the 18% on individual drinks. Those friends were mistaken.

Edited December 1, 2016 by njhorseman

[Moby0215]

These are not gratuities.

 

 

 

Service employees in the 18% pool get a fixed rate of pay, unless additional tips are left voluntarily -- and THOSE are pooled.

 

 

 

So yes, it's not really a free perk. It's a heavily discounted perk, but you're still paying 15.25% of the cost (since you're paying 18% instead of 118% of the posted price).

 

 

 

When one purchases the UBP there are two line items. The package cost and the service charge cost. When getting the UBP as a perk, the line item of the package cost is $0. That sounds like free to me. Definitely 2 ways of looking at it. I benefit heavily from the perk so it works out in my favor.

 

 

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[punkincc]

Just to be clear. I do not have a "no tip" way of life. I will tip a couple bucks cash for every drink and meal I have. I don't necessarily think you mean me when you said "your no tip way". But I just wanted to clarify that.

 

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No, just some food for thought for those who live where tipping is not the norm because servers there are either paid a living wage, or they are covered by a Service Charge applied by the restaurant. When booking, if the 18% is not applied to the package value, and then aboard ship the person continues this "no tip" way of life, then essentially they have stiffed the server and deprived them of some portion of their income. That is, assuming that NCL does not automatically contribute the 18% into a pot at the time of booking, and I doubt that happens.

 

I'm sure many do recognize this and tip appropriately, but there are many who never give it a thought. This applies as well to those in the Haven who pay no 18% on their packages, dine at Cagneys, and walk out without leaving a tip.

[2kcs4au]

So do we still need to plan on tipping individual bartenders when getting drinks via the UBP? I mean in addition to the 18% fee. We're taking our first NCL cruise in a few weeks and the discussion in this thread has me a bit confused.

[beerman2]

So do we still need to plan on tipping individual bartenders when getting drinks via the UBP? I mean in addition to the 18% fee. We're taking our first NCL cruise in a few weeks and the discussion in this thread has me a bit confused.

 

Do you "need" to -No.

 

Giving bartenders a Dollar or two once in awhile is your "Choice". Some do, some don't.

[kanamurva]

I'm still a bit confused with this so could someone please explain me with numbers:

 

when my TA is offering the following: "1. A beverage package for two, which includes select alcoholic and non-alcoholic beverages onboard (service charges not included)"

 

The normal price for UBP is $79 per day. So do I actually pay $14,22 per day for this package prior the cruise or do I pay the 18 % for every single drink I get onboard?

[NLH Arizona]

I'm still a bit confused with this so could someone please explain me with numbers:

 

when my TA is offering the following: "1. A beverage package for two, which includes select alcoholic and non-alcoholic beverages onboard (service charges not included)"

 

The normal price for UBP is $79 per day. So do I actually pay $14,22 per day for this package prior the cruise or do I pay the 18 % for every single drink I get onboard?

Prior to the cruise.

[EmeraldCoastCruisers]

I'm still a bit confused with this so could someone please explain me with numbers:

 

when my TA is offering the following: "1. A beverage package for two, which includes select alcoholic and non-alcoholic beverages onboard (service charges not included)"

 

The normal price for UBP is $79 per day. So do I actually pay $14,22 per day for this package prior the cruise or do I pay the 18 % for every single drink I get onboard?

 

 

We paid the $14.22 per day, per person (total of $255.96 for a nine day cruise) when we booked our cruise. We booked only 52 days from the day it was scheduled to leave. Each drink is about $8 dollars on board (if not more) and we knew if we drank at least two drinks a day we would be ahead. We were WAY ahead on this and thoroughly enjoyed the package!!!!!

 

 

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