Passenger Fuel Surcharge Announced...

[hammybee]

It seems that the corporate bean counters are using the fuel surcharge to balance out some aspects of the bottom line that they feel are out of kilter. They have had to lower prices overall to as low as $100 pp/day to compete in mass-market short cruises......

 

So far, we are OK, out next cruise leaves on Jan 27th :D

 

Woo-Hoo for you. Timing is everthing.

 

For awhile there, I was "watching" prices of various repositioning cruises as many ships left Alaska and moved to the Caribbean. On a particular Princess cruise, an inside quad was going for $16 per person, per day.

 

No doubt this cruise had passengers paying as little as $16 and as high as $700, per day. The out of cabin experience was the same for both.

 

It's all about the balance, I think.

[hammybee]

We will cruise this coming winter. When we do this, we will make a substantial reduction in household temps in our house, before departure, as we always do.

 

No doubt in my mind I am going to save substantially more on my monthly gas bill than a fuel surcharge.

 

Can you guess which location I would rather be? :)

[Sea Island Lady]

We do the same thing. Lower the thermostat a couple of degrees when we go out of town.

 

We just turned our heat on this morning after a few overnight temps of 30's. It got down to 25 degrees last night and was a little chilly going to bed last night. This morning, I smelled something burning and shot out of bed and ran to the kitchen, yelling "somethings on fire!". :eek: My shocked DH said "Calm down, I just turned on the heat!" :rolleyes:

[terrydtx]

 

We just turned our heat on this morning after a few overnight temps of 30's. It got down to 25 degrees last night and was a little chilly going to bed last night. This morning, I smelled something burning and shot out of bed and ran to the kitchen, yelling "somethings on fire!". :eek: My shocked DH said "Calm down, I just turned on the heat!" :rolleyes:

 

Nothing like that first of the season heater smell.:eek: Just turned on mine today as well got down to 29 last night here. But we have a heat pump now and do not get that burning smell when we run the heat for the first time.:D

[sail7seas]

We've been told the price of a gallon of heating oil will rise 60% this winter over last. Do you think HAL's fuel costs are rising too?

 

[mamaofami]

Just think of all the money you save while cruising: no heat or airconditioning bills for home, no food to buy and cook, no dishwasher running, no washer and dryer to man, no entertainment charge, no gas for the car, no restaurant meals, etc.

 

The cost of everything is rising. I know people in co ops who have an added fuel surcharge too. I'd rather pay it on the ship than at home. But, since my cruise is 2/6, and this begins on 2/1, I kinda wish they would have waited a few weeks.

[rzdj96]

Give me a break! First off, Cruise lines pre-purchase their fuel well in advance (just like the airlines do) through contracting. Yesterday Carnival lowered some of their fares on certain routes and there's still cabin gratuities being offered. Personaly, I'd like to see a Congressional hearing about this (especially being that it's not across the board). Carnival is complaining about the fuel prices but only ATTACK the majority of patrons. Whereas, a ship uses the same amount of fuel from day to day (unless in port). Where's the justification of charging a fuel surcharge on a short cruise vs what fuel costs are on a longer cruise? Furthermore, if the fuel has already been pre-purchased (contracted), then their justification is full of holes and sinking. I bought (and contracted) my home heating oil in May for $2.19 a gallon. It's now $2.89. Do you think that my oil company is going to raise my contracted cost? I can see Carnival Corp. adding the surcharge to new contracts (across the board) but I fail to see their justification to those that have already contracted their voyage. It just doesn't compute!

[Sea Island Lady]

Nothing like that first of the season heater smell.:eek: Just turned on mine today as well got down to 29 last night here. But we have a heat pump now and do not get that burning smell when we run the heat for the first time.:D

Ours is a new (2nd season of use) Heat Pump. I dont remember if we had the smell with the Gas furnace, though.

