Unexplained Increase in Taxes after booking

[XFed2001]

It has come to my attention that HAL and its parent, Carnival Lines, have quietly and inexplicably increased the taxes/fees for cruises already booked. To wit, my wife and I booked an SY category cabin on the Dec 3, 2010 sailing of the Zuiderdam out of Ft Lauderdale. The original invoice (exclusive of insurance) for 2 was $3308 for the cruise plus $978.46 for Gov't taxes & fees. I just received and paid the final invoice which turned out to be higher by an extra $90.06 -- ostensibly for taxes. My cruise agent is at a lost to explain it and has been unsuccessful in getting any explanation from either HAL or Carnival. Has anyone else encountered this seemingly odd (possibly illegal) increase in their dealings with HAL/Carnival? I am about to write a letter to Mr. Stein Kruse whom I believe is the President and CEO of HAL in Seattle. As appropriate, I plan to ask the FTC and the states attorney general to look into this practice if the increase is not explained to my satisfaction and is legal. Thought I'd share this with my fellow cruisers.

[maxout]

This is very common and not exclusive to Hal/CCL

 

here is another recent thread regarding this...

 

http://boards.cruisecritic.com/showthread.php?t=1266582

[kazu]

In the 'taxes' are port taxes, fees charged which can change. I think what has happened is the port taxes have gone up in some ports. Our next cruise we had an increase of around $19 - which I know is due to port taxes.

 

I don't think there is any tom foolery going on here.

[jhannah]

We have also had a credit to our onboard account (or reduction before sailing) when taxes were lower than originally thought. This is SOP throughout the cruise industry.

[jtl513]

HAL has no control over what taxes or fees countries or ports charge, and when they increase they are passed on to you. Also, if exchange rates vary significantly between the time of your booking and final payment your taxes/fees will change without any action by ports or countries. It happens. It's neither odd nor illegal. Live with it.

 

Strange that your TA can't explain it. Is s/he new in the cruise booking business? And with all the cruises you've done, I find it odd that you've not encountered such a change in taxes/fees before.

[IRL_Joanie]

It has come to my attention that HAL and its parent, Carnival Lines, have quietly and inexplicably increased the taxes/fees for cruises already booked. To wit, my wife and I booked an SY category cabin on the Dec 3, 2010 sailing of the Zuiderdam out of Ft Lauderdale. The original invoice (exclusive of insurance) for 2 was $3308 for the cruise plus $978.46 for Gov't taxes & fees. I just received and paid the final invoice which turned out to be higher by an extra $90.06 -- ostensibly for taxes. My cruise agent is at a lost to explain it and has been unsuccessful in getting any explanation from either HAL or Carnival. Has anyone else encountered this seemingly odd (possibly illegal) increase in their dealings with HAL/Carnival? I am about to write a letter to Mr. Stein Kruse whom I believe is the President and CEO of HAL in Seattle. As appropriate, I plan to ask the FTC and the states attorney general to look into this practice if the increase is not explained to my satisfaction and is legal. Thought I'd share this with my fellow cruisers.

Where is your cruise to? How long is your cruise? What Ports of Call are you going to?

 

It is quite common for portds to increase their taxes. Neither HAL nor Carnival Corporation has control over what a port charges per person for a ship to dock in that port.

 

That would be like the US telling Hugo Chavez that he cannot raise gas prices in his country, it would do no good and we'd be laughed right off the face of the earth:)

 

Our port taxes/fees have gone up the last 3 cruises we've been on. Thankfully, not much, but they have increased.

 

Joanie

[sail7seas]

Through the years, we have had taxes go up as well as go down on our booked cruises. When they sell cruises, sometimes a year and more in advance, they quote what they expect the taxes to be but that can and sometimes does change.

 

It really doesn't disturb us when this happens.

 

[richwmn]

Richard --

Please join our roll call for this cruise -- located at

http://boards.cruisecritic.com/showthread.php?t=1212956

 

we talked briefly about this increase about a month ago when the first notification about it went out.

 

We would love to have you join the roll call and attend the meet and greet

 

Rich

[dtiger]

We had a note in our cabin 9/5 that there would be an additional tax added to our onboard expenses. That was the first time we'd encountered that and wonder why they waited until we were onboard.

[XFed2001]

I'm sorry I didn't find the other links on this subject. I am now more comfortable with the tax/port fee increases given your various input. What you all shared makes sense and definitely was not a deal breaker. This really was the first time that I've encountered an increase from the originally stipulated fare in almost 40 years of cruising. Just lucky I guess. Thanks all. Happy and safe cruising to all of you!

[Krazy Kruizers]

Over the last several years our TA has been notices from HAL which she sends on to us -- concerning increases in port taxes. This has nothing to do with HAL. HAL tries to estimate as best as possible what the various port taxes will be in the future. But one can never guess what will happen a year from now.

 

We have even gotten on ships and there was a letter in our cabin about increase in port fees -- happens a lot on our Panama Canal cruises.

