For years, avid cruisers, myself included, have dreamt of a world where the advertised price of a cruise reflects its true cost. Well, buckle up because that dream sets sail on July 1, 2024! Thanks to a new California law, cruise lines are undergoing a major shift in how they present pricing, finally including mandatory taxes and fees in the upfront advertised cost. This “Honest Pricing Law,” also known as SB 478, promises a wave of transparency for travelers seeking that perfect cruise vacation.
So, what does this mean for us cruisers? Let’s dig in!
Clearing the Murky Waters: What’s Changing?
Previously, cruise lines advertised a base fare that often excluded mandatory taxes, fees, and port expenses. In the example below, this 3-day Carnival Bahamas cruise advertises itself at $344 per person:
However, once you start to book the cruise and proceed to the checkout, taxes and port fees are added on to the cost, in this case an additional $140 per person.
These additional charges add hundreds of dollars to your final bill, leading to sticker shock and frustration. The new law requires all cruise lines operating in California (and most major lines are complying nationwide) to include these hidden fees in their advertised price. This means the number you see displayed will be the total cost you’ll pay, minus a few exceptions like government-imposed taxes and optional gratuities.
Here’s a breakdown of what will now be included in the advertised price effective July 1, 2024:
- Government Taxes & Fees: These can vary depending on the itinerary, but typically include departure taxes and security charges.
- Port Expenses/Fees: These cover the costs associated with docking at various ports of call.
Essentially, what you see is what you get. No more unpleasant surprises at checkout!
Benefits Beyond Transparency: A Smoother Booking Experience
With the total cost upfront, you can now compare cruises more effectively and plan your vacation budget with greater accuracy. No more going through the checkout process to see your final rate, which will save plenty of time when comparing cruises. Not to mention, the days of bait-and-switch pricing tactics are (hopefully) over. No more hidden fees adding a layer of frustration to the booking process.
While the new law is a positive step, there are a couple of things to keep in mind:
- Gratuities (Optional Tipping): These are still typically added on top of the advertised price. Some cruise lines allow you to pre-pay the daily gratuity in advance if you prefer not to have it added to your onboard account. Be sure to factor these into your budget when comparing cruises and keep in mind, the daily gratuity amount varies by line and often times by stateroom category (ie: suites pay more than standard cabins).
- Fuel Surcharges (Less Common): In rare cases, some cruise lines might add a fuel surcharge after booking. However, this practice is becoming less frequent, although Margaritaville at Sea still continues to add a fuel surcharge for cruises out of West Palm Beach, FL.
- Existing Bookings: This law applies to new bookings made after July 1, 2024. Existing bookings won’t see a change in price.
Embracing Transparency Across the US
While the “Honest Pricing Law” originated in California, its impact is far-reaching. In a move towards industry-wide standardization, most major cruise lines operating in the US have announced they will be adopting this transparent pricing model nationwide, regardless of the passenger’s location. This includes:
- Carnival Corporation & plc: This giant of the cruise industry, encompassing Carnival Cruise Line, Princess Cruises, Holland America Line, and others, has confirmed a national rollout of the all-fees-inclusive pricing strategy.
- Royal Caribbean Group: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises (already practiced transparent pricing) will continue their current approach of including all mandatory fees in the advertised price.
- Norwegian Cruise Line (NCL): NCL joined the transparent pricing bandwagon, incorporating taxes, fees, and port charges into their advertised fares.
- MSC Cruises: This global line has also pledged to follow suit with the all-fees-inclusive pricing model for US bookings.
- Azamara Cruises: Notably, Azamara will implement this transparent pricing strategy globally.
This widespread adoption ensures a more consistent and consumer-friendly experience for cruise enthusiasts across the US.
Tips for Booking Your Cruise in the New Era of Transparency:
- Compare “all-in” prices: Now that advertised prices include most fees, focus on comparing the total cost when evaluating different cruise options.
- Don’t forget gratuities: Remember to factor in gratuities when budgeting for your trip. These are typically daily charges added to your onboard account and used to compensate the crew. While the amount may vary by cruise line, expect gratuities to add around $10-$15 per person per day.
- “All-in” Isn’t Really “All-in:” Keep in mind that this new pricing includes only taxes and fees, don’t be thinking that “all-in” includes drink packages, wi-fi, spa services, etc. You’ll still have to purchase those on top of your fare unless you’re sailing on an all-inclusive promo or cruise line.
- Read the fine print: While most fees are now included, double-check for any potential fuel surcharges or other charges not covered in the advertised price. These are becoming less common, but it’s always good practice to be aware of any additional costs.
- Consider value beyond price: Don’t just focus on the bottom line. Consider the overall experience, amenities, itinerary, and reputation of the cruise line when making your choice. A slightly higher upfront cost might be justified by a more luxurious experience, a wider variety of dining options, or a more desirable itinerary.
- Leverage travel agents: Travel agents can be valuable resources during this transition period. They can help you navigate the new pricing structure, compare different cruise options, and identify any potential hidden fees.
The new era of cruise pricing transparency empowers travelers to make informed decisions and plan their dream vacations with greater ease. By understanding the changes, utilizing these tips, and researching your options, you can navigate the new landscape of cruise selection and set sail on an unforgettable adventure that fits your budget and expectations.