[terrydtx]

I bought (and contracted) my home heating oil in May for $2.19 a gallon. It's now $2.89. Do you think that my oil company is going to raise my contracted cost? I can see Carnival Corp. adding the surcharge to new contracts (across the board) but I fail to see their justification to those that have already contracted their voyage. It just doesn't compute!

 

They may not raise your price but you may not get any heating oil either unless your contract allows the pass through of increases in cost.

[cruiseco]

Furthermore, if the fuel has already been pre-purchased (contracted), then their justification is full of holes and sinking.

 

OK, it sounds like you're familiar with CCL's forward contracts for fuel. How far in advance are their contracts for? Are they for delivery 60 days out? 90 days out? Are they for a specific price or is there some sort of escalator clause, maybe tied to the value of the dollar? Since these surcharges are not to take effect until 02/08 is it possible that they have reasonable contracts in place for delivery up to that point but after that the price takes a big jump?

 

If you have that info please let us know.

[hammybee]

 

The cruise contract is clear the cruise line has the ability to pass on increases in fuel costs, at any time.

 

A cruise booking is not the final point of sale because the passenger can cancel at any time and get their deposit refunded. I think final payment date for the first sails impacted by the surcharge is this week. Those who choose to not pay it, may cancel their cruise. How cool is this. We are all free to walk away if we don't want to pay the surcharge.

[hammybee]

The cruise contract is clear the cruise line has the ability to pass on increases in fuel costs, at any time.

 

A cruise booking is not the final point of sale because the passenger can cancel at any time and get their deposit refunded. I think final payment date for the first sails impacted by the surcharge is this week. Those who choose to not pay it, may cancel their cruise. How cool is this. We are all free to walk away if we don't want to pay the surcharge.

 

I am having a devil of a time trying to edit this.

 

What I meant to say was that the final point of sale does not occur until final payment date.

[cruisecrasy]

Give me a break! First off, Cruise lines pre-purchase their fuel well in advance (just like the airlines do) through contracting. Yesterday Carnival lowered some of their fares on certain routes and there's still cabin gratuities being offered. Personaly, I'd like to see a Congressional hearing about this (especially being that it's not across the board). Carnival is complaining about the fuel prices but only ATTACK the majority of patrons. Whereas, a ship uses the same amount of fuel from day to day (unless in port). Where's the justification of charging a fuel surcharge on a short cruise vs what fuel costs are on a longer cruise? Furthermore, if the fuel has already been pre-purchased (contracted), then their justification is full of holes and sinking. I bought (and contracted) my home heating oil in May for $2.19 a gallon. It's now $2.89. Do you think that my oil company is going to raise my contracted cost? I can see Carnival Corp. adding the surcharge to new contracts (across the board) but I fail to see their justification to those that have already contracted their voyage. It just doesn't compute!

 

I read u loud & clear - well put and I agree!

 

Then again u can't make more profits without doing it hmmm?

[cruisecrasy]

I don't like it added as a surcharge. Everyone already gets confused with fees and taxes.

 

I think the cruiseline would be wise to just add it into new fares. I mean the fuel was already included in the fare, if that cost goes up then the fare should go up.

 

It penalizes the early bookers.

It will be shock to those who don't get the surcharge quoted to them in the cruise booking process.

 

I personally think most of us who think it is ok are fans of cruising and will go along with it. but if you are a newbie, I don't think you will understand it. Newbies probably will look at it as another example of nickle and diming. And I think they will adjust the tips downward. Cruises already have a bad reputation with some because they don't include things in the price and just adding one more is not a good thing. Just my opinion.

 

Did anyone notice that the fee is only for the 1st and 2nd passengers, others in the cabin do not pay a surcharge.

 

FYI On my cheapy, 5 day cruise from a home port, the surcharge will add 8% per day to the cruise.

 

Also anyone noticed if the cruiselines are doing anything to change itineraries to use less fuel? charging more for intineraries that do use more fuel?

 

Re: no fuel surcharges for extra pax in the cabins...

