10% Service Charge

[howtoescape]

More and more hotels and restaurants in Bkk seem to be charging 10% service charge which is a blatant rip off.

Is this charge optional? and if not then surely it should just be in the price and not be listed as an extra charge.

If service staff were to get this 10% they would have some of the best paid jobs in Bkk so i am presuming they never get to see a baht of it, hence i leave a tip and in theory am tipping twice.

I was going to book in a hotel that had the 10% service charge but it also mentioned that it didnt include gratuity, needless to say i didnt go ahead with the booking.

Has anyone lost face but saved money by opting out of this extra way to extort money.

Edited November 5, 2007 by howtoescape

[Jingthing]

I don't think you can back out other than to stay at a hotel that doesn't do that.

[jonniebkk]

Yes, I would imagine that is your only solution...don't patronize places with service charges. Many places, at least in Pattaya, don't have them...even some of the posh places like Mata Hari restaurant. It is left up to you to decide if and the amount of tip to leave. You could also ask if the service charge could be waived before having a meal or staying at a hotel that has one.

[dave111223]

It really is a rip as i bet there is absolutely no change in workers salaries after a hotel/restaurant starts adding this 10% services charge.

Actually i bet employees get less money. At least without the service charge they have some chance of getting a tip.

[t.s]

It really is a rip as i bet there is absolutely no change in workers salaries after a hotel/restaurant starts adding this 10% services charge.

Actually i bet employees get less money. At least without the service charge they have some chance of getting a tip.

working in a very high end restauraunt my girlfriend makes and additional 10 to 20 k monthly off the back of this service charge. the girls in the restauraunt split the cash tips nightly.

[howtoescape]

working in a very high end restauraunt my girlfriend makes and additional 10 to 20 k monthly off the back of this service charge. the girls in the restauraunt split the cash tips nightly.

Thats good to hear and if i knew that was the norm then i would have no problem with it. But I just cant see that being the case in hotel chains such as the Holiday Inn (Chang Mai) that add this charge.

Multi nationals dont give 10% of the money in their possession away to staff without making a song and dance about it.

[pattyboy]

I always thought that those 10% service charges were to ensure a tip was left for the staff. Perhaps I'm wrong in doing this, but I don't leave any money on the table when a service charge is already included in the bill. As far as hotels go, I don't think I'd stay in one where they automatically tack on a service charge. To me, that's only a sleazy way of increasing their prices.

Although I know that tips make up a big part of a waiter or waitress's income, they are still something that should be earned. Tips or gratuities are given by people to reward good service. I don't mind tipping when the service has been at least adequate, but when it's been bad I don't tip.

[Somtamnication]

Actually, no one in Thailand gets 10%. About 30% or more is kept for employee breakage and theft. Then and only then is the remainder split among all staff.

[Firefan]

Each hotel and restaurant sets their own rules. As Somtam says; some are often allocated towards covering breakage/theft/errors - thereby "motivating" staff to do a good job - as they get more at the end of month if few errors.

Other hotels/restaurants supply uniforms (in theory saving staff money on work clothes), free foods and drinks (saving staff money on that), free shuttle bus to/from work(savings again) Etc. and allocate some of the service charge money for those things.

I tend to tip less where service charge is applied.

Cheers!

[soundman]

I simply don't patronise places where a service charge & VAT are added to items that are priced at the top of their price thresh-hold. I make it a point to inform their management that adding 17% on top as a hidden charge is unacceptable because it makes an allready over-priced steak a blatant rip-off. I have even gone so far as to place a dinner order & then cancel it before it was cooked, get up & leave.

Very bad business practice...

[Acquiesce]

working in a very high end restauraunt my girlfriend makes and additional 10 to 20 k monthly off the back of this service charge. the girls in the restauraunt split the cash tips nightly.

MK has gone up in the world.

[donna]

working in patong, and running a hotel, i can tell you that ALL service charge is handed on to staff. we do not retain any of it. some hotels give 50% to staff, and others 90% as well as some giving 100% back to staff. staff coming for interviews invariably ask 'how much service charge do you guarantee?'. some guarantee 10k per month, and others dont guarantee anything.

so there you have it. some do and some dont. we do.

[kmart]

I simply don't patronise places where a service charge & VAT are added to items that are priced at the top of their price thresh-hold. I make it a point to inform their management that adding 17% on top as a hidden charge is unacceptable because it makes an allready over-priced steak a blatant rip-off. I have even gone so far as to place a dinner order & then cancel it before it was cooked, get up & leave.

