Cruise costs defined | Tipping guidelines

Cruise advocates will tell you that cruising is a very cost effective vacation. Your cruise fare covers your lodging, your travel to your destinations, all your meals and your entertainment.

The cruise line industry is also trying to eliminate or reduce air fare from the equation by sailing from ports closer to your home.

Brad Jones, director of cruise, tour and destination services for Orbitz, explains, "If I can afford $500 or $1,000 for a cruise, then not having to pay air fare reduces the cost of the cruise and makes it more accessible. New Orleans is a drive market for Louisiana, Mississippi, Alabama and Arkansas. Anyone from Georgia can drive to Jacksonville, Port Canaveral and Tampa." And low-cost carriers fly to many of those markets as well.

This trend has been dubbed "homeland cruising." It actually developed after 9/11 when cruise lines had to bring ships home from Europe and Asia and needed a place to put them all. So as they were placed at these secondary ports around the country, the lines felt it made sense to sail from them.

Many travelers are also eliminating air fare by option to use their frequent flier miles. We saved $700 by using our Skymiles to get to Tampa.

To determine if cruising makes more financial sense for you than a land-based vacation, check out vacation calculators on sites such as www.cruising.org. Here are some terms to know before you begin booking:

• Cruise fare: The cost of everything on the ship, includes your room, all your food (even room service), the entertainment and exercise areas. It does not generally include spa services, alcoholic beverages, tips, casino chips, shore excursions or your air fare and sometimes not transfers.

• Air/Sea packages: The cost of your cruise and flight to the port. Many people are choosing to book their own air fare these days. (See Tips for more information on why and how to get a deal).

• Port charges: Sometimes included in cruise fare and sometimes in government taxes. For a 7-day cruise, charges usually run from $129-$179 per person.

• Government taxes or government fees: Just what it sounds like. For a 7-day cruise, it usually runs from $30-$50 per person.

• Transfers: This is the cost of getting from the airport to the port, often by bus or van. Aimée J. Ricca, owner of Bonne Amie Travel in Rockport, Maine, and one of the experts featured on the Travel Channel's Vacation Challenge, says buying the transfers offered by the cruise line can be a good idea if the port is far away or if you're in a foreign country. For example in Rome, Italy, the port is 1.5 hours away, so transfers make sense. In Miami, where the port is a short distance away and a flat cab fare of $21, transfers make less sense.

• Shore excursions: Activities that you do off the boat in a port are generally not included in the cruise fare. Some higher end lines, such as Radisson and Silver Sea, sometimes include an excursion. Prices vary depending on the activity. The ship-sponsored excursions are often more expensive than ones you will find in town but there are benefits to them as well. (Please Tips for a full discussion.)

• Travel insurance: Travel insurance policies vary but generally will allow you to recoup your money if you or one of your party gets sick and you cannot sail. It can cover if an immediate family member gets sick and prevents you from sailing. It also will give you a partial refund if you had to fly home for a medical reason. It will give you health and dental insurance while on your trip. You can purchase travel insurance through the cruise lines or a third party (the travel agent can set this up). If purchased through the cruise line, the price is generally based on the number of days on the trip. If booked through a third-party, it is generally based on your age and the cost of the trip. Ricca advises that the cruise line insurance is usually less comprehensive. (Please see Tips for more discussion on whether you need it or not.)

• Tipping: All of the cruise lines handle it differently. Tipping used to be a cash-only affair and was dispensed with little white envelope on the last night of the cruise. (Not the last day — the crew will think you stiffed them.) Many lines will put a set amount (ours is $10 a day per person) on your cruise card. You can tip extra or actually tip less based on performance. You can add the extra to the card or distribute little white envelopes. Some lines give you the option of paying the tips when you book. Ricca only likes that option when traveling with large groups so no one neglects to tip. She says she likes to see the crew's performance before tipping.

Ricca offers these guidelines based on what Celebrity recommends:

Total amount each crew member should receive (Add in half of each rate for each child aboard):

Waiter — $3.50 per day per person

Assistant waiter — $2 per day per person

Assistant Maitre d — .75 cents per person per day

State room attendant — $3.50 per person day (They should be in your room at least twice a day, as soon as you leave in the morning and then while you're at dinner)

Assistant chief housekeeper — .75 per person per day

Butler (in a suite) — $3.50 per person per day

If everyone does a great job, Ricca says on an average trip she gives about $10 to $20 more total than what the cruise line recommends. If you're trying to get something special like a table for two in the dining room, Ricca recommends giving your maitre d $20 at the end of the cruise if he comes through for you.

Shore excursion guide and driver: at least $1 to $2 for each. Tips are how they make their living.