 

Do they not use as much fuel to be hauled around as the first 2 pax in the cabin or again, as I have already posted - perhaps the first 2 pax are subsidizing them also!!

[cruisecrasy]

It seems that the corporate bean counters are using the fuel surcharge to balance out some aspects of the bottom line that they feel are out of kilter. They have had to lower prices overall to as low as $100 pp/day to compete in mass-market short cruises. So for these people, the fuel surcharge is about 5% of their basic fare. They make much more money in general out of people in suites who cruise for longer times, so the cruise surcharge is only about 1 to 2% for these people, even though it surely must cost more fuel to haul around a deluxe suite and it's additional crew needed for service than a small cabin on main deck.

 

The same reasoning applies, albeit less strongly, to the autotip which is $10/day for everybody even though suite pax get more service per person.

 

Since the cruise contract allows them to do what they want here, they have taken advantage, "fair" or not. The only problem for them might be filling cabins on cruises on 2009 and later if people feel unhappy about the way the surcharge has been enacted, and if they feel that land-based vacations, not as dependent on fuel, are becoming a better buy.

 

So far, we are OK, out next cruise leaves on Jan 27th :D

 

but they will 'get' yah the next time & over & over if u take all short cruises also.. Have to subsidize those suite & longer cruise pax, right??

[wizard-of-roz]

OMG....HERE'S A DREADFUL THOUGHT: They're going to start weighing us and charge accordingly.......Afterall, it takes more gas to haul more weight......

What will I do? What will I do? :eek:

[hammybee]

but they will 'get' yah the next time & over & over if u take all short cruises also.. Have to subsidize those suite & longer cruise pax, right??

 

Are we still talking about a fuel surcharge or is something else going on here:confused:

 

I always thought it was the Suite passengers, regardless of the length of the cruise, subsidizing the rest of us, given the out of cabin experience is the same, regardless of cabin category, we book. Afterall, a Deluxe Suite runs multiples of an inside/outside cabin yet we all eat the same food and have the same entertainment available to us.

[hammybee]

OMG....HERE'S A DREADFUL THOUGHT: They're going to start weighing us and charge accordingly.......Afterall, it takes more gas to haul more weight......

 

What will I do? What will I do? :eek:

 

I am in big trouble. :D

[serendipity1499]

Give me a break! First off, Cruise lines pre-purchase their fuel well in advance (just like the airlines do) through contracting. Yesterday Carnival lowered some of their fares on certain routes and there's still cabin gratuities being offered. Personaly, I'd like to see a Congressional hearing about this (especially being that it's not across the board). Carnival is complaining about the fuel prices but only ATTACK the majority of patrons. Whereas, a ship uses the same amount of fuel from day to day (unless in port). Where's the justification of charging a fuel surcharge on a short cruise vs what fuel costs are on a longer cruise? Furthermore, if the fuel has already been pre-purchased (contracted), then their justification is full of holes and sinking. I bought (and contracted) my home heating oil in May for $2.19 a gallon. It's now $2.89. Do you think that my oil company is going to raise my contracted cost? I can see Carnival Corp. adding the surcharge to new contracts (across the board) but I fail to see their justification to those that have already contracted their voyage. It just doesn't compute!

 

Perhaps you should do a comparison of fares on the Longer cruises vs the Shorter ones..

 

I just posted this on the other fuel surcharge thread..but it's also appropriate for this thread..

 

Actually those who are taking the longer cruises are paying more per day...Just did a comparison on the HAL WEB site, for an Outside "E" Cabin on the Veendam for 7 days & for the same Outside "E" cabin for 14 days a week later..Both cruises are into the Caribbean..

 

March 9- "E" Cabin was $1217.38 pp for 7 days or 173.91 per day.

 

Mar 16 -"E" Cabin was 2491.89 pp for 14 days or $177.99 per day..

 

Difference: The 14 day cruise is $4.08 more per day per person...

