Service Reward Letter

[john watson]

The fundamental problem of including gratuities in the cruise fare is that competitors do not. Many people look at cruise prices on the internet and compare them. This is never on a like for like basis. Some lines add gratuities or a drinks service charge or any number of charges onto the headline price others are all inclusive with drinks etc. but then that's not all drinks! P&O often include the air fare whereas others are cruise only prices. It is not as bad as the budget fare airline industry but that exposes the dilemma.

 

If you go for a fairly high headline price but people will look elsewhere at cheaper cruises and pay more as this is what most people like!

 

Regards John

[P-L-B]

The fundamental problem of including gratuities in the cruise fare is that competitors do not. Many people look at cruise prices on the internet and compare them. This is never on a like for like basis. Some lines add gratuities or a drinks service charge or any number of charges onto the headline price others are all inclusive with drinks etc. but then that's not all drinks! P&O often include the air fare whereas others are cruise only prices. It is not as bad as the budget fare airline industry but that exposes the dilemma.

 

If you go for a fairly high headline price but people will look elsewhere at cheaper cruises and pay more as this is what most people like!

 

Regards John

John, I agree with the fundamentals of what you say but could you please clarify as I am a little confused.

I thought the argument put forward by some is that other cruise lines already include gratuities in their prices. This appears to be the reasons for some, to lobby and persuade others that this would be a good thing for P&O to do.:confused:

[grapau27]

If you can't convince them; confuse them.

Harry S. Truman

 

 

 

 

Seems P&O & RC have got this off to a tee .

Exactly.

[jeanlyon]

Just seen that all Fly cruises with Fred O have tips and tipples included. Surely this is the way to go. Last time I sailed with them, tips were include as well.

[daiB]

John, I agree with the fundamentals of what you say but could you please clarify as I am a little confused.

I thought the argument put forward by some is that other cruise lines already include gratuities in their prices. This appears to be the reasons for some, to lobby and persuade others that this would be a good thing for P&O to do.:confused:

Not that many, but some do offer a deal at times.

 

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[AnOnymously]

when one way or another PO don't get the money/profit they want from AG's they will change them. So let's keep the staff happy by giving them cash tips and they get the same share of AG's, whilst removing AG's to push PO into changing the system. Win win.

[AnOnymously]

Not that many, but some do offer a deal at times.

 

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I have to say that I don't know anyone who looks for an itinerary, then goes and finds as many similar itineraries as possible and then compares the prices and chooses the cheapest.

 

 

Many people try and get the best deal for the trip they want from the line they always chose. For me I look for the itinerary I want, going at the time I want to go and then see what cabin I am willing to pay for on that trip. Another £50 a week pp will not make that much difference, might push me down a cabin, but doubt it.

 

It is not the cost that counts for PO it is how it works in taxation, remuneration package for staff and in the end what profit system of tips works for them.

 

The letters are just trying to bolster the present system because it works for PO and I doubt they have any reason to change it and unless they need to find a more useful, to PO, one it will stay.

[john watson]

Cruise lines work out a marketing strategy which will achieve the optimum in cruise bookings and revenue. They will always have a target customer base and try to retain and expand them. In addition adding new target markets. They will have a good idea of who their competitors are and this is not all other cruise lines.

 

Prices will always fluctuate due to fluid pricing and deals will be offered to agents on specific cruises which may include all inclusive, free tips, etc. etc. This will all make it difficult to work out price comparisons which are not stable as next month the offer may be withdrawn or a better different deal appear. I suspect P&O have problems with potential problems with passengers in High Street agencies being switch sold onto a "cheaper line". Some travel agents offer special deals by block booking cabins and offering flights, hotels etc. to get your business and they might prefer you booking a specific line. It is all made a bit complicated specifically to try and influence you.

 

Gratuities are simply one expense to the cruise passenger which can come later as a financial blow particularly if you extensively research a cruise line and later find the new one you have switched to does not include them. Depends who you started with but this can happen.

 

The Service Reward Scheme is worth more money to staff than gratuities and in addition leads to promotion of higher rated staff. It costs the passengers nothing but is inconvenient to participate with form filling and posting in the box. In this respect some staff go over the top in their quest to achieve a full marks portfolio of their passengers reviews. Can you imagine what it would be like if people at work had to rate you and you lost money and status over their views?

