FUEL Surcharges: + -

[AAAAmerican]

What are you opinions of the Passenger Cruise Ship Lines , so called, Fuel Surcharges ?

 

Is it a OneWay < > Revenue Avenue? :mad:

 

 

EG: Another Airline today announced a dramatic Decrease in it this.

One has even lowered Domestic and overseas Cargo Fuel Surcharges too.

 

 

How come Passenger Cruise Ship Lines with there mass reductions in Costs for fuel don't Lower our costs now?

 

Oil (CRUDE) has gone down by over 40 % since even August 2008 A.D. today, September 08, 2009 A.D., closing at $106.15 a barrel (brl)

 

The Cruise Lines are adding the Fuel Surcharges to each passenger and that now is as large as the TIP (Gratuity) per person....

 

 

 

 

 

 

[Gonzo70]

Oil is only down about 15% from when Royal Caribbean (Celebrity's parent company) made it's latest addition to the fuel surcharge (raised from $7 to $10 per day). The cruise lines were very slow in tacking on fuel surcharges, so we should not be surprised if they wait to see if oil stays down before doing away with them (there is a cost in involved in making changes to the policy, so they don't want to change it frequently). If oil keeps dropping, eventually they will lower the charge.

 

Carnival Corporation openly announced when they made their initial $5 per day charge that oil would have to drop to under $80 per barrel for over 30 straight days to have the surcharge removed. Disney stated over 30 days at under $70 per barrel. I do not think Royal Caribbean has made public a specific rule they are using, but would guess they would do something very similar. I am not sure of the specifics the companies have in mind to begin scaling down the surcharges but an educated guess would be over 30 days under $100 per barrel. Hopefully we will see this happen, but unfortunately oil may shoot back upwards again.

[barryod]

What do I think? I don't like it and have voiced my opinion to Celebrity. Unfortunately, that's about as far as it will go. I could stop cruising, but my cabin would be sold to someone else. Not long ago, gas was a buck fifty a gallon, it went to almost $5.00 and when it comes down to $3.00 everyone will cheer and say "isn't it great that gas is cheap again?" We'll live with the extra cost.

[as41shots]

IMHO, there should be no fuel surcharges on newly priced cruises, ie - RCCL's Oasis of the Seas, which just started booking. At this point the cruise lines should factor in current oil prices into their pricing of new cruises, and be done with it. I could see where a cruise announced 12-24 months ago when oil was substantially lower could justify an upward adjustment, but newly added cruises should take that into account so it doesn't appear that they are nickel and diming us any more than they are.

[Drink-in-Hand/Toes-in-Sand]

At this point the cruise lines should factor in current oil prices into their pricing of new cruises, and be done with it.

 

I couldn't agree more. By this time they have adjusted their pricing--and if you've seen recent prices you know that certainly is the case--so fuel surcharges should become a thing of the past.

 

It's like airlines charging for the first checked bag. If I'm flying somewhere, chances are I'm going to stay overnight--otherwise I'd just drive. Apparently they expect me to carry my underpants in the one carry-on I'm allowed. I simply avoid those airlines. :(

[AAAAmerican]

By Clarke Canfield, Associated Press Writer

As cruise lines change routes to cut fuel costs, there are new port city winners and losers

 

PORTLAND, Maine (AP) -- When the 1,020-foot Explorer of the Seas cruises through North Atlantic waters next year, it'll spend more time off the coast of New England and less time near Canadian shores, and it's not because of better vistas.

 

ADVERTISEMENT

Royal Caribbean International and other cruise lines have begun charting a new course in search of routes that eat up less fuel. Already one of the industry's biggest costs, record fuel prices have cut heavily into the bottom line.

 

The impact of shifting itineraries will certainly have implications beyond the bottom line of cruise operators, creating winners and losers in port towns all along the way.

 

When cruise ships pull into Maine's Bar Harbor, passengers spend an average of $105 each while ashore, according to a 2002 University of Maine study.

 

Explorer of the Seas can carry more than 3,000 passengers.

