If you visit some of the more popular cruise-line pages on Facebook, you will see a fair amount of people complaining about rising prices.
In many cases, people complain that they can no longer afford to sail on the cruise lines they have been loyal to, and they threaten to take their business elsewhere.
The posts also accuse the cruise lines of being greedy or of trying to make back the money they lost during the pandemic. Some posters also accuse the cruise lines of not being respectful or loyal to the long-term customers who helped them become successful in the first place.
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As people complain about higher prices, which are indeed real, they also blame the cost of the new megaships both Royal Caribbean (RCL) and Carnival Cruise Line have built in the past few years.
In reality, price increases are a lot simpler than the conspiracy theories posited online: Cruise-line prices, whether it’s for your cabin, drink packages, excursions or other extras, are based on demand.
Prices at Royal Caribbean and Carnival, as well as MSC Cruises, which has recently been much cheaper than its rivals, have been driven up by increased demand. All three cruise lines have increased their capacity out of Florida, their top market by far, and ships still have generally been sailing full.
MSC Cruises has added capacity in Florida.
Image source: Gerard Bottino/SOPA Images/LightRocket via Getty Images
How demand-based pricing works
When a cruise line puts a sailing on sale, it sets prices based on both history and current demand. Since sailings generally go on sale more than a year in advance, pricing requires a bit of guesswork. (No cruise line shares its full formula for how it sets initial pricing.)
Demand is dynamic and if cabins are selling quickly, prices will go up. Fully selling out a cruise ship generally takes 12 months, so when a higher percentage of cabins sell quickly, prices rise. If demand is softer, prices do go down.
When a cruise ship hits 100% capacity — which does not mean all its cabins are sold because some may have more than two guests — any remaining rooms will generally be expensive.
Cruise lines don’t arbitrarily raise prices to recover past losses. Instead, they generally get as much as they can for each room based on current demand. That’s why a new ship people really want to sail on, like Royal Caribbean’s Icon of the Seas, has much higher prices than Wonder of the Seas, the cruise line’s second-newest ship.
This pricing plan extends to excursions and other items that have limited supply. You could argue that Royal Caribbean and Carnival leave money on the table in areas where they offer set pricing.
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In the case of Carnival, that includes its Cheers beverage package, which has a set price as well as individual specialty meals. Royal Caribbean uses dynamic pricing for its drink and unlimited dining packages but has set prices for individual meals in its specialty restaurants.
How to save money on a cruise
While you can find lower prices yourself, it’s generally best to work with a travel agent when booking your cruise. Larger agencies, or agents who work as part of a bigger group, often book blocks of rooms well in advance in order to lock in lower prices.
A good travel agent will also track prices, and if the cruise line lowers the price before final payment is due, they will get you either a price adjustment or onboard credit. In addition, your travel agent can match you to the right cruise for your budget.
It generally costs less to sail on older ships, and some cruise lines, including MSC, still have some sailings at comparatively low prices. Cruises do generally cost more than they did in 2019, but that’s not universal.
In a broad sense, booking early or booking late saves you the most money. Last-minute deals have become rare, but they do happen, especially with Royal Caribbean and Carnival having so many ships sailing in the Caribbean.
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It’s harder to find a cheap sailing than it has been in years, but it’s not impossible. If your goal is getting on a ship at the lowest possible price, you will have options. If you want the newest ships or specific port stops, or you have limited sailing dates, your price options will be more limited.
