Alcoholic Beverage Package & Added Gratuities

[ParrotheadG]

...and it's not really "free" anyway. There's a $200 difference between the same cabin if you book "no frills" vs. with the drink package on our sailing- can't speak specifically to other sailings, but there's always an up charge. So on our sailing, they're really charging $200 for the additional offerings, plus the automatic gratuity no matter how much (or little) you drink. It's a good deal if you drink enough-not so much if you're not a big drinker.

 

 

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[luddite]

First, it's important to understand the math and the reality.

 

They comp the drink package at retail. Retail includes the markup so the actual out-of-pocket expenses are considerably less than the price. If they get creative and write off the retail cost as advertising---- well, that's a sweet deal for them. Four days in port on a seven day cruise mean a lot of passengers are not on the ship drinking during the day so that's another point for their bottom line.

 

The 18% gratuity for the package is actual expense and theyre getting that in cash.

 

That's reality. If it weren't legal they could only do it as congressmen.

[Jetlagged787]

Would a UK person confirm that the cruise price does not decrease if they choose the Shore Excursion perk vs. the Open Bar?

If it does, then they're paying for the perk.

I'd like to compare a mock booking:

NCL STAR

2 guests

November 05 - 20, 2017

Inside Stateroom Category ID

Shore Excursion Perk

TOTAL $1,974.92 (1,616.93 British Pound)

Open Bar Perk

TOTAL $2,401.52 (1,966.20 British Pound)

 

 

To answer your question, all perks are priced the same. There is no Excursion perk offered on the UK website.

 

This mock booking viewed at 11.45 a.m. on 12 January shows a cost of £1858 ($2281.45 converted by xe.com) for any package.

 

 

This booking would require a £200 deposit with the balance paid by 06 September. If we cancel before 06 September. we lose the deposit

Edited January 12, 2017 by Jetlagged787

[detroitlions]

So I have no issues with the fee if it is actually divided up to all of the bartenders and not watered down with some performance matrix to trick the bartenders into believing that due to more or less effort you are only getting said amount which allows NCL to scoop up a large percentage of the money for there profits.

:(

[tiger-91]

To answer your question, all perks are priced the same. There is no Excursion perk offered on the UK website.

 

This mock booking viewed at 11.45 a.m. on 12 January shows a cost of £1858 ($2281.45 converted by xe.com) for any package.

 

 

Interesting. You pay more but not as much more for the ubp.

Thanks. Good to know.

 

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[KeithJenner]

Interesting. You pay more but not as much more for the ubp.

Thanks. Good to know.

 

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We also don't seem to have to pay as much more to qualify for the perks as in the US.

 

I often see the the $200 amount quoted as the extra you have to pay to get the extras. In the UK the price difference between guarantee rooms and ones which include the perks is usually less than that.

 

I just looked at a few examples and in many cases there was no difference in price. The biggest difference I saw was £40 each.

 

Basically, booking in the UK, you always should take the UBP unless the amount you will drink works out as less than the value of other perks. About one drink a day should do it.

[hawkeyetlse]

Is the legal issue simply the use of the word "free"? If that's the case, it would be an easy matter for NCL to adjust its marketing language in the UK and CE and start collecting some money for this perk. If they stopped saying that the UBP is free and stopped describing the extra charge as a gratuity, they could really start charging whatever they want.

 

"Choose this option and add the UBP to your booking for only $19/day (a savings of over 75%), and we'll pay the gratuities for you!"

 

In principle this would work in the US, too, except that it's unnecessarily complex given that most American consumers are comfortable with the concept of "FREE (see conditions)".

[beerman2]

So I have no issues with the fee if it is actually divided up to all of the bartenders and not watered down with some performance matrix to trick the bartenders into believing that due to more or less effort you are only getting said amount which allows NCL to scoop up a large percentage of the money for there profits.

:(

 

Good luck figuring that out. LOL. Only Corporate NCL knows for sure.

[KeithJenner]

Is the legal issue simply the use of the word "free"? If that's the case, it would be an easy matter for NCL to adjust its marketing language in the UK and CE and start collecting some money for this perk. If they stopped saying that the UBP is free and stopped describing the extra charge as a gratuity, they could really start charging whatever they want.

 

"Choose this option and add the UBP to your booking for only $19/day (a savings of over 75%), and we'll pay the gratuities for you!"

 

In principle this would work in the US, too, except that it's unnecessarily complex given that most American consumers are comfortable with the concept of "FREE (see conditions)".

 

 

 

I'm sure they could legally, but perhaps there is a perception issue.

 

Free is much more notable as a perk than a discount is. They could certainly market it as a discount, but perhaps they feel that it would not make it as appealing.

 

I'm sure it's the case that our base fares are higher in order to cover it. As a user of the UBP this is good for me because the total cost is spread amongst everyone rather than just the drinkers, so effectively the people who take the on board credit pay some of my gratuity for me.

 

It's not so good for those people though. :)

Edited January 12, 2017 by KeithJenner

[Jetlagged787]

Is the legal issue simply the use of the word "free"? If that's the case, it would be an easy matter for NCL to adjust its marketing language in the UK and CE and start collecting some money for this perk. If they stopped saying that the UBP is free and stopped describing the extra charge as a gratuity, they could really start charging whatever they want.

 

"Choose this option and add the UBP to your booking for only $19/day (a savings of over 75%), and we'll pay the gratuities for you!"

