Free cruise not so free.

[grizz516]

Hi, I won a Caribbean cruise on my Southern Caribbean cruise and was just ecstatic. But, when I called to find out what it entailed, I was told an inside cabin, a certain area, taxes which were close to 600.00, plus gratuites which were 200.00 on top of that having to fly to New Orleans to take the cruise which cheapest flight is 280.00 wound up costing me as much as my last cruise almost. It is non-transferable or I would give it to someone, plus I only have a year to take it in. I was severely disappointed. My taxes on my last cruise were only at most 300 and it was 11 days. This is only for 6 days or 7 days. I am really flabbergasted at how much a free cruise costs.LOL

[gra2172]

Still, Id take it! ;)

[2Cruise4Ever]

"Free" cruises are never free... unfortunately. The cruise fare itself is free... but never the taxes, fees, or daily service charge... sorry. But, I agree with gra2172... I'd take it!

[sunflower47]

No free trips are ever free. You always have to pay the taxes and they are usually at a "luxury tax" rate

 

We won a trip to Disney World several years back, everything was included (air, onsite hotel, park hoppers) but next year we had to claim the taxes on that trip.

 

It was still cheaper than paying for the entire trip ourselves. :)

[ttnc4me]

In addition you might want to see if they're going to send you a 1099 for it and make you claim the "winnings" on your taxes (which is the killer on many other prizes more often than not).:(

[grizz516]

But they jack up the taxes. It is cheaper to pay cash for it. We only paid 300.00 in taxes on an 11 day cruise, so they are making up the money on it somehow. If I could give it away, trust me I would. I thought it would be cheaper for the taxes than that. Heck the room was only 449 per person. So, I think I will go another way than use this. Much cheaper in the long run. Flying to New Orleans is more expensive than driving to Miami.

[grizz516]

Yeah Disney makes you feel like a winner, this one they pretty much talked like it was a problem to them for me to ask questions. It isnt that I mind paying the taxes, but, 600 on a 7 day cruise is too much. The Disney trip was worth it, air, room, tickets, etc. But this is just for the room, and you have to take the one they give you unless you want to pay more. I am just a little strapped after coming back a week ago from the 11 day cruise. So, I am glad you all could afford it, right now I cant.

[AttilaTheFun]

But they jack up the taxes. It is cheaper to pay cash for it. We only paid 300.00 in taxes on an 11 day cruise, so they are making up the money on it somehow. If I could give it away, trust me I would. I thought it would be cheaper for the taxes than that.

 

Could this include taxes for winning the prize? Prizes are taxable once you use it, so that could contribute to the higher cost of taxes. I really don't think NCL would be allowed to arbitrarily raise the normal government taxes/port fees for a prize sailing, since that's not even money that goes to them - they have to pass it directly to the government or ports!

 

Gratuities should be $12 a day just like any other NCL cruise. Are they not?

[cod]

Please recheck those fees/taxes! Taxes for a 7 night cruise out of NO are less than $100pp...I don't get where they can come up with $600 for 2 of you.

 

As for taxes, I'm afraid they will show the value of your 'prize' at brochure prices which we know nobody pays. Years ago my sister won two round trips to England on a radio show (she took her daughter with her...darn!) and what the airline (or the station?) sent her for tax purposes was about 3 times what she could have purchased same tickets for. She had a bit of an arguement with the IRS over this but after a couple of letters back-and-forth and proof of some sort of what she would actually have had to pay, they honored the new amount. Find the lowest online price for the cruise you eventually take, print it out and save it!

 

Congrats. go and have fun!

[jdvmd]

But they jack up the taxes. It is cheaper to pay cash for it. We only paid 300.00 in taxes on an 11 day cruise, so they are making up the money on it somehow. If I could give it away, trust me I would. I thought it would be cheaper for the taxes than that. Heck the room was only 449 per person. So, I think I will go another way than use this. Much cheaper in the long run. Flying to New Orleans is more expensive than driving to Miami.

Different ports have different taxes. You cannot compare your previous cruise to the free one in that regard. Taxes are not determined by the cruise line. Those are set government fees and taxis administered by the port authority and passed along to the cruise line.

[che5904]

Are you sure you were not charged for taxes and NCF (which includes port fees).

