Cruises used to be one of the most affordable vacation options for everyday folks. It was a great way for families, singles, and couples to get away for a bit on a budget. But those good ‘ol days seem to be gone. Before the pandemic, they cost 15 to 20% less than a comparable land vacation. Now? A five night Caribbean cruise averages around $736 per person, a 43% increase compared to 2019 prices. So what happened to cruises and why are they so expensive?
Pandemic Debt and Rising Operating Costs
The three major cruise lines (Norwegian, Royal Carribean, Carnival) racked up billions in debt during 2020 when ships sat empty for months. Those companies are still paying that debt off, which means those costs are getting passed on directly to paying customers. On top of that, literally everything has gotten more expensive in a post-Covid world. Fuel prices have surged (and it’ll likely get worse), food costs have ballooned, and staffing expenses have increased. Cruise lines can’t operate at a loss, so ticket prices have no choice but to match reality.
The lines that offered massive discounts to lure people back after reopening? Those deals are long gone. Remember: the pandemic is over, and everyone is living their lives normally. That means going out on a cruise isn’t the terrifying proposition that it once was. Now it’s pure supply and demand. Ships are selling out at higher occupancy rates, which means cruise lines can charge whatever the market will bear.
Hidden Costs Add Up Fast On Cruises
Your base fare might look reasonable until you add gratuities, drink packages, specialty restaurants, WiFi, excursions, spa services, and more. Automatic gratuities alone can add $15 to $18 per person per day. Want the drink package? That’s another $60 to $80 per person per day, and everyone in your cabin has to buy it. Specialty dining charges $35 to $75 per meal. WiFi packages run $20 to $40 per day.
Some cruise lines now charge fees for things that used to be free, like pizza or activating food delivery apps. It’s death by a thousand upcharges, and suddenly that affordable base fare doesn’t look so cheap anymore. There are, however, ways you can save costs. Plan in advance and you’ll be able to save tons of money when booking. Plus, it’s a smart idea to take advantage of loyalty programs, especially if you want to get an upgrade on a cruise ship.
