crew member compensation

Shortly after the new year, Royal Caribbean will again increase the automatic gratuities which it charges its passengers. Royal Caribbean will hike the automatic gratuities which it adds onto its guests’ accounts (by more than 7%) to $14.50 per person, per day. Passengers who stay in suites will pay even more, $17.50 per person, per day.

USA Today explains that a family of four will now pay more than $400 in automatic gratuities on a 7 night cruise which is one of the highest gratuities in the cruise business. 

The increase is the third in three years at the line. In early 2015, the Royal Caribbean’s gratuity fee Royal Caribbean Automatic Gratutieswas $12.

Like rival cruise lines, Royal Caribbean has been drastically increasing its automatic gratuities. USA Today says that Royal Caribbean’s gratuity charge has now jumped by nearly 21% since May 2015 (more than five times the rate of inflation). 

Cruise lines suggest that the extra gratuities go to the hard working crew members, but that’s hardly true. Crew members used to receive substantially more when passengers used to directly hand them money as tips. Cabin attendants and waiters have stated that the auto gratuities go to the cruise lines which take a cut and distribute some of the money to non-tip earning crew members. 

The Swiss TravelNews site rightly contends that "the passengers indirectly pay a massive wage component of these employees."

Royal Caribbean says that passengers can lower or remove the automatic gratuities by by visiting the Guest Services desk. Expect this to happen, as many passengers don’t like to pay gratuities when the service is average or to pay what the cruise lines should already be paying in wages. The same thing happened when Carnival hiked its auto gratuities. Carnival Hikes Pre-Paid Gratuities But Will Passengers Secretly Remove Tips?

We reported on a prior automatic gratuity increase in 2015 in Loyal to Royal? Expect to Pay Higher Gratuities! (And the Money’s Not for the Crew). Not coincidentally, CEO Richard Fain has RCL stock now worth over $110,000,000. 

Matt Hochberg’s Royal Caribbean Blog as the first to announce the gratuity increase. 

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