Long time cruisers know that what you see isn’t always what you get, especially when it comes to cruise prices. Typically, cruises are listed online at their base price. You’ll see the cost for the least expensive stateroom, not including taxes, port fees, and other mandatory charges that get tacked on before final payment.
However, a new pricing transparency law in California is set to change the way cruise prices are advertised, making them appear more expensive at first glance. And although this change will benefit consumers in the long run, in the short term, the change in prices may shock you.
The Transparency Tidal Wave
The new California law, which takes effect July 1, 2024, is an amendment to the California Consumer Legal Remedies Act (CLRA). California’s Attorney General states that the law is specifically intended to prohibit drip pricing. Drip pricing is a term for advertising a price that is less than the actual price of a good or services. California’s AG goes on to state that drip pricing is a form of deceptive advertising.
If you’ve ever rented a car, purchased concert tickets, or booked a room at a resort, you’re familiar with the concept of “drip pricing,” a practice that can sometimes double the cost of the item you’re purchasing. For example, last year I paid more in fees for tickets to a basketball game than the actual cost of the tickets! The new California law seeks to eliminate this practice by providing consumers with a clear price up front.
Nationwide Ripple Effects
Major cruise lines are already opting to implement this change nationwide. Royal Caribbean and Celebrity Cruises recently announced that they will be changing their cruise pricing structure on advertisements. Carnival Corp. brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, and Cunard will also change their advertised prices. Seabourn, a Carnival company, and Silversea, a sister to Royal Caribbean, already advertise fares this way.
Although other cruise lines have not yet announced if they will follow suit with their cruise prices, we anticipate the California Law will change the way all cruise lines advertise across the country.
Cruise lines are quick to explain that the actual prices of their cruises are not changing on July 1, only that the displayed cruise prices will be more transparent.
The Bottom Line on Cruise Prices for Travelers
Simply put, this change means that the cruise price you see advertised will now be the price you pay. It’s a win for transparency and a step towards more consumer-friendly practices in the travel industry.
Carnival Corp. has announced that their displayed pricing will separated into two components. The first is Governmental Taxes & Fees and the second Required Cruise Fees & Expenses. (The latter includes port fees)
Pricing display policies will vary slightly between Carnival Cruise Line and the rest of the Carnival Corp. brands.
Here’s an example of how a Carnival cruise that would, prior to July 1, be advertised at $799. The Carnival Cruise Line pricing breakout would show:
- Total Cruise Charge – $849
- Required Cruise Fees & Expenses – $100 (included in the Cruise Charges)
- Government Taxes & Fees – $50 (included in the Cruise Charge)
On Princess, Holland America, or Cunard North America cruise at the same price point, the new breakout will show:
- Total Cruise Price – $849
- Cruise Fare – $799
- Government Taxes & Fees – $50 (included in Total Cruise Price)
In both cases, you’ll see the total cruise price of $849 displayed first.
Although this law will provide more transparency, remember there are many other add-ons that the law doesn’t cover. These include staff gratuities, specialty dining, and on-board activities and excursions.
The new changes in cruise pricing may take some adjustment time for travelers. However, the move towards pricing transparency should ultimately enhance the booking experience and prevent waves of sticker shock.
Do you need help understanding cruise pricing or how to budget for your next cruise vacation? Let Sea Vixen Voyages do the legwork for you. Call 941-479-8980 or contact us online.
