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Is the Service Better or Worse at Hotels That Include Gratuity?

June 9, 2011 at 6:08 PM | by | Comments (12)

While we're on the topic of tipping today, we wanted to know what you thought of Gratuity Included Hotels, i.e. hotels where they automatically tack on gratuity to a food and beverage bill, spa treatment or other service.

Obviously, this is common in Europe (everywhere, not just at hotels) but here in America, it's still quite unusual or helpful/offensive, depending on where you stand on automatically tipping for service.

We encountered this recently at the Canyon Ranch Miami when we dined in their Canyon Ranch Grill and noticed that an 18 percent gratuity charge had been added. The same thing happened after we went to pay for our pedicure in the spa. Apparently this is standard for all Canyon Ranch hotels.

Being horrible at math, having the gratuity already taken care of for us was something that we liked. But did we get 18 percent gratuity worth of service? Kinda. All the staffers were cordial and very prompt with our requests (we ate twice at the grill) but only a room service waiter seemed willing to go out of his way in serving us.

The other time we had gratuity included like this was for a $18 pina colada at The Cove at Atlantis and it took 25 minutes to get a drink from our server, who automatically received a 15 percent tip. We couldn't help but wonder, is the service just ok at these kind of places because gratuity was already included?

What have you noticed about the service at hotels that already add the gratuity on the bill? Tell us your experiences in comments below!

Comments (12)

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common in Europe?

Not to the best of my knowledge, in Europe tipping is usually completely discretionary unlike the US where this practice is quite common in some hotels.

The answer to all of this: owners: pay the staff a living wage and stop gauging customers. And if there is a tip make sure it ALL goes to the staff!

Does tipping make any difference to the service? Not really.


Gratuity Included

Including gratuity is actually quite common in Miami, not just at hotels, but its stand-alone restaurants too. I believe (part of) the thinking was that many of our guests from Europe and Latin America do not have a culture of tipping as we do in the US (presumable because their wait staff makes a decent wage?), where waiters live off tips.  So gratuity has been included at many establishments to not "punish" staff for a difference in culture.

That being said, the Miami area has not great service for US standards.  Though I'm not sure there's a causal relationship, since service is also sub-par at retail and other establishments where tipping doesn't occur.

The lesson is: Look at your bill (I've seen tourists tip on top of a bill with gratuity included), and don't be ashamed to adjust the tip according to service (and perhaps explain to the waiter why you have adjusted the gratuity).


15% is plenty

I think a 15% added gratuity is fine.  It is a little  presumptuous for any hotel or restaurant to automatically add 18%, when service levels have declined so drastically.  If someone wants to leave extra, it should be their choice.  As well, they should be able to remove the 15% tip if the service was not up to par.  Gratuities have become "expectations" by service personnel, not something to work towards.  How many service personnel even make eye contact anymore ?  Why do I need to know my servers name and favorite items on the menu ?  It's all so fake !

Poor research

I am European myself and I know for a fact that gratuity is NOT common in Europe at all. You leave whatever tip you want which by far is not as much as here in the United States. The reason behind it is that the employer pays a good salary (min. wage is much higher in Europe than in the US) to their staff and they do not depend on gratuity. Part of the revenue goes to staff's pay-roll.
However, it is not mandatory to pay for the included gratuity, no business can force you to pay it. It is included for your "convenience", but if you don't think it is up to service you can ask to have it taken off.
At many touristic businesses it turned into an automatic inclusion due to the fact, that the non US-tourists, especially Europeans were not leaving any tip behind.

DATE of receipt 2007

Forgot to ask, why you write an article published on June 9, 2011 stating that you were there recently at that location showing a receipt with a date from 2007???

Poor Service

My experience with gratuity automatically added on is that you tend to get below par service. In these cases I ask for the tip to be removed and I will add on. Often it is the same amount. Frequently it is lower. Very occasionally it is higher. Stick up for yourself!!

Biotin Hair

The lesson is: Look at your bill (I've seen tourists tip on top of a bill with gratuity included), and don't be ashamed to adjust the tip according to service (and perhaps explain to the waiter why you have adjusted the gratuity). However, it is not mandatory to pay for the included gratuity, no business can force you to pay it like you can learn at <a href="http://www.biotinhair.org/">Biotin Hair</a> . It is included for your "convenience", but if you don't think it is up to service you can ask to have it taken off.

not really

including the tip in the bill will not necesserally make the service better.... Also, sometimes you buy food to go and they leave the gratuity space in blank for you to fill out. Why tip if all they did was take our order and charge us? http://www.curefungustoenail.org/treatments/toenail-fungus-2

the proper percent

I've worked for tips for years, and I think an included gratuity is an unnecessary practice here in the USA. It could rightfully offend a customer (especially with an $18 pina colada order) and its always best to play it safe in customer relations.

Causes tension

I work at a hotel and frequently hear the servers in room service complain because there is a service charge and automatic gratuity. They have to hear customers complain about high prices and don't receive a great tip that they might otherwsie and this creates a tension between the customer and server.  

W South Beach

I stayed at the W South Beach in Miami recently and they levy a 20% gratuity for poolside service.  The service was competent and friendly, the first time I have ever experienced that with a built-in gratuity.  My experiences with the same in Europe have generally not been so great.  Kudos to the folks who run and work at the W!  

Yes for the Auto Grat

Working as a server I know that tip is not the only way a guest voices their displeasure.  Believe me the North American client knows the word "manager" and "get me the".  Show me a hotel that doesn't have a comment card wall for good and bad and I'm sure it won't be in North America. Most places I"ve worked, even resorts rely on repeat guest for some income.  The starting comment made it sound like these poor helpless guests were all of a sudden getting horrible service because tip was included.  That they would loose their voice as a guest if they weren't allowed to arbitrarily withhold their tip.  In the US were Min wage for servers is often around $2 or $3 I think there is no problem with requiring a mandatory tipping % or increase food prices and work the wage increase in for servers. You'll get professional people who value the steady paycheck and increased security from a more stable income.  

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