Why The Dreaded Service Charge?

[jimbeam1]

I've always wondered if the "service charge" in those ++ places actually is given to the staff.

Only in very few of them. Usually it is used to pay their normal salary and the staff receive very few tips as customers think that the service charge is going to them as something extra.

Exactly.

jb1

[llso]

I have a friend whose family owns a well known hotel on Sukumvit. I asked him about the service charge and if the staff get any of it. He replied that the service charge covers the cost of replacing stolen and broken items from the hotel and restaraunt.

That is why I usually tip the staff with cash in hand which they get to keep.

LL

[theoldgit]

I have a friend whose family owns a well known hotel on Sukumvit. I asked him about the service charge and if the staff get any of it. He replied that the service charge covers the cost of replacing stolen and broken items from the hotel and restaraunt.

That is why I usually tip the staff with cash in hand which they get to keep.

I think your friend made up that response on the hoof. Surely things like this should be costed into into the operating expenses?

I don't know about other countries but there is no service charge on UK hotels, though some restaurants charge it, maybe things aren't broken or stolen from hotels in the UK.

[MontrealFarang]

My guess is that it's because of European tourists. Some European countries have tips already included in their bill so they are used to paying the number on the bill and walking out, stiffing the Thais on the tip. Solution? Institutionalize the service charge.

[theoldgit]

My guess is that it's because of European tourists. Some European countries have tips already included in their bill so they are used to paying the number on the bill and walking out, stiffing the Thais on the tip. Solution? Institutionalize the service charge.

I wouldn't normally tip in a hotel, is that an American/Canadian thing? If so I will put my hands up to never having tipped in a hotel in the US or Canada.

I have always tipped in a restaurant in North America because I know it's more than expected - even if the service is crap.

Edited March 24, 2011 by theoldgit

[bonobo]

I've always wondered if the "service charge" in those ++ places actually is given to the staff.

I know two people working in the hotel industry, one at a very high end resort in Phuket and one at a good BKK hotel. Both of them get a modest salary (8,000 and 6,000 baht/month). And both do get their share of the aggregate monthly service charge which is split between all the service staff from receptionist to doorman to bellhop to maid. At the BKK hotel, that can mean another 8-12,000 baht per month. At the Phuket resort, it has been as high as 30,000 baht.

I believe that the service charge tally is very transparent and the staff can readily calculate where they are at at any given time.

[yermanee]

I've always wondered if the "service charge" in those ++ places actually is given to the staff.

I know two people working in the hotel industry, one at a very high end resort in Phuket and one at a good BKK hotel. Both of them get a modest salary (8,000 and 6,000 baht/month). And both do get their share of the aggregate monthly service charge which is split between all the service staff from receptionist to doorman to bellhop to maid. At the BKK hotel, that can mean another 8-12,000 baht per month. At the Phuket resort, it has been as high as 30,000 baht.

I believe that the service charge tally is very transparent and the staff can readily calculate where they are at at any given time.

Not all hotels give the service charge to the staff, maybe as you said in some of the higher end hotels. I know that most hotels give only half of the service charge to the staff, and many even less than that.

Yermanee

[trogers]

My guess is that it's because of European tourists. Some European countries have tips already included in their bill so they are used to paying the number on the bill and walking out, stiffing the Thais on the tip. Solution? Institutionalize the service charge.

I wouldn't normally tip in a hotel, is that an American/Canadian thing? If so I will put my hands up to never having tipped in a hotel in the US or Canada.

I have always tipped in a restaurant in North America because I know it's more than expected - even if the service is crap.

The norm for tips in the US is to double the taxes.

[theoldgit]

I applaud the fact that at least some hotels pass on the service charge to employees, though I suspect as yermanee indicates most don't, but the fact remains why don't they pay their staff a realistic wage and not expect the customer to subsidise a poor paying employee.

All services have to be paid for so they should make their pricing transparent.

I have written to the HQ of a major international hotel chain asking them why they add these charges in some countries and not others, I will report back if I get a response, but don't hold your breath.

[theoldgit]

The norm for tips in the US is to double the taxes.

Yes, I know that's the norm in restaurants, even if the service is crap, but in hotels as well?

[jimbeam1]

I've always wondered if the "service charge" in those ++ places actually is given to the staff.

I know two people working in the hotel industry, one at a very high end resort in Phuket and one at a good BKK hotel. Both of them get a modest salary (8,000 and 6,000 baht/month). And both do get their share of the aggregate monthly service charge which is split between all the service staff from receptionist to doorman to bellhop to maid. At the BKK hotel, that can mean another 8-12,000 baht per month. At the Phuket resort, it has been as high as 30,000 baht.

I believe that the service charge tally is very transparent and the staff can readily calculate where they are at at any given time.

This system of sharing, monies to all staff, is called a trunk (maybe tronk). A place I once worked at used this, the only money that went into the trunk, was tips not the service charge The owner and his wife were also included in the trunk?

jb1

[aussiechick]

I've always wondered if the "service charge" in those ++ places actually is given to the staff.

Most places now do pass the service charge to the staff - it did take a while.

It is supposed to be divided evenly to all staff members - cleaners, kitchen hands, gardeners, secretaries etc. Where I worked at a 5* resort - we got the amount yearly - never got more than Baht 150. Apparently the owners were taking out the repairs / renovations costs first!!!

[DP25]

The norm for tips in the US is to double the taxes.

