Princess Cruises Faces Backlash Over Recent Fee Increase: Why Some Cruisers Are Outraged

Unfortunately for enthusiasts of Princess Cruises, the cost of cruising has just gotten a bit steeper.

The prominent cruise company, ranked as the fifth-largest globally, has discreetly increased its daily service fee to the highest ever in its corporate history.

Now referred to as a “crew appreciation” fee, the new daily charge is set at $17 per person for most cabin categories.

This represents a 6.25% hike from the former rate of $16, an adjustment that notably exceeds double the U.S. inflation rate over the last year.

Princess last raised its service charge rate on December 14, 2022.

In this latest update, the service charge for guests in suites has been increased to $19 per person, per day, marking a 5.6% rise from the former $18 rate.

Guests staying in minisuites, cabanas, and Club Class cabins are now subject to a service charge of $18 per person, per day, which is a 5.9% increase over the prior rate of $17.

This increase in service charges by Princess occurs shortly after their sister cruise line, Holland America, implemented a similar hike in its rates. Currently, Holland America charges $17 per day for most cabin categories, and $19 per day for suites.

With the increase at Princess, a family of four in a typical cabin on one of the line’s ships will pay nearly $500 in automatic gratuities on a seven-night cruise.

That puts Princess ahead of several of its key competitors when it comes to gratuity fees. Among other major lines, Carnival Cruise Line and MSC Cruises add $16 per person, per day in service charges to passenger bills for most cabins.

Celebrity Cruises and Royal Caribbean add $18 per person, per day, and Norwegian Cruise Line adds $20 per person, per day in such gratuities to passenger bills. Viking levies a $17 per person, per day service charge.

Related: Tipping on a cruise: What to know about cruise ship gratuities

Increasing service fees are becoming a contentious issue among cruise passengers, who perceive these charges as a concealed method for cruise lines to obscure the actual price of their trips as advertised online.

According to an explanation provided on its website, Princess Cruises states that the service fees are used to compensate the crew, including bonuses, effectively being part of their salary.

This uptick in fees by Princess and Holland America is occurring alongside a broader trend of rising costs at various cruise lines, even as some services are being reduced. See more details on this trend at this article.

Major cruise operators such as Holland America, Royal Caribbean, Carnival, and Norwegian commonly apply a gratuity or service fee automatically to guests’ accounts, which can be prepaid at booking or settled at the end of the journey as part of the onboard expenses.

That said, the total number of lines with a service fee has been shrinking over the years. Many smaller and higher-end cruise operators have been folding these charges into their base fares.

Lines that now include gratuities in their fares include Azamara, Ponant Cruises, Regent Seven Seas Cruises, Scenic Luxury Cruises & Tours, Seabourn, SeaDream Yacht Club, Silversea Cruises and Virgin Voyages.

For those lines that do have them, service and gratuity charges are touted as a convenient alternative to the practice of cash tipping on ships — something that was once common.

The cruise lines with such charges typically increase their rates every year or two.

Passengers on Princess ships have the option to modify the daily gratuities charged to their accounts while on board. This can be done at the Guest Services desk if they are dissatisfied with the service.

Related: The ultimate guide to Princess Cruises ships and itineraries

Such adjustments to gratuities can only be made during the sailing and when these fees are charged directly to onboard accounts. Passengers who have chosen to prepay gratuities prior to boarding cannot change the prepaid amounts during the voyage.

The recent increase in service charges by Princess coincides with the cruise line encouraging passengers to purchase a prepaid bundle that includes service charges. This bundle also covers dining in specialty restaurants that normally require an extra fee, and a drinks package. With enhancements to its most premium package, Princess Premier, which now offers unlimited specialty dining and drinks, the daily fee for this bundle has increased from $80 to $90 per person.

Princess has been adding new fees across its ships as it pushes the bundles.

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