Fuel Charge

[seahorse]

Regent to impose fuel charge.

 

http://www.cruise-community.com

[Iamboatman]

This is the second fuel surcharge. There was one on cruises in 2006, then I figured they adjusted their 2007 prices and now there is this one, at $7.50 per person per day for its 2008 cruises.

 

Regent is not the only line to impose a fuel surcharge and I do not think it will be the last.

 

While I understand the fuel surcharges I do have difficulty with the concept of a cruise line charging one price, not covering its anticipated costs, and then finding a way to recoup those costs. (I know the cost of fuel is a big thing, but if the price of coffee skyrockets I would not expect a line to start charging a $1.00 a cup.) OTOH, if the cruise lines needed to cover themselves for every such contingency, we might find ourselves paying even higher cruise fares in order to fund the anticipated reserves.

 

Regardless it is a fact of current life as oil approaches $100 a barrel and the US dollar slips to 50% of its worth of just a few years ago. (Imagine a strong dollar might mean $50 a barrel oil.:eek: )

[Iamboatman]

As an update, Carnival is going to be assessing a $5.00 per person per day fuel supplement on all cruises on its North American brands which commence on or after February 1, 2008. The charge will only be assessed on the first and second passengers and is limited to $70 per person (or essentially a 14 day limit regardless of the length of the cruise.)

 

This is lower than Regent's charge, but considering (a) most of the Carnival brands are at a lower price point; (b) Carnival's economy of scale - being so much larger; and, © Carnival's ability to purchase futures (contracts for fuel at a fixed price into the future), it seems pretty consistent.

[dfb]

Details on RSSC website now:

http://www.rssc.com/fuelsurcharge

[Verystormy]

It a total con. The airline do it as well, but the reality is that companies such as cruise companies and airlines buy their fuel often years in advance at fixed prices. If the recent fuel increases had been going on for several years, then it would be justified. But this is just a good excuse to fleece some cash from passengers

[Iamboatman]

I wish it were a con rather than reality, but the reality is that the futures contracts go only so far into the future, have complex formulae including exchange rate protections and, let us not forget, the dollar is now valued at about 65% of what it was when the present contracts were probably negotiated.

 

I noted to myself, and now offer, that Carnival's fuel surcharge is only on its North America brands. I am sure it has much to do with the companies working with the US dollar rather than the euro.

[drjdm]

Did the cruise lines lower their fares when oil went down?

 

Many of my vendors added surcharges for deliveries but never repealed them when prices went down. Now they are up again and they are double dipping.

 

Im sure when Im on the open seas I will not care about fuel surcharges

 

Jeff

[Zigge]

I am not surprised of the extra fuelsurcharge.

The HFO (heavy fuel oil) is today USD 479 /ton, this can be compared to just one year ago in November 2006 when it was USD 270/ton. This bunker costs is a significant part of the costs of running the ships.

Unfortunately the bunker cost does not always follow the cost of crude oil.

This bunker cost that I mention here is also in the cheapest/biggest ports, Rotterdam and Houston.

[Hambagahle]

Seems reasonable to me. Here in Switzerland we are currently paying the equivalent of USD $6.90 per gallon for diesel, a little less for petrol. The prices have skyrocketed in the last couple of months so I don't see how anyone could (a) have foreseen the rise and (b) be expected to swallow the cost. I note from their website that the surcharge will apply to all those who are not paid in full by Dec 1 2007. So I suppose if people want to avoid the surcharge they could pre-pay their 08 cruises!

What I do NOT understand, and find unreasonable, is that RSSC will not mail the Seven Seas Society magasine to those of us who live abroad. Considering what we pay for cruises, they surely could find $5 or so for the postage and it is a good marketing tool!!

[Iamboatman]

What I do NOT understand, and find unreasonable, is that RSSC will not mail the Seven Seas Society magasine to those of us who live abroad. Considering what we pay for cruises, they surely could find $5 or so for the postage and it is a good marketing tool!!

 

I find that remarkable considering I receive at least one, and usually 3 or 4, expensive marketing pieces a week here in the US. And I am not talking about postcards. They are foil-lined, die-cut, glossy, bound, full color and/or are sent to both myself and my wife.

 

Frankly, it is counterproductive, as such waste combined with higher cruise fares, give a negative impression...expecially as someone who as cruised 5 times with Regent we sort of know the product and shouldn't need such expensive marketing to keep Regent in our mind when choosing our next cruise.

[drjdm]

Way too much marketing.

This would save trees, oil and money.

 

They should have a "do not send list" or just use email

 

Jeff