Is Too Much Ever Enough? NCL to Gouge Customers Again

Travel Weekly and Cruise Critic are reporting that Norwegian Cruise Line (NCL) is raising gratuities on April 1st from $13.50 per person, per day, to $13.99, on all ships except the Norwegian Sky. Daily gratuities for standard cabins on the Norwegian Sky will increase to $18.99 (an increase over 40%). 

Travel Weekly says that NCL will increase daily gratuities for suites from $15.50 to $16.99 on all of its ships except for the Sky where it will charge $21.99. 

It seems that there is no limit to the greed of cruise executives. NCL CEO Frank Del Rio just spoke at Seatrade Global about how the stock market was at all time high and fewer regulations and President Trump's pro-business tax cuts were good for his business. Del Rio collected nearly $32 million in Miami Cruise Ship Capital of the World2015

Del Rio's NCL has gouged its customers before, with extra charges, including increased room services charges, automatic gratuities and restaurant cover charges. He made this statement at an earning conference in 2015: "... we have looked across the fleet to identify areas where marginal changes ... can be implemented to improve performance. A few examples include a 6.7% average increase in beverage prices, the introduction of a nominal room service fee and lower costs from renegotiated shore excursion agreements. To put into perspective how these small changes can add up quickly, every dollar increase in yield translates to approximately $15 million to the bottom line."

Of course, all the major cruise lines nickel-and-dime their customers. Royal Caribbean just began charging for room service and, in the past, increased its gratuities while attempting to create the appearance that the increases were for its hard-working crew members (Read: Loyal to Royal? Expect to Pay Higher Gratuities! And the Money's Not for the Crew). Carnival Corp. did exactly the same thing while it also pocketed the increased gratuities (Read: Carnival Hikes Pre-Paid Gratuities But Will Passengers Secretly Remove Tips?)

Today, I read an article by David Grace Author titled When Greed Is Thought To Be A Virtue - When More Is Never Enough. He discusses what he calls the "more-more-more-until-it-all-blows-up" business phenomenon. The cruise executives, Del Rio in particular, put on quite a demonstration of unbridled greed at the Seatrade Cruise conference last week. The CEO's have an unhealthy, unchecked pursuit of profits in an industry which has always overreached into the American public's pockets.  The cruise industry pays virtually no taxes, exploits their workers from around the world, and still nickle-and-dimes their tax-paying customers whenever they have a chance. 

When is enough, enough? 

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Photo credit: Marc Averette - CC BY-SA 1.0, commons / wikimedia.

Royal Caribbean to Charge Room Service Fee

Royal CaribbeanTwo popular cruise blogs, the Royal Caribbean Blog and Cruise Fever, are reporting that Royal Caribbean will soon begin to charge its guests a fee of $7.95 for room service from the All Day Menu and the American Section of the breakfast menu.

Cruise guests reportedly will still be able to order complimentary continental breakfast without incurring additional fees. Guests in suites will not be charged service fees.

The service fee will begin on sailings after March 27, 2017.

Royal Caribbean announced the change on its Twitter feed, much to the disappointment of its followers.

Royal Caribbean follows other cruise lines, like NCL (Read: NCL Gouges Guests with New Charges), which also charges a $7.95 room service charge. Carnival also announced a similar fee several years ago.

Most of the major cruise lines have been accused of nickel-and-diming passengers. Many cruise passengers have complained that room service should be included in the traditional inclusive-cruise fares. 

Don't think for a second that the new room service charges are for the hard working crew members.

Marginal increases in services like room service puts big bucks into the cruise executives' pockets.

NCL's CEO Frank Del Rio said in May 2015: "... we have looked across the fleet to identify areas where marginal changes that are commensurate with market conditions can be implemented to improve performance. A few examples include a 6.7% average increase in beverage prices, the introduction of a nominal room service fee and lower costs from renegotiated shore excursion agreements. To put into perspective how these small changes can add up quickly, every dollar increase in yield translates to approximately $15 million to the bottom line."