 

Regards John

Edited May 13, 2018 by john watson

[AnOnymously]

Cruise lines work out a marketing strategy which will achieve the optimum in cruise bookings and revenue. They will always have a target customer base and try to retain and expand them. In addition adding new target markets. They will have a good idea of who their competitors are and this is not all other cruise lines.

 

Prices will always fluctuate due to fluid pricing and deals will be offered to agents on specific cruises which may include all inclusive, free tips, etc. etc. This will all make it difficult to work out price comparisons which are not stable as next month the offer may be withdrawn or a better different deal appear. I suspect P&O have problems with potential problems with passengers in High Street agencies being switch sold onto a "cheaper line". Some travel agents offer special deals by block booking cabins and offering flights, hotels etc. to get your business and they might prefer you booking a specific line. It is all made a bit complicated specifically to try and influence you.

 

Gratuities are simply one expense to the cruise passenger which can come later as a financial blow particularly if you extensively research a cruise line and later find the new one you have switched to does not include them. Depends who you started with but this can happen.

 

The Service Reward Scheme is worth more money to staff than gratuities and in addition leads to promotion of higher rated staff. It costs the passengers nothing but is inconvenient to participate with form filling and posting in the box. In this respect some staff go over the top in their quest to achieve a full marks portfolio of their passengers reviews. Can you imagine what it would be like if people at work had to rate you and you lost money and status over their views?

 

Regards John

The present system is a pernicious, vicious system of threatening staff at the whim of passengers. It is easy to expect a CS to do something and them not do it, or not do it the nit picky way the passenger wanted it and a reward is blown when a low rating appears. Whilst customers should be kept happy I am sure there is a better way than using the AG system to do it. Infact in most jobs it is the managers task to keep workers up to scratch, but this goes back to the old piece work system with an added twist that someone who has never met the staff, probably, before that week gets to be judge and jury, whatever the passengers whims are.

 

So it is a good whipping system for PO and probably they get some money/save some money somewhere along the line. Not likely to change it sooner or later IMO.

[P-L-B]

I have to say that I don't know anyone who looks for an itinerary, then goes and finds as many similar itineraries as possible and then compares the prices and chooses the cheapest.

 

 

Many people try and get the best deal for the trip they want from the line they always chose. For me I look for the itinerary I want, going at the time I want to go and then see what cabin I am willing to pay for on that trip. Another £50 a week pp will not make that much difference, might push me down a cabin, but doubt it.

 

It is not the cost that counts for PO it is how it works in taxation, remuneration package for staff and in the end what profit system of tips works for them.

 

The letters are just trying to bolster the present system because it works for PO and I doubt they have any reason to change it and unless they need to find a more useful, to PO, one it will stay.

That's what we do and being retired we are not normally limited to when we can travel.

[john watson]

I think newcomers to cruising turn up at a travel agency with a good idea of a P&O cruise. They do not have much idea about cruising but are positive about giving it a go. The agent comes up with a price for a fortnight. They then get negative about the price and the agent miraculously reduces the bill significantly with a different cruise, line or itinerary on a second rate basis. They are happy as they have no idea the Range Rover they are buying is now a Ssang Yong Korondo.

 

They like it so much next year and forever more they book Ssang Yong and always on the Korondo!

 

Regards John

[P-L-B]

I think newcomers to cruising turn up at a travel agency with a good idea of a P&O cruise. They do not have much idea about cruising but are positive about giving it a go. The agent comes up with a price for a fortnight. They then get negative about the price and the agent miraculously reduces the bill significantly with a different cruise, line or itinerary on a second rate basis. They are happy as they have no idea the Range Rover they are buying is now a Ssang Yong Korondo.

 

They like it so much next year and forever more they book Ssang Yong and always on the Korondo!

 

Regards John

Yes, I am sure that happens.:)

 

 

Our Daughter and Partner who had not cruised before new that we had been on several cruises over the years and asked us last year if we would like to travel with them on board Aurora. We all enjoyed that cruise very much and the highlight was a proposal to my Daughter under a fantastic showing of the Northern Lights from her partner now Fiancé.