 

In principle this would work in the US, too, except that it's unnecessarily complex given that most American consumers are comfortable with the concept of "FREE (see conditions)".

 

Don't start giving them ideas like this! :eek:

[hawkeyetlse]

I'm sure they've already thought of it, and many other ideas for losing less money on the UBP perk in future versions of the promo.

 

I can understand the recurrent complaints from NCL US customers about the package being described as "free" when it actually costs $14 per day. But complaining is not going to make the price go down. It's going to go up. Keep in mind that before the promo started, lots of people were happy to pay $50 or $60 per day for the UBP, so even if they doubled the current cost of the perk, it would still be attractive to many people. But in order to do this, they would either have to double the retail value of the UBP and say that it costs $159 per day :eek: or give up on the fiction that we're just paying the tips.

[The Fun Researcher]

It's easy to understand why NCL does it this way. The other option is to roll the service charge cost into everyone's cruise fare, which will make the base cost of the cruise go up. This makes NCL less attractive when cross shopping against other competitive cruise lines.

 

Dan

[oceanbill457]

Interesting that NCL charges $79 for the beverage package and adds the 18% gratuity. Oceania which is owned by NCL charges $59.95 for the beverage package which includes the 18% gratuity. Quite a difference!

[telutel]

When are you charged the gratuity? Is it included here:

 

Summary of Charges

 

TOTAL 2 GUESTS $ 5,498.00

GOV'T TAXES, FEES & PORT EXPENSES $320.70

TOTAL $ 5,818.70

 

Thanks!

 

WOW! This is how they are charging me and my wife:

 

Admin Fee (casino offer): Total: $400

Gov Tax / Port Exp/ Fees: Total: $249.08

Bev Srv Charge: Total: $199.08

Gross Total: $848.16

 

So in our case they are charging us a total of $199.08 in gratuities on a FREE package...

[telutel]

They call it a service charge and not a gratuity that why.

 

They call it a service charge, as NCL doesn't give all of that to the Bar staff. They only get a portion of it as a gratuity...

[cml4958]

WOW! This is how they are charging me and my wife:

 

Admin Fee (casino offer): Total: $400

Gov Tax / Port Exp/ Fees: Total: $249.08

Bev Srv Charge: Total: $199.08

Gross Total: $848.16

 

So in our case they are charging us a total of $199.08 in gratuities on a FREE package...

 

Then switch your perk to something that doesn't have a service charge. And if you're in the casino enough you should get a free drink card while you are there.

[Tarnished45]

The OP isn't complaining about it. They are just asking how it is legal to charge it.

 

The answer to that question is that in the U.K. It appears not to be legal, which is why NCL don't charge it.

 

That's why I assume the OP has got confused between the different charges and what they see on their confirmation is actually the DSC.

 

Either that or they booked overseas in which case whether it is legal in the U.K. Is irrelevant.

I'm in the UK but booked with a US travel agent. So it's the country you book in that makes the difference. Thanks :)

[Tarnished45]

I don't think they necessarily did. I think they may be seeing the DSC and assuming it's the gratuity on the beverage package.

 

It would be handy if the OP can back to stop all the speculation.

Sorry I didn't get back quickly. Since I posted I've been really ill and in hospital for a couple of days :(

[KeithJenner]

I'm in the UK but booked with a US travel agent. So it's the country you book in that makes the difference. Thanks :)

 

 

 

Yes, the country of booking is the relevant thing.

 

Hopefully your question has been answered anyway. The legality is questionable in the UK, but as you booked through the US then U.K. law doesn't apply.

[KeithJenner]

Sorry I didn't get back quickly. Since I posted I've been really ill and in hospital for a couple of days :(

 

 

 

No problem, and I hope you are better now.

 

We often get questions like this where the OP never comes back, so we don't actually find out what the situation really was.

 

Thanks for clarifying.

[mscdivina2016]

I just booked a cruise for next December with the UBP and SDP and was charged $99.54 and $12.42, respectively, billed as Bev Srv Charge and Din Srv Charge.

 

My next NCL cruise they hit me with $1136.10 for UBP service charge.:eek: plus I got free DSC. so I guess one washes the other out. DSC would be $1080 so UBP only cost me $56.10:D

[Tom-n-Cheryl]

As your service charge is $15.50 that tells us you are booked in a suite, in which case you don't pay the gratuity on the beverage package

 

Is this correct? I wonder why the exception.

 

 

Thanks,

 

Tom

[havenfan]

Is this correct? I wonder why the exception.

 

You don't pay 18% on the value of the SDP, either.

 

It could be because a suite guest gets all the benefits without a choice only to pick those without extra charges.

 

Or it could just be that you usually pay more for a suite anyway. Perhaps people who book suites are less sensitive to the headline price so NCL just buries the charge in there and makes the benefits truly "free" - once you pay up for a suite.

Edited January 15, 2017 by havenfan

[Tom-n-Cheryl]

You don't pay 18% on the value of the SDP, either.

 

It could be because a suite guest gets all the benefits without a choice only to pick those without extra charges.

 

Or it could just be that you usually pay more for a suite anyway. Perhaps people who book suites are less sensitive to the headline price so NCL just buries the charge in there and makes the benefits truly "free" - once you pay up for a suite.

 

Good to know.

 

Thanks