Del Rio collected nearly $32 million in compensation that year (2015). 

In June of 2015, Royal Caribbean hiked the automatic daily gratuity on its cruise ships by nearly 8% to $12.95 per person. USA Today wrote at the time that with this increase, a family of four will pay more than $350 in service charges on a typical seven-night cruise -- one of the highest levies in the cruise business.

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Photo credit: Jim Walker

Update: We are receiving a number of humorous comments to the article on our Facebook discussion, including this one: "Next thing you know they'll put coin operated toilets in all the cabins." 

Loyal to Royal? Expect to Pay Higher Gratuities! (And the Money's Not for the Crew)

Loyal to Royal Caribbean - Cruise Line GreedLoyal to Royal?

Expect to pay more in gratuities.

Effective June 1st for all sailings departing on or after July 1st, the new gratuities charged by Royal Caribbean to its passengers will be $12.95 per day, per guest in standard accommodations, and $15.95 per day, per guest in suites. 

There seems to be a trend across the cruise industry to nickel & dime the customers. NCL, for example, just started charging a room service fee.  

NCL's CEO Del Rio said this while reporting on last quarter:  "... we have looked across the fleet to identify areas where marginal changes that are commensurate with market conditions can be implemented to improve performance.

A few examples include a 6.7% average increase in beverage prices, the introduction of a nominal room service fee and lower costs from renegotiated shore excursion agreements. To put into perspective how these small changes can add up quickly, every dollar increase in yield translates to approximately $15 million to the bottom line." 

Royal Caribbean's increased gratuities is designed to increase profits and put more money in the executives pockets. 

What RCCL is not telling you: not all the gratuities go to the hard-working crew members.

Royal Caribbean, like Carnival and NCL, has been diverting tips from the crew into revenue ever since it began the pre-paid gratuities. Remember when you used to hand your cabin steward cash at the end of the cruise? Most cruise lines stopped that practice in order to grab a good chuck of the money intended for the crew for themselves.

Cruise lines like Royal Caribbean do a poor job taking care of their crew members. You see evidence of it everywhere. Carnival canceled the meager retirement plan for its crew a couple of years ago. NCL is Richardd Fain - Royal Caribbeancharging for room service and is charging higher prices for drinks and excursions but there's no indication that it will pass any more money along to the crew. The crew members' benefits have been cut and they are still working insane hours every day.

I have never heard of any cruise line making changes designed to benefit the crew in the last decade.

Some passengers say they are fed up and will no longer be loyal to their favorite cruise line. So the "Loyal to Royals" will switch to NCL, and the "Loyal to Norwegians" will switch to Carnival and so forth and so on. Around and around the guests will spin as the cruise lines suck up their nickels and dimes while the cruise executives pocket millions and millions without a thought of their hard-working crew. 

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May 15, 2015 Update: USA TODAY's Cruise Log says that "with the increase, a family of four will pay more than $350 in service charges on a typical seven-night cruise -- one of the highest levies in the business.

NCL Gouges Guests with New Charges

Several readers have contacted me complaining about Norwegian Cruise Line's new charges on certain cruise ships (Breakaway and Getaway)

One passenger wrote: "Ncl started (secretly) charging $7.95 for room service now?!?  . . .  enough is enough . . .  So to go up from $0 to $8 is huge. I've never been on a cruise that charges for room service. (Other than the late night charge). This plus the increased gratuities plus increasing the auto gratuities on drinks, it's getting crazy."

NCL Cover Charges Automatic GratuityThis passenger sent me a list of the extra charges, with room services charges, automatic gratuities and so forth together with the cover charges.

A meal for two at the chef Geoffrey Zakarian's fancy Ocean Blue restaurant on the Breakaway with the $39 cover charges (per person) and the 18% automatic gratuity quickly turns into a $92 bill without wine.  

Wow. For that price, I'd rather go slumming on the Carnival Triumph and eat pizza for a week. 

NCL fans are suggesting that the room service charge is just on a trial basis. We shall see . . .   

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