Is Dynamic Dining the end of using OBC for gratuities?

[styxfire]

Boy, you certainly do have a chip on your shoulder about this issue.

My shoulders can bench-press you, even at the end of your cruise. Edited October 26, 2014 by styxfire

[Cruising.Lovers]

Boy, you certainly do have a chip on your shoulder about this issue. The prepayment issue has been asked and answered here. Folks who booked before Royal decided on DD had prepaid gratuities added to their bookings as if it was My Time. But things evolved and you don't have to pay them unless you don't want them removed. All the major lines are doing it the same way. So it doesn't make "sense" to switch cruiselines for this reason.You can use your OBC for the gratuities. My Time was the issue, especially if you typically stiff the staff.

 

 

Not true, not all the cruise lines are asking to prepay gratuities for whatever name you call it, DD, MTD, on NCL it's called freestyle dining, and if you want to pay your gratuities on your final booking for budgeting purposes you have that option to do so.

Why is this an issue, I think I know the reason. Let's take the median age group guest that cruise with RCI, most are 50 and over, most want to dine early so they can hit the early entertainment and then to bed early to be the first ones up for breakfast and as most of us know that you would need to book a cruise a year to a year and a half out to get early dinning, so RCI comes up with this fantastic idea, gives it a fancy name (DD) and makes us prepay Gratuities, this is not way to compete with NCL who is leading the industry in "Freestyle Dining" the same as MTD or DD, and why bother enticing us with OBC if we can't use it the way we choose to use it, I am so done with RCI, I'll take my business elsewhere!

[DonnaK]

So switch them around, plenty of choices. All that really matters is the time I sit down.

 

Sent from my HTC One_M8 using Forums mobile app

 

But there aren't plenty of free choices. The menus in the 3-4 included venues are pretty limited, especially for picky eaters.

 

All that matters to you is the time you sit down. But to us, having the same wait-team and dining table each night, with a rotating menu, is what matters.

[SF]

But there aren't plenty of free choices. The menus in the 3-4 included venues are pretty limited, especially for picky eaters.

 

All that matters to you is the time you sit down. But to us, having the same wait-team and dining table each night, with a rotating menu, is what matters.

 

Totally agree :)

[Cruising.Lovers]

:cool:Did you hear the latest?

 

I just booked a cruise with Celebrity and they are offering free prepaid gratuities, free drink package as in wine and so on, free specialty restaurant and to top it off, 175.00 OBC, my point here is that how can RCI's sister ships offer this on one end then take it away on the other?

 

I too have done the math, and I see as a business move this is something the back office has come up with to pay for the new ships RCI is building. Don't understand, NCL is building 2 more new ships, has a new island where these new ships and their entire fleet can dock and still hasn't asked me to prepay my gratuities and I can dine whenever and wherever I see fit.

 

So am I to believe that RCI is getting out of the formal nights with the formal dinning and following NCL with their freestyle mind-set? I sure hope Princess and Holland America doesn't follow suit, sometimes it nice to be on a traditional cruise with all the glamour cruising was about years of the past.

[pinkrosesdeb]

The "glamour cruising" prices were also out of reach for a lot of people. Compare what you used to pay to cruise versus what you pay now. Dollar for dollar I believe the cruise experience is much more affordable now that you can decide if you want to pay additional to customize your cruise based on your own needs. I know we can't find a better value on land.

[RocketMan275]

Not one poster in this six page discussion mentions the benefit to RC of holding ALL of that gratuity money for thousands of guests on their ships booked to sail each and every week. Clearly it is their intention to get as many people as they can to pay them up front and tell you whatever it takes. Playing dumb seemed to work out or the "nobody really knows the right answer" game.

 

 

I HAVE GIVEN MORE THOUGHT TO ALL THAT gratuity MONEY SITTING IN ROYAL ACCOUNTS. After all they did just spend billions on the new builds. Chances are they are feeling a little pinch in the pocketbook. Another thing I noticed is their booking engines and computer system need an updatel! A few million should cover it, MAYBE. This is a project long overdue with over 16000 berths added since Oasis was launched. You may not be aware of this but your TAs are.

 

Safe travels!

