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Surcharge is sneaky... Why not just raise prices?


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They also do not advertise port charges and tax is that also slick marketing? Does Walmart, Best Buy or any other bix box store include tax in their sale advertisements? Nothing slick is going on.

 

Well said! An even better comparison is the car industry. You have to add tax, tag, title etc on.

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They want you to know its because of the rising fuel costs...so they do not look responsible for the increase in price.

I know it's just wishful thinking, but you can eliminate surcharges is the reason for the surcharge vanishes, like if all of a sudden oil prices go down.;)

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Airlines pricing is done the same way. Fuel surcharge, extra bag charge, etc. Cruise pricing is a base price then port charges, taxes, etc. From a consumer standpoint, as long as total price is clearly displayed at time of booking, this is fine.

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Surcharges exist all over the place. They are meant to address pricing in relatively volitile commodities (steel for example).

 

The "base price" remains the same, but if the price goes up on the surcharge, they want you to understand why your overall price went up. Breaking it down very simply, it's like saying "This will cost more, but this one is not our fault, and here's why..." :o

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It sure seems like a slick marketting ploy to seperate the patron from a few of his hard earned dollars without changing the advertised/come-on price. What's next, a cornflake surcharge?

 

The don't want people to think it was their CHOICE to raise prices but that they were forced into it. It makes them look good because they, like everyone else, is just trying to survive the fuel crisis.

 

It's clearly labelled and not hidden so I don't understand how you think it is "sneaky".

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It sure seems like a slick marketting ploy to seperate the patron from a few of his hard earned dollars without changing the advertised/come-on price. What's next, a cornflake surcharge?

 

If they added the fuel charges into the price of the cruise, they would have to pay agent commission on it.

I don't like the fact that you have to add all these things in separately, but I can see the logic behind it.

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It sure seems like a slick marketting ploy to seperate the patron from a few of his hard earned dollars without changing the advertised/come-on price. What's next, a cornflake surcharge?

 

Have you priced cornflakes lately?:) seriously I like their up front approach. At least you know what the charge is for and why........just build it into your cost of cruising........to me it's 6 inches one way, half a dozen the other.......in the end it's a cost we accept whether they just raise prices or add a surchage.

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I had not considered the commission aspect.

 

I reallize it all balances out in the end, but if it were priced into the base price it could perhaps be more evenly distributed. Those products that use more fuel could charge accordingly. I was on AOS a few weeks ago and that ship never broke a sweat. 14 knots going south, 11 knots north, 8 knots between St. Marteen and St. Thomas and 6 knots between St. Thomas and San Juan.

 

Maybe it is the reported record profits (enhanced by the surcharge which gets further enhanced tomorrow) that got me thinking? Not that there's anything wrong with making a profit.. I'm all for it! Maybe "creative" rather than "sneaky" would sit better with some of you :rolleyes:

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It doesn't really matter if it is sneaky, creative, smart or any other adjective you want to ascribe to it.

 

What matters is you have a simple choice to participate or not. Nobody cares which choice you make or why it is made.

 

jc

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Yeah, those record profits the oil companies are reporting piss me off more than a few dollars more for fuel from RCI. They started out charging less than some of the other Cruise Lines, so I can't complain.

 

I still think Cruising is a bargain.

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I had not considered the commission aspect.

 

I reallize it all balances out in the end, but if it were priced into the base price it could perhaps be more evenly distributed. Those products that use more fuel could charge accordingly. I was on AOS a few weeks ago and that ship never broke a sweat. 14 knots going south, 11 knots north, 8 knots between St. Marteen and St. Thomas and 6 knots between St. Thomas and San Juan.

 

Maybe it is the reported record profits (enhanced by the surcharge which gets further enhanced tomorrow) that got me thinking? Not that there's anything wrong with making a profit.. I'm all for it! Maybe "creative" rather than "sneaky" would sit better with some of you :rolleyes:

 

Your second paragraph confuses me. "Priced into the base price..." to be more evenly distributed. are you saying that faster or heavier ships should have a higher surcharge? That maybe you feel a bit cheated that you paid the charge but your ship didn't go very fast?

 

I think the important thing to remember here is that the price has not been raised. there is an extra charge that has been 'temporarily' added on. how temporary it will be is not known. Same thing with port charges - they are in addition to the actual cruise price which has remained relatively stable. Port charges are charged by, Ta Da, the Ports.

 

I do not believe that cruise line profits are expanding due to the fuel charge. I think that would be due to efficiencies in other areas. The fuel charge is purely to offset soaring fuel costs and maintain that line item to prevent it from dragging the company down.

 

just my 2 cents.

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They also do not advertise port charges and tax is that also slick marketing? Does Walmart, Best Buy or any other bix box store include tax in their sale advertisements? Nothing slick is going on.

 

We know what % the sales tax is.I agree raise the price but on the other hand the comission issue is probably the reason.

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Yeah, those record profits the oil companies are reporting piss me off more than a few dollars more for fuel from RCI. They started out charging less than some of the other Cruise Lines, so I can't complain.

 

I still think Cruising is a bargain.

 

Unless of course you are a stockholder for an oil company;)

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