[taxmantoo]

I think you should sit down and have a long chat with your travel agent, after which you should get up and find another agent for your next cruuise. I doubt very much that HAL did not advise him/her of the increase in port taxes. It appears to me your travel agent simply did not advise you and is now making up excuses instead of apologizing!

[Randyk47]

We just experienced a very small increase, $8.09 per person, in taxes and fees for our upcoming cruise. Our TA send us a notice explaining the increase. Obviously it wasn't a deal buster but I appreciated the TA being so forthcoming with the increase and explaining its source. Of course HAL didn't specifically say who or what taxes/fees were increased so the TA couldn't pass that detail. I can only remember one other increase and as I recall it was on a Panama Canal cruise and the increase was added to our on board account with a letter of explanation in our cabin.

[Stevesan]

It has come to my attention that HAL and its parent, Carnival Lines, have quietly and inexplicably increased the taxes/fees for cruises already booked. To wit, my wife and I booked an SY category cabin on the Dec 3, 2010 sailing of the Zuiderdam out of Ft Lauderdale. The original invoice (exclusive of insurance) for 2 was $3308 for the cruise plus $978.46 for Gov't taxes & fees. I just received and paid the final invoice which turned out to be higher by an extra $90.06 -- ostensibly for taxes. My cruise agent is at a lost to explain it and has been unsuccessful in getting any explanation from either HAL or Carnival. Has anyone else encountered this seemingly odd (possibly illegal) increase in their dealings with HAL/Carnival? I am about to write a letter to Mr. Stein Kruse whom I believe is the President and CEO of HAL in Seattle. As appropriate, I plan to ask the FTC and the states attorney general to look into this practice if the increase is not explained to my satisfaction and is legal. Thought I'd share this with my fellow cruisers.

 

The increase is very "explicable":p.

 

The following link takes you to the "Passage Contract" accessable via Cruise Personalizer. Scroll down to the top of page two, under Government Fees And Taxes:

 

https://book.princess.com/pdf/cp/Passage_Contract.pdf

[Philip217]

Not so long ago, countries/islands outside the USA often preferred to receive their head taxes, port charges, and docking fees from the cruise lines in US Dollars.

 

In recent years, as the US dollar slides lower and lower against other currencies, they have changed their story.

They now prefer to receive the charges in local currency.

That presents a problem for the cruise line - and for the passengers.

 

As the dollar continues to lose value against the local currencies, it takes more dollars to pay the head taxes, port charges, and docking fees.

 

And the cruise lines pass those increases on to you.

 

The crew have it far worse. We all get paid and tipped in US dollars, and then have to convert them when we go home.

My net salary (after conversion) has decreased by 40% in the past 5 years, just because I am paid in US Dollars.

[Georgeny]

On our recent Veendam cruise of Aug 29th we had a letter at start of cruise indicating that due to tax and fee increase $15.89 per person would be added to our onboard account. My initial response was " I don't think so " then I recalled the same thing occurring on a previous cruise, difference being a CREDIT for same reasoning. As I didn't recall complaining about getting a credit I thought why ruin my day complaining about the charge, and did not.

 

That said I do think that restating a charge on a pre-paid cruise should be inappropriate despite warnings in the cruise contract that this may occur. ( haven't read it but sure it is in their somewhere, isn't everything? ) While it may be a relatively small charge or credit now such things tend to GROW once someone finds a way to make a few bucks on it.

 

George in NY

[Mary Ellen]

While it may be a relatively small charge or credit now such things tend to GROW once someone finds a way to make a few bucks on it.

So, do you actually think the stores you deal with "make a few bucks" when the sales tax you pay goes up? It is the same thing with cruise lines. When the taxes go up, the increase is paid by the consumer.

That said I do think that restating a charge on a pre-paid cruise should be inappropriate despite warnings in the cruise contract that this may occur.

Then you are happy if the cruise lines keep any decrease in taxes? :eek:

[jtl513]

... once someone finds a way to make a few bucks on it.

HAL doesn't "make" anything on taxes/fees, nor on increases.

 

Then you are happy if the cruise lines keep any decrease in taxes? :eek:

Hardly! He said:

... then I recalled the same thing occurring on a previous cruise, difference being a CREDIT for same reasoning. As I didn't recall complaining about getting a credit ...

;)

[sail7seas]

<snip>

 

 

The crew have it far worse. We all get paid and tipped in US dollars, and then have to convert them when we go home.

My net salary (after conversion) has decreased by 40% in the past 5 years, just because I am paid in US Dollars.

 

 

That isn't exactly true for officers, is it?

They have a choice.

Sometimes the choice works in their benefit and other times not. There is a gamble involved.

[serendipity1499]

I'm sorry I didn't find the other links on this subject. I am now more comfortable with the tax/port fee increases given your various input. What you all shared makes sense and definitely was not a deal breaker. This really was the first time that I've encountered an increase from the originally stipulated fare in almost 40 years of cruising. Just lucky I guess. Thanks all. Happy and safe cruising to all of you!