 

I have received a few "free" cruises through casinos. My taxes and NCF were not jacked up. And I was still saving. But I would only be saving if I wished to go on that cruise from that location (which of course I wanted to). And sorry but I don't count the DSC when I get these offers as an expense on the "free" part since even if it was totally free and NCL did not have a DSC in place, I would still be paying pretty well the same gratuities on top anyway.

 

When you received whatever paperwork that said you won a "free" cruise did you not get something in fine print that told you the terms and conditions, I did. Perhaps that is why this was not shocking or disappointing when I received my first one.

[cod]

I just read jdvmd's post after posting mine and perhaps she's right. Although I thought prizes of this sort were figured as additional income and paid accordingly whenever you file. And if they are handling those taxes, are they charging you based on brochure rates and, if so, do you have an option to pay them yourself and perhaps pay less?

 

It would be interesting if someone with knowledge on this subject fills us in...it would just be nice to know!

[che5904]

Please recheck those fees/taxes! Taxes for a 7 night cruise out of NO are less than $100pp...I don't get where they can come up with $600 for 2 of you.

!

 

in 2011 my taxes and NCF fees for a balcony were $450 for 2 people. So depending on the sailing and how many ports were on the itinerary. More ports more port taxes and fees. A year later probably higher taxes and fees.

[che5904]

I just read jdvmd's post after posting mine and perhaps she's right. Although I thought prizes of this sort were figured as additional income and paid accordingly whenever you file. And if they are handling those taxes, are they charging you based on brochure rates and, if so, do you have an option to pay them yourself and perhaps pay less?

 

It would be interesting if someone with knowledge on this subject fills us in...it would just be nice to know!

 

If you read my post above yours you will see when I received my "free" cruise it was not only taxes included but NCF (non-commission fare), which also includes port fees.

[graphicguy]

Yeah...as others mentioned, any "free" winnings (as is your cruise) the full (not discounted as most cruises can be booked for) are considered income by the IRS. Port fees are paid to the ports visited, so you still have to pay those. Still I'd still take the cruise.

[Fishbait17]

NCF is usually built into the published cruise fare - but when you get a "Free" cruise, it does not include these.. Different ports do have different taxes, but what you are being quoted is the stuff that is usually included in the website PP fare. All my cruises are "free" thru CAS, but we generally pay anywhere from $200-500 per person for taxes and fees. Totally normal, and this is not NCL specific.. A "free" cruise is never free, and if someone is used to paying inside cabin fares, they will likely be shocked at how much "other fees" are built into their cheap fare. NCL makes no money on an inside fare, I think they actually lose money, in many cases, but are counting on those guests to pay for their cruise in "other" ways (ie profit from drinks, casino, purchases, etc).

 

Robin

 

 

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[sstrong]

Hi, I won a Caribbean cruise on my Southern Caribbean cruise and was just ecstatic. But, when I called to find out what it entailed, I was told an inside cabin, a certain area, taxes which were close to 600.00, plus gratuites which were 200.00 on top of that having to fly to New Orleans to take the cruise which cheapest flight is 280.00 wound up costing me as much as my last cruise almost. It is non-transferable or I would give it to someone, plus I only have a year to take it in. I was severely disappointed. My taxes on my last cruise were only at most 300 and it was 11 days. This is only for 6 days or 7 days. I am really flabbergasted at how much a free cruise costs.LOL

 

$600 tax on an inside cabin sounds fishy. You may want to press them on that. We're in an SG suite and our taxes and fees are less than $100 per person (not including gratuities).

[che5904]

NCF is usually built into the published cruise fare - but when you get a "Free" cruise, it does not include these.. Different ports do have different taxes, but what you are being quoted is the stuff that is usually included in the website PP fare. All my cruises are "free" thru CAS, but we generally pay anywhere from $200-500 per person for taxes and fees. Totally normal, and this is not NCL specific.. A "free" cruise is never free, and if someone is used to paying inside cabin fares, they will likely be shocked at how much "other fees" are built into their cheap fare. NCL makes no money on an inside fare, I think they actually lose money, in many cases, but are counting on those guests to pay for their cruise in "other" ways (ie profit from drinks, casino, purchases, etc).

 

Robin

 

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Good job Robin, you explained that so much better than I was trying to do ;).

[Fishbait17]

I just read jdvmd's post after posting mine and perhaps she's right. Although I thought prizes of this sort were figured as additional income and paid accordingly whenever you file. And if they are handling those taxes, are they charging you based on brochure rates and, if so, do you have an option to pay them yourself and perhaps pay less?

