Cruise Line Under Fire for Sales Practices + Gratuity Charges Rise

Editorial Summary

Doug Parker reports on several significant developments within the cruise industry. Norwegian Cruise Line has entered into a settlement following a multi-state investigation regarding its sales practices during the COVID-19 pandemic. Regulators alleged that the company marketed cruises as flexible while complicating the refund process for passengers. As part of the settlement, the company will pay $2 million and implement new training and oversight for employees. This follows the issuance of over $3 billion in refunds and credits by the line. Additionally, MSC Cruises announced an increase in daily gratuity rates for Caribbean and Alaska itineraries effective May 11. Standard cabin guests will see rates rise to $17 per person per day, while Yacht Club Suite guests will face a 15 percent increase to $23 per person per day. These changes apply to new bookings and unpaid balances, though prepaid rates remain locked. In legal news, a 16-year-old has been indicted as an adult following a fatal incident on the Carnival Horizon last November. The charges include first-degree murder and aggravated abuse. Finally, the report notes mixed performance in cruise stocks, with Royal Caribbean and Norwegian seeing gains while Carnival Corporation experienced a slight decline.

Written by TripBacon from this video's transcript.