With California’s pricing transparency law now in effect and cruise lines adding fees and charges to their bottom-line fares, the question of whether gratuities should also be bundled into the cost of a cruise is bound to arise.
While tips (or service charges) for crew members are traditionally voluntary, they are an added cost when automatically applied to clients’ accounts. Of course, customers have the option to reverse them, but it remains customary to provide the recommended amount to staff as reward for a job well done —though the exact amount, which often varies based on a client’s cabin or suite category, is frequently bumped up over time.
What Advisors Are Saying
Melissa Porzak, San Diego-based luxury travel advisor at Protravel International, commends the state for the new legislation.
“Bravo to California for the new law requiring cruise lines to advertise all fees in their rates,” Porzak said. “I think people are tired of ‘hidden fees’ and ‘come on’ rates that don’t reflect the true pricing.”
She has a different take on tips, however, believing they should be at the discretion of the guest based on service provided.
My clients like the option of paying gratuities as they wish, whether it be directly to the crew or paid as a daily fee.
“My clients like the option of paying gratuities as they wish, whether it be directly to the crew or paid as a daily fee," she said.
She also pointed out that certain lines do include gratuities in their rates.
Similarly, Josh Friedman, Palm Springs-based CEO and luxury travel expert of Josh Friedman Luxury Travel(an IC with Travel Experts), thinks tips should be remain voluntary. His high-net-worth clients don’t care about cost bundling, he says, but clients on a tighter budget want to keep an eye on overall costs, including tips.
For some agents, the best approach is to provide clients with quotes that already reflect gratuities. Carlsbad-based Kim Parizek, luxury travel advisor at Boutique Travel Advisors (a direct agency of Virtuoso), says including gratuities in her luxury clients’ cruise packages is standard practice.
“I always provide quotes with gratuities factored into the initial pricing,” she explained. “This approach helps ensure a less stressful experience for the client, covering all aspects of their travel in advance.”
That is, she bundles gratuities in, even if the cruise line does not. This gives clients a more transparent picture of the final vacation cost, thus setting clear expectations.
“My clients appreciate having these details settled before cruising, as it offers peace of mind,” she said. “This practice does not impact my cruise sales, as my clientele values upfront clarity regarding cost expectations.”
Other advisors are looking to cruise lines to set those clear expectations.
My clients appreciate knowing the exact cost of the cruise beforehand, so they are not surprised by additional charges.
“I do think gratuities should be included in the fare,” said Hannah Miles, founder and luxury travel designer of La Jolla-based Violette an independent affiliate of Cadence Travel, associated with Virtuoso. “Some cruise lines already do this, and my clients appreciate knowing the exact cost of the cruise beforehand, so they are not surprised by additional charges.”
She acknowledges that should every line — not just all-inclusive luxury brands like Scenic and Viking — take this approach, upfront pricing would increase.
“You are going to have to pay it anyway,” Miles said. “Why not have the complete breakdown before you commit? [Otherwise you] potentially go over your travel budget because you didn’t factor in these expenses.”
Ultimately, Miles doesn’t see bundling as something that will negatively impact sales. Until gratuities are fully encompassed in cruise fares across the board, Miles will mention the new law so clients know that the increase in pricing is not arbitrary or due to inflation, but rather transparency around “fine print” costs that were not previously included.
