If oil goes to $70, at what point do they charge you?

[cmlmich]

I read where oil will be hitting $70 again, my cruise isn't until Jan. 31, so at what time do they charge you for the surcharge? I also read where they predict oil to drop again by the end of summer.

[BBigfoot613]

I read where oil will be hitting $70 again, my cruise isn't until Jan. 31, so at what time do they charge you for the surcharge? I also read where they predict oil to drop again by the end of summer.

 

I'm sure there's litterature on this somewhere on the carnival site. Having said that it's my OPINION that they'd charge you or atleast put it as monies owed as soon as it hits $70. As for it going back down, I'm guessing they have a clause like before that after 30 days of being below $XX it's refunded...

 

Personally I wish they'd just add a few bux to the fare and live with whatever they pay for fuel. I don't care if they get it for 5 cents a gallon or 5 bux a gallon. This surcharging crap just gets people confused. But with any business I guess that'd make too much sense....

[Lady_Jag]

Good question. When I booked my cruise last year, I had to pay the surcharge at first, but then it was refunded to me before my final payment just a couple of weeks later.

 

I did notice the Carnival site reads something like "Carnival reserves the right to charge a fuel surcharge if the oil prices exceed $70/barrel." I know it's wishful thinking, but reserving the right to charge you after you booked doesn't necessarily mean that they WILL charge you.

[G'ma]

I read where oil will be hitting $70 again, my cruise isn't until Jan. 31, so at what time do they charge you for the surcharge? I also read where they predict oil to drop again by the end of summer.

 

They can and will add the fuel charge at any time when prices hit the mark.

 

Should they add the surcharge to a booking and then the price falls again, they will remove/refund the fee just like they did previously.

 

There is no way to know when it would be added. That decision will, no doubt, be made by Corporate.

[firefly333]

I read where oil will be hitting $70 again, my cruise isn't until Jan. 31, so at what time do they charge you for the surcharge? I also read where they predict oil to drop again by the end of summer.

 

I read a post on another oil thread on tuesday where someone said the experts said for sure oil has peaked, it was up because of the holiday, but its now up over $64 today.

 

Im worried about my B2B in Sept, boy would that be a hit if they added fuel to my 2 weeks cruise. (I also have a Carnival cruise booked in Dec and Jan, but a Im telling myself if I dont get fuel added for the 14 days in Sept, anything else would be kinda minor.

[firefly333]

They can and will add the fuel charge at any time when prices hit the mark.

 

Should they add the surcharge to a booking and then the price falls again' date=' they will remove/refund the fee just like they did previously.

 

There is no way to know when it would be added. That decision will, no doubt, be made by Corporate.[/quote']

 

How would you know what Carnival plans on doing when my PVP doesnt know when it will be added. When oil hits $70 once?? Will they add $5 a day?? $9 a day?? will they add it to those past final paymets??

 

You dont know, but act like you know everything. Its a crap shoot if you ask me. Wait and see, but we are getting closer to knowing.

 

RCL has a trigger point of $65 which is getting very close to being hit. What RCL does and the reaction might influence Carnival. I doubt anything is set in stone right now.

[YayGirlsTrip]

Fuel always goes up in the summer (because of increased travel), so there is no doubt that it will keep climbing. I'm wondering what happens if it hits that $70 mark during your cruise. Do they just charge the surcharge for the affected days? We sail 5/31-6/7. I would hope that since they fuel-up before the cruise, that beginning price would be the determining factor.

[bigdaddyvoges]

I am worried about my June 14th sailing. I understand that oil prices increase in the summer, but since March when oil was $35/barrel there still hasn't been any change in the fundamental factors which should be driving oil prices up. Driving hasn't increased, inventories are climbing to record highs weekly, and the simple supply and demand mentality just isn't being supported. I have read oil is piggy-backing the positive stock market action, but will hit a ceiling soon and "has" to come back down.

