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Hi everyone
California’s new consumer protection law requires that the advertised price offered to consumers include many components of the current taxes, fees and port expenses that are displayed outside the advertised price today. Due to the broad impact this new law, we want to inform as soon as possible so you will have time to implement any required changes to your website and all other consumer marketing materials effective no later than July 1, 2024.
At this time, Princess, as well as, Carnival Cruise Line, Holland America, Costa Cruises and Cunard North America brands have elected to include ALL the current taxes, fees and port expenses into the advertised price. Seabourn already advertises fares this way but the changes described below for refunds and cancellation fees will apply to Seabourn, as well. This will provide guests with the clear total price upfront for the cruise selected. Please understand this is only a change in the way the cruise prices are advertised but does not impact the total price consumers pay today or the portion of the cruise fare that is commissionable to travel advisors.
An example for a website price presentation:
$849 (includes all taxes and fees)
As part of this transition, the current total Taxes, Fees & Port Expenses amount will not change, but will be separated into two components: 1) Government Taxes & Fees and 2) Required Cruise Fees & Expenses for the remainder of fees and expenses associated with the cruise including, visiting ports. Both components will be included in the advertised price and will be shown only in the detailed price confirmation presentation.
As an example, for a Princess, Holland America, Costa Cruises or Cunard North America website price confirmation presentation:
Total Cruise Price $849
Cruise Fare $799
Government Taxes & Fees $50 (included in Total Cruise Price)
As an example, for a Carnival Cruise Line website price confirmation presentation:
Cruise Charges $849
Required Cruise Fees & Expenses $100 (included in the Cruise Charges)
Government Taxes & Fees $50 (included in the Cruise Charges)
Jurisdiction
The brands will follow this advertising requirement for all consumer advertising throughout the U.S. and Canada.
Travel Adviser Commission
This change will not impact the commission paid to travel advisers. In all travel adviser disclosures, we will provide a full breakout of the pricing to document the portion that is commissionable. Here is an example of the new travel advisor disclosure:
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Advertised Price:
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$849
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Non-Commission Fare (NCF):
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$119
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Government Taxes & Fees:
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$50*
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Required Cruise Fees & Expenses:
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$100*
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Commissionable Amount:
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$580
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*Total current taxes, fees and port expenses are $150 and remain non-commissionable.
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Cancellation Fees
Cancellation fees will be assessed on the amount of the advertised price excluding the Government Taxes & Fees. Here is an example:
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Advertised Price:
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$849
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Government Taxes & Fees:
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$50
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Cancellation Fees Assessment:
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$799
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Refunds
Refunds will be provided for the Government Taxes & Fees in the event of cancellations.
Travel Adviser Compliance with the new California Consumer Protection Law
All travel advisers will be required to comply with the new California consumer protection law as it relates to the advertised consumer pricing requirements for these brands. We wanted to provide you with this information as soon as possible to provide you with the lead time to implement any required changes to your website and all other consumer marketing materials effective no later than July 1, 2024.
For those travel advisers that receive pricing information from these brands through an electronic distribution, the existing pricing feed will be modified to include the mandatory consumer advertised price as well as a breakout of all the other pricing components including the non-commission fare, Government Taxes & Fees, and Required Cruise Fees & Expenses. This information may only be used for the purpose of complying with the new California consumer protection law and the pricing guidelines set forth herein, and recipients of this information must not share it with anyone outside their organization without Carnival Corporation’s express permission.
Our sales team will be available to provide you with any clarifications for this information should you have questions. We also encourage you to seek your own legal advice to successfully prepare for these important changes to the consumer advertised pricing.
Group Contracts
Travel advisers with existing group contracts for 2024, 2025 or 2026 departures must comply with the new consumer advertising requirements when advertising those groups effective July 1, 2024 and beyond. Existing group allocations will not be amended for this change. However, effective July 1, 2024 and beyond, changes and/or additions made within the existing group allocations will reflect the new consumer advertising requirements. New group contracts will reflect the new consumer advertising requirements effective July 1, 2024.
While change is never easy, we appreciate you joining us in adopting these new requirements. To assist you through this transition, we have compiled Frequently Asked Questions >.
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