Thread: What's Up With Port Fees?

Do you know what port fees are or how they are configured?

On some invoices you may see this charge as a Non-Commissionable Fee or Non-Commisionable Fare, commonly referred to as NCF. On others you may not see it as a separate charge as it may be included in the cruise costs.

By law, everyone (cruise lines, online sites, agents, ads, etc.) are required to show the cost with the cruise fare and port fees combined. Other fees and taxes are separate.

So let's just say for example that the price of a cruise is $600 and the port fees are $159. The price quoted and advertised will be $759. No one can show this price any differently.

As indicated, these fees are non-commissionable, so commissions to the agents are only paid based on the cruise fare alone. In the example above, an agent's commission will be based on the $600 not on the $759.

Okay, so how is the $159 determined and why is it important for you to be aware of it?

Over the last few months, we've already seen fares go up, but most of this is due to the increase in port fees. Again, a way for them to increase their income without having to pay additional commission. The reason I say this is because some cruise lines are increasing port fees while other cruise lines going to the exact same ports are not.

And no one at any of the cruise lines is able to adequately explain exactly what goes into the port fees as they seem to always be arbitrary and there is no supportable reason behind them.

For example; you might think a large ship would have to pay more port fees than a small ship. Nope. We've seen the exact same price on small ships versus large ships going to the same ports. We have been told that port fees are based on the number of people on the ship.

You might think that different ships going to the same ports would charge the same port fees. Nope. We've seen different port fees even though the ships are going to the exact same ports.

You might think different cruise lines might have different contracts with the port authorities and thereby the fees would be different. Nope. We've seen different cruise lines charge exactly the same fees on some ships while charging different fees for other ships in the same fleet.

You might think a single traveler would only pay once for the port fees, since the fees are charged by the ports based on the number of passengers. Nope. Some cruise lines will charge it once, others will charge it twice, and one cruise line charges it once or twice depending on the cabin you purchase. Those who charge it twice are simply doing it to increase their profit.

You might think that if a ship misses a port for whatever reason, that you would get the port fees charged for that port refunded to you since the cruise line didn't have to pay them. Nope. Some cruise lines will refund this fee, while others do not. Those who don't are simply doing it to increase their profit.

You might think cruises based out of one port would have a different fee than those based out of a different port in another State. Nope. We've seen them different and we've seen them the same.

We've seen the same port fees charged on a cruise that was visiting 4 ports as one that was visiting the same 4 ports and one more. We've seen the same port fees on a cruise that was visiting 2 ports as another one visiting 4 ports.

From information I've gathered from clients who have gotten refunds for ports missed, the average port fee is about $25 per person (some are higher and some are lower). So, if a ship is visiting 2 ports, with the home-port fee, this should only be about $75. So how can a cruise line justify a $159 charge? And if the same cruise line has another ship visiting 4 ports, how can they support the exact same $159 charge?

In other words, this is one of those dirty little secrets that no one at the cruise lines is willing to discuss in detail and the ones I've talked to (all 6 of the major cruise lines) provide a wide-range of whimsical non-factual information. I once emailed 20 times back and forth with one of the executives and never got a answer to my questions - he spent the entire exchange tap dancing around the facts. In short, he either did not know how they are configured or was purposefully evading the issue. Either way, it's your money and you should know exactly what you're paying for and why.

Personally, I believe they increase the port fees to cover some of their other costs while not increasing the cruise fare so they don't have to pay additional commissions. I would also like to see the cruise lines detail all the fees so you know exactly what you are being charged. I feel the cruise lines should only be allowed to charge a single travler once for the port fees. And lastly, I think cruise lines should be made to refund port fees when a ship does not stop at a scheduled port.

As an agent and after doing this for many years, I started out on this with a selfish reason to determine how commissions are figured and paid. But as I pursued it, I realized there was more to it and begin to ask questions that, to me, obviously became a sore point for the cruise lines. To date, more than a year later, I have no more information to offer than I had when I began.

Just thought you'd find this interesting.

Pete

Pete:

Methinks you may have uncovered a dirty deal!

