Are tips included in “all inclusive” packages?
Of course! It says “all inclusive”. No, tips are never included. Who is right?
During discussions in our group, the majority of members stated that tips were not included in all inclusive packages. This seemed logical, and several articles, as well as comments from representatives of travel agencies and hotel chains, supported this idea. However, we were unable to find formal proof on the carriers’ websites, nor on official invoices or documents.
Finally, a member of the group unearthed the information in the general conditions published by Sunwing, confirming that tips are not included in all inclusive packages.
“CHARGES AND SERVICES NOT INCLUDED IN THE PURCHASE OF THE PACKAGE
Any charges for entry visas, passports, health certificates or items of a personal nature such as laundry, meals not stipulated in the itineraries, telephone calls, gratuities, alcoholic beverages and excess baggage fees, etc., are not included in the price of your package. If your stay is a cruise, certain a la carte restaurants, casino, medical services, excursions, Internet access, spa and beauty salon treatments, telephone calls, faxes, gratuities, alcoholic beverages (a mandatory gratuity is added to any purchase of beverages on board) and excess baggage fees, other costs as described on each cruise line page, etc., are not included in the price of your package.”
A little extra information – difference between service charge and gratuity
In Europe, it is common for a “service charge” to be included in the total amount of the bill. Does this correspond to tipping? Not quite.
“Most establishments that offer services, especially restaurants, want to replace tips with service charges. With tips transformed into service charges, the money given by customers will be directed into the pockets of business owners.”
Here is an excerpt from the Canada Revenue Agency website:
“The term “controlled tips” refers to tips that the employer controls or holds, and must then give to the employee.
Some examples of controlled tips:
The employer adds a mandatory service charge to the customer’s bill to cover the tip;
The employer applies a percentage to the customer’s bill to cover the tip.
“Direct tips” are given directly by the customer to the employee. The employer has no control over the amount of tips or how they are distributed. The employer simply acts as an intermediary between the customer and the employee. Here are some examples of direct tips:
A customer leaves money on the table at the end of the meal, and the server keeps the entire tip;
A customer tips a bellhop, doorman, attendant, or baggage handler directly;
Tips are pooled and distributed among employees according to a formula established by the employees, not by the employer.