 

A ship even half that size could mean nearly $160,000 per visit. That means big money in Portland, which expects more than 30 visits next year from ships that can carry between 1,000 and 3,000 passengers.

 

While Portland stands to reap big rewards from the itinerary changes, port cities along Canada's Atlantic coast could be on the losing end.

 

Canada's Atlantic ports saw a 33 percent jump in cruise ship visits between 2000 and 2007, according to the Atlantic Canada Cruise Association.

 

"It's disappointing to be losing a bit of business, but we realize that cruise lines have to make decisions based on best-business practices," said Betty MacMillan, vice chairwoman of Atlantic Canada Cruise Association and business development manager of the port of Saint John, New Brunswick.

 

Royal Caribbean International changed the fall itinerary for the Explorer of the Seas along its northern route next year, shortening the distance between ports. Rather than sail from New Jersey to Quebec City and back, the ship will add stops in New England and go no farther than Halifax, Nova Scotia.

 

Fuel consumption was the primary reason, said Vice President Diana Block.

 

"You have to look at where the biggest benefit is financially with the least impact on the guests," she said.

 

Annual fuel bills for cruise lines can add up to hundreds of millions of dollars and their ships can gobble up tens of thousands of gallons of fuel on any given cruise. The price of intermediate fuel oil, which most cruise ships use, has risen in tandem with crude oil.

 

Many cruise lines have added fuel surcharges to passenger bills, but energy costs continue to cut into profits and squeeze margins.

 

Cruise lines have also begun using energy-efficient light bulbs and new window coatings that reflect the heat from the sun to keep rooms cooler. They've also been using new hull paint that reduces a ship's drag in the water.

 

And increasingly, cruise lines are altering itineraries so ships can slow down and reduce their travel distances, said Lanie Fagan, spokeswoman for the Cruise Line International Association. Carnival Corp., Norwegian Cruise Line and others have said high fuel costs are a factor in new routes.

 

"While it is paramount to offer a cruise itinerary that a guest wants to sail, the design and sequence of that itinerary can be evaluated to minimize the distance between ports of call and the speed necessary to accomplish that itinerary," Fagan said.

 

In many cases, passengers will barely notice the difference.

 

Besides changing port calls on some routes, Royal Caribbean is reviewing its departure and arrival. In some cases, ships are leaving port half an hour earlier at night or arriving half an hour later in the morning -- allowing ships to travel at slower speeds between ports.

 

Cutting speed cuts costs. For example, going 23 knots will consume twice as much fuel as going 15 knots for the new Solstice class of ship being launched this year by Celebrity Cruises, said John Krousouloudis, senior vice president for marine operations.

 

Even as cruise lines watched fuel prices ratchet up costs, some port cities had already seen an opportunity.

 

In Maine, a consortium that promotes Portland as a cruise ship destination is using high fuel costs as part of its marketing strategy.

 

Last fall, Discover Portland & Beyond Executive Director Sandra Needham met with half a dozen cruise ship companies in south Florida. She presented them with some mock itineraries for their ships detailing how much money they could save in fuel costs if they included Portland on certain routes.

 

Besides touting southern Maine's attractions, Needham wanted to show cruise line executives how having port calls relatively close together could save them money.

 

By stopping at ports that are relatively close together, the ships could cruise at speeds of 12 knots or so rather than higher fuel-guzzling speeds, she said. Her itineraries showed that a few tweaks here and there could save cruise lines between $40,000 and $100,000 a week in fuel alone -- and that was ten months ago, when fuel prices were lower.

 

She thinks the high price of fuel is one reason cruise lines have committed to bringing large ships, those with over 1,000 passengers, to Portland 34 times next year, up from 24 stops this year.

[Moeve]

You all forget that cruises that went out with those high oil prices were alll sold during a period of time in which oil was still at 80,- USD per barrel so cruise lines have nowhere near recuperated those costs - that will only happen in the next 12 to 18 months. So do bet on those fuel surcharges disappearing any time soon.