When I was a travel agent (almost a decade ago), clients always wanted to know what "Port Charges" meant! Of course, we had a good answer, but your research suggests that it's all a myth!

I have always assumed that the fees were legitimately charged to the cruise line by local authorities. Maybe not?

As a dedicated cruiiser, I kind of ignore the item, now. In the grand scheme of things, they don't mean a h*** of a lot to me! But, since they seem to be non-commissionable, I can fully understand your point of view!

SWR

Pete, thanks. I think.

Hmm, the one about the port fees not being refunded by all cruise lines is surprising to me. When I started almost 4 years ago, I was told the Port Fees were the only part of the cruisefare that was refundable, and I assumed it was by all cruise lines.

As far as the amount that is refunded if the ship misses a port of call, yes, the average refund is $25, so your point is well taken about the $159. What I also found funny, was the fact that some lines charge a NCF of $159, some $119, $129, and other fancy figures. Wasn't there a recent conference where many agents were questioning the cruise line execs about this and they tip toed all over the issue? Some agents wanted the NCF's to be made commissionable, as is the case with one luxury cruise line.

I think you are right about the cruise lines marking up the NCF's to make a profit. As one agent told me, she no longer put her emphasis on cruises, she specializes in Destination Weddings and Honeymoons and make far more money in commissions that with cruises. Another tripled her commission when a family group decided not to take a cruise vacation as they normally do, and stayed at an All-inclusive resort instead.

Why is there a port charge at all, even if it is only $25? Just for profit, compensation, or the local authorities?

Why does the law require cruise fare and port charges be lumped together? You would think the reverse was true because everybody hates hidden fees and assumes $759 is the actual cruise fare (in Pete's example).

Why won't cruise lines tell the facts to CLIA-certified travel agents?

Originally Posted by MD11F

Hmm, the one about the port fees not being refunded by all cruise lines is surprising to me. When I started almost 4 years ago, I was told the Port Fees were the only part of the cruisefare that was refundable, and I assumed it was by all cruise lines.
.

Im thinking that they told you the fees and taxes were refundable .. and like most people you assumed the fees included port fees.. such a common mistake that most make.

Originally Posted by Smart Traveler

Why does the law require cruise fare and port charges be lumped together? You would think the reverse was true because everybody hates hidden fees and assumes $759 is the actual cruise fare (in Pete's example).

Why won't cruise lines tell the facts to CLIA-certified travel agents?

I can answer that one since I used to cruise before the FL AG went after the cruiselines back in the mid 1990s. They said advertising a cruise for $300 and then adding another $300 of fees was deceptive advertising.

Someone who knew inside higher ups at Carnival tried to get the break down by port of the NCFs/port fees and was refused. This is now information not even a TA can get the break down on.

$25 might be the average .. but Carnival used to give a flat $25 per port back if you missed a port .. but their new policy for the last year is they give the taxes on the port fees, more like a average of $10 pp per port now. We missed two ports last Sept. The policy was $25 pp per port when we booked, but they changed the policy the month before we cruised and we wound up with about $40 for two of us for missing 2 out of 3 ports.

Originally Posted by Cruise Planner

Do you know what port fees are or how they are configured?

On some invoices you may see this charge as a Non-Commissionable Fee or Non-Commisionable Fare, commonly referred to as NCF. On others you may not see it as a separate charge as it may be included in the cruise costs.

By law, everyone (cruise lines, online sites, agents, ads, etc.) are required to show the cost with the cruise fare and port fees combined. Other fees and taxes are separate.

So let's just say for example that the price of a cruise is $600 and the port fees are $159. The price quoted and advertised will be $759. No one can show this price any differently.

As indicated, these fees are non-commissionable, so commissions to the agents are only paid based on the cruise fare alone. In the example above, an agent's commission will be based on the $600 not on the $759.

Okay, so how is the $159 determined and why is it important for you to be aware of it?

Over the last few months, we've already seen fares go up, but most of this is due to the increase in port fees. Again, a way for them to increase their income without having to pay additional commission. The reason I say this is because some cruise lines are increasing port fees while other cruise lines going to the exact same ports are not.

And no one at any of the cruise lines is able to adequately explain exactly what goes into the port fees as they seem to always be arbitrary and there is no supportable reason behind them.

