Norwegian Cruise Line to hike service charges to levels never before seen in cruising — see how much you'll pay
Bad news, Norwegian Cruise Line fans: You're about to pay enormously higher daily fees.
The world's fourth largest cruise line on Tuesday announced it would hike the daily service charge it levies on customers by an unprecedented 25% for most cabins, effective Jan. 1.
The new rate for passengers staying in most cabins will be $20 per person per day — a $4 increase. Passengers staying in The Haven suite area on Norwegian ships and in other suites will face a $25 per person per day service fee — a $5 increase.
With the increase, a family of four staying in a suite will pay a cool $700 in service fees during a typical seven-night cruise — a level never before seen in the cruise business.
Other major lines such as Carnival Cruise Line, Holland America and Royal Caribbean add far less in service charges to customer bills, ranging from $14.50 per person per day to $16 per person per day.
Princess Cruises just raised its service charge significantly this week, from $14.50 to $16 per person per day, but even with the increase, the line's levy still doesn't come close to what Norwegian plans to start charging.
The rate hike for Norwegian's service charge is, notably, the line's second such increase in just nine months. On April 1, Norwegian boosted service charges by 50 cents to $1.50 per person per day, depending on cabin category.
The net result is that Norwegian service charges are up as much as 35% in less than a year for some cabin categories.
Related: See how much you'll pay in service charges at every major line
The fee hike at Norwegian comes amid a surge in price hikes for all sorts of onboard items at the line.
The brand also recently announced it would increase the cost of its Unlimited Open Bar Beverage Package on Jan. 1 by about 10%, to $109. The cost of a higher-end drinks package will soon be $138, 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 8 classes of Norwegian ships, explained
Norwegian in recent days has also begun charging a room service delivery fee for continental breakfast on some ships — something that until now has not come with a fee.
Other major lines including Carnival and Princess also have been increasing fees sharply this year for everything from service charges to restaurant cover charges, drinks and Wi-Fi.
Cruise lines this year have blamed such onboard price hikes and added fees on the soaring costs they are experiencing to buy food and fuel to operate their ships as high inflation takes hold in the economy, as well as ongoing supply chain challenges.
That said, in many cases, the prices that cruisers are finding at onboard venues such as restaurants and bars — and the amount they are spending on board ships — are rising much faster than the rate of inflation.
Related: The ultimate guide to Norwegian Cruise Line
Norwegian Cruise Line Holdings president and CEO Frank Del Rio told Wall Street analysts last month that the company's onboard revenue per passenger per cruise day was approximately 30% higher in the third quarter of this year than the comparable 2019 period.
Norwegian Cruise Line Holdings is the parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
In the United States, consumer prices over the past year have increased by 7.7%, as measured by the latest Consumer Price Index report from the U.S. Department of Labor.
Norwegian says customers with existing cruise reservations for 2023 and beyond can lock in the current, lower service charge rates by prepaying gratuities before Jan. 1.
In addition, passengers who are unhappy with the service they receive on Norwegian ships can adjust the amount of daily gratuities posted to their accounts while on board by visiting the Guest Services desk, according to the line.
Related: Why we love the new Norwegian Prima
Passengers also can sometimes get their service charge fees bundled into their cruise fares for "free" when booking through one of Norwegian's frequent "free at sea" promotions that include service charges as part of the bundle. That said, service fees aren't always included in such promotions.
Norwegian's current "free at sea" promotion includes a complimentary drinks package, two dinners at an extra-charge onboard restaurant (for sailings of seven nights), a $50-per-tour credit toward excursions and 150 minutes of Wi-Fi access — but not service fees.
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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
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- 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.