Passengers say they don’t want cruise lines to adopt “a la carte” fares

Cruise lines are charting a course similar to airlines, which charge a low base fare and then add optional extras to the price of the ticket, routinely doubling the cost of transportation.

But it’s the wrong path, according to a new survey.

The poll of more than 800 travelers asked if cruise lines should adopt an airline-like fare structure in exchange for a lower ticket price. Only 11 percent of passengers said they welcomed new ancillary fees. A vast majority (89 percent) said they would prefer a more inclusive cruise fare.

The survey was conducted in association with the Consumer Travel Alliance.

Margie Dolgin, a travel agent, said moving away from an all-inclusive product — which some cruise lines are already doing — is the industry’s single “biggest mistake.”

“That is why clients like all inclusive resorts over cruises,” she adds. “I could get alot more clients to go on cruises if the cruise lines would offer a package that included tips, soda, liquor as an additional charge if the clients wanted that type of package. They could offer this package as optional for those that wanted it.”

But cruise lines won’t do that because they stand to make more money by charging extra for every item, as opposed to including it in a package.

Passengers say the extras make it harder to budget for a vacation.

“A lot of people take cruises in part because they want some predictability on travel costs,” says Bunnee Butterfield. “The notion of getting to go someplace and not have to pay for meals or towels for the swimming pool or entertainment is more appealing than being told to ante up every time you step outside your cabin, I would think.”

Bill Delaney, who was on the inaugural cruise of Royal Caribbean’s megaship, the Oasis, was surprised when he boarded the vessel and was hit by a wave of fees.

When I walked into a bistro-type eating place, I was appalled at the fact that it was not free, but that the cost was extremely high to boot. Walking around this “City at Sea” I was continually appalled at the food establishments and the fact that they cost extra to eat there.

But I think the most disturbing part was the half-empty tables in the dining areas at dinner and the poor food offered to the “all inclusive” cruiser.

The dining room on most ships is where people meet and talk about what they did during the shore part of their day as well as establish lifetime friendships with cruise mates. I still am in contact with people I cruised with and established friendships around the dinner table 40 years ago. These carry with them lifetime memories and include each party going to weddings of children of the other party.

Cruising is slowly drifting away from the relaxing, all inclusive trip people need for a vacation. It is a packaged deal now that is more and more determined by the individual cruise operators. Money drives the engine, not the interest of the cruiser.

Other passengers say while they don’t like the new system, they’ve learned to work around it. Mary counts herself among them. She asked me to not use her last name because she’s afraid a cruise line will blacklist her.

I am probably a cruise line’s worst customer. I routinely only sail when there are really good prices to be had (less than $100 per person per day), prefer interior cabins, book my own shore excursions, spend almost nothing in the casino and shops, and don’t overimbibe. If I can drive to the port, even better.

It does mean doing your homework and keeping an constant eye on fares, but cruising can be a very cost-efficient and pleasurable way to vacation — especially if you’re a repeat customer and take advantage of those perks, too.

But industry experts say unbundling is a key to the industry’s future profitability and will help it better meet the needs of its customers.

“Cruise companies are faced with the same challenge as airlines,” says technology consultant Richard Eastman. “They need to unbundle their packages so that the packages can be rebundled to fit specific traveler’s needs or desires. The unbundling must take place to enable the re-bundling.”

  • http://bidontravel.com/blog/ Don Nadeau

    “The dining room on most ships is where people meet and talk about what they did during the shore part of their day as well as establish lifetime friendships with cruise mates.”

    The person can more easily have this experience by choosing smaller traditional ships that do not and can not readily offer such an array of multiple dining choices and other optional experiences.

    Moreover, there is a bright side to the “unbundled” low base fares. These open up cruising as a travel choice to many more people. It is still quite easy to avoid most optional costs, such as onboard casinos, spa treatments, overpriced shore excursions sold by the cruise line, etc.

  • http://www.singleparenttravel.net John Frenaye

    I think Margie is correct. Offer additional packages to appeal to the separate subsets of cruisers.