 

I understand Carnival has the $70 clause in their contracts but my thought is that Carnival purchases fuel contracts for "x" amount of months at a time. I would think if oil was above $70/barrel for 30 days that would be fair to then integrate the surcharge witht he understanding 30-45 day contracts is what they buy. Just a thought.

 

I am just hoping I don't have to see an additional $126 on my room after the $140 in auto-tips. That's $246 without even touching a DOD or beer..... :(

 

I will have fun regardless, but I would hope market fundamentals return to commodities SOON because the recent actions are unwarranted!!!

 

Bob

[RAE6]

This is what I am watching....my sailing is the 1st week in Oct.

[anita0427]

I'm worried too I am on the Freedom 07/18 mines would be 9.00*8=72.00x2=144.00 extra.:mad:

[*Luv2Cruz*]

I am worried about my June 14th sailing. I understand that oil prices increase in the summer, but since March when oil was $35/barrel there still hasn't been any change in the fundamental factors which should be driving oil prices up. Driving hasn't increased, inventories are climbing to record highs weekly, and the simple supply and demand mentality just isn't being supported. I have read oil is piggy-backing the positive stock market action, but will hit a ceiling soon and "has" to come back down.

 

I understand Carnival has the $70 clause in their contracts but my thought is that Carnival purchases fuel contracts for "x" amount of months at a time. I would think if oil was above $70/barrel for 30 days that would be fair to then integrate the surcharge witht he understanding 30-45 day contracts is what they buy. Just a thought.

 

I am just hoping I don't have to see an additional $126 on my room after the $140 in auto-tips. That's $246 without even touching a DOD or beer..... :(

 

I will have fun regardless, but I would hope market fundamentals return to commodities SOON because the recent actions are unwarranted!!!

 

Bob

We've got one coming up in 10 days on NCL and their magic number is $65!:eek: Hoping they start some time after we sail!;)

[crewsweeper]

Maybe someone who cruised last year when oil went over $100 per barrel can tell us what happened to cruisers then.

[JulieAndTim2009]

I'm sure there's litterature on this somewhere on the carnival site. Having said that it's my OPINION that they'd charge you or atleast put it as monies owed as soon as it hits $70. As for it going back down, I'm guessing they have a clause like before that after 30 days of being below $XX it's refunded...

 

Personally I wish they'd just add a few bux to the fare and live with whatever they pay for fuel. I don't care if they get it for 5 cents a gallon or 5 bux a gallon. This surcharging crap just gets people confused. But with any business I guess that'd make too much sense....

 

Wow! Are you serious? I guess I'm a little biased being in the transportation industry but there is no way you anyone could expect a company to "live what whatever they pay". That is just bad business. Trucking companies, etc all have to charge a fuel surcharge just to try to keep their heads above water. The amount of fuel that cruise ship burns through would completely wipe out any profits they make in a hurry.

 

If any of us want the cruise lines to stay afloat (pardon the pun) then we should look at the cost of fuel and pay the surcharge with no gripes or complaints....imo

[bigdaddyvoges]

I really cant justify the surcharge weather its fuel, or all the airline surcharges nowadays. I would rather just have you increase the price of the ticket or cruise and I will deal with it that way. I don't want to book at one price and know that I "may" be required to fork out $$$ when the time comes. I don't even want to see a surcharge. Charge me $100-$200 more per person and leave the charges OFF!!

[firefly333]

Maybe someone who cruised last year when oil went over $100 per barrel can tell us what happened to cruisers then.

 

I paid $10 per day per person on RCL last year on RCL, $140 that was added to my price.

 

This time will be different. Last time the FL AG made them remove the surcharge from already booked cruises because they did not have the verbage saying that it could be added to already booked cruises. I booked last minute, so I was one of the few who paid the full amount on my cruise, most got it refunded because they had booked far enough in advance. This time this isnt going to happen because all the wording has now been changed in the contracts.

