Taxes and Fees -- RCCL/NCL

[AirGorilla]

Hi Folks --

 

I'm posting this on both boards, so I hope I can find someone who can help me out with my question. I am looking at taking a three day Bahamas cruise on 1/15/10. I'm looking at the websites for both lines.

 

The two cruises have many similarities:

(a) Both leave from, and return to, Miami.

(b) Both spend a day in Nassau.

© Both spend a day at their private islands, which are within eyesight of one another.

 

With these similarities in mind, can someone please explain to me why there is a large discrepancy in the "Government taxes and fees?" For two people in an outside cabin, NCL charges $398 in cruise fare, then adds $157.14 in taxes/fees. On the other hand, RCCL charges $438 in cruise fare, but only adds $97.84 in taxes/fees. The bottom line is that RCCL is actually less expensive, $535.84 vs. $555.14.

 

How can the taxes/fees be so different between the two lines, when the cruises are so similar in their itineraries?

 

Thanks for all your insights,

 

AG

[tonythewop]

Hi Folks --

 

I'm posting this on both boards, so I hope I can find someone who can help me out with my question. I am looking at taking a three day Bahamas cruise on 1/15/10. I'm looking at the websites for both lines.

 

The two cruises have many similarities:

(a) Both leave from, and return to, Miami.

(b) Both spend a day in Nassau.

© Both spend a day at their private islands, which are within eyesight of one another.

 

With these similarities in mind, can someone please explain to me why there is a large discrepancy in the "Government taxes and fees?" For two people in an outside cabin, NCL charges $398 in cruise fare, then adds $157.14 in taxes/fees. On the other hand, RCCL charges $438 in cruise fare, but only adds $97.84 in taxes/fees. The bottom line is that RCCL is actually less expensive, $535.84 vs. $555.14.

 

How can the taxes/fees be so different between the two lines, when the cruises are so similar in their itineraries?

 

Thanks for all your insights,

 

AG

 

Easy answer..they aren't really taxes/ fees but another form of cruise fare.:rolleyes:

NCL is famous or infamous for advertising lower cruise fares and then charging more than any other cruiseline for "taxes/fees" and also fixed service fees. :eek:

Royal is cheaper and a better cruiseline..go on Royal !! Enjoy !!:D

[uksimonusa]

Hi Folks --

 

I'm posting this on both boards, so I hope I can find someone who can help me out with my question. I am looking at taking a three day Bahamas cruise on 1/15/10. I'm looking at the websites for both lines.

 

The two cruises have many similarities:

(a) Both leave from, and return to, Miami.

(b) Both spend a day in Nassau.

© Both spend a day at their private islands, which are within eyesight of one another.

 

With these similarities in mind, can someone please explain to me why there is a large discrepancy in the "Government taxes and fees?" For two people in an outside cabin, NCL charges $398 in cruise fare, then adds $157.14 in taxes/fees. On the other hand, RCCL charges $438 in cruise fare, but only adds $97.84 in taxes/fees. The bottom line is that RCCL is actually less expensive, $535.84 vs. $555.14.

 

How can the taxes/fees be so different between the two lines, when the cruises are so similar in their itineraries?

 

Thanks for all your insights,

 

AG

 

Easy answer..they aren't really taxes/ fees but another form of cruise fare.:rolleyes:

NCL is famous or infamous for advertising lower cruise fares and then charging more than any other cruiseline for "taxes/fees" and also fixed service fees. :eek:

Royal is cheaper and a better cruiseline..go on Royal !! Enjoy !!:D

 

I don't think NCL is charging more for taxes and fees than it should, as the FLAG ruled against this practice some years ago and the cruiselines would be crazy to go against them. Taxes and fees can only be charges that are charged to the cruiseline and passed onto the customer. The more likely explanation is that each cruiseline and cruise ship is charged a different amount to dock in Miami and the Bahamas, based on, size of ship, number of passengers and the amount of time the ship occupies the berth. It is also possible that RCI negotiated their contract with Miami longer ago than NCL are are charged a lower rate until the contract expires

[nmt12]

Hi Air,

 

This is a really good question and I was also very puzzled by this and I was a little bit ticked off until I learned the reason.

 

I am booked on a RCI cruise by a TA and was quoted my base fair and then taxes and fees.

 

However, when I go to check the RCI website for price drops I notice that the taxes and fees there were cheaper than what my TA was charging me. I was quite upset and thought that my TA was trying to add the promotions given back to the taxes and port chargees until I got both my TA and RCI on the phone to discuss and here is what I found out.

 

Some of the taxes and fees are added to the base price of the cruise. Which is why RCI seems a little more expensive then there counterparts. So when you get to the end of your mock reservation on RCI notice there is no break down of taxes and fees. However when I booked through my TA they do break down the taxes and fees...So it appeared that RCI was charging less for taxes and fees, which I personally think is a marketing ploy: Everyone knows RCI gives prices drops...just check the boards...so if you go into knowing this and there taxes and fees are little less than other cruiselines then your more prone to book with them.

 

Here's proof of what I am saying:

This is the cost of one of the cruises I am currently booked on with TA

this is just for one person:

 

 

Cost

$776.00 USD

Port Charge

$159.00 USD

Tax

$93.18 USD

 

Total Taxes and fees: 252.18 for one person.

(Now don't let the base cost throw you this was booked awhile back with promotions...I just want you to see the diff in taxes and fees.

