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Huge theme park in Orlando under fire – Massive fraud allegations trigger new investigation

A massive Orlando theme park that owns SeaWorld Orlando was accused of recently cheating thousands of guests out of their money, leading to its headquarters being targeted by the media and potentially spelling trouble for multiple parks.

Photo credit: SeaWorld Orlando

Related: SeaWorld Orlando bans all guests from re-entering after paying, new policy decimates guests

United Parks, owner of Seaworld Orlando, is accused of defrauding thousands of vacationers

In a well-written and informative article on bgwfans.com, Busch Gardens Williamsburg's parent company, United Parks (formerly SeaWorld Parks), implemented a new tipping system at SeaWorld Orlando last month. Traditionally, United Parks properties with table service restaurants and full-service bars offer tipping for wait staff, which is standard practice in the U.S. However, this new system at SeaWorld Orlando extends tipping to counter service restaurants throughout the park.

After guests pick up their food from a serving counter and take it to the cash register to pay, they are asked to leave a tip. This change has not yet been implemented at Busch Gardens Williamsburg, but could be introduced if it proves successful at SeaWorld Orlando. The effectiveness of this new system depends on several factors. There are questions about where the tips go, which employees receive them, and whether the full amount of guests' tips reach food service employees.

Internal United Parks records show that tips collected at all SeaWorld Orlando food and beverage establishments (excluding bars, Sharks Underwater Grill, Dine with Orcas and Ports of Call) are pooled into the SeaWorld Orlando Tipped Pool Program. Funds from this program go toward the paychecks of food and beverage ambassadors, bakers, chefs and culinary instructors who work at SeaWorld Orlando (excluding those at the above-mentioned establishments).

Admission to SeaWorld Orlando theme park, FloridaAdmission to SeaWorld Orlando theme park, Florida
Photo credit: SeaWorld

Related: SeaWorld Orlando wins over Disney and Universal with latest announcement

Big scams on the way? The problem with this new tipping system

However, the system is not as simple as it seems. SeaWorld Orlando distinguishes between the “position guaranteed hourly wage” and the “individual guaranteed hourly wage.” For example, if a food service employee is currently paid $13 per hour, that becomes their individual guaranteed hourly wage. However, their positional guaranteed hourly wage could be $12 per hour, the current minimum wage in Florida.

The difference between these rates is subsidized by the tip pool, meaning tips cover the gap between the minimum wage and the existing wage rate. This system effectively reduces the wages SeaWorld Orlando pays its employees. Employees' take-home pay only increases if their share of the tip pool exceeds the difference between their individual guaranteed rate and their positional guaranteed rate.

For example, if the guaranteed rate for an employee's position is $12, their individual guaranteed rate is $13, and they are allocated $1.75 per hour from the tip pool, their pay for that day will be $13.75 per hour. While this represents an additional 75 cents per hour for the employee, the remaining $1 per hour is effectively saved by United Parks, converting a significant portion of customer tips into cost savings for the company. SeaWorld Orlando's Tipped Pool program raises questions about transparency and fairness.

Two white sandwich board signs at SeaWorld. The left sign reads: "THANK YOU FOR SPENDING YOUR DAY AT SEAWORLD." The sign on the right reads: "NO REENTRY." In the background you can see people walking and pushing strollers.Two white sandwich board signs at SeaWorld. The left sign reads: "THANK YOU FOR SPENDING YOUR DAY AT SEAWORLD." The sign on the right reads: "NO REENTRY." In the background you can see people walking and pushing strollers.
Photo credit: Jason Schapiro, Facebook

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When customers tip, they expect the money to go directly to the employees who serve them. While United Parks may argue that 100% of tips go to employees, in reality, these tips offset the company's wages, allowing customers to essentially subsidize employee salaries. This tipping system was in addition to a 5 percent markup that was implemented across much of the United Parks chain in 2022.

The company cited “unprecedented increases in the cost of goods, services and labor” as the reason for the markup. Combined with the rapid increase in food prices in the parks, such as a 20 percent increase in the price of a bacon cheeseburger at Busch Gardens Williamsburg since 2020, these measures have significantly outpaced inflation. Meanwhile, United Parks has reported significant profits that are well above pre-pandemic levels. Aquatica Orlando, Busch Gardens Tampa Bay, Discovery Cove, Adventure Island Tampa Bay, SeaWorld San Diego, SeaWorld San Antonio and other former SeaWorld Entertainment theme parks could implement this program in their parks.

Overall, the new tipping system, coupled with existing surcharges and price increases, raises questions about the transparency and ethics of United Parks' pricing and compensation strategies. Thousands of guests are being cheated by this new system, which could lead to even more people not wanting to visit SeaWorld Orlando and the many other United Parks across the country. For now, word of mouth could save someone money the next time they visit a United Parks theme park.

Anna Harden

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