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Fuel surcharge refund? (Crude likely to fall below $65!)

Oshawapilot

By Oshawapilot,
in Royal Caribbean International

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Oshawapilot

Oshawapilot

Posted
Posted

As we all know we've been paying the fuel surcharge as per Royal Caribbean's policy with crude exceeding $65 per barrel.

 

It's a very real possibility in the coming days crude is going to fall below $65....and stay there.

 

Is anyone planning in asking for refunds of the fuel surcharges many of us paid at the time of our reservation, assuming the departure date of the cruise is after the price of crude officially falls below the $65 threshold?

 

I'm going to be on the phone. ;)

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Ocean Boy

Ocean Boy

Posted
Posted
As we all know we've been paying the fuel surcharge as per Royal Caribbean's policy with crude exceeding $65 per barrel.

 

It's a very real possibility in the coming days crude is going to fall below $65....and stay there.

 

Is anyone planning in asking for refunds of the fuel surcharges many of us paid at the time of our reservation, assuming the departure date of the cruise is after the price of crude officially falls below the $65 threshold?

 

I'm going to be on the phone. ;)

 

I can't wait to read the response that you get. Asking for a refund for something that was't paid in the first place should amuse the folks in Miami to no end.

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edjny

edjny

Posted
Posted
I'm reasonably sure we did pay it actually. I have to get down and dirty with our statements!

 

(Barring that I guess I've possibly given everyone a good laugh. ;) )

 

If you did pay the surcharge, it would be listed as a separate charge (like port taxes/fees, insurance, etc) on your booking confirmation you got from RCL. I have never paid it....

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JasonV1

JasonV1

Posted
Posted (edited)

If a surcharge is being paid it is embedded in the fare, as I have many cruises booked and don't see it separate.

 

That being said (as I understand it) Royal buys fuel futures/contracts to help stabilize fuels costs over the long term, so It takes quite awhile for any per-barrel price drops to impact current cruise pricing. Of course this doesn't prevent them from immediately raising prices in response to oil costs, but they know how unpopular that is which is why we haven't seen a formal surcharge in some time.

Edited by JasonV1
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reney313

reney313

Posted
Posted
If a surcharge is being paid it is embedded in the fare, as I have many cruises booked and don't see it separate.

 

That being said (as I understand it) Royal buys fuel futures/contracts to help stabilize fuels costs over the long term, so It takes quite awhile for any per-barrel price drops to impact current cruise pricing. Of course this doesn't prevent them from immediately raising prices in response to oil costs, but they know how unpopular that is which is why we haven't seen a formal surcharge in some time.

 

Yes, RCI does hedge against high fuel prices to keep their gas prices down.

 

I, too, have not seen a fuel surcharge since the '08-'09 timeframe and they received considerable back lash from passengers. They dropped the charges and have since kept the language that they "reserve" the right to charge it. Instead, I think they have just priced the cruises accordingly.

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LMaxwell Great Review Rare

LMaxwell

Posted
Posted (edited)

The Florida AG Office came sniffing around, a settlement was reached with both RCCL and Carnival Corp; about $20M and $40M respectively. The cruise lines may charge a surcharge if advertised up front; can not be applied retroactively. Put such a bad taste in consumers mouths that in the last 5 or 6 years I don't think any line has added on a fuel surcharge.

Edited by LMaxwell
typo
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Clarea

Clarea

Posted
Posted
The Florida AG Office came sniffing around, a settlement was reached with both RCCL and Carnival Corp; about $20M and $40M respectively. The cruise lines may charge a surcharge if advertised up front; can not be applied retroactively. Put such a bad taste in consumers mouths that in the last 5 or 6 years I don't think any line has added on a fuel surcharge.

I agree. I think another contributing factor is that the cruise line business is better than it was back in 08 and 09, so they can just raise the prices to cover any fuel surcharge.