 

While Royal is making some money off the pre-payment of gratuities, it is difficult to believe they are doing this just so they can make a very small interest rate on the additional pre-paids. If that were to be the reason RCI is doing this, then the interest earned would have to be considered the Return On Investment (ROI) of all the millions spent to change the dining rooms and retrain the serving crew. If you've done some calculations that would justify this, I'll be the first to admit you're right.

[Cruising.Lovers]

The "glamour cruising" prices were also out of reach for a lot of people. Compare what you used to pay to cruise versus what you pay now. Dollar for dollar I believe the cruise experience is much more affordable now that you can decide if you want to pay additional to customize your cruise based on your own needs. I know we can't find a better value on land.

 

I have to agree with you on that, so with that being said should we allow these cruise lines to dictate or force upon us DD and prepaid gratuities and not use OBC to offset the cost?

Not sure what type of cruising you enjoy or what category of cabin you purchase but my wife and I enjoy a balcony and or a suite and as a suite guest we pay an additional fee for our gratuities, and name for TIPS, I thought TIPS meant "TO INSURE PROPER SERVICE"

When you go to a restaurant and pay your bill, you TIP on the service your wait staff provided you, the same should go for cruising, we should have the choice to TIP as we see fit!

[RocketMan275]

And, considering that pre-payment of tips costs you an additional 10% - 45% on top of your cruise price,... it makes sense to switch cruiselines if Royal starts forcing pre-payment on its DD cruises.

 

Gratuities are $12 PP PD. How much are you paying for a seven day cruise if $84 (7x12) is 45% of your cruise price? You can't be paying more than $185 PP for the math to work.

 

Besides, I'm sure you're paying gratuities to the crew regardless of whether you pre-pay or not so how is this costing you an additional amount of money? Maybe an additional amount at final payment date, but not in the overall cost of the cruise.

[styxfire]

Gratuities are $12 PP PD. How much are you paying for a seven day cruise if $84 (7x12) is 45% of your cruise price? You can't be paying more than $185 PP for the math to work.

One time I was able to get a cruise for $29/day, and one time $26/day! And Vision of the seas has a cruise for $30/day leaving tomorrow. You can find superprices like this if you're diligent. But I haven't found any bargains on Oasis class, for sure. Anyway, when my cruise was $26/day and tips were $12/day, that means tips were 46% of the cruise price.

 

Besides, I'm sure you're paying gratuities to the crew regardless of whether you pre-pay or not so how is this costing you an additional amount of money?

No, when I'm NOT forced to pre-pay, I use OBC to pay for daily tips, instead of my own money. It's cheaper than way. I save enough to go on another weekend cruise. Edited October 26, 2014 by styxfire

[RocketMan275]

One time I was able to get a cruise for $29/day, and one time $26/day! And Vision of the seas has a cruise for $30/day leaving tomorrow. You can find superprices like this if you're diligent. But I haven't found any bargains on Oasis class, for sure. Anyway, when my cruise was $26/day and tips were $12/day, that means tips were 46% of the cruise price.

 

No, when I'm NOT forced to pre-pay, I use OBC to pay for daily tips, instead of my own money. It's cheaper than way. I save enough to go on another weekend cruise.

 

You are truly fortunate to be able to get those kinds of prices. I fully understand why you would be unhappy with the pre-payment.

 

It costs me more to get to the port than you're paying for a cruise. Makes me wonder if there's a way to sneak my Great Dane on board. I could pay those rates for her and save money on kennel charges. Well, almost. She would like the buffet though.

[LMaxwell]

and name for TIPS, I thought TIPS meant "TO INSURE PROPER SERVICE"

 

You are misusing the word insure in place of ensure. And you can't really ensure something will happen (good service) by paying after. But I do get your basic point, and agree, that you tip based on service received and how you see fit.

 

See this for further explanation

http://www.snopes.com/language/acronyms/tip.asp

[LMaxwell]

While Royal is making some money off the pre-payment of gratuities, it is difficult to believe they are doing this just so they can make a very small interest rate on the additional pre-paids. If that were to be the reason RCI is doing this, then the interest earned would have to be considered the Return On Investment (ROI) of all the millions spent to change the dining rooms and retrain the serving crew. If you've done some calculations that would justify this, I'll be the first to admit you're right.

 

RCI didn't create DD to impose earlier tip payment; it's just sort of a byproduct of it. Now it is a good reason for them to require tips paid ahead of time, and I'd have to believe the amount is actually pretty massive...

