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Air Fares Sky High


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We already purchased our air for cruise on CB on Dec. 7th, but we keep tracking through Yapta. Today the air fare from Phl to SJU was double what we paid. Hopefully people don't start cancelling the cruise because of high air fares.

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We already purchased our air for cruise on CB on Dec. 7th, but we keep tracking through Yapta. Today the air fare from Phl to SJU was double what we paid. Hopefully people don't start cancelling the cruise because of high air fares.

 

US Air Boston to San Juan in Jan 2009 went from $389 RT to $639 since May 23. AirTran Burlington, Vermont to San Juan up $100.

 

It is getting pretty scary. I do think that this will affect the cruise industry and the travel industry overall pretty quickly. I am glad I have my b2b cruise and air reservations for next winter, with insurance, but am thinking it may be my last big vacation for a while if the cruise prices, air fares, etc increase dramatically. :eek:

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We had to cancel our plans to sail on Adventure of the Seas in August because the airfare (JFK to San Juan) was nearly $600pp - for our family of 4, that was just $400 less than the total cruise fare (1 balcony cabin and 1 promenade cabin). We switched to Caribbean Princess because we can drive to the port.

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Unfortunately, the price of oil has shot up the last year or so. This has forced the airlines and cruise lines to raise prices. I am sure it will force some people to cancel/not book.

 

You can bet that IF oil prices come down, the airline and cruise industry will not drop their prices to before the oil crunch prices. Happens all the time, things that are supposed to be "temporary" never go back to what they were before.

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. Hopefully people don't start cancelling the cruise because of high air fares.

 

 

We'll never cancel a land based vacation or cruise vacation because of high airfares. never...ever...ever. We need our vacations :D

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We will be driving to the port for our November Ruby cruise. We've already done this last year in April.. Our roundtrip was fun, as we visited some places like St Augustine, Fl, where we've never been before, and then stayed in wonderfull hotel in FLL. (Ocean Mainor) :)

 

Our air fare would be twice as much of what we've spent on drive + food + everything else.

 

Our last two cruises where from local ports Bayonne and NYC, which saved us a lot.

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You can bet that IF oil prices come down, the airline and cruise industry will not drop their prices to before the oil crunch prices. Happens all the time, things that are supposed to be "temporary" never go back to what they were before.

 

You are too much a pessimist.

 

Look at the price at the gas pump. When oil prices fall the gasoline prices DO follow, but it is slower then the rise. Why do they rise fast but fall slower, the answer is simple

 

When the crude price goes up everyone needs to raise prices immediatly as if they don't they will lose money on each sale. They more or less pay similar wholesale price.

 

When the price of crude goes down, the only thing that forces prices to drop is competition. One station lowers prices a few cents as his wholesale price drops that cause more business, then soon others must match or beat it. Competition slowely drives the price lower, but not the same forces as when prices went up due to the wholesale increase with increased oil.

 

If oil and jetfuel do indeed drop quickly this year ( It WON'T ) the airline industry is very undiciplined one, they will react quickly. Look at them they are willing to swallow billions in losses already all in the name of competition even if they lose money :D

 

Competition is also fierce in the crusing industry so I very much expect prcing to fall if they realize material cost saving with droping oil.

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Look at them they are willing to swallow billions in losses already all in the name of competition even if they lose money :D

 

Airlines would not stay in business long if they "swallow billions in losses in the name of competition".

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who knows when all this will end:eek: :eek:

Of course if we started drilling here that alone would get the prices down:D :D

 

No it won't, because companies who invest in such expensive project won't sale oil for less. We don't live in government controlled country. ;) It's free market.

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No it won't, because companies who invest in such expensive project won't sale oil for less. We don't live in government controlled country. ;) It's free market.

 

Actually the market is artificially high, it is real in the sense the oil cost more to refine and the prices are passed on to us, but it isn't classical supply demand, NO WAY. In a true natural supply demand market such a rapid price rise would only be consistent with shortages. Today we see NO shortages anywhere for any oil based product. The prices are high based on un-natural demand. This is driven by markets that are pricing future supply demand but not todays situation.

 

If somehow we were to release all the drilling off our coast similar to what Brazile has done prices will drop 20-50% immediatly because the market makers would price in the future supply coming in 10 years.

 

Happy hedgers

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If somehow we were to release all the drilling off our coast similar to what Brazile has done prices will drop 20-50% immediatly because the market makers would price in the future supply coming in 10 years.

 

Happy hedgers

 

I think just starting to drill would drop the prices and in conjunction we would have to get the technology to produce alternate fuels for the future.

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Actually the market is artificially high, it is real in the sense the oil cost more to refine and the prices are passed on to us, but it isn't classical supply demand, NO WAY. In a true natural supply demand market such a rapid price rise would only be consistent with shortages. Today we see NO shortages anywhere for any oil based product. The prices are high based on un-natural demand. This is driven by markets that are pricing future supply demand but not todays situation.

 

If somehow we were to release all the drilling off our coast similar to what Brazile has done prices will drop 20-50% immediatly because the market makers would price in the future supply coming in 10 years.

 

Happy hedgers

I nominate Chipmaster as the Cruisers' official nomination for President.:D

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Actually the market is artificially high, it is real in the sense the oil cost more to refine and the prices are passed on to us, but it isn't classical supply demand, NO WAY. In a true natural supply demand market such a rapid price rise would only be consistent with shortages. Today we see NO shortages anywhere for any oil based product. The prices are high based on un-natural demand. This is driven by markets that are pricing future supply demand but not todays situation.

 

If somehow we were to release all the drilling off our coast similar to what Brazile has done prices will drop 20-50% immediatly because the market makers would price in the future supply coming in 10 years.

 

Happy hedgers

 

 

HUH???

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With fuel costs doubling for all of us - airlines included in the last year, they have to find some way to try and recoup the expense. My bigger worry is - what airlines will still be in business by our March 09 cruise? With consolidations happening and airlines loosing money left and right, I'm more concerned that I won't have a ride to / from FLL in March next year. Right now I'm checking the Southwest web site daily to see when they release their Q1 09 schedules. Driving from Phoenix is not a good option for us. Iv'e got my fingers crossed on this one.

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Yes, there are some people whom will fly and cruise at whatever cost; however, travel is not a necessity and will become an unfordable luxury to many. If you can't fly to the port at a "reasonable cost" then people won't cruise. It's just that simple. I would not be surprised it you see cruise line homeport more ships, use charters and remember that popular air/sea package that has disappeared over the years to come back. Cruise line need to fill those ships. They can't just take them out of service and park them. Remember some of these ships cost over 500 million dollars. The cruise line need to fill those cabins at whatever price they can. It will be real interesting to see how these high oil prices effect the travel industry.

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