    Included: entertainment, all meals, all non alcoholic beverages, berth, tips etc.

    Optional: A boozer option for those that want to imbibe, a foodie option, a few shore excursion options, a service (butler??) option

    That way people can better control their costs and to expand on the experience optionally.

    The unbundling is essentially taking the entire experience away and rebuilding it from the start. Oh, you wanted wheels to go with that car?

  • http://www.jcp.travel Charlie Funk

    We increasingly see passengers pushing back on what is euphemistically referred to as “unbundling”. In our agency we have had
    - A client cancel $22,000.00 worth of cruises (three staterooms) on a major contemporary line because of ancillary charges despite our offer to pay the $4.95 cost for every family member every day of the cruise if they wished)
    - Cancel a $13,000.00 at the mere prospect that a cruise line might exercise its option to add a fuel surcharge

    It turns out that there are more than a few of our clients, at least, that are booking all-inclusive land packages as much out of principle as for the inclusiveness.

    One client actually said “I felt like (the cruise line) picked me up by my ankles and shook me until all the money fell out of my pockets”.

    Our sense is that cruise passengers with prior experience are most likely to push back. The cruise lines may ultimately succeed with unbundling but it will mean that many of their past passengers will have to die off before the percentage of their past guests that don’t object to unbundling reaches a majority.

  • AirBoss

    Discriminant pricing rules — and riles.

  • Carver

    Is this really true?

    “Passengers say the extras make it harder to budget for a vacation”

    I mean, people go on vacation all the time, and budget accordingly. Is a la carte really that hard?

  • BillC

    I’m fairly happy with what the cruise lines offer now. I am not sure what else could be unbundled at the moment. I can’t think of anything offered now that is offered in the price that they could take away.

  • Ree

    I think all of this unbundling stinks. It’s ridiculous that you go on a cruise, get a muffin at one of the shops, and get charged $2.50 for a dry stale muffin. Or even with the tips…$60-70 per person, when you have a cabin steward that was worthless.

    @Carver, yes, a la carte on a cruise ship is difficult to budget. The cruise lines don’t really tell you how much anything costs on their websites. So you show up for your cruise thinking that a certain amount per person is okay, and then you see the prices. What are you going to do? It’s not like you can get off the ship to have a meal unless you’re at port. So you’re stuck with whatever prices they want you to pay.

    As soon as pricing becomes unbundled, the total cost of cruising will definitely rise to a level that not many people can afford.

  • Tom

    The idea that everybody wants the same thing — all experiences included in one set price is wrong. Some people want a simpler experience at a lower price. Some people would pay extra for bundles that might include drinks, or specialty meals, or shore excursions.

    As crusing gains popularity and the ships are larger, the cruise lines need to create different experiences to cater to individual customers.

    The one size fit all, all-inclusive model gives the illusion that you are getting something for nothing, but the truth is you are always paying for every experience.

  • http://www.islesrilanka.com/ Gamini2006

    mmm agree with Ree……….

  • Joe R

    Count me in as a current cruiseline customer who’s pretty much stopped sailing with all the extra fees. When we first started, only the highest-end restaurants onboard charged a fee (and only $5 to $10 at that) so we could plan a special dinner or two over a week of cruising.

    Now, as mentioned, the food in the “free” dining room isn’t even up to par with something like IHOP, and pretty much every other restaurant on the ship charges. Combined with the mandatory tip, the “right” to impose the (illegal) fuel surcharge again (at any time before cruise, even if already booked!), and I’m just not going to give them any more money.

    We loved cruising, but they’ve lost us with their greed.

  • http://travel.justmarvelousworld.com/ Liudmila

    I conducted my personal survey about opinion of the people about the cruises and -with all that indispensable all-included that is offered on the cruise ships, the persons are terribly afraid of surcharges at the end of the cruise. The popular opinion is that the final price of any cruise will be unppossible to foresee and that is why they renounce on this type of vacation.