Very bad business practice...

Agreed there. Implemented in places like Patong and other tourist traps in Phuket, for example; it generally leads to a sense of entitlement and hence poor service also...

[mellow1]

You are already paying a lot more than what a Thai would pay for staying at the same hotel, whats a little more?

[TheDon]

working in patong, and running a hotel, i can tell you that ALL service charge is handed on to staff. we do not retain any of it. some hotels give 50% to staff, and others 90% as well as some giving 100% back to staff. staff coming for interviews invariably ask 'how much service charge do you guarantee?'. some guarantee 10k per month, and others dont guarantee anything.

so there you have it. some do and some dont. we do.

Thats good to know. 10% is a small some and if some of it goes to there hard workers who get paid little then im happy. It would be a shame if some places keep it, but im glad this might be a way of some of them getting some extra cash

[pattyboy]

You are already paying a lot more than what a Thai would pay for staying at the same hotel, whats a little more?

I think this statement must be here only to get a reaction, but in case it's not, I guess it's all a matter of perspective.

I'm honestly not intending to flame or attack the poster, but I'd have to say that your statement shows reverse logic. If I'm already paying a lot more than a Thai person would, why the h#ll should I have to pay even more? I think the "What the heck -- we're already getting ripped off now, so who cares of we get ripped off a little more" attitude is a dangerous one. If it's adopted by too many people, we can count on service, quality and quantity getting even worse.

[mellow1]

You are already paying a lot more than what a Thai would pay for staying at the same hotel, whats a little more?

I think this statement must be here only to get a reaction, but in case it's not, I guess it's all a matter of perspective.

I'm honestly not intending to flame or attack the poster, but I'd have to say that your statement shows reverse logic. If I'm already paying a lot more than a Thai person would, why the h#ll should I have to pay even more? I think the "What the heck -- we're already getting ripped off now, so who cares of we get ripped off a little more" attitude is a dangerous one. If it's adopted by too many people, we can count on service, quality and quantity getting even worse.

That's the reason I don't stay in hotels, when I have to take care of something in BKK, or anywhere else, I will take the night train, take care of my business and return the same way. If my family is with me, I won't subject them to that though. That is the only time I pay for a hotel room anymore.

[tropo]

I simply don't patronise places where a service charge & VAT are added to items that are priced at the top of their price thresh-hold. I make it a point to inform their management that adding 17% on top as a hidden charge is unacceptable because it makes an allready over-priced steak a blatant rip-off. I have even gone so far as to place a dinner order & then cancel it before it was cooked, get up & leave.

Very bad business practice...

You'll be missing out on some fine establishments if you enforce such a restriction on your spending.

Why be so cut and dry about it? Check the prices then do a mental calculation to add the additional 10 or 17% and then decide if the price is ok or not.

A lot of places are still good value even with the added charges.

In the case where a service charge has being added I will only leave loose change.

[soundman]

I simply don't patronise places where a service charge & VAT are added to items that are priced at the top of their price thresh-hold. I make it a point to inform their management that adding 17% on top as a hidden charge is unacceptable because it makes an allready over-priced steak a blatant rip-off. I have even gone so far as to place a dinner order & then cancel it before it was cooked, get up & leave.

Very bad business practice...

You'll be missing out on some fine establishments if you enforce such a restriction on your spending.

Why be so cut and dry about it? Check the prices then do a mental calculation to add the additional 10 or 17% and then decide if the price is ok or not.

A lot of places are still good value even with the added charges.

In the case where a service charge has being added I will only leave loose change.

You forgot to read on to the qualifier! Not total exclusion, but still dis-satisfaction at being handed an extra on top of the advertised price.

Fuji is a good example of that. I still eat there but am only mildly pissed off because the total price still represents OK value for money.

It is the big hotel chains that charge 690B++ for a simple breakfast or 200B++ for a can of beer that you can buy in 7/11 for 39B that really get me angry.

Cheers,

Soundman.

Edited November 5, 2007 by soundman

[siam-i-am]

working in a very high end restauraunt my girlfriend makes and additional 10 to 20 k monthly off the back of this service charge. the girls in the restauraunt split the cash tips nightly.

MK has gone up in the world.

[tingtong]

a quick off topic? question:

how is it working in your country?

many places i travel they make me pay for service charge, include most of the american places, or west europe. oh, mostly a hefty 15% for service, not even 10.

