Reader Aaron shares receipts from a recent trip through American Airlines terminal 8 at New York JFK, where concessions giant HMS Host is finding new creative ways to separate you from your money. They’re stacking on fees and inflated suggested tips – and, it appears, pocketing some of the money for themselves.
Greetings from JFK. I’m about to fly to [Miami] for the weekend. I’m killing time at Terminal 8 and don’t have lounge access here… Idlewild Wine Bar here not only “suggested” post-tax amounts, it did so after including a “3% Employee Benefits & Retention” charge. THEN, after charging my credit card, they added a “Round Up 4 Charity” line!
Former Priority Pass Restaurant Bobby Van’s at New York JFK Terminal 8
There’s a 3% ’employee benefits and retention’ fee added to the check. This does not ‘go to’ employee benefits. It goes to the employer’s bottom line.
- Employees get their benefits as part of their employment package, whether or not you eat there. Your meal doesn’t increase the benefits they receive. This is top-line revenue.
- And since the money could even exceed the cost of benefits, and doesn’t go to benefits, they also label it ‘retention’ which can just mean wages – you have to pay people to retain them.
New York Deli which was once Brooklyn Deli at New York JFK Terminal 8
Then there is a suggested tip amount. It’s based on the post-tax total. They are suggesting your tip more because you’re paying a benefits surcharge on top of your meal.
And once you’ve added on the 3% fee and suggested tip on that fee, they ask you to top off your bill again-for an unspecified charity.
A donation in your name has been made to the Human Fund?
But the hidden piece here – and most misleading – is tipping at New York airport. That’s because employers are allowed to reduce the airport-wide $19.75 minimum wage by tips received. As a result, the amount that customers tip:
- can reduce the wages paid to the employee
- and, instead, go straight into the pocket of the business
New York JFK Terminal 8
Philadelphia airport last year decided to allow all concessions to charge passengers more than posted prices. The 3% surcharge is because the airport has price caps (15% above street pricing), so vendors can’ raise prices. The airport didn’t want to relax that. So they pretend the surcharge isn’t a price increase. By the way, the 3% ’employee wage and benefit offset’ doesn’t go to employees, it goes straight to concessionaires.
American Airlines New York JFK
I’m not even sure whether this is better or worse than when an airport requires you to add a tip for self-checkout.
Just balling.
Supposed to be “galling.”
Gary, can’t you get a comment widget that allows editing/deleting of comments?
This kind of fleecing because the middle and upper class of America are too nice. In these social classes there is a strong prohibition against berating frontline service staff for decisions made by management in corporate offices. But, an effective way to get management to stop making those decisions is to berate frontline staff who would pass the message upward to corporate management.
The only way these anti-consumer tipping patterns will change is if middle and upper class people disabuse themselves of the taboo that you can’t talk down to service staff.
Yell. Scream. Punch (if you retain a good criminal lawyer beforehand and are in a jurisdiction where habeas corpus is in effect). Hit back at the frontline staff. That’s how you will effect change.
Just quit adding extra on the credit card bill as a tip. If you want to tip, do it in cash. Leaving $5 cash for the server probably ends up being more cash in their pocket than adding the 18% tip on the credit card.
You should do a story of how expensive airport parking has gotten. Look at the recent tripling of prices at the ATL airport
It’s NYC, we all know EVERYONE there is dishonest!
@Jason — Just don’t park there.
@ Gary — I’m just going to stop tipping altogether. At least I won’t feel used & abused afterwards.
Ah yes we’ll see my fellow passengers blue city blue rules blue government in city of NY NJ so what do you expect ? Taxes taxes fees and tolls the Dimocrat way oh excuse my ebonics I misspelled democrat but il use a lower case just because. My son is a waiter so I’ve heard this story it’s a Biden bidenomics thing starting during that idiots administration and every blue state uses it to fund slush funds for screewing their customers as if a $29.99 meal in an airport served in a host Marriott sit down joint. Well at least you know HMS is clean and sanitary to the max and checked not only by management but corporate and ecolab and the state so that’s reassuring but my God $60+ with tip and a slush funds fee that ultimately screws the server. Almost makes you want to pack a lunch the night before and freeze it before you fly or buy a sandwich in grocery or 7/11 , circle k , plaid pantry, local sandwich deli or subway on the way to airport, knowing your gonna spend that much. Would have been better going to airport lounge or even pre- booking the escape lounge if you don’t have a platinum card like my husband or an airline lounge access hookup… Right ? crazy these fees but a little known fact !! You can ask for the manager and have the manager take the fee off . Yep in NY and NJ California , Michigan , and Vermont you can object to the fee and it will be taken off.
By the way I always have a few $5 and $10 bills for tips – tips in cash go along way and ya know black women always tip more than white women – fact.
My son the waiter in the gay bar ( he’s str8 his boyfriend is gay ) loves cash tips as does all service staff so why not hookup your waiter server or bellman with a cash tip from now on and beat these democrats at their games.
Don’t take it out on the server their low wage earners with families too just trying to make a living in a cruel world many under educated and over taxed. Just tip in cash . I won’t say anything negative to you but just show more compassion for the poor, Jesus, Allah , Buddha, The Watchers and the great cat in the sky is watching as is Santa who knows when you’re naughty and nice. Be nice thanks
the suggested precalculated tip also tips the emp benefit/retention charge.
That is still better than the 20% tip the LAX restaurants automatically add to your bill. Just deduct the 3% surcharge from your tip.
My tip is reduced by the amount of these silly fees. I don’t care, I’ll never see these people again. They can think what they want of me.