    Imagine if the cruise lines will adopt this politics, you described here…

  • Carver

    @Ree

    Why can’t you call the cruise ship to get these prices? And after you’ve cruised once, wouldn’t you have ageneral idea of the costs? I’m not a cruiser so I don’t know?

  • Mary Graham

    As long as we continue to accept these conditions, continue to give our hard earned money to these industries, they will continue to nickel and dime us to death. Just STOP, plain and simple.

  • judy

    I cruise 2-3 times per year and stick to my preferred cruise line, Princess. I have discovered that if I go to the purser’s desk the day I board I can have the “mandatory” daily tip eliminated- you have to do this the day you board or it doesn’t happen. I prefer to tip those who provide me with quality service and I do tip those folks well. I just make sure the room steward knows that I do not participate in “mandatory” tipping. I get great service.

  • Joe Farrell

    Charlie Funk – you got it, Sir. I will not spend $5k for a week and be nickle and dimed for every little thing –

    @John – “Included: entertainment, all meals, all non alcoholic beverages, berth, tips etc.”

    Which cruise line offers you non-alcoholic beverages? Water, tea and coffee – so long as you get all meals in the dining room or at the disgusting buffets. I have heard from a friend that iced tea is now a beverage you pay extra for. . . Tips ? When was the last time your cruise included ‘suggested’ tips?

    Cruising is a ripoff pure and simple. The contracts are overbearing, the entire experience is designed to part you from additional money. And they refuse to allow you to bring you own stuff to cut down their outrageous charges for things – imagine a hotel that every time you walk in the door they search you for contraband – stuff you buy to consume in your room . . .

  • Liam

    My wife and I went on a cruise on Holland America last year. It was a nice time, but the fees were ridiculous. We both love spas, so we bought passes to the “special” pool in the spa. We expected this would be an excellent get away from the kids and chaos on the pool deck. It WAS…until people started opening the “side” door to the spa pool and allowing their children inside. We complained, but the spa desk girls said that unless they ‘caught’ the offenders, there was really nothing they could do about it. I told them to watch the “side” door more carefully, as it is literally just around the corner from the spa desk.

    They caught one woman who was sneaking in kids, but just told her she and her party would have to leave. An hour later, the same party was back in there.

    We complained and tried to get a partial refund, but that didn’t happen.

    So, instead, I just go around and let everyone know how terrible Holland America is–as long they have your money, forget about the service.

  • http://myitchytravelfeet.com Donna Hull

    The more main line cruises unbundle their fares, the better an all-inclusive small luxury cruise looks to me. By the time one adds up all of the extra charges on a main line ship, the fares on a luxury ship don’t look so bad. In some cases, they can total up to the same amount, or very close. Compare people, compare.

  • Josh

    We just got back from a week on a Disney cruise. Our first cruising experience was on a Carnival cruise and it was only mildly enjoyable. Everywhere you turned someone was trying to get money out of you. Whether it was a drink at the pool, a drink at dinner, a case of water, or anything else. And the staff seemed incredulous that you did not want to purchase a $2.50 soda or a $8.00 beer.

    We switched to Disney because their all-inclusive is much more so. They provide unlimited soda, juice, and milk. Their alcohol prices are reasonable (about the same or cheaper then in a mid-level restaurant). They don’t care if you bring your own water or alcohol (though I assume they would balk at someone bringing multiple cases). Carnival confiscated alcohol on our return from port only giving it back when the cruise ended. Disney smiled and said have a nice day.

    The big difference is that Disney cruises cost a bit more up front. However, I would rather pay more up front and know what I am getting. I HATE being nickel and dimed to death and I really hate the pressure from the other cruise lines to spend, spend, spend!

  • http://www.thetravelinggiraffe.com Crissy

    @Carver the cruise lines are constantly changing what is and isn’t included and it varies by cruise line too. A good travel agent should be able to help you know what the costs are for individual things, but the price of a soda or a drink might change between booking and sailing. So you can only budget so far.

