Prepaid gratuities cover tips for housekeeping and dining room staff members – waiters, room stewards, etc. They supplement the base salaries of the hotel services team members, some of whom you'll interact with on your cruise (like a waiter) and others you won't (like the crew members who wash your sheets).

Prepaid gratuities are distributed among the "behind-the-scenes" and frontline service staff who make your cruise possible. The majority of the pool goes to your Stateroom Steward (who cleans your cabin) and your Dining Team, which includes your lead waiter, assistant waiter, and head waiter. However, a significant portion is also allocated to the Galley Staff (chefs and dishwashers), laundry attendants, and other support personnel whom you may never meet. In 2026, most cruise lines have moved away from "cash in envelopes" toward this automated system to ensure that all crew members, not just those in customer-facing roles, receive a fair share of the service income. It is important to note that "Prepaid Gratuities" do not usually cover bar service or spa treatments; those services typically have an automatic 18-20% service charge added to the individual bill at the time of purchase.