Cruise package prices seem to have dropped by half. What's going on?

Latin Trade, Jan, 2005

According to Mark Kammerer, vice president of cruises for Expedia.com, package prices have actually climbed over the last year. Average prices at Royal Caribbean and Carnival Cruise Lines have risen by as much as 11% over 2004. However, there are three reasons why you might think the general price trend is downward.

First: You might be seeing seasonal advertisements. "Cruise prices are lowest from September through December with the exception of the Thanksgiving and Christmas weekends," says Carnival spokesperson Jennifer de la Cruz. Second: Cruise lines reduce and advertise prices for unfilled cabins as they get closer to the sail date. Third: Travel agents offer deals that give part of their sales commissions to customers through rebates and discounts.