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- Your ultra-cheap cruise might not be as cheap as you think.
- Cruise lines like Carnival and Norwegian have either raised daily gratuities, WiFi fees, or both.
- Cruise lines have seen an increase in onboard spending as they continue to add more premium amenities and dining.
Ultra-cheap cruises sailing for as little as $38 a day have been all the rage. But in reality, your cruise may not be as cheap as you might have expected.
Over the last few months, cruise lines like Carnival, Norwegian, Holland America, and Princess have all announced a raise in daily gratuities. Some companies like Holland America are only increasing this payment by $0.50 daily. Others, like Norwegian Cruise Line, are raising the daily tip rate up to $5 for passengers staying in higher-end staterooms and suites.
Meanwhile, Carnival has raised both daily gratuity and WiFi fees, the latter by $5 for premium WiFi.
An increase in WiFi fees is just a "natural inflationary price increase," Patrick Scholes, an analyst at Truist Securities, told Insider. But the same likely can't be said for the widespread increase in gratuities.
These payments go directly to the crew. Increasing the daily gratuity — while Norwegian has cut back on housekeeping services as well — then serves as a de facto pay raise, helping the cruise lines attract more employees during a time when hiring has been difficult, Scholes said.
In theory, cruise vacations can be a great value. The base fare covers food, a stateroom (hotel room at sea), and the opportunity to visit multiple ports. And this year, 420 cruises will sail for $60 a day or less, which could be much cheaper than a "traditional" vacation at a hotel.
But if travelers want alcoholic beverages, specialty dining, excursions at the ports, or some onboard activities, they'll have to pay additional fees. And these could add up fast, especially as cruise travelers are now spending more onboard while cruise lines continue to add more premium amenities and restaurants to reel in extra revenue.
"The bells and whistles of new ships are having much more specialty dining and more opportunities to buy additional things onboard," Scholes said. "Those upsell specialty items have shown to be incredibly popular."
So if you want fast WiFi, dinner at the onboard sushi restaurant, and a few hours at the VR arcade during your next cruise, be prepared to spend more than you may have initially planned.