Mackinac Island rejects higher 2026 ferry ticket prices, demands to see boat company’s revenue
MACKINAC ISLAND, MI – Bolstered by a recent court victory, Mackinac Island City Council members voted Wednesday to reject higher ferry ticket prices and fees for two ferry services scheduled to charge passengers for the 2026 season.
Instead, the council unanimously agreed to send a letter to Hoffmann Marine, which owns both Shepler’s Mackinac Island Ferry and Arnold Transit Co., demanding they turn over financial information and company data that they said would allow city officials to set fair ticket prices for next season. They will also look at other ferry fees, such as priority boarding and service fees, which at least one of the companies has been demanding since last season when the city and ferry companies were embroiled in the case.
The ferry group has 20 days to comply with the document request. City officials also say they will work as quickly as they can to set “fair and reasonable” ticket prices.
If Hoffmann Marine does not provide financial data, the municipality announced that it will impose the daily penalty specified in the island’s ferry regulations. They are also preparing to implement provisional rates for the 2026 season.
Arnold Transit Company.
In a related move, the city ordered ferry services to be billed for last year’s island regulation fee (set at $150,000 per ferry line), which they say has not been paid.
The city’s action on Wednesday was the first time the council has spoken publicly about setting ferry ticket prices in more than a year. Triggered by Last week’s decision by the U.S. Court of Appeals for the Sixth Circuit A lower court reversed its decision and gave Mackinac Island the authority to regulate ferry ticket prices. broader case continues with ferry operators.
This case extends to the City Council’s deadline of December 2024. Voted to freeze ferry ticket prices for 2025 both Shepler’s and the newly rebranded Arnold Transit Co. for 2024 rates.
The two ferry groups had sought a $2 increase in ticket prices for 2025, saying the Florida-based private equity firm that now owns both boat services had invested millions in their equipment and maintenance that year, and that even more expensive projects were planned.
However, the City Council voted to keep the 2024 ticket prices in 2025 after dealing with the issue for several weeks. Members agreed that this would be a minimal increase given inflation and the investments of Hoffmann Marine and its parent company, the Hoffmann Family of Companies. But they kept coming back to the fact that they didn’t have enough detail about the company’s financial health to allow for a rate hike. The council said the ferry companies were unable to provide this financial information to the city.
Going forward, the ferry group will be required to submit annual independent audit results to the city, the council said.
The island council has regulatory authority over ferry ticket pricing and schedules, according to its charter.
In late 2024, island officials stated that they were being careful because for the first time the two ferry services were now owned by the same company. In the past, they were under rival ownership. The city’s legal council ruled that Hoffmann operated only two ferry services to the island and owned the entire ferry dock area, plus St. He opined that it operates like a monopoly, operating most of the parkland on the mainland in St. Ignace and Mackinaw City. Representatives of Hoffmann objected to the monopoly characterization.
The legal battle over ferry line regulation is expected to continue this season, but there is no indication it will affect passenger services to the island.
In the most recent case on March 12, the appeals court lifted part of the 2025 preliminary injunction. prevented the island from regulating fares Collected by Shepler’s and Arnold Transit. But the trio of judges left intact the ruling banning island authorities from regulating mainland parking fees tied to ferry travel.
Appellate judges concluded that a clause in ferry franchise agreements with the city that allowed Mackinac Island to regulate fares if “no competition existed” was vague and needed to be interpreted through further litigation.
Rising Rates
Ferry prices increased last year. The ferry lines sent a “courtesy notice” to the City Council outlining additional increases planned for the 2026 season on many ticket options; so it will be interesting to see where the city sets its price point for next season.
For example, for the 2024 season, Shepler’s website showed the price of a round-trip ticket for adults as $34. In 2025, the company’s website shows that an adult round-trip ticket has increased to $38, and an “advanced” adult round-trip ticket, which puts the passenger at the front of the boarding line, is $50. All online ticket orders also had a $3 convenience fee.
In a note on the website today, it was stated that 2026 ticket sales have not started yet.
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