As to the topic, if the bill comes with service charge, I just do a little round-up. As how they divide, it isnt my headache really, if the system isnt good, good workers will leave anyway. And if they go, I look for a new place to eat

[Tinkelbell]

I always leave tip between 15- 20%, if I order cocktail then I would leave 25% tip.

As for being automatic charged 10% on the tab, since it's less than I usualy do, I should be happy right ? No, I feel offend for I would consider giving tip according to the service I receive. If the serveice is bad I would give leave few stangs , I still have my option.

Many times I had an excelent service, besides already being charged 10% on the tab, I would leave another 15% in cash by slipping into my waiter's hand.

[papaya9]

10% is reasonable, unless you're stingy.

[CHdiver]

If there is a Service Charge; I usually don't Tip. It's non of my business how that money is shared. I do give a Tip if I go to a touristy Restaurant; but not at a real Thai Restaurant. When in Rome.......

I never tryed to go around the Service Charge. Staying at a Hotel I have to accept it; but usually I don't use the Hotel Restaurants or Bars. Just around the Corner you mostly find a nice Place who will not have a Service Charge.

[mauiguy90]

working in patong, and running a hotel, i can tell you that ALL service charge is handed on to staff. we do not retain any of it. some hotels give 50% to staff, and others 90% as well as some giving 100% back to staff. staff coming for interviews invariably ask 'how much service charge do you guarantee?'. some guarantee 10k per month, and others dont guarantee anything.

so there you have it. some do and some dont. we do.

Think its impressive that your hotel gives workers the full 10% tip. Each time I have asked waiters if they receive the service charge, they have said no. Seems most of the posters here have similar experiences...

To sum it up, few do and most don't...

[kevc]

Actually, no one in Thailand gets 10%. About 30% or more is kept for employee breakage and theft. Then and only then is the remainder split among all staff.

Beg to differ a friend of mine owns a hotel in Bangkok and all the 10% service charge goes to the staff, although I expect thats not the norm everywhere, maybe theres deduction for staff meals and uniforms, breakages.

[pettergaga]

What i do not understand is why they need the ++ added to the price.

I am not interested in how much the hotels, restaurants etc pay in VAT and how much added in service charge.

What I want to know is how much I am supposed to pay, with no hidden charges.

Make the neccicary calculations on profit margins, staff payments, VAT etc and give me theNET price.

++ is just a way for the establishments to hide the real price and make it appear cheaper than it is.

When it comes to tipping good service should be rewarded, but it is not my duty to pay the staff their salary and feel bad if I dont tip.

Why should it be in % anyway. If I order an expensive bottle of Champagne making the staff do one task gives a lot more SVC than forexample ordering a bottle of coke individually 10 times, even though the staff has to work 10 times more.

Why should we pay service charge in restaurants and not in department stores. Many times the sales person in a department store do an excelent job, but you dont see 10% of the sales amount added to the cost do you?

[Smithson]

Can I add a service charge to items sold in my business? This would be great, then I could pay the staff less, having a tipping system would also help, then I could pay less again it it'd be the customer who'd feel guilty rather than me.

A place in NZ had on the menu "if you're happy with the service, pls tip our staff". My freind offered the staff a tip - join a union, the best way to get fair wages and conditions.

[ZZZ]

What i do not understand is why they need the ++ added to the price.

I am not interested in how much the hotels, restaurants etc pay in VAT and how much added in service charge.

What I want to know is how much I am supposed to pay, with no hidden charges.

Make the neccicary calculations on profit margins, staff payments, VAT etc and give me theNET price.

++ is just a way for the establishments to hide the real price and make it appear cheaper than it is.

When it comes to tipping good service should be rewarded, but it is not my duty to pay the staff their salary and feel bad if I dont tip.

Why should it be in % anyway. If I order an expensive bottle of Champagne making the staff do one task gives a lot more SVC than forexample ordering a bottle of coke individually 10 times, even though the staff has to work 10 times more.

Why should we pay service charge in restaurants and not in department stores. Many times the sales person in a department store do an excelent job, but you dont see 10% of the sales amount added to the cost do you?

I agree 100%

Tipping should be stopped everywhere. The only winner with tipping is the restaurant owner. There are, in most cases, no tax/social/medical or pension payments made by the restaurants for the tipping portion of the waiters salary.

An alternative to tipping could be to include a slip with the bill/check where the customer rates the waiter/service and then the customer put this in a sealed box next to the exit. The restaurant owner can then rate their service personnel and promote and reward them accordingly.