Say it ain't so: Celebrity Cruises hikes service fees for second time in a year
Bad news, Celebrity Cruises fans: For the second time in less than a year, the line is hiking the service fee it adds to customer bills.
In a notice posted this week on its website, the Miami-based cruise giant said it would raise the automatic gratuity fee it levied on passengers by 50 cents to $18 per person per day for those staying in most cabins.
That's on top of a $2 increase in automatic gratuity fees that the line just pushed through in October.
Together, the two hikes amount to a 16% increase in the line's daily service charge in just nine months.
The current gratuity rate at Celebrity is $17.50 per day for passengers in standard cabins, $18 per day for passengers in Concierge Class and AquaClass cabins, and $21 per day for passengers staying in the suite-filled The Retreat areas of ships.
The latter two rates are also rising by 50 cents and $2, respectively, to $18.50 and $23 per person per day.
The new rates will take effect on Tuesday.
With the increase, a family of four in a typical cabin will pay more than $500 in automatic gratuities on a seven-night cruise — one of the highest levies in the business.
Related: How to pick the perfect cruise line for you
The news of the service charge increase at Celebrity comes in the wake of sharp hikes to service charges over the past year at other cruise lines.
Princess Cruises, for instance, hiked its service fees by more than 10% to $16 per day at the start of the year, just two days after a stunning 25% increase in Norwegian Cruise Line's service charge took effect. Norwegian now charges $20 per person per day for passengers in most cabins, up from $16 a year ago.
Cruise giant Carnival also hiked its service charge rate by more than 10% earlier this year to $16 per day for passengers in most cabins. Sister brand Holland America pushed through a service charge increase to $15.50 per day for passengers in most cabins.
Among other big lines, Royal Caribbean currently collects $16 per person per day in service charges for passengers staying in most cabins. MSC Cruises adds an automatic service charge of $14.50 to final bills on most 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, Celebrity had already increased its room service fees sharply earlier this year.
Other lines, such as Carnival, have been sharply pushing up the cost of some marquee restaurants on ships. The charge to dine in some restaurants on Carnival ships is up as much as 26% over the past 18 months.
Norwegian has been announcing fee increases for multiple things in recent months by sometimes steep 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 at Norwegian shot up from $128 per day to an unprecedented-in-the-industry $138 per day.
Many Norwegian customers get a "free" drinks package as part of a booking promotion. However, the 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 partly on the soaring costs of food and fuel needed to operate their ships.
That said, in many cases, the prices 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 inflation rate.
Celebrity notes that passengers unhappy with the service they receive on Celebrity 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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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.