For example; you might think a large ship would have to pay more port fees than a small ship. Nope. We've seen the exact same price on small ships versus large ships going to the same ports. We have been told that port fees are based on the number of people on the ship.

You might think that different ships going to the same ports would charge the same port fees. Nope. We've seen different port fees even though the ships are going to the exact same ports.

You might think different cruise lines might have different contracts with the port authorities and thereby the fees would be different. Nope. We've seen different cruise lines charge exactly the same fees on some ships while charging different fees for other ships in the same fleet.

You might think a single traveler would only pay once for the port fees, since the fees are charged by the ports based on the number of passengers. Nope. Some cruise lines will charge it once, others will charge it twice, and one cruise line charges it once or twice depending on the cabin you purchase. Those who charge it twice are simply doing it to increase their profit.

You might think that if a ship misses a port for whatever reason, that you would get the port fees charged for that port refunded to you since the cruise line didn't have to pay them. Nope. Some cruise lines will refund this fee, while others do not. Those who don't are simply doing it to increase their profit.

You might think cruises based out of one port would have a different fee than those based out of a different port in another State. Nope. We've seen them different and we've seen them the same.

We've seen the same port fees charged on a cruise that was visiting 4 ports as one that was visiting the same 4 ports and one more. We've seen the same port fees on a cruise that was visiting 2 ports as another one visiting 4 ports.

From information I've gathered from clients who have gotten refunds for ports missed, the average port fee is about $25 per person (some are higher and some are lower). So, if a ship is visiting 2 ports, with the home-port fee, this should only be about $75. So how can a cruise line justify a $159 charge? And if the same cruise line has another ship visiting 4 ports, how can they support the exact same $159 charge?

In other words, this is one of those dirty little secrets that no one at the cruise lines is willing to discuss in detail and the ones I've talked to (all 6 of the major cruise lines) provide a wide-range of whimsical non-factual information. I once emailed 20 times back and forth with one of the executives and never got a answer to my questions - he spent the entire exchange tap dancing around the facts. In short, he either did not know how they are configured or was purposefully evading the issue. Either way, it's your money and you should know exactly what you're paying for and why.

Personally, I believe they increase the port fees to cover some of their other costs while not increasing the cruise fare so they don't have to pay additional commissions. I would also like to see the cruise lines detail all the fees so you know exactly what you are being charged. I feel the cruise lines should only be allowed to charge a single travler once for the port fees. And lastly, I think cruise lines should be made to refund port fees when a ship does not stop at a scheduled port.

As an agent and after doing this for many years, I started out on this with a selfish reason to determine how commissions are figured and paid. But as I pursued it, I realized there was more to it and begin to ask questions that, to me, obviously became a sore point for the cruise lines. To date, more than a year later, I have no more information to offer than I had when I began.

Just thought you'd find this interesting.

Pete

This is very interesting. I have cruised twice before, but don't remember seeing anything about port fees. My next cruise is 7 days from Anchorage to Vancouver with stops at Skagwaiy, Juneau and Ketchikan. Is that 5 ports counting first and last, or just 3? The cruise includes 5 days of land tour before the actual cruise. The fare is $3,138 each, and the port fees are $495 each. At $99 for each of 5 ports, seems a bit steep, don't you think? I wish it were $25 each...
Bruce

Bruce, I could be wrong, but I think I've heard that the Alaska port fees are higher for some reason. I will try to remember where I read it and post it if I can find it.

http://www.cruiselinefans.com/alaska...-head-tax.html (Alaska Lowers Head Tax)

When I was with Carnival I was responsible for the port papers for a period of time, which basically is all the immigration and customs paperwork that needs to be presented on teh ships arrival. It's why you have that period of time where the ship is in port, but still noone is allowed off. Port officials are checking your paperwork.

I can confirm that a tax definitely does exist and that it is levied by the ports - we had to provide a head count and based upon that, we then had to make a certain payment - I can remember that Bermuda was very very expensive. But as to whether that matches up to what the cruiselines then charge you I'm not sure. I would suggest that it may also be increased to cover the cost of the crew.