Yes, I know that's the norm in restaurants, even if the service is crap, but in hotels as well?

Yes. Waiters, bartenders, and bellboys in some states in the US can be paid less than minimum wage because they receive tips, so you should unless it's really bad service.

I've always assumed in places with service charges in Thailand that the staff get little or nothing, I'd rather tip directly

[nocturn]

Many moons ago when i lived in Canaduh and vat came in, it was rarely if ever included in the posted price, so you learned to automatically calculate the extra 7 percent.

I fail to see how this differs.

[Wallaby]

I certainly don't like the idea of a servfice charge. It's like a compulsory tip. What if the service is bad, still pay a service charge?

How about the normal way of just putting the complete cost on the menu and then tip if you feel inclined.

In Oz we were sick of airlines stating stupid things like a $500 return airfare to London only to then find out that they hadn't included tax etc etc and in reality the price was about double. Now we have legislation in place called 'truth in advertising' which outlaws such practice.

I have also noticed on some restaurant bills there can be a tip automatically included. Another pet hate of mine.

Please just give me the full price for the meal and leave it to me to decide what to tip a person directly.

[theoldgit]

Many moons ago when i lived in Canaduh and vat came in, it was rarely if ever included in the posted price, so you learned to automatically calculate the extra 7 percent.

I fail to see how this differs.

Save that I'm talking about the service charge, which is a for a service that should be included in the price, not VAT.

That's how it differs.

[theoldgit]

I have written to the HQ of a major international hotel chain asking them why they add these charges in some countries and not others, I will report back if I get a response, but don't hold your breath.

I have just got a response, it's little more than a generic response, especially as I didn't name a specific hotel, and doesn't actually tell me anything:

Thank you for taking the time to communicate your concerns with Guest Relations. We appreciate all of the feedback we receive from our guests.

Many IHG properties are franchised,independently owned and operated. IHG yields the decisions to the on site management team to determine their own rates and policies in accordance withlocal demand and business needs. IHG is not involved in the development of this individual hotel policy.

Your concerns have been forwarded tothe management and ownership of this hotel for review. Your comments will alsoremain on file at a corporate level, for use in periodic evaluations of thehotel.

Once again, we appreciate you taking the time to share your concerns with us. We know you have many choices when itcomes to lodging and we hope you will continue to choose IHG for your future travel needs.

Edited March 24, 2011 by theoldgit

[pjclark1]

true, however they could be included into the price as advertised just as easily. 500 baht buffet + 10 SC + 7 VAT = what all in? But because we all expect the ++ now, we would assume the price (that included the ++) didn't.

Went out for lunch today

3 people, 3 lunches at 25bht+ 2 bottles of pepsi at 10bht

Total of 95bht for the three of us and the food was good!

(and they gave me the 5bht change)

Wife just went out shopping for our evening meal, took 20bht out of my wallet, no change.

I intend to splash out this evening, when the rotee man comes honking past the house, 2 with egg (for the ladies) at 10bht and one without for me at 6bht ...... sometimes it's worth the extra for those little luxuries.

I think that the service charge is their way of telling you, that if you're daft enough to pay 500bht per person for food, then you are completely daft and have far too much money, so they might as well bump up the price and take a bit more off you.

Edited March 24, 2011 by pjclark1

[Livinginexile]

If I see "service charge" or "VAT" on the bottom of the menu I walk out!

I feel like I am being ripped off.

Cheaky sod's expect a tipp too!

[MontrealFarang]

My guess is that it's because of European tourists. Some European countries have tips already included in their bill so they are used to paying the number on the bill and walking out, stiffing the Thais on the tip. Solution? Institutionalize the service charge.

I wouldn't normally tip in a hotel, is that an American/Canadian thing? If so I will put my hands up to never having tipped in a hotel in the US or Canada.

I have always tipped in a restaurant in North America because I know it's more than expected - even if the service is crap.

Canadians not as much as Americans but Americans definitely have that habit. I was in Mexico over the xmas holidays and was having a chat with the head doorman at the high end hotel I was staying at and and he was complaining about how it's been really tough recently since the resort started marketing to Europeans since Americans are not heading to Mexico anymore since the economic crisis and fear of violence. He said the Europeans don't have the habit of tipping.

I generally tip a few dollars for someone who hails me a cab, few dollars per suitcase brought to my room, 2-5 dollars a day for housekeeping, if the concierge/head bellhop has attended me well several times during my stay he will get a 20 at the end of my trip. Not to mention any food and beverage serving staff. This is assuming a 4-5 star hotel, tipping is reduced significantly at lower end places.

[Semper]

true, however they could be included into the price as advertised just as easily. 500 baht buffet + 10 SC + 7 VAT = what all in? But because we all expect the ++ now, we would assume the price (that included the ++) didn't.

Went out for lunch today

3 people, 3 lunches at 25bht+ 2 bottles of pepsi at 10bht

Total of 95bht for the three of us and the food was good!

(and they gave me the 5bht change)

Wife just went out shopping for our evening meal, took 20bht out of my wallet, no change.

I intend to splash out this evening, when the rotee man comes honking past the house, 2 with egg (for the ladies) at 10bht and one without for me at 6bht ...... sometimes it's worth the extra for those little luxuries.

I think that the service charge is their way of telling you, that if you're daft enough to pay 500bht per person for food, then you are completely daft and have far too much money, so they might as well bump up the price and take a bit more off you.