    The cruise lines seem to offer a lot of packages when you get onboard – soda cards, wine and dine, spa. It might be better if when you booked you were given the option to add a soda card, a booze card, etc – then they’re not getting hit with the cost when they’re excited and about to board the ship and not thinking clearly. I do think an alcohol card, like the soda cards most lines offer, would be a good option for some people.

    A year and a half ago I sailed NCL’s Pride of America. It had been a couple years since my last cruise. I thought the food in the specialty restaurants was very good (though some of these were well overpriced) but the food in the main dining room wasn’t anything to write home about. I thought it was better on Carnival when I sailed with them in 2004, not a good sign.

  • Kevin

    Are US Based Cruise lines allowed to legally unbundle food? I ask this based on Anti-Trust laws and such.
    When you are on-board a cruise ship, you have 1 option to eat while at sea. That, for an intents and purposes, is a Monopoly. They can charge you whatever they want and you’d be forced to pay it or starve. So while they do not have to HAVE to serve you top of the line, they do have to provide basic necessities…
    That said, there is a certain amount of unbundling that needs to be done to ensure fairness on pricing. Why should someone who doesn’t drink alcohol pay the same rate as the fish next to them assuming all else is equal? Same thing for High Quality food and activities.
    For anyone who has been to the Caribbean, a lot of the places to eat charge extra for Bottled Water, why should a cruise ship be any different?
    While I’m not a fan of the Mandatory Tips, this is also not an uncommon thing. Many places do this simply because the average traveler may or may not know they should tip for good service. So instead of inflating their fairs and including this in it, they unbundled it… Can’t say I’m a fan of it, but it isn’t out in left field from a charge stand point.

  • Mike Z

    @Carver “Is this really true?

    “Passengers say the extras make it harder to budget for a vacation”

    I mean, people go on vacation all the time, and budget accordingly. Is a la carte really that hard?”

    I don’t cruise, but can see why this would be a pain. On a large ship, you are hostage to whatever they want to charge you. if you travel to Chicago, you can choose to eat in a steak house, or at a McDonalds. You do have more control over your costs and can easily find them out up front. There is also a much larger selection of product to choose from.

  • sparks1093

    Carver, it’s not a simple matter of “calling the ship”, nor is it a simple matter to call the cruiseline’s customer service number. First, it’s expensive to call a ship at sea. Second, the customer service folks don’t have the information you are looking for (and calling two different reps gets you three different answers).

  • Dixie

    This is where message boards like those on CruiseCritic.com come in very handy. Browse those boards to find answers you’re looking for, or register and ask questions on your own. There is always someone who is a frequent cruiser or who has just come back who can answer questions like how much is laundry, how much is a drink, how much is a bottle of wine, how much are ship photographs.

    We’re cruising with Disney in September. I know they allow you to bring soft drinks and alcohol on board. They also sell a wine package that includes one bottle each night of your cruise.

  • http://www.foxstudio.biz Reynard

    Well, this post just single-handedly killed any interest we might still have had in going on a cruise. I guess I’ll just live with my memories (fabulous) of taking the last passenger run of the SS. President Wilson from Hong Kong to Honolulu in 1968 with my mom when I was a kid. Obviously, nothing available today will top that.

  • Elliott

    The last time I sailed as a single on NCL on a seven day Hawaiian cruise, On the last day, I was charged DOUBLE the Port Charges. What a rip off that was, Never sailed on NCL again…

  • Nobody

    What’s all this cr*p about cruising in a frequent flyer site? The worst part about cruising is the parts dealing with the airports and flying. When I go to a place like Vegas, I have to work with unbundled resort costs like eating and alchohol, spa fees, and now, avoiding daily resort fees that cover watering the lawn and chlorine for the pool, whether I use or not. The worst part of a Vegas vacation is falling asleep at the pool and not waking up! But, that’s on par with airport experiences: http://abclocal.go.com/kabc/story?section=news/bizarre&id=7695782