 

 

They obviously liked the cruise so much that they have booked their honeymoon next year, spending it on-board Azura cruising the Med.

 

 

Needless to say they haven’t invited us to join them on that cruise.:D

[terrierjohn]

There was an interesting article in yesterday's paper about wait staff at TGI Fridays planning strike action, because TGI F want to take 40% of credit card tips to top up kitchen staff wages, so they can avoid having to pay them extra to meet minimum wage standards.

It seems that P&O are not the only ones abusing customers generous tipping gestures to subsidise their wage bills.

[merkin]

I understand that the currency on P&O is UK pounds. We will be on the Ventura in September cruising the Med and stopping at Spain and Italy. We want to tip some people in cash so what would we use, Pounds, Euros or dollars?

We will probably be paying the A/Gs as well.

[emam]

I understand that the currency on P&O is UK pounds. We will be on the Ventura in September cruising the Med and stopping at Spain and Italy. We want to tip some people in cash so what would we use, Pounds, Euros or dollars?

We will probably be paying the A/Gs as well.

 

When I asked that same question but without the dollars the person at reception looked shocked. Their reply also in a shocked voice was, "Whatever you want, it's a gift"

[grapau27]

I understand that the currency on P&O is UK pounds. We will be on the Ventura in September cruising the Med and stopping at Spain and Italy. We want to tip some people in cash so what would we use, Pounds, Euros or dollars?

We will probably be paying the A/Gs as well.

They will appreciate pounds or Euros but i always tip in the onboard currency which is pounds although if you Auto-pay gratuitys then extra cash is at your discretion only.

When we sail RCCL i tip extra in dollars as that is the onboard currency but i do prepay my tips when booking with my TA so it is in pounds then only my discretional extra tips are dollars.

 

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[kir royale]

There were no letters on Azura 13th - 27th April.

 

 

My daughter and I were on that cruise with some friends and they each received a letter.

I however did not.We all removed the auto gratuities and tipped in cash.

[Bobblehat71]

I have to say that I don't know anyone who looks for an itinerary, then goes and finds as many similar itineraries as possible and then compares the prices and chooses the cheapest.

 

 

Of course they do !

 

I am currently looking for a Baltic cruise next year. The Itineraries and product by and large are the same from all the major cruise lines. Therefore I will book with whoever gives me the best deal.

[jeanlyon]

My daughter and I were on that cruise with some friends and they each received a letter.

I however did not.We all removed the auto gratuities and tipped in cash.

 

That's interesting! Strange.

[aliandy]

Interesting conversations! Our own beef about the AGs is that when you make a booking they are one price then are hiked up before the cruise. We were never informed that the £6.00 per person per day had increased to £7.00 per person per day though some people seem to have been advised. Seriously considering altering the AGs to reflect the amount in force at the time of booking.

[NoFlyGuy]

I also will probably reduce the AGs to reflect the increase in inflation that's taken place since they were £5.

As an earlier thread stated, it's certainly not 40%.

[P-L-B]

P&O increased the AG to £7.00 pp after we booked our cruise last year, but to be fair our TA did inform us of the change.

[FangedRose]

P&O increased the AG to £7.00 pp after we booked our cruise last year, but to be fair our TA did inform us of the change.

I was informed twice, once by P&O, and again by my travel agent. Others on my dining table had been told by one or the other. One had not been informed at all!

[blueboo]

Interesting conversations! Our own beef about the AGs is that when you make a booking they are one price then are hiked up before the cruise. We were never informed that the £6.00 per person per day had increased to £7.00 per person per day though some people seem to have been advised. Seriously considering altering the AGs to reflect the amount in force at the time of booking.

Us too ! When we booked they were £6 are they now £7 ? I am going to change them if that is the case back down to £6 because that is what we were told when we booked and we have had no notification that it has changed.

[pete14]

Us too ! When we booked they were £6 are they now £7 ? I am going to change them if that is the case back down to £6 because that is what we were told when we booked and we have had no notification that it has changed.

 

A couple of weeks ago, on Arcadia, our onboard account showed auto gratuities were £6 per day, not £7. I didn’t question why but as always, I left them on and paid waiters and steward a little extra in cash for the excellent service we received.