Azamara To End Fuel Surcharge (Sort Of)

[Andy]

Hi Everyone !

 

Headline just released, Celebrity / Royal Carribbean / Azamara will end fuel surcharges for NEW bookings placed on or after November 10th... For sailings that depart AFTER Jan 1, 2010. Current bookings refunds, if any (in the form of an onboard credit) will be decided upon Global Fuel Prices.

 

Here is the Press Release :

 

MIAMI, Oct. 24 /PRNewswire-FirstCall/ -- Royal Caribbean Cruises Ltd. today announced that the company's fuel supplement will no longer apply to new Royal Caribbean International, Celebrity Cruises and Azamara Cruises bookings made on or after November 10, 2008, anywhere in the world, for sailings that depart on or after January 1, 2010.

This decision takes into consideration the recent reductions in global fuel prices. The company has also established specific guidelines that will determine whether fuel supplement refunds will be provided for sailings that begin in 2009 and later, which were booked prior to November 10, 2008, if fuel prices remain below a specific price threshold.

For 2009 sailings and 2010 sailings booked before November 10, 2008, the company will determine on a quarterly basis whether fuel supplements will be refunded. Refunds, in the form of an onboard credit, will be provided if the closing price of West Texas Intermediate fuel is $65 or less, at the closing time of the New York Mercantile Exchange, two weeks prior to the beginning of the upcoming calendar quarter. When those conditions are met, an onboard credit will be provided to all guests on sailings that begin during the upcoming calendar quarter.

The dates on which the price of West Texas Intermediate fuel will be measured, and the quarters during which refunds could apply are:

Fuel Price Determination Date Quarter of Possible Fuel Supplement Refunds

 

December 18, 2008 First quarter 2009

March 18, 2009 Second quarter 2009

June 17, 2009 Third quarter 2009

September 17, 2009 Fourth quarter 2009

December 18, 2009 First quarter 2010

March 18, 2010 Second quarter 2010

June 17, 2010 Third quarter 2010

September 17, 2010 Fourth quarter 2010

 

The company will continue to closely monitor the movement of global fuel prices and recognize that an upturn in those prices could necessitate the reinstatement of a fuel supplement.

[djr7879]

That's some good news, although I'm not counting on it yet. For anyone interested, here is a link to the current pricing on WTIC crude oil, in real time. You'll find it in the upper left of the page:

 

http://www.post1.net/lowem/page/livequotes

[Andy]

Hi Djr !

 

I agree that its wise, to not count on it. It will all depend on if Oil can stay at current levels, and that matter is anyone's guess.

 

Let's hope it happens !

[critterchick]

I wish Azamara would consider reducing the fuel supplement back to $10 per person to match its sister lines, and cap it as they do (I believe RCI and Celebrity cap it at 7 nights).

[tnt10]

Really, the whole of idea of fuel surcharges is a shell game. The bottom line is the cruise is costing the customers more money.

Now, when you look into the cost of a cruise, doesn't everyone automatically add the fuel surcharge, along with the taxes and fees?

The cruise lines should just raise the cost, and forget the fuel surcharges.

And for the record, X and RCL both charge $10.00 pp per day up to the first 14 days of a cruise. Why Azamara charges $15.00 id anyones guess. :rolleyes:

TnT

[Andy]

Really, the whole of idea of fuel surcharges is a shell game. The bottom line is the cruise is costing the customers more money.

Now, when you look into the cost of a cruise, doesn't everyone automatically add the fuel surcharge, along with the taxes and fees?

The cruise lines should just raise the cost, and forget the fuel surcharges.

And for the record, X and RCL both charge $10.00 pp per day up to the first 14 days of a cruise. Why Azamara charges $15.00 id anyones guess. :rolleyes:

TnT

 

Hi Tnt !

 

I thought Your post needed a repsonse. Here are my thoughts :

 

Cruise lines DO NOT add the fuel surcharge into taxes and fees. In fact, I dont know of any that do. It is a separate line item, and is done this way, specifically in the hopes of reducing or elimiminating fees, when it makes economic sense for them.

 

The fees are costing passengers more money. No disagreement there.

 

Is this a "shell game" ? Absolutely not. Oil costs went up tremendously, and the lines had no choice but to respond to it. We all agree that prices have now gone down almost as much as they went up. However, its not that easy to just eliminate the charges, as prices can go right back up again. If they took the surcharge away, and put it back 3 months from now.... that would only anger passengers even more. It's a real catch 22.

 

The Cruiselines should raise the cost of the Cruise ? Hard to say. For some, this would be a logical answer. For others, especially now that fuel prices are on a massive decline.... I am glad they havent added it into the cost. If prices stay down, hopefully the fuel surcharge will be a thing of the past as we move forward.

 

Azamara charges 15.00 vs other lines 10.00 : This is not surprising, as the ship is much smaller, but uses large amounts of fuel. As there are far less passengers on Azamara, than say a Royal Caribbean ship, it stands to reason the costs per passenger would be higher. Likes with same size ships, such as Oceania, also charge 15.00 Per Person, Per Day.

 

Now that fuel prices have come down significantly, it would be a great gesture if Azamara reduced the price from 15.00 PP Per Day, to 10.00 PP Per Day, while adhering to Royal Caribbean/Celebrity's press release from Friday. You can read more about it in earlier posts on this thread.

 

Let's hope that over the coming months, Oil prices remain near current levels or go lower (yes, I think they can go lower !), so fuel surcharges will eventually come to an end.

[tnt10]

Hi Andy,

Thanks for the clarifications, but I'm not sure they were necessary. The fuel surcharge is added to the cruise fare, just as tax and fees are added. I never said they were combined with the taxes and fees. They are just another item to add, like taxes and fees, to a cruise's total cost.

