What is a crew appreciation fee? Why one major cruise line is raising the price
(NEW YORK) — This summer brought lots of buzz around “tourist taxes” and other fees that can get tacked on to normal travel expenses. Now, another fee that may be familiar to avid cruisers is increasing on one major cruise line.
The so-called “Crew Appreciation” fee is a daily amount that’s automatically added to a guests’ onboard accounts with Princess Cruises “to recognize the efforts of a wide variety of crewmembers who contribute to the experiences of all our guests” and are pooled and distributed throughout the year in compensation and bonuses.
Travelers will pay slightly more starting later this month depending on the type of accommodations they book, according to the cruise line, which last raised the price in February 2023.
Echoing recent headlines surrounding updates to airline baggage prices, Princess Cruises’ Crew Appreciation fee is rising by just $1 per person, per day in various classes of cabins.
Travelers in suites will see a $19 daily fee, while those in mini suites, cabanas or Club Classes will pay $18. Guests in all other staterooms will pay $17.
“The crewmembers eligible to receive these funds work in various departments, many of whom rotate among different ships, throughout our fleet of ships,” Princess states on its website. “Guests have complete discretion to adjust these crew appreciation [fees] while onboard; however, crew appreciation may only be adjusted prior to disembarking the ship and not refundable post cruise.”
Travelers can choose a prepaid crew appreciation option while managing their booking, but if it’s not adjusted up to the time a passenger settles up the account prior to disembarkation, the payment becomes final and nonrefundable.
Full details of the policy are available on the Princess Cruises website.
(WASHINGTON) — Borrowers eager for the Federal Reserve to abandon high interest rates could not have scripted a better four-word declaration than the one on Friday from Fed Chair Jerome Powell: “The time has come.”
Powell indicated that the Fed would soon bring interest rates down from a 23-year high. The shift could lower borrowing costs for everything from credit cards to auto loans to mortgages.
The pace and scale of rate cuts remains unknown, however. A cautious approach could leave borrowers saddled with high costs for the next several years while an aggressive reset could ease loan rates substantially within months.
“The question now is how far and how fast should the Fed cut rates?” Mark Zandi, chief economist at Moody’s Analytics, said in a post on X on Sunday.
The chances of an interest rate cut at the Fed’s next meeting in September are all but certain, according to the CME FedWatch Tool, a measure of market sentiment.
Market observers are divided over whether the Fed will impose its typical cut of a quarter of a percentage point or opt for a larger half-point cut. The tool indicates a roughly 60% chance of a quarter-point cut and a 40% chance of a half-point cut.
Over the remainder of the year, the most likely scenario is a quarter-point rate cut at each of the Fed’s three scheduled meetings in September, November and December, the CME FedWatch Tool shows.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, low interest rates help stimulate economic activity and boost employment; high interest rates slow economic performance and ease inflation.
In recent months, the labor market has slowed alongside cooling inflation. That trend was highlighted last month by a weaker-than-expected jobs report that raised concern among some economists that the U.S. may be headed toward a recession.
Recent trends have shifted the Fed’s focus away from controlling inflation and toward ensuring a healthy labor market, Powell said Friday.
“A cooldown in the labor market is unmistakable,” Powell said, adding that he would let economic performance dictate the course of rate cuts.
“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” Powell said.
Gregory Daco, chief economist at accounting firm EY, said in a statement to ABC News that he expects a quarter-point rate cut at each of the Fed’s next three meetings in an effort to soften the ongoing economic slowdown. However, worries about an imminent recession are overstated, Daco added.
The Fed aims to “buffer the economic downshift,” Daco said.
Deutsche Bank, which also projects three quarter-point rate cuts before the end of the year, said in a note to clients on Friday that a weak jobs report early in September could push the Fed to opt for a larger half-point cut at its meeting later that month.
“The softer-than-expected July jobs report and recent bouts of market volatility have shifted risks towards the Fed cutting more aggressively upfront,” Deutsche Bank said.
Analysts differ widely over the course of interest rate cuts in the next year or two. Zandi said the Fed should bring interest rates down significantly from the current target rate of between 5.25% and 5.5%. By the end of next year, interest rates should stand at 3%, he added.
By contrast, former Treasury Secretary Larry Summers cautioned against an aggressive approach to interest rate cuts. “We need to be rather more cautious about the medium term outlook for monetary policy,” Summers said in a post on X on Saturday.
Still, Summers added, the need for some rate cutting is beyond question.
“Inflation is coming down. The economy is slowing. On current facts, absolutely the next move should be towards monetary policy easing,” Summers said.
