Travel advisors are likely aware of an upcoming pricing transparency law in California that goes into effect on July 1. But what impact will the law have on cruise lines, and the travel agents who sell them?
The “Honest Pricing Law” or “Hidden Fees Statute,” also known as Senate Bill 478, makes it such that businesses operating in the state cannot advertise or list a price for goods or services without including all required fees or charges, except for certain government taxes and shipping costs.
To comply, cruise lines and parent companies will mostly make the necessary changes not just in California, but across the country.
Carnival Corporation, for one — which consistently operates Carnival Cruise Line, Holland America Line and Princess Cruises in California — will include all government-mandated taxes, fees and port expenses that were previously itemized separately, come July 1.
“While this is a California state law, we are making this change nationwide to ensure our advertised pricing is consistent no matter where guests shop for our cruises,” said a spokesperson for the parent company. “Fortunately, despite how our prices will now be advertised, the total price guests pay today for our cruises has not changed — guests still get the same great value and affordable prices we’ve always provided.”
While this is a California state law, we are making this change nationwide to ensure our advertised pricing is consistent no matter where guests shop for our cruises.
Royal Caribbean Group, on behalf of Royal Caribbean International and Celebrity Cruises, and Norwegian Cruise Line (without mention of corporate cousins Oceania Cruises and Regent Seven Seas Cruises) are planning to do the same.
“We are updating the way we display our pricing in the U.S. beginning July 1,” said a spokesperson for Royal Caribbean Group. “We are also supporting our travel partners across the country ahead of this upcoming change.”
Norwegian is even making it easier for its customers to the north, simplifying reservations for U.S.- and Canada-based guests by incorporating applicable government taxes, fees and port expenses into the brand’s advertised pricing starting July 1.
“This change will only impact the way we display our prices and will not affect the prices that our guests pay to enjoy a cruise with us, or the portion of the cruise fare that is commissionable for our travel partners,” according to a spokesperson for Norwegian. “We are committed to delivering exceptional vacation experiences at every step of the cruise journey, and we hope this change will provide our guests with a more satisfying booking experience.”
Disney Cruise Line, which regularly sails from San Diego, also plans to abide by the new regulations.
Meanwhile, some brands already bundle all fees in their fares, such as Viking and Explora Journeys, corporate cousin to MSC Cruises.
“We have a long history of open and honest pricing, and we do not nickel-and-dime our guests,” said a spokesperson for Viking. “With Viking Inclusive Value, our pricing covers everything our guests need — and nothing they do not. We always include all port taxes and fees, so our guests never discover unexpected charges.”
Similarly, Explora Journeys already includes all taxes, fees and port expenses in its total advertised cruise costs, and MSC Cruises will start to do the same for government fees and taxes sooner on June 26, 2024.
"These costs are now seamlessly integrated into the total advertised price, providing a simple and transparent booking experience that will not impact the overall price paid by our guests,” said an MSC spokesperson.
