Cruise demand not seen impacted by new 'Honest Pricing Law'

While the law applies only to businesses operating in California, most US-based cruise lines shifted to one nationally advertised price that bundles in government taxes, fees and port expenses.

'We believe that it will eventually become a national law, and since we operate all over the United States, we have decided to do it,' Bayley said aboard the new Utopia of the Seas.

'There's been no impact; the demand continues the way it was,' Bayley continued, adding: 'I personally think it's a better way of doing it. It's much simpler for people to understand. And as long as everybody is doing it, it's better for the consumer.'

End to bait and switch

Amy Madson, a Dream Vacations franchisee based in Orlando, Florida, told Seatrade Cruise News her business hasn't been impacted 'because we always send clients the full price when we provide a quote.'

According to Madson, online travel agencies pull people in with the lower price and it's '37 screens on' before the full fare is disclosed. 'That's the true value of the travel advisor,' she added, in presenting the total cost up front so consumers aren't surprised.

'Having the full pricing is what should have been done all along,' Madson said. 'You're getting the real number now, instead of a bait and switch.'

It does look like this will become a national law — like California's, not related to cruise lines specifically — but mainly instigated by complaints about hotel 'service fees' and 'resort fees.' President Biden has railed against 'junk fees.'

FTC rulemaking

Robert Kritzman, partner, Watson Farley & Williams, noted the US Federal Trade Commission on Nov. 9, 2023 published proposed rulemaking titled 'Rule on Unfair and Deceptive Fees,' which imposes requirements similar to the California legislation. 

'The proposed rules effectively require that advertisements clearly and conspicuously display, more prominently than any other price information, the total price to be paid by consumers inclusive of all mandatory fees, costs and expenses,' Kritzman said. 'The proposed rules also prohibit misrepresenting the nature and purpose of any charges including voluntary charges.'

Since the comment period closed, an informal hearing was held April 24. The FTC has not taken any further action, Kritzman said.

Look for an expert commentary by Robert Kritzman in the next issue of Seatrade Cruise Review