As far as a higher fuel surcharge, I guess my question is the following: if the space ratio on AZ or Oceania is less than those on some X or RCL cruise ships, why should the surcharge be higher? Do they get less nautical miles to the gallon? Or is it simply due to the positioning factor of Deluxe vs. Premium lines? I'm thinking it's the latter.

It's just frustrating to look at cruise prices and then figure a higher add on for taxes, fees, and now fuel surcharges.

Thanks,

Tim

[tnt10]

Hi Andy,

Just re-re-read my posts. Maybe they could be construed a different way. I meant to say: as consumers, to tally the total cost of a cruise we need to add the following:

1. The Cruise line stated stateroom price pp

2. Add taxes

3. Add port fees

4. Add fuel surcharges

That seems to be a lot to have to add to the advertised cruise stateroom price.

Bottom line-we, as consumers, are paying more for our cruises.

Thanks

Tim

[susiesan]

Hi Andy,

Just re-re-read my posts. Maybe they could be construed a different way. I meant to say: as consumers, to tally the total cost of a cruise we need to add the following:

1. The Cruise line stated stateroom price pp

2. Add taxes

3. Add port fees

4. Add fuel surcharges

That seems to be a lot to have to add to the advertised cruise stateroom price.

Bottom line-we, as consumers, are paying more for our cruises.

Thanks

Tim

 

Don't forget to add airfare. I was intrigued when I got some emails from TA's about super cheap 7 day cruises on NCL in Jan-Feb, $460 in an inside including all port charges, taxes, fuel surcharges+onboard credits. So I looked at airfare to Miami at that time-$525. No January cruise for me. I am so glad I booked my next AZ cruise in April monthsago when the fuel surcharge was only $7 a day.

[Aussie Gal]

As far as a higher fuel surcharge, I guess my question is the following: if the space ratio on AZ or Oceania is less than those on some X or RCL cruise ships, why should the surcharge be higher? Do they get less nautical miles to the gallon? Or is it simply due to the positioning factor of Deluxe vs. Premium lines? I'm thinking it's the latter.

 

I agree. How does Princess with 3 of the smaller ships - Royal, Tahitian and Pacific Princess - manage to keep the charges to $11 a day with a cut off point after 14 days!

 

Jennie

[world~citizen]

Is the announcement of the end of a fuel surcharge to take effect the year after next a little cynical?

[ikelmay]

Without wishing to sound cynical myself, why would you have thought any differently? The RCCL oil futures purchasing was managed vastly better than Carnival Corp, yet RCCL introduced their fuel surcharges at almost an identical time as Carnival, once CCL was able to make their surcharging stick.

 

I would be more impressed if RCCL came up with a graduated scheme that rebated part of the surcharge between now and 2010 - as it is, I will believe the cancellation of the surcharge when I see it. My guess is that between now and 2010, the surcharge will be reimposed in one shape or another. Like governments, once semi monopolistic concerns have found a revenue stream, it's very difficult to break away from that source of income.

[mike35]

Hi Andy,

Just re-re-read my posts. Maybe they could be construed a different way. I meant to say: as consumers, to tally the total cost of a cruise we need to add the following:

1. The Cruise line stated stateroom price pp

2. Add taxes

3. Add port fees

4. Add fuel surcharges

That seems to be a lot to have to add to the advertised cruise stateroom price.

Bottom line-we, as consumers, are paying more for our cruises.

Thanks

Tim

 

And we as TA's receive commission just on #1 above. The cruise lines have stopped calling #3 "Port Fees" - they're now referred to as "Non-commissionable fees" (although most consumers still refer to them as port charges - a real misnomer). While not as much of an issue with higher-priced cruise lines, it's really rather disheartening when we TA's sell a low-end "loss leader" cruise that, for example, breaks out as follows:

 

1. Cruise fare -- sale price of $199

2. "Port Charges" (i.e., non-commissionable fees) -- $250

3. Government taxes and fees -- $75

4. Fuel surcharges -- $70

Total cost per person -- $594

Commission --10% of $199 = a whopping $19.90! Or 3% of the total fare.

 

But hey - I love this business!

[Project_gal]

Andy

 

The fuel-surcharges applied for US and UK booking were different. Do you know if the announcement is for the US market only or for worldwide bookings?

 

Thanks.

 

Sue

[denims]

1. Cruise fare -- sale price of $199

2. "Port Charges" (i.e., non-commissionable fees) -- $250

3. Government taxes and fees -- $75

4. Fuel surcharges -- $70

Total cost per person -- $594

Commission --10% of $199 = a whopping $19.90! Or 3% of the total fare.

 

But hey - I love this business!

 

WOW!!! Find me a $199 cruise!!!!:D:D

[djr7879]

This is not great news.

 

http://news.yahoo.com/s/ap/oil_prices;_ylt=AmgQPDmPYo0qh.dMvgmQ_P2RP5Z4

 

Oil is now at $66 a barrel, and likely headed higher.

[SkiCruiser44]

Here's hoping they don't reinstate the surcharge for our Sept '09 cruise.

 

djr7879 - I see you are from Brentwood - I live in Franklin & work in Brentwood.

 

Kathy

[Susan-M]

This is not great news.

 

 

Not for cruisers .... but it is for investors. One way to offset the cost of the surcharge if it's reinstated, is to buy oil stocks and hope that your gains are higher than the surcharge.;)

[djr7879]

Not for cruisers .... but it is for investors. One way to offset the cost of the surcharge if it's reinstated, is to buy oil stocks and hope that your gains are higher than the surcharge.;)

 

Good advice. One of my investment theories for years has been that if you get mad that a company or industry is "ripping you off", buy their stock. Has worked pretty well except for banks!!