 

Across 6 brands RCI has about 100K berths. I don't know the exact number allocated to RCI, let's say 50K for discussions sake. And even though suite gratuity is higher, let's just use the lower $12pp pd rate for discussion.

 

We're talking about a $600K PER DAY pull ahead for RCI...which sits in an account for a minimum of 2.5 months; often longer; probably 3 - 3.5 months before being disbursed to the crew. So if you have 75 days of payments (low side) at 50K berths (probably in the ball park) X $12 pp (it would HAVE to be higher to acct for suites) you've got $45M tied up in cash pull ahead.

 

Oh, and you no longer have to show the OBC as being used towards any of that $45M as an offset. You better believe they're bringing in a substantial amount of money.

[packyb]

we are booked on Adventure of the Seas for March 22, 2015 the we opted for early dinner this time. The grats was optional but we usually do it because it's just easier and we can always give more if someone goes above and beyond good service.

[Fortypluscruiser]

Not true, not all the cruise lines are asking to prepay gratuities for whatever name you call it, DD, MTD, on NCL it's called freestyle dining, and if you want to pay your gratuities on your final booking for budgeting purposes you have that option to do so.

Why is this an issue, I think I know the reason. Let's take the median age group guest that cruise with RCI, most are 50 and over, most want to dine early so they can hit the early entertainment and then to bed early to be the first ones up for breakfast and as most of us know that you would need to book a cruise a year to a year and a half out to get early dinning, so RCI comes up with this fantastic idea, gives it a fancy name (DD) and makes us prepay Gratuities, this is not way to compete with NCL who is leading the industry in "Freestyle Dining" the same as MTD or DD, and why bother enticing us with OBC if we can't use it the way we choose to use it, I am so done with RCI, I'll take my business elsewhere!

 

Gee I must either be speaking a foreign language here or people are justing looking for a reason to be upset. All the majors including Royal are adding gratuities to your shipboard account, so you can use your OBC for them. Others besides me have already said that here. If prepaid gratuities for DD are still on your bill for final payment it is a timing issue (when you booked) and all you have to do is ask to have them removed. A TA has no financial incentive with prepaid and should have no problem removing them. If they won't then your issue is with them, not Royal. My Time is still requiring prepaid but a lot of folks at Royal want this requirement removed so hopefully it will be in the not too distant future.

[LMaxwell]

My Time is still requiring prepaid but a lot of folks at Royal want this requirement removed so hopefully it will be in the not too distant future.

 

Interesting; what is the source for this? That would be my ideal situation. Just charge my onboard account.

[Fortypluscruiser]

Interesting; what is the source for this? That would be my ideal situation. Just charge my onboard account.

 

I know a lot of executives at Royal -- some acknowledge that this is a bad policy that was instituted BEFORE Royal started adding gratuities to shipboard account. But that it is low on the priority list as far as programming their computers. So I have no clue about timing.

[nednrom]

I prefer to prepay gratuities ahead of time. The $200-400 we have goes for other expenses that are easily accrued during the trip. That doesn't mean that I don't tip in addition to to that ... it's cyclical really -- you get great customer service, you tip extra, you get outstanding customer service. I see prepaid gratuities separate from that.

[LMaxwell]

I know a lot of executives at Royal -- some acknowledge that this is a bad policy that was instituted BEFORE Royal started adding gratuities to shipboard account. But that it is low on the priority list as far as programming their computers. So I have no clue about timing.

 

Interesting stuff. I like it

 

I prefer to prepay gratuities ahead of time. The $200-400 we have goes for other expenses that are easily accrued during the trip. That doesn't mean that I don't tip in addition to to that ... it's cyclical really -- you get great customer service, you tip extra, you get outstanding customer service. I see prepaid gratuities separate from that.

 

A lot of people feel like you do as well, but what has that got to do with the topic at hand? I have nothing against anyone who choose to prepay for whatever reasons they have, convenience, etc. I just don't think it should be forced.

[RocketMan275]

RCI didn't create DD to impose earlier tip payment; it's just sort of a byproduct of it. Now it is a good reason for them to require tips paid ahead of time, and I'd have to believe the amount is actually pretty massive...

 

Across 6 brands RCI has about 100K berths. I don't know the exact number allocated to RCI, let's say 50K for discussions sake. And even though suite gratuity is higher, let's just use the lower $12pp pd rate for discussion.

