The reality star announced in January that she would be the star attraction on a Royal Caribbean tour of Haiti, Jamaica and Mexico in August.
Tickets for the cruise were priced from $1,900 (£1,203) to $3,175 (£2,010), but Royal Caribbean has announced that Gosselin has bowed out due to low sales.
A spokesperson for the company told Radar Online: "[The] event has been cancelled. We just didn't get the turnout that we desired and mutually we agreed that if we didn't get it, we would cancel."
The Royal Caribbean rep also clarified that Gosselin is not to blame for the low ticket sales.
"It was nothing to do with her. We needed to hit certain numbers and they just weren't where they needed to be," the spokesperson said.
Gosselin is said to have personally called those who purchased tickets to apologise. A refund will also be offered.
The mother of eight recently wrapped up her TLC series in 2011 after five years on the air.