 

Glad to see that you understand the tax problem, but you should realize that your first post on this thread, really antagonized some of us...:confused:

Accusing a company on a messaage board of "quietly & inexplicably" raising taxes & doing something "possibly illegal" was quite inflamatory...:(

Agree with others that your Travel Agent should be aware of the tax increases occurring on many cruise lines..She does not sound like she is up to date on the cruise industry..;)

Suggest that in the future, accusatory remarks such as possibly doing something illegal should be withheld until all the facts are in..

Yes, you have been lucky, as last year the Panama Canal increased their taxes & we were later billed closer to departure...However our Travel Agent did warn us about them...I would bet that TA was told before you received your final invoice & didn't bother to inform you....Several years ago Alaska raised Port taxes & many people were billed..they have since recinded some of the increase..Our taxes went up for our Bermuda Cruise last month & the increase of $15.89 p.p. was added to our on-board account.. I'm waiting to see if our taxes will increase on our Noordam B2B in November..

They also are discussing tax increases on the RCCL board too, so it's not limited to HAL & Carnival..

http://boards.cruisecritic.com/showthread.php?t=1273310&highlight=port+taxes

Phillip217 is a long time Cruise Line Officer & Hotel Manager who is well respected in the entire industry...His post wheich I've quoted below, will give everyone more info on why many taxes are being increased..

 

 

Not so long ago, countries/islands outside the USA often preferred to receive their head taxes, port charges, and docking fees from the cruise lines in US Dollars.

 

In recent years, as the US dollar slides lower and lower against other currencies, they have changed their story.

They now prefer to receive the charges in local currency.

That presents a problem for the cruise line - and for the passengers.

 

As the dollar continues to lose value against the local currencies, it takes more dollars to pay the head taxes, port charges, and docking fees.

 

And the cruise lines pass those increases on to you.

 

The crew have it far worse. We all get paid and tipped in US dollars, and then have to convert them when we go home.

My net salary (after conversion) has decreased by 40% in the past 5 years, just because I am paid in US Dollars.

 

Thanks for this Info..

 

On our recent Veendam cruise of Aug 29th we had a letter at start of cruise indicating that due to tax and fee increase $15.89 per person would be added to our onboard account. My initial response was " I don't think so " then I recalled the same thing occurring on a previous cruise, difference being a CREDIT for same reasoning. As I didn't recall complaining about getting a credit I thought why ruin my day complaining about the charge, and did not.

 

That said I do think that restating a charge on a pre-paid cruise should be inappropriate despite warnings in the cruise contract that this may occur. ( haven't read it but sure it is in their somewhere, isn't everything? ) While it may be a relatively small charge or credit now such things tend to GROW once someone finds a way to make a few bucks on it.

 

George in NY

 

We also had a tax increase on our Bermuda cruise..

 

This is not something new..Airlines & Cruise Lines have been doing it for years..Sometimes the taxes are collected right at the airport...Sometimes it's done by the taxin authorities in the Country or origin or departure, when you enter or leave their country..Why should a company eat a tax or port charge increase..They are in business to make a profit..

 

It would be illegal for any cruise line or airline too charge you taxes & not turn them over to the Government who is charging it....

 

That's part of Travel & Passengers should get used to it!

Cheers....:)Betty

[Mary Ellen]

Hardly! He said: ;)

Interesting, he wants it both ways. :rolleyes: I'm not seeing the logic.

[serendipity1499]

deleted

[serendipity1499]

We have also had a credit to our onboard account (or reduction before sailing) when taxes were lower than originally thought. This is SOP throughout the cruise industry.

 

On our recent Veendam cruise of Aug 29th we had a letter at start of cruise indicating that due to tax and fee increase $15.89 per person would be added to our onboard account. My initial response was " I don't think so " then I recalled the same thing occurring on a previous cruise, difference being a CREDIT for same reasoning. As I didn't recall complaining about getting a credit I thought why ruin my day complaining about the charge, and did not.

 

That said I do think that restating a charge on a pre-paid cruise should be inappropriate despite warnings in the cruise contract that this may occur. ( haven't read it but sure it is in their somewhere, isn't everything? ) While it may be a relatively small charge or credit now such things tend to GROW once someone finds a way to make a few bucks on it.

 

George in NY

 

Interesting, he wants it both ways. :rolleyes: I'm not seeing the logic.

 

Forgot to mention in my above post, that I agree with Mary Ellen & JTL: You do seem to want it both ways..:rolleyes:

It's OK for a cruise line to give you a credit for reduced Port & Govt. Taxes, but not to charge the increase after your final payment..

 

To quote Mary Ellen I don't see the logic either..

Cheers......:)Betty

[boards]

I worked with man here in Canada who is a retired worker from the US. His pension money is in US funds and of course he converts it to Cdn and somewhat a reduced figure, but it is not by 40 percent. I will admit I do not know the full history of the person who mentioned the 40 percent, but I find that number to be a little extreme.

[navybankerteacher]

The cruise contract generally specifies that any increase in taxes will be passed along. I can see OP perhaps not taking the time to make himself aware of same, but for his TA to be unable to explain indicates either extreme laziness or profound incompetence: either of which being a very good reason for OP to find a new TA.