 

We're talking about a $600K PER DAY pull ahead for RCI...which sits in an account for a minimum of 2.5 months; often longer; probably 3 - 3.5 months before being disbursed to the crew. So if you have 75 days of payments (low side) at 50K berths (probably in the ball park) X $12 pp (it would HAVE to be higher to acct for suites) you've got $45M tied up in cash pull ahead.

 

Oh, and you no longer have to show the OBC as being used towards any of that $45M as an offset. You better believe they're bringing in a substantial amount of money.

 

Yes, but you'll do good to earn 1% interest and you'll only get to keep the money a fraction of a year so you're effective rate is even less. BTW, since about half the passengers are already into MTD, you won't get $600K pull ahead but only half that. Now how much is this costing RCI?

[LMaxwell]

Yes, but you'll do good to earn 1% interest and you'll only get to keep the money a fraction of a year so you're effective rate is even less. BTW, since about half the passengers are already into MTD, you won't get $600K pull ahead but only half that. Now how much is this costing RCI?

 

If RCI decides to require prepayment on all bookings that number is accurate.

 

Business operate on cashflow. This gives RCI many more millions of operational dollars, pumps up their cred on Wall Street, and gets them off of having to play accountant Tetris by applying OBC to cover crew costs (which likely are the most valuable thing you could buy with OBC margin wise).

 

It's a $600K pull ahead per DAY. If there is a 75 day float in that account (I really think it would be MORE) you are looking at churning $45M.

 

What does it cost RCI? Substantially less than the interest earned on $45M (nevermind NOT having to credit OBC as stated above). This puts them revenue positive. From a business standpoint it is brilliant. All this pay ahead stuff is brilliant from the business standpoint. It's amazing that they have gotten guests to see this as a convenience when there is practically NO savings (value) to the customer, except in circumstances where spending a bit more gets someone over a points threshold on a credit card.

 

Regardless, this is a net money maker for RCI, this isn't losing them a cent, that's for sure.

[John&LaLa]

But there aren't plenty of free choices. The menus in the 3-4 included venues are pretty limited, especially for picky eaters.

 

All that matters to you is the time you sit down. But to us, having the same wait-team and dining table each night, with a rotating menu, is what matters.

 

Then you have a choice to make, see ya

 

Sent from my HTC One_M8 using Forums mobile app

[DonnaK]

Then you have a choice to make, see ya

 

Sent from my HTC One_M8 using Forums mobile app

 

Yes, that's what I have been saying throughout this thread. No need to be rude.

 

http://www.boards.cruisecritic.com/showpost.php?p=44544993&postcount=118

 

I am trying the Quantum 3 day sampler cruise because I made the booking on the day it opened up, a year before dynamic dining was announced.

 

But if you look in my signature, my last two cruises were on Celebrity and we have also enjoyed cruising with Princess. As much as we've enjoyed RCI in the past, I will certainly book all my future cruises on ships that offer traditional dining, even if that means moving to other lines.

Edited October 27, 2014 by DonnaK

[Cruising.Lovers]

Yes, that's what I have been saying throughout this thread. No need to be rude.

 

http://www.boards.cruisecritic.com/showpost.php?p=44544993&postcount=118

 

I am trying the Quantum 3 day sampler cruise because I made the booking on the day it opened up, a year before dynamic dining was announced.

 

But if you look in my signature, my last two cruises were on Celebrity and we have also enjoyed cruising with Princess. As much as we've enjoyed RCI in the past, I will certainly book all my future cruises on ships that offer traditional dining, even if that means moving to other lines.

 

Applauds to you, I agree and as you can see by my signature I just booked a Celebrity cruise with the 123 special and may even cancel this overpriced and overrated Quantum of the Sea.

Plus I have to put my new tuxedo to use, LOL:)

[Fortypluscruiser]

may even cancel this overpriced and overrated Quantum of the Sea.

 

How does one know if a ship is overrated when it hasn't even cruised with paying customers yet?? As for overpriced -- the marketplace determines the price of the cruise. If it had lower demand, then the pricing would be lower. Only time will tell whether the ship justifies the amount people are paying. Norwegian Breakaway was very expensive for a while -- but once folks sailed on it, NCL could no longer get the pricing they were getting early on before the ship sailed.