 

It would be interesting if someone with knowledge on this subject fills us in...it would just be nice to know!

 

There is definitely no income tax included in the NCF and taxes/fees they are charging. NCL will send a 1099 (or W2G, but I am pretty sure it will be a 1099 Misc) at the end of the year for those, and the winner is totally responsible for income tax then.

 

Robin

 

 

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[ndabunka]

I just got a notice for a FREE 5/day-4/night Carnival cruise and was just going to toss it since it came as a mass mailer. It appears to be targeted at our location but that is about it. After reading this thread though, I might have to call and get the details & will report back here on how much this "FREE" cruise would cost someone should they decide to "accept" it.

 

I got a couple "FREE" nights at an Orlando resort that have "no strings attached" and while it was true that we did not have to sit through any time share speel, the hotel options were basically "un-inhabitable" and we promptly returned the keys and said "thanks but no thanks!" Hopefully, this one is something better.

[Fishbait17]

$600 tax on an inside cabin sounds fishy. You may want to press them on that. We're in an SG suite and our taxes and fees are less than $100 per person (not including gratuities).

 

A lot of the taxes and NCF are built into the fare you paid.. For example, let's say you book a cabin for $1000 PP, and then pay $150 per person for "port charges and fees" on top of that, totaling $1150 pp. But you are actually paying only $750 PP in cruise fare alone, and $250 in NCF and taxes that's built into the $1000, plus $150 in port charges and fees, still totaling $1150 PP. hope that makes sense.

 

Think of it like airfares now.. Before the new law, your airfare might have been quoted as $200, but then the total came out to $250 when taxes were included. With the new law, that tax has to be included in the price they quote you, so now you see $250 from the beginning.

 

Robin

 

 

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[che5904]

A lot of the taxes and NCF are built into the fare you paid.. For example, let's say you book a cabin for $1000 PP, and then pay $150 per person for "port charges and fees" on top of that, totaling $1150 pp. But you are actually paying only $750 PP in cruise fare alone, and $250 in NCF and taxes that's built into the $1000, plus $150 in port charges and fees, still totaling $1150 PP. hope that makes sense.

 

Think of it like airfares now.. Before the new law, your airfare might have been $200, but then the total came out to $250 when taxes were included. With the new law, that tax has to be included in the price they quote you, so now you see $250 from the beginning.

 

Robin

 

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The upside to this thread and others like it will hopefully show cruisers that take issue with higher cruise fares. That the cruise line isn't making as much as the passenger thinks they are making on the "fare" itself.

[Fishbait17]

The upside to this thread and others like it will hopefully show cruisers that take issue with higher cruise fares. That the cruise line isn't making as much as the passenger thinks they are making on the "fare" itself.

 

So true! I sometimes wonder when I see all the complaints about airfare now - is it perhaps just because they are seeing everything built in from the beginning now? I know airfare is up (thanks to high oil prices), but I think it's double shock since the new law took effect...

 

When you take out all the taxes from cruise fares, then the high oil prices, and THEN all the associated costs per passenger, you really have to wonder how they are making any money at all.. Oh wait, I KNOW - they make it off all us casino addicts :D...

 

Robin

 

 

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[SuiteCruiser]

So true! I sometimes wonder when I see all the complaints about airfare now - is it perhaps just because they are seeing everything built in from the beginning now? I know airfare is up (thanks to high oil prices), but I think it's double shock since the new law took effect...

 

When you take out all the taxes from cruise fares, then the high oil prices, and THEN all the associated costs per passenger, you really have to wonder how they are making any money at all.. Oh wait, I KNOW - they make it off all us casino addicts :D...

 

Robin

 

 

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So true! As we know from getting comped cruises, they can still be expensive for taxes, port charges and ahem...donations :)

[cod]

If someone asked me how I thought a prize like this would work, I'd think that I'd pick a cabin, in this case the inside they say I'm entitled to, and pay the usual port taxes/fees (always around $100pp for 7 days out of NO which is where we usually cruise from) and perhaps the DSC if they required it in advance.

 

Then I'd expect to receive some sort of statement from NCL to be filed with my income taxes to show the cruise value as added income.

 

Any other way, or too much $$ up front, doesn't sound very kosher to me. JMHO!