But that would mean that the cruise lines would have to increase salaries, maintain better records and possibly have the hassles of taxes, retirement plans, unemployment benefits, and similar.

Then there would be the problem of higher fares and more taxes driving the prices even higher. Tips are an "invisbile" cost that the cruise lines do not need to report in their price quotes.

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I remember reading somewhere that it could be an accounting thing. That having the passengers pay tips, instead of adding them directly to the fare and paying the staff that way, would be more complicated for the lines (along the lines of what Neal stated).

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