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Rccl Removes Fuel Supplement!

Broch

By Broch,
in Royal Caribbean International

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negc

negc

Posted
Posted
Carnival already announced that for all 2010 booking they will suspend fuel upcharge. I am sure most of the cruise line will follow with a similar programms

in the next few months.

 

The only caveat that I would add, is that they also announced that they would be increasing their fares at the same time. The only question at the moment is whether or not those increases will be less than, equal to, or exceed the fuel surcharges.

It should go without saying that whatever Carnival does, the other lines are likely to do something similar. In the meantime lets wait and see if the current lower fuel prices remain in effect for at least twenty five consecutive business days. If they do, Carnival has promised to reduce or rebate the surcharges that are currently in effect.

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negc

negc

Posted
Posted
No.

 

When I spoke with two different reps the other day, they said that (as far as they knew) there was not a plan in place to reduce or remove the fuel surcharge.

 

 

I think that the operative words are "as far as they knew". Fortunately, or unfortunately, those kinds of plans are made by the cruise line executives and they are unlikely to share them with the lower echelons of the company until they have to. All too often the CSRs are among the last to find out about them. If Carnival carries out its announced plans, I am pretty sure that the other lines, including RCI will do something similar.:)

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negc

negc

Posted
Posted
Very true.

 

If they were to remove the charge, would you expect to see fares increase as Carnivals did?

 

It wouldn't surprise me if they did. However, fares usually reflect what the cruiselines believe the market will bear. If there is a problem filling ships, prices generally decline (or special offers suddenly appear) and if they are able to fill the ships without difficulty, higher prices will be the order of the day. Pretty much a "supply and demand" proposition.:)

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Georgiagolfer

Georgiagolfer

Posted
Posted

While I agree with other posters, isn't it almost sure that prices will increase in 2010? Everything is higher that we purchase, so I feel cruise prices will increase in the same manner. Hopefully RCI will make an announcement of some type concerning fuel surchages in the near future. CCL is just implementing what they initially announced they would do, so I at least give them credit for that.

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Maraprince

Maraprince

Posted
Posted

Local NY pol today made the point that the gas/oil companies were quick to pass the higher rates onto the consumer but are dragging their feet now that the costs have dropped. He is supposed to be taking some action to find out why the consumers prices haven't dropped.

 

However, don't expect the cruise lines to follow suit. Once they are used to the higher rates, no way will they willingly give them back! I am sure that they will try to raise the base price as well.

 

It will be interesting with the economy to see what the base prices end up being. It bookings drop off, prices will have to come down to fill up these really big ships.

 

 

MARPRINCE

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firefly333

firefly333

Posted
Posted
Is Carnival raising their rates to exactly match what someone would have paid under the current, fuel structure rate?

 

Ahhh!!! The $34Million Dollar Question. I personally am betting that its going to be hard to raise ALL categories the exact amount of the fuel surcharge and have it stick for the lower categories.

 

We will not know until Oct 31st when we see the new prices.

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firefly333

firefly333

Posted
Posted
Local NY pol today made the point that the gas/oil companies were quick to pass the higher rates onto the consumer but are dragging their feet now that the costs have dropped. He is supposed to be taking some action to find out why the consumers prices haven't dropped.

 

I locked in my electricty rate one year ago at 13.3 cents per kilowatt and now they want me to lock it in at 14.2 cents. I have been around with two girls now, and I said, if oil was more expensive one year ago, why are you wanting me to lock in to pay more for it. "because we have not reduced rates", well Im asking why", "because the main electricity company hasnt and they charge more and we price according to what they price out at".

 

They are pointing out to me, that if I refuse to lock in this bargain rate, I will just be charged more, because no one is reducing the rates, they only go up. I must be stupid, because these arguments make no sense to me. I said no thanks when they called back today.