[as41shots]

You all forget that cruises that went out with those high oil prices were alll sold during a period of time in which oil was still at 80,- USD per barrel so cruise lines have nowhere near recuperated those costs - that will only happen in the next 12 to 18 months. So do bet on those fuel surcharges disappearing any time soon.

I refer you to post #4.

[as41shots]

You all forget that cruises that went out with those high oil prices were alll sold during a period of time in which oil was still at 80,- USD per barrel so cruise lines have nowhere near recuperated those costs - that will only happen in the next 12 to 18 months. So do bet on those fuel surcharges disappearing any time soon.

I refer you to post #4.

[Gonzo70]

What do I think? I don't like it and have voiced my opinion to Celebrity. Unfortunately, that's about as far as it will go. I could stop cruising, but my cabin would be sold to someone else. Not long ago, gas was a buck fifty a gallon, it went to almost $5.00 and when it comes down to $3.00 everyone will cheer and say "isn't it great that gas is cheap again?" We'll live with the extra cost.

 

That might be wishful thinking. Gas very likely will go to $8 in the next few years.

[hajekfam]

If I understand correctly, travel agents get a commission based on cruise price - not the surcharges and taxes. So if that is the case, if the fuel surcharge was added to cruise price instead of being a separate charge, the cost would go up even more than the $10 per day as the commission would have to be written into that price.

For the arguement that "I book directly with the cruiseline, so the cruiseline doesn't have to pay a commission" - Even if you book directly with the cruiseline, they do have to pay those agents who take your reservation so the cruiselines aren't saving much by you booking directly.

[Silver sailor]

EG: Another Airline today announced a dramatic Decrease in it this.

One has even lowered Domestic and overseas Cargo Fuel Surcharges too.

AAA

Just out of curiosity what airline are you referring to

Regading full charges I think those who are sailing now or in the immediate future are paying for the lost revenues of prior cruises

If I rember correctly the cruise lines tries to make these charges effective retroactive and this practice was overturned by the courts in Flordia

That sais I also fell that if the price of oil continues to hold or decrease further the fuel charge should either be decreased or eliminated

[AAAAmerican]

NWA did the public announcement:cool:

 

 

 

 

Northwest to cut fuel surcharges

Monday September 8, 4:44 pm ET

Northwest Airlines to cut fuel surcharges due to slumping price of jet fuel

 

EAGAN, Minn. (AP) -- Northwest Airlines Corp. said Monday it will cut fuel surcharges in certain markets because of a recent decline in the price of jet fuel.

 

 

[beverland]

the price of the cruise and be done with it. I am tired of hearing about the fuel surcharges. :(

[Gonzo70]

the price of the cruise and be done with it. I am tired of hearing about the fuel surcharges. :(

 

That actually would make it worse for consumers. They do not have to pay TA comissions on taxes, port fees, and fuel surcharges. If they made it part of the fare, they would have to tack on an additional amount to cover the TA comissions. There may also be a tax advantage of them having it as a separate item (but I am not sure on that).

[AAAAmerican]

First on this Patriots Day, 2008 A.D. 09/11

 

Lets all say a prayer for all the fallen, souls and families of loved ones which parished on that dreadful day in 2001 A.D. we shall never forget!

 

 

 

Oil today closed just above only ONE HUNDRED US Dollars ($100.10).

 

NYMEX at $100.87 DOWN Another -$1.71 USD.:D

 

 

Does oil have to go to $50.00:mad: a barrel for the Passenger Cruise Lines to STOP the so called FUEL SurCharges?

 

 

 

 

[JanineM]

From what I have been told, the cruiselines, like all big consumers of oil, buy forward contracts for their fuel. So the fuel they are using now was purchased some time ago. They began adding the fuel surcharge when the older/cheaper contracts expired.

 

If this is true (and a commodities broker explained it to me), then the cruiselines are still in contracts for more expensive oil. I don't know how/if/when they can break the contracts, or if there is some remediation when prices came down. But we have to stop thinking that cruiselines pull up to a marina and pay the going rate for fuel - because they don't.

