Oil prices are down, what about the surcharge?

[peaches from georgia]

 

IMO, the fairest policy is NCL's and smaller lines' applying the surcharge to new bookings only. (Though NCL's surcharge is 40% higher than everyone else's, and presumably the cost of their fuel didn't rise 40% faster.)

NCL's surcharge is that much higher because they are spreading out the total increased cost of fuel over a smaller customer base- to new bookings only and not to all pax.

[manbehindthecurtain]

They buy on the futures market and their price was probably set six months ago, and yes their price

has gone up but not like the price at the local gas station.

 

quote]

 

Actually, while Carnival buys the fuel for all their brands, they do not buy futures far in advance as suggested. In part this has to do with all the different locations fuel has to be taken in, all coming from different suppliers. Every time we bunker I see a different price come by, and they are higher just about every single time.

 

Oz (struggling to keep all his machinery running with this high gas price)

[Philip217]

Last year the price of a ton of bunker fuel was around $225.

It cost the cruise lines a bit under US$20 in fuel per passenger PER DAY to carry you on the ships.

 

This year the price of a ton of bunker fuel is just under $500.

It now costs them close to US$40 in fuel per passenger PER DAY to carry you on the same ships.

 

The price of bunker fuel has not decreased in several years.

 

The cruise line is still paying the extra $140 per passenger PER WEEK ($20x7) to carry you this year.

[welove2cruise232]

We don't have a problem AT ALL with what we paid for the fuel charge, based on what we paid for our upcoming Noordam cruise -- still a great value!!

[iancal]

Good work numbersix. Unlike some others, I have not excersized my tear ducts for Carnival. Hopefully, market forces will prevail.

 

As for buying bunker oil futures......they do and it does not matter where they fuel up. The futures protect the general price trend and can be sold at any time to pay for on site fuelling anywhere in the world.

[HamOp]

So who will be the first cruise line to build a nuclear powered ship?

Hey, if it's good enough for the navy it should be good enough for us, right?

Wonder what the add on charge would be for plutonium:D

[Opinions]

The cruise line is still paying the extra $140 per passenger PER WEEK ($20x7) to carry you this year.

 

Yes, and the Carnival Corporation (owners of HAL) still have had record earnings this year!...Even increased their dividend.

[Philip217]

opinions,

 

The big oil companies did far better than Carnival.

Since making a profit is still legal. what is your point?

[Opinions]

Since making a profit is still legal. what is your point?

 

My "point" is that the Carnival Corporation was making record profits before the surcharge and will continue to have them...Whether one agrees with the surcharge or not it is proper to consider the financial condition of a company in this discussion...Thankfully, here in the U.S. these financial records are public.

[hammybee]

My "point" is that the Carnival Corporation was making record profits before the surcharge and will continue to have them...Whether one agrees with the surcharge or not it is proper to consider the financial condition of a company in this discussion...Thankfully, here in the U.S. these financial records are public.

 

It seems to me that you expect a company to show a financial loss to justify an increase in price. If I am inferring correctly, your message suggests a few misconceptions about the way the world runs.

 

Do you research the financial condition of every seller of goods and services you use, to determine if a recent price increase is warranted?

 

Everything is sold for as much as the market will bear, at the point of sale. There need be no rationalization of price, from the seller's perspective. As consumers we have the choice to buy or do without.

 

The number of unsold homes in the U.S., right now, is probably the most significant evidence that there is a huge disconnet between what seller's perceive their homes are worth/what they need out of the proceeds of the sale and what the market is willing to pay for these homes.

 

Buyers are choosing to do without. It's a powerful statement and not necessary good for the immediate economy.

[hammybee]

[quote name=manbehindthecurtain;12528205

Actually' date=' while Carnival buys the fuel for all their brands, they do not buy futures far in advance as suggested. In part this has to do with all the different locations fuel has to be taken in, all coming from different suppliers. Every time we bunker I see a different price come by, and they are higher just about every single time.

 

Oz (struggling to keep all his machinery running with this high gas price)[/quote]

 

Speculating in fuel futures is a high risk strategy and not necessarily the safest way to operate a business, long term. The opportunities that used to be, no longer are. Someone, somewhere has to be willing to sell the right to buy fuel ( an option) for less than the projected future cost of the commodity.