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nelblu

nelblu

Posted
Posted
The Florida AG Office came sniffing around, a settlement was reached with both RCCL and Carnival Corp; about $20M and $40M respectively. The cruise lines may charge a surcharge if advertised up front; can not be applied retroactively. Put such a bad taste in consumers mouths that in the last 5 or 6 years I don't think any line has added on a fuel surcharge.

 

That is the way I remember. The cruise lines tried to apply the fuel surcharge to already booked cruises and there was an uproar with FL AG suing them and ultimately settled.

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Ocean Boy

Ocean Boy

Posted
Posted
If a surcharge is being paid it is embedded in the fare, as I have many cruises booked and don't see it separate.

 

That being said (as I understand it) Royal buys fuel futures/contracts to help stabilize fuels costs over the long term, so It takes quite awhile for any per-barrel price drops to impact current cruise pricing. Of course this doesn't prevent them from immediately raising prices in response to oil costs, but they know how unpopular that is which is why we haven't seen a formal surcharge in some time.

 

RCI maybe factoring higher fuel prices into the fare to cover costs but that is not considered a surcharge. Surcharges are an additional charge separate from the fare.

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DirtyDawg

DirtyDawg

Posted
Posted (edited)
RCI maybe factoring higher fuel prices into the fare to cover costs but that is not considered a surcharge. Surcharges are an additional charge separate from the fare.

 

And people, don't get too excited about the possibility of lower fares in the near future due to lower Oil market prices. Firstly, refiners do not pass along lower input (Oil) costs quickly and RCI buys refined product not crude oil. And secondly, RCI routinely hedges about half of their fuel requirements which means they are locked into higher than current market prices for a portion of their fuel requirements. RCI's fuel costs are about $1B per year. A 10% decline in price for the full year would only save them less than 5% of that amount. The same goes with airlines and other heavy fuel use industries.

Edited by DirtyDawg
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fas64

fas64

Posted
Posted

I think what the OP is saying is that if RCCL base the rates of a cruise based on oil at $70 per barrel, Then should RCCL reduce the cruise rate if oil drops to $65.

 

IMHO I think no, As I believe RCCL have it in there contract that they can add a surcharge if oil price is higher than $70 but I don't think they have ever applied the increase.

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Clarea

Clarea

Posted
Posted
I think what the OP is saying is that if RCCL base the rates of a cruise based on oil at $70 per barrel, Then should RCCL reduce the cruise rate if oil drops to $65.

 

IMHO I think no, As I believe RCCL have it in there contract that they can add a surcharge if oil price is higher than $70 but I don't think they have ever applied the increase.

The surcharge was applied back in 08 and 09, but not since.

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Ourusualbeach

Ourusualbeach

Posted
Posted

Didn't all references to the fuel surcharge get eliminated from the fine print sometime last year.

 

Here is what I see in the fine print.

 

* Prices are per person, based on double occupancy, for cruise only on select sailings and stateroom categories. For new reservations only. Subject to availability. Certain restrictions apply. May not be combinable with any other promotion and may be withdrawn at any time. "Deals" pricing reflects the special rate(s) you may be eligible for. Proof of eligibility required. If eligibility cannot be validated, you will be charged the standard rate or denied boarding. All prices are quoted in US Dollars. All itineraries and prices are subject to change without notice. Ships' Registry: Bahamas. © 2014 Royal Caribbean Cruises Ltd.

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LMaxwell Great Review Rare

LMaxwell

Posted
Posted

Did you find that on the website because I found THIS on their website as the first Google hit on "Royal Caribbean Fuel Surcharge", direct from RCI website.

 

We reserve the right to impose on any existing booking or new bookings (whether paid in full or not) a supplement for fuel or other matters without prior notice as provided in our Passenger Ticket Contract. In addition, we reserve the right to pass through any third party imposed fuel or other surcharges, also without prior notice, The guest will remain liable for any applicable taxes, fees or surcharges that may be assessed by any governmental or quasi-governmental agencies. You may also want to know: What does the price of my cruise include?

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