Cruise giant Carnival joins Princess, Norwegian in sharply hiking service fees

Et tu, Carnival Cruise Line?

The world's second largest cruise operator is joining its smaller competitors Princess Cruises and Norwegian Cruise Line in sharply hiking the automatic service charges it adds to customer bills for 2023.

In a notice sent this week to booked passengers, the Miami-based cruise giant said it would raise the automatic gratuity fee it levies on passengers by more than 10% to $16 per person per day for those staying in most cabins.

It also said it planned an unusually sharp hike to the amount it charges for onboard Wi-Fi, with the cost of single-device plans soaring as much as 25%.

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The price hikes for the service and Wi-Fi fees will take effect on April 1 and Jan. 16, respectively.

The current gratuity rate at Carnival is $14.50 for passengers in standard cabins and $16.50 for passengers in suites.

The new rates taking effect on April 1 will be $16 per person per day for standard cabins and $18 for passengers in suites.

With the increase, a family of four in a typical cabin will pay nearly $450 in automatic gratuities on a seven-night cruise — one of the higher levies in the business.

The news of the coming service charge increase at Carnival comes just three weeks after Princess, a sister line to Carnival, also hiked its service fees by more than 10%, and just two days after a stunning 25% increase in Norwegian's service charge took effect.

Another sister brand to Carnival, Holland America, also plans a service charge increase in the coming weeks.

With the increases, almost all the brands will soon be charging a service fee of $16 per person per day for passengers staying in most cabins. Norwegian will be the outlier with a service fee of $20 per person per day for passengers staying in most cabins.

Among other big lines, Royal Caribbean also currently charges $16 per person per day in service charges for passengers staying in most cabins. MSC Cruises adds an automatic service charge of $12.50 to $14 to final bills on sailings out of U.S. ports.

Related: TPG's ultimate guide to cruise ship gratuity charges and tipping

The service fee increases come amid a surge in prices for all sorts of onboard items at many lines as the cruise industry struggles to return to profitability after three years of heavy losses.

In addition to this week's announcement of service fee increases, Carnival has already pushed up the cost of some of its marquee restaurants on ships over the past year by as much as 26%. For instance, the fee for the line's signature steakhouses has jumped from $38 to $48 per person in two steps over the past eight months.

Carnival has also increased the cost of its signature Chef's Table experience over the past year by nearly 24% — to $99 a person. The cost of drinks packages on Carnival ships is up significantly over the past year, too, in some cases by more than 15%.

Meanwhile, Norwegian has been announcing fee increases for multiple things in recent months by sometimes sharp amounts. On Jan. 1, the brand increased the cost of its Unlimited Open Beverage Bar Package by about 10%, to $109 per day — in addition to raising service charges. The cost of a higher-end drinks package shot up to an unprecedented-in-the-industry $138 per day, up from $128.

Many Norwegian customers get a "free" drinks package as part of a booking promotion. However, the booking promotion does not include an automatic 20% bar gratuity on the theoretical cost of the packages. As the cost of Norwegian's drinks packages rises, the cost of its automatic bar gratuity fees rises, too.

Related: The 9 most exciting new cruise ships of 2023

Cruise lines have blamed the onboard price hikes in part on the soaring costs of food and fuel needed to operate their ships.

That said, in many cases, the prices that cruisers are finding this year at onboard venues such as restaurants and bars — and the amount they are spending on onboard fees — are rising much faster than the rate of inflation.

Carnival's coming service fee increase will be the brand's second in less than a year. The line also raised service fees in May, from $14 to $14.50 per person per day — a 3.6% increase.

Carnival notes that, in some cases, passengers who are unhappy with the service they receive on Carnival ships can adjust the amount of daily gratuities posted to their accounts while on board by visiting the guest services desk.

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