 

Now this is what RCI shows on their website for the same cruise, same category, for one person

 

Cost $ 1510.00 USD

Taxes and Fees: 220.56 (this is for two people, this is how they have it calculated on the website)

But taxes and fees for one person if you divide this by two is: 110.28

 

Now taxes and port charge do not vary...its the same across the board no matter what, so how is it possible that RCI will only charge me 110.28 and my TA charges 252.18...b/c its added to the based price.

 

 

 

Hi Folks --

 

I'm posting this on both boards, so I hope I can find someone who can help me out with my question. I am looking at taking a three day Bahamas cruise on 1/15/10. I'm looking at the websites for both lines.

 

The two cruises have many similarities:

(a) Both leave from, and return to, Miami.

(b) Both spend a day in Nassau.

© Both spend a day at their private islands, which are within eyesight of one another.

 

With these similarities in mind, can someone please explain to me why there is a large discrepancy in the "Government taxes and fees?" For two people in an outside cabin, NCL charges $398 in cruise fare, then adds $157.14 in taxes/fees. On the other hand, RCCL charges $438 in cruise fare, but only adds $97.84 in taxes/fees. The bottom line is that RCCL is actually less expensive, $535.84 vs. $555.14.

 

How can the taxes/fees be so different between the two lines, when the cruises are so similar in their itineraries?

 

Thanks for all your insights,

 

AG

[AirGorilla]

Thanks very much for your replies. I appreciate the explanations, and feel that I have learned a few things.

 

AG

[uksimonusa]

Hi Air,

 

This is a really good question and I was also very puzzled by this and I was a little bit ticked off until I learned the reason.

 

I am booked on a RCI cruise by a TA and was quoted my base fair and then taxes and fees.

 

However, when I go to check the RCI website for price drops I notice that the taxes and fees there were cheaper than what my TA was charging me. I was quite upset and thought that my TA was trying to add the promotions given back to the taxes and port chargees until I got both my TA and RCI on the phone to discuss and here is what I found out.

 

Some of the taxes and fees are added to the base price of the cruise. Which is why RCI seems a little more expensive then there counterparts. So when you get to the end of your mock reservation on RCI notice there is no break down of taxes and fees. However when I booked through my TA they do break down the taxes and fees...So it appeared that RCI was charging less for taxes and fees, which I personally think is a marketing ploy: Everyone knows RCI gives prices drops...just check the boards...so if you go into knowing this and there taxes and fees are little less than other cruiselines then your more prone to book with them.

 

Here's proof of what I am saying:

This is the cost of one of the cruises I am currently booked on with TA

this is just for one person:

 

 

Cost

$776.00 USD

 

Port Charge

$159.00 USD

 

Tax

$93.18 USD

 

Total Taxes and fees: 252.18 for one person.

(Now don't let the base cost throw you this was booked awhile back with promotions...I just want you to see the diff in taxes and fees.

 

Now this is what RCI shows on their website for the same cruise, same category, for one person

 

Cost $ 1510.00 USD

Taxes and Fees: 220.56 (this is for two people, this is how they have it calculated on the website)

But taxes and fees for one person if you divide this by two is: 110.28

 

Now taxes and port charge do not vary...its the same across the board no matter what, so how is it possible that RCI will only charge me 110.28 and my TA charges 252.18...b/c its added to the based price.

 

There are 2 parts to cruise fare, commisionable fare, and non commisionable fare, RCI adds these together and shows the price on their website as a total price, some TA's will show the cruise fare as the commisionable cruise fare, the portion they get paid on, and then lump the non commisionable cruise fare into taxes and fees, when they advertise a base price, it looks like they are cheaper than RCI, but the total is normally the same.

 

Taxes and fees, as previously stated, are charges paid by the cruise line, to ports and or government entities and the passed onto the customer at the same rate that RCI paid, there is, and can be, no profit on taxes and fees, per a ruling from the FLAG some years ago.

 

And YES, Taxes and fees do vary, they are based on the size of the ship, the number or passengers the ship can carry, the ports the ship visits and embarks/disembarks from and then length of time the ship is in each port, they can also be more or less, depending on the day of the week the ship is in a certain port.

[AirGorilla]

There are 2 parts to cruise fare, commisionable fare, and non commisionable fare, RCI adds these together and shows the price on their website as a total price, some TA's will show the cruise fare as the commisionable cruise fare, the portion they get paid on, and then lump the non commisionable cruise fare into taxes and fees, when they advertise a base price, it looks like they are cheaper than RCI, but the total is normally the same.

 

Taxes and fees, as previously stated, are charges paid by the cruise line, to ports and or government entities and the passed onto the customer at the same rate that RCI paid, there is, and can be, no profit on taxes and fees, per a ruling from the FLAG some years ago.

 

And YES, Taxes and fees do vary, they are based on the size of the ship, the number or passengers the ship can carry, the ports the ship visits and embarks/disembarks from and then length of time the ship is in each port, they can also be more or less, depending on the day of the week the ship is in a certain port.

 

More great info! Thanks again!

 

AG

[MACE]

I just came across the same issue today

 

For a RCI sailing, the online TA passanger fare is about $200 per person cheaper than RCI's fare when comparing via the RCI web site, yet the TA's taxes/fees are $159 more per person than RCI's

 

I've contacted my TA to explain the difference to me...curious as to what he'll say. Final payment isn't due for awhile and he claimed in the past all applicable (ex: Military/State Residency/Balcony) discounts are in palce.