 

Agree it's not much but there is a difference..Suspect that the difference is greater on the more expensive cabins..

 

I can attest to the fact that the longer cruises of 21 days or more are also more per day...So we're happy that the fuel surcharge max is $70.00 since we book the longer cruises...

 

Also think about this..Where else would you get a Room with all meals for $171.00-$180.00 per day? Cruise prices have not significantly increased over the years, but the expense of running these cruises have increased tremendously...

 

Yes, we can refuse to accept this but I certainly won't "cut off my nose to spite my face" ;) ..Our cruises are still a bargain!

 

JMO..:) Betty

[CPMichael]

I hope my clients are as receptive to this surcharge when they receive the letter from me with their updated confirmations. I have two very large groups on HAL next year and even more on the other lines. It has taken all day to get all of the letters prepared.

 

I hope their response is as favorable as those here on the board.

[Opinions]

. Afterall, a Deluxe Suite runs multiples of an inside/outside cabin yet we all eat the same food and have the same entertainment available to us.

 

I would imagine they are paying more for the larger and more luxurious accomodations...As one who have always sailed in a inside I wouldn't know but assume those who do feel it's worth it.

[boscobeans]

++++Where's the justification of charging a fuel surcharge on a short cruise vs what fuel costs are on a longer cruise?+++

 

From what I have researched only 25% of the fuel consumed is used for propulsion. The other 75% is used for heat/AC lighting and other services used by the passengers.

[Sundagger]

I hope my clients are as receptive to this surcharge when they receive the letter from me with their updated confirmations. I have two very large groups on HAL next year and even more on the other lines. It has taken all day to get all of the letters prepared.

 

I hope their response is as favorable as those here on the board.

 

I *know* this is off topic, but could you let us know when/which ship the 2 groups are on?

[rzdj96]

Okay, lets put this in layment terms. Carnival Corp. stated "As a result of the continued rapid escalation of fuel prices, the North American brands of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) have announced they will implement a fuel supplement of $5 per person per day." (end quote). They then go on and explain that the max surcharge will be $70 p/p (with the 3rd & 4th persons exempt). To me this statement contradicts and defeats their original justification for the surcharge in the first place. Here's why. Say that you cruise from New York to the Caribbean (a 14 day to/from transit with port visits). However, another ship goes from NY to St. Thomas to South America and return (22 days) and is only charged the same $70 p/p extra. If the cruise line is in dire-straights due to the higher cost of fuel, then why wouldn't the added days be subject to the surcharge also? Ships don't turn into a sailboats after St. Thomas (figure of speech). I could've seen an "across the board" fuel surcharge of say $5 a day per stateroom (as an example) but the way Carnival applies their surcharge, they have no added fuel costs after 14 days at sea. Without charging the surcharge across the board and equal to all, Carnival Corp. contradicts their very own reasoning/justification for the "fuel" surcharge.

[gizmo]

Okay, lets put this in layment terms. Carnival Corp. stated "As a result of the continued rapid escalation of fuel prices, the North American brands of Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) have announced they will implement a fuel supplement of $5 per person per day." (end quote). They then go on and explain that the max surcharge will be $70 p/p (with the 3rd & 4th persons exempt). To me this statement contradicts and defeats their original justification for the surcharge in the first place. Here's why. Say that you cruise from New York to the Caribbean (a 14 day to/from transit with port visits). However, another ship goes from NY to St. Thomas to South America and return (22 days) and is only charged the same $70 p/p extra. If the cruise line is in dire-straights due to the higher cost of fuel, then why wouldn't the added days be subject to the surcharge also? Ships don't turn into a sailboats after St. Thomas (figure of speech). I could've seen an "across the board" fuel surcharge of say $5 a day per stateroom (as an example) but the way Carnival applies their surcharge, they have no added fuel costs after 14 days at sea. Without charging the surcharge across the board and equal to all, Carnival Corp. contradicts their very own reasoning/justification for the "fuel" surcharge.

 

Ditto !!