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Rccl Removes Fuel Supplement!

Broch

By Broch,
in Royal Caribbean International

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Gonzo70

Gonzo70

Posted
Posted
In my opinion, while the drop in oil prices is their main explanation, I think other factors also contributed to their decision. And with OPEC cutting oil production, what if oil shoots above $100 a barrel again? Will they re-implement the surcharge? I think not. BTW... I am a shareholder so I follow their stock. There stock is at about $15.75 today down from a 52 week high of $43.96.

 

OPEC cuts will not bring the price back to $100 anymore than OPEC increases prevented rises in oil as oil kept skyrocketing earlier this year. For now oil is trending down and until the global economy begins roaring again it is likely to stay down. There are a lot of people speculating on $50 per barrel in near future. The current bad ecconomy has all sorts of negatives to it, but at least much cheaper oil & gas are a positive side effect. I think RCL is phasing out the fuel surcharge because they have to - fuel is no longer high enough for them to justify keeping the surcharge in place for long. I do not think the falling stock price was a factor; if oil was still high the fuel surcharge would remain.

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aurelius180

aurelius180

Posted
Posted
OPEC cuts will not bring the price back to $100 anymore than OPEC increases prevented rises in oil as oil kept skyrocketing earlier this year. For now oil is trending down and until the global economy begins roaring again it is likely to stay down. There are a lot of people speculating on $50 per barrel in near future. The current bad ecconomy has all sorts of negatives to it, but at least much cheaper oil & gas are a positive side effect. I think RCL is phasing out the fuel surcharge because they have to - fuel is no longer high enough for them to justify keeping the surcharge in place for long. I do not think the falling stock price was a factor; if oil was still high the fuel surcharge would remain.

 

 

And just because OPEC *agrees* to lower production doesn't mean they all do...;)

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aurelius180

aurelius180

Posted
Posted
I think the recent downgrade of their stock on October 23rd by Goldman Sachs and other analysts also had a hand in this. They have to increase bookings and eliminating the fuel surcharge may help.

 

 

"Stock price targets lowered for Carnival, Royal Caribbean

 

Shares of cruise operators declined as a Goldman Sachs analyst lowered some price targets, saying investors remain wary of companies whose performance is closely tied to discretionary spending.

 

The cruise industry and other sectors have been squeezed as consumers curb spending due to the housing downturn, diminishing credit and escalating food costs.... "

 

Goldman tied it discretionary spending and not high oil prices. With the losses people have taken recently oil could be $20/barrell there still wouldn't be too much extra money floating around.

 

It sounds like RCCL reduced/removed the surcharge because their original justification is gone.

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Fblack

Fblack

Posted
Posted

Some may be missing the point. Their low share price has cost them about $5 billion dollars in capitalization. The economy had a big part in driving down share prices. They have to get their stock prices back up. A fuel supplicant was not doing what was intended. (Increase their bottom line) They have been actively slashing fare prices and making deals. The fuel surcharge was ultimately driving up the cost of a cruise which in turn was slowing booking. My point is, share value is more important to them than recovering a few hundred dollars in fuel surcharges.

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Jaxsonbrownie

Jaxsonbrownie

Posted
Posted
They removed the fuel charges????? Where have I been all day?

 

Need to go find the details. Wooohooo!

 

And yeah, not going to be knocking that gift horse, thanks!

 

 

Here you go Crusinmama06:

 

 

 

Royal Caribbean Cruises Ltd. Announces End To Fuel Supplement

Miami - October 24, 2008 - 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.

 

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 38 ships in service and six under construction. It also offers unique land-tour vacations in Alaska, Asia, Australia, New Zealand, Canada, Europe and South America.

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Gonzo70

Gonzo70

Posted
Posted
Some may be missing the point. Their low share price has cost them about $5 billion dollars in capitalization. The economy had a big part in driving down share prices. They have to get their stock prices back up. A fuel supplicant was not doing what was intended. (Increase their bottom line) They have been actively slashing fare prices and making deals. The fuel surcharge was ultimately driving up the cost of a cruise which in turn was slowing booking. My point is, share value is more important to them than recovering a few hundred dollars in fuel surcharges.

 

I think you are off on your opinion. The share price has nothing to do with this. Oil has dropped from $148 per barrel to $64 per barrel. A fuel surcharge cannot be justified at this point in time. I think you are really stretching for an explanation when the obvious one is that they are phasing out the fuel surcharge because the cost of fuel is not below what it was when they instituted the fuel surcharge. It is as simple as that. They are trying to boost profits through various cost cutting measures that have been discussed ad nauseum on these boards; that is how they are hoping increase profits - and thereby raise the share price.

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hayward

hayward

Posted
Posted

I JUST GOT THIS OFF THE WEBSITE

 

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.

 

~~~~~~~~~~~

 

Currently

(Since June 30, 2008)

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mikeblum

mikeblum

Posted
Posted

if we sail on the mariner of the sea's on sunday march 15th then our fuel surcharge will be given back in the form of a onboard credit if the price of oil is below 68.00 a barrel...on december 18th 2008...it sounds like the second qtr date will be march 18th...for those folks...but mine would be 12-18-2008...does anyone know what the price of a barrel is right now...

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Gonzo70

Gonzo70

Posted
Posted
if we sail on the mariner of the sea's on sunday march 15th then our fuel surcharge will be given back in the form of a onboard credit if the price of oil is below 68.00 a barrel...on december 18th 2008...it sounds like the second qtr date will be march 18th...for those folks...but mine would be 12-18-2008...does anyone know what the price of a barrel is right now...

 

The price has to be at or under $65 on the specific dates they outlined, not $68. The price is currently $63.15.

 

See: http://www.bloomberg.com/energy/ (look at the third listing under Petroleum - the WTI Cushing Spot).

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