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The Street
The Street
Business
Michael Tedder

Disney Cruise Line Follows Carnival in Making a Move Some People Won't Like

The covid pandemic continues to be a headache for the cruise line industry.

Luxury cruises halted operations as soon as the pandemic officially began in March of 2020. The cruise industry slowly began crawling back last year, spending millions of dollars to renovate their ships while waiting for the CDC to begin lifting restrictions and lowering its risk levels.

The major industry players, Carnival Cruise Line (CCL), Royal Caribbean Group (RCL) and Norwegian Cruise Line Holdings (NCLH) have all recently returned their fleets to active sailing, and the major cruise companies continue with their plans bring new ships online.

But it’s always something, amirite?

While the cruise industry can celebrate that its back, the pandemic ended up triggering a labor shortage and a number of supply chain issues that have resulted in the ongoing inflation most industries are dealing with.

As a result, the salaries that cruise lines were paying their employees back in the golden days of 2019 just don’t stretch as far as they used to. With the labor market as tight as ever, cruise ships can’t afford (in all senses of that term) for their employees to look elsewhere for better compensation, which is why Walt Disney Co. (DIS) has followed Carnival in making a move that some customers aren’t going to like.

What Did Disney Cruise Line Do?

Disney has increased its recommended gratuity rates $1 per day, per stateroom guest, as reported by Cruise Hive.

This increase brings the per day gratuity rate to $14.50 for most staterooms, and up to $15.50 per passenger, per day for the concierge staterooms and suites.

The increases in gratuity will go to the head server, assistant server, and server and the stateroom host that clean and service the guest’s cabins. 

The increase in gratuity will start with the Disney Wish, which will set sail on its maiden voyage on July 14, and the charges will be automatically added to guest’s accounts during their cruise. Guests who opted to pre-pay their gratuities at the previous, lower rate will not have any additional charges added to their accounts 

Disney Cruise Line said in a statement that: “Since our very first sailing, Guests have told us how much they enjoy their interactions with the crew members. Providing world-class service and creating life-long memories for our guests are among the most common comments we receive. In recognition of all that they do, we have increased our recommended gratuity guidelines for select positions.”

Image source: Disney Cruise Line.

Disney Is Following the Lead of the Rest of the Cruise Industry 

Disney is far from the first cruise line that has had to raise its gratuity rates in recent months. 

Back in May, Carnival Cruise Line increased per passenger gratuities $14.50 per day for standard cabins and $16.50 per day for suites. Norwegian Cruise Line also increased gratuity rates in April, raising them $16 per person, per day for most cabins, and $20 per person, per day for suites and the exclusive Haven staterooms.

These recommended (though usually prepaid or automatic) rates only apply to dining staff servers and stateroom attendants. Elsewhere, an 18% gratuity is added at point of of purchase to all bar, beverage, wine, and deck service tabs, as well as spa services.

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