[dutchess43]

If's it is true that cruise lines like all big companies buy forward contracts then why is Northewest along with another airline(name escapes my right now) are planning to make fuel surcharge cuts? No industry I feel is hurting more then the airlines, & I am not an airline's cheer leader.

 

Drink-in-hand/toes-in-sand I love your posting about your underwear in your one carry on. I gave me quite a chuckle on such a sad day. Thank you.

[Gonzo70]

If's it is true that cruise lines like all big companies buy forward contracts then why is Northewest along with another airline(name escapes my right now) are planning to make fuel surcharge cuts?

 

Different companies hedge different percentages of their total fuel expense and at different times and at different rates and for different lengths of time.

 

That said, if oil goes under $100 for over 30 days, I think the public should start putting some pressure on the RCL and CCL to scale the fuel surcharges back to a lower level.

[bobbyleduck]

I don't understand the sadness related to 9/11/01. America took their best shot and we're still standing. A little worse for wear, a few too many freedoms given up for security, but still here none the less. We all need to be thankful for what we have, know that many, many people around the world don't even have the opportunity to cruise, and smile because we can. (I mean we should smile because we can smile, not because we can cruise.)

 

Regarding surcharges: I am with those who believe that prices should be all inclusive (Such as the price advertised should include the cruise, food, taxes, fees, and run of the ship.) No surcharges, and no surprises for the new cruisers. Because tipping isn't mandatory, I don't include it with the other five.

 

A business should plan for the future, and by planning I mean the cruiselines should hedge oil and food prices far enough out, and then change prices for future listed cruises as costs (whether oil or food) increase or decrease. Either that, or change prices on a daily basis and let the buyer beware. Caveat Emptor!

 

Is it too much to see an advertised price of $1,399 and believe that is the price? It would appear so, because by the time you factor in surcharges, taxes and assorted fees, it is nearly $300 more than that. That, of course, doesn't include gratuity, or shore excursions.

 

Enough of my rant.

 

Happy cruising to all!

 

Bob

[Putterdude]

 

Oil today closed just above only ONE HUNDRED US Dollars ($100.10).

 

NYMEX at $100.87 DOWN Another -$1.71 USD.:D

 

 

Does oil have to go to $50.00:mad: a barrel for the Passenger Cruise Lines to STOP the so called FUEL SurCharges?

 

 

 

 

 

 

And that is down from a high of what, $147 a barrel. So yes I think a reduction is in order.

[Moeve]

Rumour has it that oil has to go back to 80,- USD for a period of 30 days for them to kill the surcharge.

 

Some of you FORGET that those cruises going out with the expensive fuel were mostly sold at rates which were based on 80.-USD per barrel so it will take some time to make up for the missing fuel charge. on top of that the Florida Authorities woul not let the cruise lines back charge the fuel surcharge so those who truely cruised with those high prices are not actually going to be paying them but rather those people who booked after the surcharge was included so I would think the cruiselines will continue chargin it to make up for the higher operating prices during the fuel hike.

[jt1120]

I totally understand the reasoning behind fuel surcharges. I'm paying more at the pump and I'm sure that the cruiselines are too. Remember, these ships consume gallons to the mile, not miles to the gallon. That being said, I don't see why they don't roll it into the price of the cruise ahead of time. Heck, everything is more expensive nowadays, so if the cost of a cruise is more expensive, that's the way things are going these days. With the addition of a fuel surcharge, I feel like they are nickel and diming me even before I get on board.

[richsea]

I don't understand the sadness related to 9/11/01. America took their best shot and we're still standing. A little worse for wear, a few too many freedoms given up for security, but still here none the less.

 

You don't understand the sadness??? Surely you jest.:confused: Tell that to the relatives of the 3000 lost souls of the innocent victims of 9/11

[kjwinston]

Being an accountant, the word “sur-charge” means: 1) to overcharge 2) an additional charge 3) a temporary fee to adjust charges.

Look it up. It is to tell the client of a vendor that it will be charge because the company is being charged, and that they are passing it directly to them. I really believe that the cruise lines should just raise their prices and call it what it is: Inflation or how can I help the oil companies make even more money on the bottom line?

:(