Walk through the shopping area on almost any cruise ship and you will see the same promotions: duty-free prices, exclusive savings, one-day-only events and discounts so deep you would think the ship was having a going out of business sale as well.
Sometimes there is a legitimate deal. Other times, “duty-free” simply means you are buying an overpriced bottle of liquor without tax.
Just because something is duty-free doesn’t automatically mean that the price is lower than what you would pay at home, online or in the next port. It only describes how certain taxes and duties are being handled. You still need to know what the item normally costs, understand the return policy and have sales resistance that’s strong enough to allow you to check the numbers.
Duty-Free Does Not Mean Cheapest
Cruise-ship shops have limited competition. Once the ship leaves port, you’re a captive audience, and the onboard internet may not make comparison shopping particularly easy.
A liquor bottle marked “duty-free exclusive” can cost a few dollars more than the same bottle at Total Wine, Costco or your local liquor store. Perfume and cosmetics may match regular department-store pricing, while watches and jewelry can be displayed beside suggested retail prices that nobody in the history of jewelry stores has EVER paid.
The discount percentage is not the important number. The final selling price is.
If the ship says a watch is 40% off a $1,000 retail price, but stores sell it every day for $575, the ship’s $600 “sale” is not saving you $400. It is costing you $25 more.
Jewelry: Compare the Item, Not the Discount
Effy Jewelry has a large presence across the cruise industry, and many passengers love its designs and return from their cruise happy with their purchases. As with most major jewelry retailers, reviews are mixed. Some customers give high marks for the pieces and onboard service, while others talk about issues involving pricing, repairs or resolving an issue after the cruise. Those reviews represent individual experiences, but they are a reminder to treat an onboard jewelry purchase the same way you would treat one on land.
Before buying, get the exact item number, stone details and final price. Compare the identical piece online when possible, and don’t use the suggested retail price to see if you’re getting a bargain or not.
Return and warranty terms also deserve a careful look. Effy says purchases made onboard or at a port boutique may follow the policy printed on the back of the receipt rather than the company’s standard online-return policy. Keep that receipt, register the purchase if required and ask who will handle a return or repair once you are home.
If you love the piece, understand the terms and are comfortable with the price, there is nothing wrong with buying it. Just make the decision based on the jewelry itself, not the champagne or the “enormous discount” the sales rep pitched.
Alcohol Prices Need to Be Checked Too
Liquor is one of the biggest sellers in cruise-ship duty-free shops, and it is also one of the easiest categories to compare before sailing.
If you have your eye on a particular bourbon, scotch, rum or tequila, check the price at home before you leave. Take a screenshot or make a note on your phone. Do not assume you will be able to look it up once you are onboard.
Some ships block websites involving alcohol, tobacco and gambling while connected to the ship’s network. Gee, I wonder why.
If the website you need is unavailable at sea, use cellular service during a port day to check the price.
Compare bottle sizes as well. A one-liter bottle aboard the ship should not be compared directly with a 750-milliliter bottle at home. Limited editions and travel-retail releases can make comparing hard, but “exclusive” does not automatically mean it’s better or more valuable.
I’ve seen bottles onboard priced a few dollars higher than they cost back on land. That doesn’t mean every bottle is overpriced. It means you need to check.
What Happens to Alcohol You Buy Onboard?
Most cruise lines do not let passengers take duty-free alcohol back to their cabins immediately. Purchases are typically stored and delivered the last night of the cruise.
Alcohol purchased ashore is also collected when you return through security and it’s held just like a purchase onboard.
Don’t expect to buy a bottle and open it on your balcony that evening. The ship has already thought of that.
Cigarettes May Be a Deal, but Cigars Often Aren’t
Cartons of cigarettes remain very hot sellers because the price difference can be significant compared with high-tax locations on land. Once again, compare the actual price and understand how much you can bring home, as there are limits.
Cigars require more caution. Shipboard cigar selections are limited, turnover is slower and prices can be considerably higher than those at a reputable cigar store ashore.
Storage matters as much as price. A cigar that has celebrated a birthday in a poorly maintained display or humidor may be dry, stale or damaged. You could pay more than the land price and still end up with something that smokes like a rolled-up grocery bag.
If you buy cigars onboard, inspect them carefully. Look for cracked wrappers, dryness, mold and signs of poor storage. If you are in a port with a reputable authorized cigar dealer, you may find a better selection, fresher inventory and lower prices ashore.
Be especially skeptical of supposedly authentic Cuban cigars sold by street vendors or unofficial shops. They are usually 100% fake, especially in Mexico.
You Still Have to Declare Duty-Free Purchases
“Duty-free” does not mean “customs-free,” and it definitely does not mean “hide it under your dirty clothes and hope nobody asks.”
U.S. Customs and Border Protection says returning residents generally receive an $800 personal exemption, although the amount and eligibility can vary depending on where you traveled and how long you were away. Alcohol and tobacco are also subject to separate quantity limits.
For many returning travelers, that exemption generally includes one liter of alcohol for someone age 21 or older, up to 200 cigarettes and up to 100 cigars. Different exemptions may apply to purchases made in certain destinations, and state alcohol laws can be more restrictive.
Here is the part many cruisers skip: you are required to declare your purchases, including merchandise bought aboard the ship and in duty-free stores.
Getting through customs in the past without declaring something does not mean that lucky streak will continue. Onboard purchases are tied to your passenger account, and cruise lines maintain detailed records of what was purchased, by whom and for how much. That information may be provided to customs authorities when required, so you should never assume an onboard purchase is invisible simply because you did not receive a paper receipt.
If your purchases exceed your personal exemption, customs is not necessarily going to confiscate everything. In many cases, it simply means you may owe duty on the amount above your allowance. Failing to declare an item, however, can create a much larger – and more expensive – problem than paying the duty on an extra bottle of liquor.
Keep your receipts together and accessible until you have cleared customs. Do not bury them in the suitcase you handed to the porters the night before disembarkation.
When Duty-Free Shopping Can Make Sense
Duty-free shopping is not automatically a rip-off. Certain liquor packages, cosmetics, tobacco products and travel-exclusive items may be a deal. Shopping onboard is also convenient, and sometimes you simply find something you really want.
The problem begins when “duty-free” is treated as a value proposition.
Before making a significant purchase:
- Check the regular price at home before sailing.
- Compare identical models, sizes and specifications.
- Photograph the item number and price tag.
- Read the return and warranty terms.
- Keep every receipt and certificate.
- Avoid buying because a drawing or event is ending.
- Calculate currency conversions when shopping in port.
- Use a credit card that provides purchase protections.
- Declare the item when returning home.
Most importantly, separate the product from the sales pitch. Champagne, raffles and an charismatic shopping host don’t increase a diamond’s quality or make a bottle of liquor worth more.
A good deal should still look like a good deal once you’re home.
