It's frustrating when a company advertises one price and then charges one that is markedly different. President Joe Biden has targeted resorts that do not disclose resort fees, internet charges or other mandatory fees that guests cannot opt out of.
Most people understand that taxes will be added to most advertised prices, but they are less understanding when their cable bill is twice what they expected. Comcast, Charter and other players routinely advertise a base price that doesn't include the regional sports and broadcast channel fees you have to pay.
Royal Caribbean makes surprising executive change
It's a slippery slope because companies want to attract customers with low prices. The cruise industry falls into this trap, but not with hidden fees like many resorts do. In contrast, cruise lines generally do not advertise prices that include taxes and fees.
These rates do not go to the cruise line, they are the rates charged by the different ports where the ship will stop. You have to pay those fees whether you get off or not, but unlike a resort that charges you mandatory fees for amenities you can't use, cruise lines don't make money on these additional charges.
Still, these additional fees can range from (approximately) $125 to $300 per person, depending on the length of the cruise and where you're going. It's not a small amount and it makes the price people pay for their cabin a little different than what is advertised.
Image source: Daniel Kline/TheStreet
Royal Caribbean makes a nationwide price change
California recently passed a law that will make travel pricing more transparent. Royal Caribbean shared information about those changes in an email to its travel agent partners.
“An important change to California consumer protection law will go into effect on July 1, 2024. This change may have a broad impact on each of you and the way you advertise, display or offer our products to your customers. customers,” the cruise line said. shared.
The cruise line has promised some changes, but they will make them nationwide.
“Beginning July 1, Royal Caribbean International and Celebrity Cruises will comply with the new California law, and they will do so on a national level. This means that every time Royal Caribbean International and Celebrity Cruises advertise, display or offer prices to consumers on any channel, anywhere in the United States, the price displayed will include the cruise fare, as well as any taxes, fees and port charges that guests will be required to pay as part of their cruise,” the cruise line shared in the email .
The company's Silversea Cruises brand will not need to make any changes, because its prices already include all required taxes, fees and port charges.
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Royal Caribbean makes a customer-friendly choice
In response to Biden's push on resort fees, some hotel chains have begun advertising full price, but not all have done so. By making this change, Royal Caribbean has done the right thing for its customers, but risks being at a marketing disadvantage if its rivals do not do the same.
Leveraging your network of travel agency partners can help mitigate this because travel agents can communicate to their clients why prices appeared to increase. Royal Caribbean has already begun doing the work necessary to make changes to the systems used by travel agents and other ways people can book a cruise with the line.
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“In anticipation of these changes, we are working internally to update our various systems, including Espresso, One Stop Pricing, and more. Our application programming interface (API) sources will also be modified. Our changes will be available in July. 1. “Again, whether you call, use our API, use Espresso or another channel on July 1, the price we will provide you will include the tariff and all mandatory taxes, fees and port charges,” he shared.