 

On Carnival they paid up to $9 a day per person, the price gradually rose though, started at $5, then $7, and then it went to $9, it didnt go to $9 all at once.... thats probably the best we can hope for this time.

[firefly333]

oil is $64.43 right now .... up almost $1 today.

[bigdaddyvoges]

Ok, that's a little more reassuring I guess. $5 would only cost us an extra $70....that's what, 9 DoD's? :)

[JulieAndTim2009]

I really cant justify the surcharge weather its fuel, or all the airline surcharges nowadays. I would rather just have you increase the price of the ticket or cruise and I will deal with it that way. I don't want to book at one price and know that I "may" be required to fork out $$$ when the time comes. I don't even want to see a surcharge. Charge me $100-$200 more per person and leave the charges OFF!!

 

I agree that additional charges are getting thrown around everywhere, but fuel surcharge is one justifed cost. I don't agree with the fuel prices going up as much as it does, but you can't expect anyone to eat the cost either. Likewise, it would be insane to raise prices across the board. Look how many people would be furious (and rightfully so) that the prices went up. Increasing prices is a long term solution to a short term problem...that's why temporary fuel surcharge is a viable solution.

[bigdaddyvoges]

I am just hoping it doesn't get to a point where the surcharge $$ amount doesn't get lowered and lowered. Now Carnival is $70, but RCCL is $65, so who is to say Carnival won't decrease their threshold to $65...So on and so on, just like the airlines who will NEVER get rid of baggage fees or any other charges. I don't want the cruise lines to get sucked in to this. Take my money when you need it, but don't over-extend yourself so when my $$ isn't there you have to add another fee. If this starts to happen, I will leave cruising and just head back to all-inclusives. 1 set of fees is enough, but if the cruise lines start nickel and diming, it's OVER!!!!

[JulieAndTim2009]

I am just hoping it doesn't get to a point where the surcharge $$ amount doesn't get lowered and lowered. Now Carnival is $70, but RCCL is $65, so who is to say Carnival won't decrease their threshold to $65...So on and so on, just like the airlines who will NEVER get rid of baggage fees or any other charges. I don't want the cruise lines to get sucked in to this. Take my money when you need it, but don't over-extend yourself so when my $$ isn't there you have to add another fee. If this starts to happen, I will leave cruising and just head back to all-inclusives. 1 set of fees is enough, but if the cruise lines start nickel and diming, it's OVER!!!!

 

I can certainly agree with that!! Set a point at which you need to charge extra in order to turn a profit and stick with it...don't start changing it so you can make EXTRA profit from the situation!

[bigdaddyvoges]

i can certainly agree with that!! Set a point at which you need to charge extra in order to turn a profit and stick with it...don't start changing it so you can make extra profit from the situation!

 

Exactly!!! Just as the airlines will forever keep the charges and make profit off of it

[firefly333]

I can certainly agree with that!! Set a point at which you need to charge extra in order to turn a profit and stick with it...don't start changing it so you can make EXTRA profit from the situation!

 

RCL has set one particular date, and if oil is above $65 on that date, then for the next qtr they will tack on the fuel surcharge. very cut and dried.

 

Carnival has set no such criteria. They say they can tack on up to $9 if oil goes above $70, but they have not set any dates, for instance is this one time? or if it goes above for 10 trading days?

 

RCL has been very clear, Carnival has been clear as mud.

[BBigfoot613]

Wow! Are you serious? I guess I'm a little biased being in the transportation industry but there is no way you anyone could expect a company to "live what whatever they pay". That is just bad business. Trucking companies, etc all have to charge a fuel surcharge just to try to keep their heads above water. The amount of fuel that cruise ship burns through would completely wipe out any profits they make in a hurry.

