gas is going down, why we have pay surcharge?

[lpglarry]

Update: Carnival to Remove Fuel Surcharges (Kind Of)

(10:30 a.m. EST) -- Following Carnival Corporation's announcement to drop fuel surcharges, the remaining U.K. brands have now followed suit. Carnival U.K. -- which is responsible for Cunard Line, Princess Cruises, P&O Cruises and Ocean Village -- has announced that from 31 October 2008, fuel supplements will be eliminated for all new bookings on 2010 departures. Moreover, the surcharges might be refunded to passengers booked on 2008/09 departures.

 

Again, as with last week's announcement, the fuel supplement will be refunded in the form of onboard credit -- and the refund is alas, dependent on the price of oil.

 

There are few subjects sparking as much discussion on our message boards as cruise line fuel surcharges. But with the price per barrel dropping, numerous Cruise Critic members have been wondering aloud (or at least on the forums) whether it's time for the cruise lines to start eliminating -- or reducing -- the extra charges. Today, Carnival Corp. became the first to announce that they would do just that.

 

But before you get too excited, know this: The announcement comes with a major asterisk.

[redlef]

I do work for the auto rental industry, and they buy fuel futures to hedge against volatile prices. IOW, they contract months in advance for a set volume of gasoline at a set price. Trucking firms do the same. For a 100,000 ton ship, I'm sure they must pre buy fuel. So for the next few months at least, we will be sailing on ships using fuel bought months ago at a higher price than fuel costs today.

 

Don't really look at fuel surcharges as being fuel surcharge. All they are is price increases. If the $100 cruise was suddenly $170 and you got 10% off, your discount would come off the cost of the fuel, so they add in a certain amount outside the fare that is "un-negotiable". IMHO

[Ms belp]

I'm sure they will change them if warranted. In the meantime, I'll gladly pay because I'm going on a cruise! I can cut expenses elsewhere.

[Cosmopolitan]

I do work for the auto rental industry, and they buy fuel futures to hedge against volatile prices. IOW, they contract months in advance for a set volume of gasoline at a set price. Trucking firms do the same. For a 100,000 ton ship, I'm sure they must pre buy fuel. So for the next few months at least, we will be sailing on ships using fuel bought months ago at a higher price than fuel costs today.

 

Don't really look at fuel surcharges as being fuel surcharge. All they are is price increases. If the $100 cruise was suddenly $170 and you got 10% off, your discount would come off the cost of the fuel, so they add in a certain amount outside the fare that is "un-negotiable". IMHO

 

In our business, fuel surcharge prices were incurred a year before we all paid the increases at the pump and the increases have not been lowered...to date!

[newmexicoNita]

Update: Carnival to Remove Fuel Surcharges (Kind Of)

(10:30 a.m. EST) -- Following Carnival Corporation's announcement to drop fuel surcharges, the remaining U.K. brands have now followed suit. Carnival U.K. -- which is responsible for Cunard Line, Princess Cruises, P&O Cruises and Ocean Village -- has announced that from 31 October 2008, fuel supplements will be eliminated for all new bookings on 2010 departures. Moreover, the surcharges might be refunded to passengers booked on 2008/09 departures.

 

Again, as with last week's announcement, the fuel supplement will be refunded in the form of onboard credit -- and the refund is alas, dependent on the price of oil.

 

There are few subjects sparking as much discussion on our message boards as cruise line fuel surcharges. But with the price per barrel dropping, numerous Cruise Critic members have been wondering aloud (or at least on the forums) whether it's time for the cruise lines to start eliminating -- or reducing -- the extra charges. Today, Carnival Corp. became the first to announce that they would do just that.

 

But before you get too excited, know this: The announcement comes with a major asterisk.

I think we all have to read that Asterisk, it affects sailing starting in 2010, can be added back and the prices of cruising on Carnival starting 2010 are going up. I look at this as a PR stunt, nothing more, nothing less. That being said, I am sure if gas drops another 20.00 per barrel we will start seeing some, if not all the charge being removed. We have to remember the cruise lines. like the airlines buy oil far in advance. It isn't like us going to the corner station and filling up when the rates go down.

 

Nita