Do (can) cruise lines apply fuel surcharges?

[Robjame]

There has been an almost doubling of fuel prices for the past year with a new high being pierced yesterday.

I recall airlines applying fuel surcharges awhile back. What about cruise lines? Has it ever been done? Could it be done? Perhaps they have future contracts which would make this unnecessary?

I suspect that surcharges could not be applied on already contracted, published cruise rates.

‘Anyone?

[shepherd really]

3 minutes ago, Robjame said:

There has been an almost doubling of fuel prices for the past year with a new high being pierced yesterday.

I recall airlines applying fuel surcharges awhile back. What about cruise lines? Has it ever been done? Could it be done? Perhaps they have future contracts which would make this unnecessary?

I suspect that surcharges could not be applied on already contracted, published cruise rates.

‘Anyone?

Can they? yes. Will they? probably. 

[d9704011]

16 minutes ago, Robjame said:

There has been an almost doubling of fuel prices for the past year with a new high being pierced yesterday.

I recall airlines applying fuel surcharges awhile back. What about cruise lines? Has it ever been done? Could it be done? Perhaps they have future contracts which would make this unnecessary?

I suspect that surcharges could not be applied on already contracted, published cruise rates.

‘Anyone?

Take a look at 2.i. of the Ticket Contract:

 

US-TicketContract.pdf

[Robjame]

47 minutes ago, d9704011 said:

Take a look at 2.i. of the Ticket Contract:

Thanks for that.

 

I am not an expert in legalize but I read that to mean the cruise line can vary the actual application of the prepaid amount, not retroactively apply a surcharge to the amount. In other words if they are applying 10% to fuel and fuel drops in price, then they can juggle the actual applied amounts not that the passenger is entitled to a refund.

[Robjame]

1 hour ago, shepherd really said:

Can they? yes. Will they? probably

I agree with you - but could they say to you, “ You have paid your balance but now we require an additional thousand for fuel”? I think to new reservations “YES”, but not to existing accepted or paid reservations.

Thoughts? 
 

[PhD-iva]

2 minutes ago, Robjame said:

I agree with you - but could they say to you, “ You have paid your balance but now we require an additional thousand for fuel”? I think to new reservations “YES”, but not to existing accepted or paid reservations.

Thoughts? 
 

Agree somewhat.
My impression is that many lines (non luxe) have lowered their prices to attract additional passengers. It would be counterproductive to then apply a fuel charge, which would surely anger/ alienate current and potential customers.

[shepherd really]

11 minutes ago, PhD-iva said:

Agree somewhat.
My impression is that many lines (non luxe) have lowered their prices to attract additional passengers. It would be counterproductive to then apply a fuel charge, which would surely anger/ alienate current and potential customers.

Based on my recent experience with Oceania they do not seem to prioritize not alienating their customers when making business decisions. 

[Robjame]

“The world’s third-largest cruise company, Norwegian Cruise Line Holdings, also came into 2022 with a significant amount of its fuel needs (42%) hedged at lower prices, according to recent financial disclosures…”

 

“The last time fuel surcharges in the cruise industry became widespread was when oil prices spiked in late 2007 into 2008. At the time, major brands such as Royal Caribbean and Carnival added fuel surcharges of $5 to $10 per person, per day, which generally applied to the first and second passengers in every cabin.

The fine print in cruise contracts says that such fuel surcharges can be levied upon passengers even if they have paid for their cruises in full. In other words, even if you lock in the price of a cruise well in advance of a sailing, and pay it all off, you could still see an added bill for fuel arrive at the last minute when you sail.

Still, cruise lines are hesitant to add such fuel surcharges as it can create bad will among customers — something that cruise lines particularly don’t need now as they try to bounce back from an industrywide, pandemic-related shutdown that lasted more than a year.”

On a 20 day cruise that levy could amount to $200 - $400.

[d9704011]

4 hours ago, Robjame said:

I agree with you - but could they say to you, “ You have paid your balance but now we require an additional thousand for fuel”? I think to new reservations “YES”, but not to existing accepted or paid reservations.

Thoughts? 
 

I think you have the answer inpost #8.  I believe the cruise line can levy a fuel surcharge at any time.  Similarly, I believe taxes and (especially) fees can be adjusted if need be.  No doubt the cruise line would be reluctant to do any of this and I expect they're pretty good at balancing their costs to avoid the need.

[DrHemlock]

Without checking invoices from all of our O cruises, I took a look at one from 2008 when the recession hit.  On a 14-day T/A from Barcelona to Miami, we were charged $196 "Cruise Ship Fuel Surcharge" on a separate line-item.  (I don't know whether that amount was based on our cabin category or was universally applied to all cabins.)  

In addition, we were charged $708 on a line reading "Air Related: Taxes, Fuel Surcharges and Ticketing Fees."  Again, I don't know what the distribution may have been among those three categories, but I seem to recall that airlines were imposing fuel surcharges as well.  We were using O air.

In other words, they've done it before and they can certainly do it again.  It's only a question of whether they will.

 

[KirkNC]

6 hours ago, PhD-iva said:

Agree somewhat.
My impression is that many lines (non luxe) have lowered their prices to attract additional passengers. It would be counterproductive to then apply a fuel charge, which would surely anger/ alienate current and potential customers.

My thinking as well.  Many ships are sailing with less then 1/2 capacity.  Even if they can, I am not expecting them to do it until demand has solidified.

[JeffElizabeth]

It has happened to us on a Holland America cruise before but I agree with a poster above. Now would not be a good time to slap an extra $1000 fuel surcharge on new passengers or those returning after a two year absence.