(NEW YORK) — Shares of Tesla fell 12% in early trading on Wednesday after an earnings release showed slumping profits in the face of strengthened competition and sluggish sales.
The earnings report fell short of Wall Street expectations for profit.
“There have been quite a few competing electric vehicles that have entered the market and mostly, they have not done well, but they have discounted their EVs quite substantially, which has made it more a bit difficult for Tesla,” Tesla CEO Elon Musk told analysts on Wednesday.
Tesla shares plummeted more than 25% at the outset of 2024 but the company had recovered all of those losses this month after it released a better-than-expected report on vehicle deliveries. The stock price decline on Wednesday puts shares at their lowest level in more than three weeks.
The earnings results released on Tuesday mark two consecutive quarters of declining profits. Revenue from government credits increased to $890 million in the most recent quarter, accounting for more than half of the company’s profits.
Gordon Johnson, CEO and founder of data firm GLJ Research, who is bearish on Tesla, said the boost in revenue from government credits afforded the company a financial lifeline even as it struggled in its main line of business: selling vehicles.
“What is the core business doing?” Johnson told ABC News, suggesting the decline in performance was even worse than the earnings indicate.
Critics say demand for the company’s vehicles has slowed as a result of its failure to release a new, affordable model, as well as a softening in the overall EV market. As competitors roll out alternatives, Tesla faces a difficult path to regain its previous breakneck growth, analysts previously told ABC News.
Proponents, however, point to the company’s record of industry-leading innovation, suggesting the breakthroughs that fueled its sprint ahead of the competition could reemerge as it readies for new EV models and perfects its autonomous driving software.
Dan Ives, a managing director of equity research at the investment firm Wedbush, who is bullish on Tesla, downplayed the weaker-than-expected earnings report and highlighted potential gains from the company’s development of autonomous vehicles.
“We were not looking for major fireworks this quarter from Tesla,” Ives said on Wednesday in a note to investors. “The next phase of the Tesla growth story is around autonomous, Robotaxis, and AI playing out for Musk & Co. in our view and that vision is on the doorstep.”
Speaking to analysts on Tuesday, Musk said the company had made “a lot of progress” on its full self-driving software over the most recent quarter.
“We think customers will experience a step-change improvement in how well supervised full self-driving works,” Musk added.
That product has faced challenges, however. In December, Tesla recalled about 2 million cars over a safety issue tied to its autopilot system. Two months later, the company recalled about 360,000 more cars over crash risks tied to its self-driving system. Musk said on Tuesday that the company is delaying the launch of its Robotaxi service until October.
Johnson, of GLJ Research, voiced skepticism about the Robotaxi initiative.
“Tesla doesn’t have one Robotaxi on the road,” Johnson said.
(NEW YORK) — Federal safety regulators are calling for an investigation into popular Chinese e-commerce websites Shein and Temu over concerns shoppers can easily purchase baby and toddler products that do not meet U.S. safety regulations.
In a joint letter Monday, Consumer Product Safety Commission Commissioners Peter A. Feldman and Douglas Dziak cited “recent media reports that deadly baby and toddler products are easy to find on these platforms.”
The letter did not single out specific products, but one report from business technology publication The Information, cited in the CPSC letter, found that padded crib bumpers, which were banned by Congress in 2022, are still available on the retailer websites.
Temu said in a statement to ABC News that it requires all sellers “to comply with applicable laws and regulations, including those related to product safety.”
“Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation,” a Temu spokesperson said.
A Shein spokesperson also told ABC News that the company prioritizes customer safety.
“At SHEIN, customer safety is our top priority and we are investing millions of dollars to strengthen our compliance programs,” Shein said in a statement. “In the last year SHEIN has spent over $10 million building a strong global compliance function and developing partnerships with internationally renowned testing agencies such as Intertek, SGS, BV, and TUV, to further enhance our safety practices. Earlier this year it was also announced that an additional $50 million dollars will be dedicated to fortifying our Global Compliance Center and initiatives to ensure strict adherence to our rigorous product safety standards and full compliance with applicable laws and regulations.”
The spokesperson added, “Our global team, including more than 1,000 U.S. employees, remains steadfast in its commitment to quality and safety for our customers, and we resolutely support the Commission’s mandate.”
Both Temu and Shein have exploded in popularity in the U.S., in part because their sites offer cheap prices on a variety of products from clothes to home goods.
The CPSC commissioners said e-commerce platforms can offer great deals to consumers, but it’s critical they comply with U.S. safety standards to avoid any risk of injury.