Cruise Confidential is USA TODAY's weekly insider briefing on the cruise industry, breaking down the trends, changes and surprises that could impact your next voyage.
Carnival Cruise Line will make a major change to how it charges for several popular amenities this fall – but it's not the only one.
The company plans to introduce dynamic pricing for individual Wi-Fi and drink packages on Dec. 1. Rates for those “will vary based on sailing length, itinerary and season,” according to a news release.
That model is nothing new in other parts of the travel industry. “Dynamic pricing has been used by the airlines and hotels for decades,” Marilyn Macallair, a cruise travel analyst for Phocuswright, told USA TODAY in an email. “This is their version of ‘revenue
management,’ which basically is charge what the market will bear on any given day.”
Carnival isn’t the only cruise line to charge for add-ons that way, but experts said even more could follow. Here’s what travelers should know.
Why did Carnival switch to dynamic pricing for Wi-Fi and drink packages?
Carnival told USA TODAY that the change “better aligns pricing with the type of cruise a guest books, provides greater flexibility and reflects factors such as itinerary, duration, and seasonality.”
“Importantly, once a guest purchases a package, their confirmed price is locked in and will not change even if pricing is adjusted later,” the cruise line continued in an email. Starting prices for Carnival’s three main drink packages currently range from $6.95 to $69.95 per person per day, while its Wi-Fi plans start at between $20.40 and $25.50 per person per day, according to its website.
A fourth Multi-Device Premium Plan starts at $90 a day for up to four devices. Carnival did not share potential price ranges for the new model.
Lainey Melnick, a luxury travel advisor and Dream Vacations branch owner, said that the move could benefit travelers sailing at off-peak times if prices drop for those voyages. However, she raised concerns that passengers cruising during the busiest periods – such as families who book during school breaks – could face steeper drink and Wi-Fi costs on top of higher fares.
Mainstream cruise lines typically charge extra for Wi-Fi, many beverages including alcoholic drinks and certain other amenities, while luxury brands bundle more into the base price. Cruise fares can also generally fluctuate based on demand and cabin availability.
“Pricing flexibility for the cruise line is not the same as savings for the passenger,” Melnick said in an email. “I’ll judge this change by what consumers actually pay, how clearly prices are disclosed and whether meaningful savings are available.”
The news came as Carnival also announced new FunPacks that bundle various extras – including drinks and Wi-Fi – and are not subject to dynamic pricing.
Do other cruise lines use dynamic pricing for add-ons?
Carnival isn’t alone.
Royal Caribbean, for example, also uses dynamic pricing for Wi-Fi and beverage packages.
The cruise line told USA TODAY earlier this year that pricing for passes to its Royal Beach Club Paradise Island in the Bahamas is dynamic and subject to change, as well, and encouraged guests to check rates on the company’s website or app when booking. Access to Royal Beach Club Santorini in Greece is priced the same way.
Both Macallair and Melnick said they expect more cruise lines to try out dynamic pricing for add-ons. That makes transparency especially important for consumers, Melnick noted.
“My advice is to compare the total price, including the amenities you will actually use and applicable gratuities,” she said. “A low advertised fare or a large percentage discount doesn’t necessarily mean you’re getting the best value.”
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
This article originally appeared on USA TODAY: Carnival isn't the only cruise line using dynamic pricing for add-ons