[Brad1185]

I dont care how low the oil prices go, the surcharge is here to stay.

 

My opinion on NCL is they are losing their shirts financially and I think they have to charge more because they are broke.

[Opinions]

It seems to me that you expect a company to show a financial loss to justify an increase in price. If I am inferring correctly, your message suggests a few misconceptions about the way the world runs.

 

Do you research the financial condition of every seller of goods and services you use, to determine if a recent price increase is warranted?

 

 

.

 

Do you ignore the financial condition of a cruise line when discussing it?...I may not have the vast knowledge of the way the world runs as some apparently have but I do make a effort to learn...In light of the recent fuel surcharge I found reading the Carnival Corprations financial statements interesting...Obviously there are others who disagree.

[hammybee]

Do you ignore the financial condition of a cruise line when discussing it?...I may not have the vast knowledge of the way the world runs as some apparently have but I do make a effort to learn...In light of the recent fuel surcharge I found reading the Carnival Corprations financial statements interesting...Obviously there are others who disagree.

 

I am very much aware of the consolidated financial reports of publicly -traded cruise lines. I also, on occasion, listen to the recorded calls for analysts and/or shareholders. The cost of fuel and discussion of a fuel surcharge has been a hot topic for several years.

 

That a cruise line is profitable or not, has nothing to do with my position on the topic of fuel surcharges. I would make myself nuts ( some might say, nuttier) if I looked at the financials of every corporation/individual producing products/services with price increases and/or fuel surcharges. Either I pay or do without.

[George W. Bush]

I don't know, but I think that pointing out that the cruise lines are very profitable is a valid counter-point when one brings up the "crippling" cost of fuel.

[hammybee]

I don't know, but I think that pointing out that the cruise lines are very profitable is a valid counter-point when one brings up the "crippling" cost of fuel.

 

The cost of groceries in my area has increased almost 20% compared to this time, last year. It is less costly to buy groceries in resort areas than it is in my village.

 

The local grocer is owned by a corporaton that is quite profitable. Maybe they want to be more profitable. Maybe they are passing on their cost increases. The cost of transporting the food has increased. Or maybe I just eat too much.:D

 

So my alternatives are to buy less, clip coupons, shop the sales, travel to some other area in search of better prices or do without. I have yet to figure out the "do without" part.:)

[happy cruzer]

 

Everything is sold for as much as the market will bear, at the point of sale. There need be no rationalization of price, from the seller's perspective. As consumers we have the choice to buy or do without.

 

 

Well, part of the bad taste from this surcharge was that the cruise lines did try to rationalize it in their press releases. Actually calling it a fuel surcharge is a rationalization. It's not tied to the price of fuel or the number of days cruised, or how much fuel your cruise takes or to any of that stuff. I understand you point about it's the nature of doing business but I personally think they tried a story that is weak ( but it seems to be in mainstream consiousness so what do I know).

 

I tend to find that the truth will set you free. Simply adjusting the price to the market conditions works fine for me vs. smoke and mirrors charges that can be "justified".

 

And I agree the grocery prices are horrifying. I get depressed at the grocery store.

 

Thanks everyone for the information.

[bUU]

Thankfully, here in the U.S. these financial records are public.

Financial records in the United States are only public for companies that are public corporations, i.e., companies typically that exist solely to pursue the best financial interests of their owners.

 

Do you ignore the financial condition of a cruise line when discussing it?

The financial condition of a company is meaningless with regard to how much I'm willing to pay for their services. For example, I'm a big fan of TiVo, but the fact that they've lost money every single quarter of their existence but one doesn't make me willing to pay one more cent for their service than if they were a profitable company.

[InTheWASide]

Oil prices are heading down, maybe to go up, maybe to stay down. But who wants to bet the fuel surcharge stays put?

 

I don't mind them charging for fuel that they buy, but if they do as many businesses and forecast it and put it into the initial prices that they quote then the customer will know up from how much they are paying and not feel "nickel and dimed" at the last minute. JMHO

 

I agree. I understand why it's nexccessary and it wouldn't deter me, but after this first wave, it needs to just be incorporated.