California Law Requires Transparency in Cruise Line Pricing: What You Need to Know

California Law Mandates Transparency in Cruise Pricing

Starting July 1, a new law in California will require businesses, including cruise lines, to advertise prices that include all fees and charges. This means that the price consumers see will be the price they pay, without any hidden fees or taxes added later.

Currently, many cruise lines in the US market advertise a base fare separate from government fees and taxes. While these fees are disclosed to consumers, they are not typically included in the advertised rate, leading to potential sticker shock when additional fees are added.

California Attorney General Rob Bonta described the law as a transparency measure, ensuring that consumers know the total cost upfront. This law applies to all companies selling goods and services in California, not just cruise lines.

In response to the new law, major cruise operators like Carnival Corp. and Royal Caribbean Group have announced plans to switch to national uniform pricing, including all government-mandated fees in their advertised rates. Other companies, like Norwegian Cruise Line Holdings and MSC Cruises, are still evaluating the impact of the law on their business.

Travel agencies, like World Travel Holdings and Signature Travel Network, are also working with cruise lines to determine the best approach for handling the new pricing requirements and potential changes to commissions.

Overall, the new law aims to provide greater transparency and clarity for consumers when booking cruises in California, with the hope that this will lead to a more straightforward and honest pricing system across the industry.