The cruise was due to set sail on Oct 28 from Miami, FL, headed to the Bahamas for three stops in Nassau, Half Moon Cay and Freeport over five days of performances from Alice and Twisted Sister's Dee Snider.
Horror movie stars from such films as "The Howling", "Pet Sematary" and "Child's Play" were also due to appear, with "Fright Night" director Tom Holland set to host. Also included in the deal was 24-hour horror movie screenings, and costume contests.
The Ship of Fear was never going to be a cheap event with tickets ranging from $729 to $3,599.
A statement from Entertainment Cruise Productions on the website reads: "After careful consideration, we have decided not to continue with The Ship of Fear Cruise and we will not be sailing in 2013.
Those guests who already purchased cabins will be given a full refund.
We feel that we had a strong combination of talent, programming and promotion; however, we did not receive the consumer demand required to continue."