Comments on: Long Live The Built-In Gratuity

By: Paul

Paul — Sun, 29 Apr 2012 13:14:45 +0000

With respect for the author of this post, nothing is hurting the service a chauffeur provides, and customers receive, like this “included 20% gratuity.” I have been a limousine driver for 11 years for the same company, and in that time, I have seen a decline in the professionalism and common courtesy of drivers based on this practice. It’s all simple math, and only a few clients (repeat customers) seem to understand this and do the right thing. If the job of a chauffeur was a guaranteed 40+ hour a week, full time job, the included 20% would suffice, however it is not, never has been, and never will be. A majority of drivers do this on a part time basis only, mainly doing a few corporate transfers during the week and working weekends.
If a driver has seen a decent wage, and occasional good tips, and they abruptly, consistently stop because of this practice, the idea that a good tip might come at the end of service disappears, and the job turns into a clock in-clock out monotonous performance. Eventually, these drivers leave after a year or so to find a more steady income.
This is not beneficial for anyone other that the company owner/manager who uses it as a selling feature and uses their drivers as a carefully selected tax write off.
AGAIN, only hurting the drivers pocket and eventually the enthusiasm and service for the customers.
In all honesty, if any human being went from receiving a $50-100 cash bonus for a level of service to nothing because the clients believe they are already being compensated hourly as well as being tipped, the driver is going to lose in the confusion and eventually neglect the job.
People hear “included gratuity” and automatically ASSUME that the driver is being paid an hourly wage, and being automatically tipped as well. And this is almost never the case.
It works well in the restaurant industry for servers of large groups, but not in the Limousine business.
Again I have personally witnessed this decline. I have seen AMAZING chauffeurs quit to find more steady income as their pay decreases, and inexperienced people lacking personality and professionalism fill those job slots.
It is sad, and needs to stop. It is confusing for everyone involved except the owners of the company.

By: Ema

Ema — Sun, 08 Apr 2012 06:10:44 +0000

I understand the business types not wanting to deal with tips, hence the gratuity line item on a bill. How about those charters trips, where after going all out for a client for hours, only for him/her to ask you – the gratuity is included in the bill,right?
What is a driver to do, be unprofesional and say no you never see it, or yes it is included in the bill? Geuss what, the driver never sees that gratuity. Alot of these companies are shortchanging the drivers,this prepaid gratuity is a fat cash cow to these companies. Ask any driver, that is the number one issue amongst drivers currently. I wish the patronising public are more well aware of this issue. Behind that dark suit is a low payed driver, barely making $18000/yr gross before taxes, expenses etc,hence tips are essential. Cooper, i hear from their own drivers, is one of the better companies in the industry.

By: David Mayerhofer

David Mayerhofer — Sat, 03 Mar 2012 06:05:59 +0000

The built-in gratuity is standard for the industry. Nobody is trying to exploit you. It exists for 3 reasons:

1) To service corporate clients who use car service everyday and need a visible billed line item for their expense accounts

2) For drunk clients and teenagers who forget to pay at the end of the night

3) So that the driver maintains order and safety (which at times makes the client very unhappy) instead of trying to appease the clients dangerous requests and behavior (drug use)

Lastly, do you really want to use a company that has chauffeurs who would settle for this policy? Responsible and experienced chauffeurs are in short supply and the good ones work where they can make the most money.

By: Eric

Eric — Sat, 03 Mar 2012 04:51:11 +0000

It looks like most of the writing and comments on this site are from the company/driver perspective. I am just a customer. I asked for a quote for local Airport service and it came back with a “Standard Gratuity” line item added of 20%, which of course was not indicated with the rates they advertise. Frankly, I do feel like they are trying to exploit me, so I will not be doing business with that company.

By: Jeff R

Jeff R — Fri, 09 Dec 2011 21:34:54 +0000

I’ve been driving limo in the northeast for over ten years. Typically I do better on the gatuity when it’s not included and the client pulls it out of his pocket. Our coorporate gratuiutues are always included because the execs don’t want to deal with this. I have noted that as our prices go up with inflation the billed inclusive gratuity has gone down. As of today the average/included gratuity is 13%. Some drivers have suggested that the company is skimming the other 7%. I love the job but would rather be unemployed than exploited. Any suggestions on how to handle this with management.

By: What’s with the 20% Gratuity? Here’s a Tip: | Rare Form Limousine Blog

Thu, 10 Dec 2009 16:46:01 +0000

[...] There are plenty of articles like this one giving advice on how much to tip. However, you’ll notice that limousine chauffeurs are conspicuously absent from the list. Adding a 20% gratuity directly to the limousine reservation upon booking is a time-honored tradition, as this article explains. [...]

By: David Mayerhofer

David Mayerhofer — Sun, 28 Jun 2009 05:19:55 +0000

I know exactly who you’re talking about. The sad thing is that they used to be one of the best companies in Los Angeles. I suppose it’s hard to be great with a constant churn of drivers found on Craigslist.

By: Dave

Dave — Sun, 28 Jun 2009 05:13:43 +0000

Some of the large affiliates in LA don’t even provide gratuity on airport runs. It’s no wonder they’re going out of business. The worst are the companies that give gratuities based on the zone system. I guess that’s what happens when the courts get involved. No matter what, chauffeurs are always going to get the short end of the stick.