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devolution_9

devolution_9

Posted
Posted

I would be surprised if the cruise lines raise their rates in the next two years, as with the credit crunch going on in the USA (and the rest of the world) my gut feeling is that:

 

1. with 401Ks being turned into 201Ks or 101Ks a lot of potential cruisers will be reconsidering whether they have the available funds to commit to a cruise in the next year or two..

 

2. a percentage of cruisers financed their activities by taking equity from their homes and spending it... as asset prices are currently deflating in the US and most banks are cutting MEWs (mortgage equity withdrawals) this source of cruising funds will be cut off for at least the next three to five years

 

3. as 1 and 2 will decrease demand for RCL's product, this will create the obvious gut in supply, thus holding prices steady...

 

However, the talk of creating more then one "cruising class" might be accelerated, as RCL caters more to those who can commit more funds to the cruise line and creating a second class of "you should be glad we let you on the ship" economy cruisers. I personally would hate to see this happen but anything is possible.

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negc

negc

Posted
Posted
While I agree with other posters, isn't it almost sure that prices will increase in 2010? Everything is higher that we purchase, so I feel cruise prices will increase in the same manner. Hopefully RCI will make an announcement of some type concerning fuel surchages in the near future. CCL is just implementing what they initially announced they would do, so I at least give them credit for that.

 

Read their announcement more carefully. They aren't implementing anything at this time - only setting specific conditions where they would reduce or refund the current surcharges. And the likelihood of those conditions actually occurring are still problematic at best.:( They also announced that should oil prices resume their climb they reserve the right to reinstitute those charges. As far as increasing their 2010 prices to match any elimination of fuel surcharges that is anyone's guess. They could institute a series of incremental increases that, in the final analysis, would net them even greater revenue and by building it into the basic cruise fare it will be more difficult to determine how much of the increase is just a normal increase and how much is meant to substitute for the fuel surcharge. Rest assured that they have people on staff who are well versed in pricing issues and are quite capable of disguising those increases so that they are almost impossible to see. I think that the phrase "figures can lie and liars can figure" might prove applicable.:rolleyes: Getting them to remove the fuel surcharge could prove to be a pyrrhic victory.

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MKRacing66

MKRacing66

Posted
Posted

On the cruise I just finished, this question was asked directly to the captain. His reply was that given that RCCL "forward buys" fuel, and given the inventory, he did not see that the fuel charge would go away in the near future.

 

Our ship, btw, burned 70,000 gallons of diesel per day, for 3100 passengers. So, about 22 gallons of diesel per day, per passenger.

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Broch

Broch

Posted
  • Author
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Thank you for your replies. I have been told this before about forward buying of fuel but I don't see the difference because at the end of the day it comes down to averages and because most passengers buy cruises on a forward basis say a year in advance, surely the surcharge should not come into effect until nearer the cruise date. When they put on the surcharge IMO passengers should be told that if gas returns to the same level or at a percentage above, as when the cruise was booked then the surchage will be removed, but I doubt this will ever happen.

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Broch

Broch

Posted
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Thank you for your replies. I have been told this before about forward buying of fuel but I don't see the difference because at the end of the day it comes down to averages and because most passengers buy cruises on a forward basis say a year in advance, surely the surcharge should not come into effect until nearer the cruise date. When they put on the surcharge IMO passengers should be told that if gas returns to the same level or at a percentage above, as when the cruise was booked then the surchage will be removed, but I doubt this will ever happen.

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Lakers1041

Lakers1041

Posted
Posted

Fuel Supplement Information

October 24, 2008, Update

Our fuel supplement will no longer apply to new Royal Caribbean International 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. We have 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, we 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

 

We 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.

 

This was on their website!:D

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critterchick

critterchick

Posted
Posted

Interesting news. I guess I'll add West Texas Intermediate to the list of things that I track!

 

It would be nice if they had some kind of sliding scale - since they implemented the fuel charge at $5, then went to $8 and now $10.

 

But at least RCI is only $10 and they cap it - we have a cruise on Azamara in May where it's $15pp with no cap.:eek: Now, THAT would be an awesome refund!

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