Cruise "Automatic Gratuities" Offsets Payroll Costs and are Ripping You Off
The more gratuities you pay, the less RCI pays crew members. They claim automatic gratuities go 100% to the crew, but Royal Caribbean SUBTRACTS "Automatic Gratuities" from the salary they would otherwise pay their employees, rather than adding it to crew member income.
Automatic Gratuities (or Prepaid Gratuities) are currently $18/person/day for most cruisers on RCI. But where does this money actually go? Think those daily service charges are helping the hardworking crew? Think again. Cruise automatic gratuities are nothing more than a cash-grab masquerading as generosity. While Royal Caribbean (RCI) and other lines boast that gratuities support the crew, the truth is these fees line corporate pockets while exploiting both passengers and employees. These gratuities don't align with the traditional "tipping culture" many Westerners are familiar with, leading to a plethora of misinformation.
Note: "Prepaid Gratuities" and "Automatic Gratuities" are the same concept and the same cost. The only difference is one is paid in full before the cruise, the other is charged each day during the cruise.
The Gratuity Scam: The Dirty Secret Behind the Smiles
Starting November 1, 2024, RCI will charge $18.50 per person, per day for most staterooms and $21.00 for suite guests. For a family of four on a 7-night cruise, that's $518. That's a ton of money but where does it go?
According to RCI, gratuities are "distributed to crew members, including dining, bar, and culinary staff, stateroom attendants, and hotel services teams." Sounds good, right? Wrong. In reality, these fees help the cruise line slash payroll expenses, not reward individual workers.
When passengers pay automatic gratuities, Royal Caribbean uses those funds to reduce its payroll expenses by offsetting what they otherwise owe crew members. The payslip in the photo below illustrates how gratuities are DEDUCTED from RCI's pay obligations. Instead of directly increasing a crew member's take-home pay, these automatic gratuities primarily serve to decrease the amount Royal Caribbean pays its employees. The funds collected are pooled, and instead of boosting crew pay, they reduce what RCI owes in guaranteed wages. Essentially, you're paying the staff's salary while the company rakes in profits.
Why Automatic Gratuities Are Worse Than You Think
Cruise lines love to frame these charges as a hassle-free way to show appreciation, but it's a clever ruse designed to keep you in the dark. Here's what makes it even worse:
- They're sneaky. These fees are added automatically, banking on the fact that most passengers won't bother disputing them.
- They're inflated. With gratuities jumping to $18.50–$21 per person, per day, you're being charged far more than most Western tipping standards.
- They're misleading. RCI's marketing suggests these charges go straight to the crew, but in reality, they barely see a fraction of it.
What You Can Do
If you want to actually help the people making your vacation memorable, here's what to do:
- Opt Out Immediately: Visit guest services and request that automatic gratuities be removed. Cruise lines won't make this "easy", but it's your right as a passenger. While you must talk to guest services to remove them, they will never object to the request.
- Tip in Cash: Hand cash directly to crew members who've provided exceptional service. It's the only way to ensure your money benefits them directly.
- Fill out your Post-Cruise Survey: Make sure you mention your favorite crew members by name in the post-cruise survey. Having their name mentioned in reviews/surveys could earn them any of the following:
- A full day off
- A VIC Card ("Very Important Crew" scratch card where they can claim prizes such as free internet, free room service, a day off, discounts on the crew grocery, cash, etc)
- A Guest Experience like a free dining experience to one of the specialty restaurants or a stay in a guest cabin for a cruise
- Employee of the Month Nomination: If mentioned enough times, crew can get nominated to be Employee of the Month. Winning Employee of the Month has a large cash prize.
(Source)
Stop Letting Them Exploit You
Cruise lines have perfected the art of making passengers feel guilty while quietly pocketing the cash. Automatic gratuities don't reward hardworking crew, they subsidize the cruise line's payroll. By opting out, tipping directly, and spreading the word, you can take back control and ensure your generosity actually reaches the people who deserve it.
Don't let the cruise lines fool you. Automatic gratuities aren't about gratitude, they're a corporate scam.