 

If any of us want the cruise lines to stay afloat (pardon the pun) then we should look at the cost of fuel and pay the surcharge with no gripes or complaints....imo

 

Absolutely serious. I paid X amount w/o the surcharge. Just raise the price to x+1 price and be done with it. I'm sure a company as large as Carnival has intelligent people that can forecast what oil might be. Hell they raise the price of a cabin by supply and demand. The cabin I'm in would be about 75% MORE if I booked right now then if I booked in Jan. like I did. Is booking now giving me something extra? nope, just greed. I'd bet if they upped everyone's price no one would notice except those of us on here...

 

I really cant justify the surcharge weather its fuel, or all the airline surcharges nowadays. I would rather just have you increase the price of the ticket or cruise and I will deal with it that way. I don't want to book at one price and know that I "may" be required to fork out $$$ when the time comes. I don't even want to see a surcharge. Charge me $100-$200 more per person and leave the charges OFF!!

Exactly what I was saying...you just worded it a whole lot better then me:D

 

I agree that additional charges are getting thrown around everywhere, but fuel surcharge is one justifed cost. I don't agree with the fuel prices going up as much as it does, but you can't expect anyone to eat the cost either. Likewise, it would be insane to raise prices across the board. Look how many people would be furious (and rightfully so) that the prices went up. Increasing prices is a long term solution to a short term problem...that's why temporary fuel surcharge is a viable solution.

You seriously think people would be furious? I doubt that. According to host mach's assumption that we make up 1% of cruisers, it'd be 1% mad (or less) and 99% blaming it on greed and inflation...

 

And I'm sorry I may be in the minority but I don't see it as justfied to add a surcharge. They have people making a ton of money that do their cost analysis and can say we need $XX from 3-4 day, $XXX from 5-6... and just set the price (including surcharge). Before this surcharge who do you think paid for the fuel? US! Just keep it this way... These people aren't stupid, just set it and see where you end up profitwise each quarter. If the forecaster sucks they don't make AS MUCH profit (fire him/her) if he/she's good then they make their set goals and everyone's happy...

[bigdaddyvoges]

Agreed!!! As of 2:10pm CST oil on NYMEX traded at $65.00, only $4.99 to go until SURCHARGE TIME!!!!

 

Seriously on my current cruise I have a Category 11 (I am not "rich" by any means, I just save for my vacation EVERY week so I can go somewhere nice) and we ended up paying $2900+ after taxes and fees. I would easily have paid $3100 for us if it meant we were not to be bothered by a surcharge. We transferred from RCCL where our Junior Suite cost us $3350 + surcharge as RCCL's magic number just hit.

 

My thought is if you purchased when oil was under $70, you shouldn't get penalized. IF you purchased after $70/barrel, you should know full well a surcharge is in your future and I can honestly say people probably wouldn't have a huge problem with it anyway.

 

Think about it. If this was the case could you imagine how many more cruises they would book for future bookings? (over 1 year out) I am an accountant in the manufacturing industry where 65% of our prodcts are oil based. The options we gave our customers were if they got orders in before our price increased, we would honor that price for the length of the order. Our orders shot through the ROOF. This is exactly what would happen to the cruise industry. Say now when prices are below $70 an abundancy of people might book their cruise for next year or the year after now if only to save the $100 or so. Carnival might have to change their forecasting, but I think this option would be more than fair.

 

Bob

[Nezmo]

I think CC must be in bed with the oil people. Oil prices are forced up when the number of things to whine about gets low in here just so the fires get stoked a little and traffic picks up again... ;) I just can't wait until the front page is nothing but fuel surcharge threads again :D.

 

I can certainly appreciate those that are on very tight budgets. I suggest you start to factor in a budget for this surcharge on any future bookings you make now. Personally, the small amount this adds in %age terms to my overall cruise cost is nothing and isn't going to stop me. I also have a feeling this spike is temporary. The bigger question, as others have speculated on, is will CCL add it back immediately when it hits a mark or will they take a while like they did when they removed it. Who knows. Anyone who professes they do is probably telling fibs.