Let's start with the difference between Service Charges vs. Gratuity. What is the difference? Do I still have to tip the crew/staff if I'm already being charged a Service Charge? This is one of the most common questions asked by our clients.
What is a Service Charge?
A Service Charge is a mandatory and automatic {pre-determined} fee that is typically added to your charter, hotel, or catering contract for the service personnel. Just to give you an idea: Most venues in the surrounding areas charge a Service Charge {ranging anywhere from 18% - 24%} on their Food and Beverage {F&B} contract. A Service Charge is not to be confused with a Gratuity. In the State of Florida, taxes are applicable to the Service Charge, so please keep this in mind when considering your budget.
So what is included in the Service Charge?
How the Service Charge is broken down will vary from venue to venue, so don't be afraid to ask for an itemized breakdown. In general, the Service Charge offsets the labor and administration costs, including pre/post cleaning, preparing for your event, crew/staff travel time, vessel/facility maintenance and so forth. Keep in mind, the Service Charge DOES NOT equate to a Gratuity; therefore, it DOES NOT cover the gratuities for the crew or staff {unless specifically noted by your venue/caterer}.
What is a Gratuity?
A gratuity {also known as a tip} is a voluntary amount of money given in exchange for a service performed. For example -- We typically tip our waitstaff or our hair stylist for great service. Gratuity to the crew/staff is at your discretion. Do keep in mind, that while Gratuities are not required, it is in good etiquette to do so.
Disclaimer
That's not our crew in the above picture, you're not chartering the Ohana Motor Yacht, and you're not paying a base rate of $20k per day. Photo credit BravoTV, Below Deck.
What is a Service Charge?
A Service Charge is a mandatory and automatic {pre-determined} fee that is typically added to your charter, hotel, or catering contract for the service personnel. Just to give you an idea: Most venues in the surrounding areas charge a Service Charge {ranging anywhere from 18% - 24%} on their Food and Beverage {F&B} contract. A Service Charge is not to be confused with a Gratuity. In the State of Florida, taxes are applicable to the Service Charge, so please keep this in mind when considering your budget.
So what is included in the Service Charge?
How the Service Charge is broken down will vary from venue to venue, so don't be afraid to ask for an itemized breakdown. In general, the Service Charge offsets the labor and administration costs, including pre/post cleaning, preparing for your event, crew/staff travel time, vessel/facility maintenance and so forth. Keep in mind, the Service Charge DOES NOT equate to a Gratuity; therefore, it DOES NOT cover the gratuities for the crew or staff {unless specifically noted by your venue/caterer}.
What is a Gratuity?
A gratuity {also known as a tip} is a voluntary amount of money given in exchange for a service performed. For example -- We typically tip our waitstaff or our hair stylist for great service. Gratuity to the crew/staff is at your discretion. Do keep in mind, that while Gratuities are not required, it is in good etiquette to do so.
Disclaimer
That's not our crew in the above picture, you're not chartering the Ohana Motor Yacht, and you're not paying a base rate of $20k per day. Photo credit BravoTV, Below Deck.
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