BYE-BYE, HIDDEN FEE: Thanks to a new law in California that bans junk fees, the cruise price you see will be the price you pay.
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This Monday, California’s new fair pricing law goes into effect, requiring businesses to disclose all costs up front so that the price a consumer sees is what they pay. It’s a ban on so-called “junk fees,” hidden fees added to the advertised or listed price of everything from hotel rooms and airline tickets to concert tickets and restaurant meals.
For sailing fans, the law’s impact is reaching far beyond the Golden State. Starting July 1, the world’s largest cruise operators – Carnival, Norwegian and Royal Caribbean – will begin disclosing in advance all taxes, port fees and other mandatory fees on all cruises, regardless of where they are from. the origin.
This is a sea change in the way the cruise industry has displayed pricing for as long as anyone can remember. Currently, only Viking Cruises and Explora advertise fares including surcharges, and they will continue to do so, according to Cruise Critic, a popular review site owned by Tripadvisor. But now transparent pricing will become the norm across the industry, at Carnival (and its sister brands, Holland America and Princess); Royal Caribbean (and its sister Celebrity); Norwegian Cruise Line; and MSC.
The industry-wide change is a big win for consumers, says Aaron Saunders, senior editor at Cruise Critic. “It provides more transparency up front, allowing travelers to more accurately assess costs as part of the purchase process – versus the booking process,” he says. “While overall fares will remain the same, shopping for a cruise will be easier knowing the total cost before you narrow down your choices.”
“We are updating the way we display our prices in the US starting July 1,” a Royal Caribbean spokesperson confirmed. Forbes. “Guests booking with Royal Caribbean International and Celebrity Cruises will now see prices that include their selected cruise fare and all applicable taxes and fees.”
“To comply with this new law and to simplify the booking experience for all of our US and Canadian-based guests, Norwegian Cruise Line will include applicable taxes, fees and port charges in our advertised prices until July 1 2024,” a Norwegian. A Cruise Line spokesperson said in an email to Forbesnoting that the change “will only affect the way we display our prices and will not affect the prices our guests pay.”
Carnival also confirmed a change in policy. “In accordance with the new advertising rules, we are displaying prices to include mandatory fees and taxes for both the cruise ticket and the onboard products and services. The final price paid does not change, just the way it is displayed,” said a company spokesperson Forbes.
Cruising’s new price transparency comes as more travelers than ever are taking to the high seas. In its State of the Cruise Industry 2024 report released in April, the Cruise Lines International Association (CLIA) reveals that 31.7 million people took a cruise last year – surpassing 2019’s passenger volume by 7% .
The report also notes that the industry is still growing, as 27% of cruisers over the past two years were coveted “new to cruising” travelers. More transparency is especially good news for first-time travelers. “Because cruise ships visit a number of destinations on one voyage, the cost of these added fees is cruise-specific – based on the destinations on your itinerary or the port you’re sailing from,” explains Saunders.. “Because of this, there’s currently no easy way to really estimate what those added fees will be, and if you’ve never booked a cruise before, those fees — amounting to hundreds — can often be a little surprising. “
President Joe Biden has opposed garbage fees since taking office. Attorneys general in 19 states support a ban on hidden fees, which they say “could lock people out of paying for goods and services they might not have bought if they knew the total cost in advance.”
But while lawmakers in a handful of states — including Hawaii, Illinois, New York and Pennsylvania — have introduced bills that would ban “spot pricing” or “junk fees,” California became the first state to enact a measure such when Governor Gavin Newsom signed SB478 last October.
Experts say more transparency is a good thing for consumers, who are often surprised by the difference between the listed price and the true cost of a cruise. “This change will help to demystify the added costs,” says Saunders, “and, in turn, will eliminate much of that sticking point.”