Fuel Surcharge

[Mikey2611]

Royal Caribbean like most other Cruise Lines and the Air Industry have been hitting consumers with a significant "Fuel Surcharge" for the last 12 months or more. As Oil was approaching $150 a barrel it seemed reasonable to charge more after all its in no ones interests for the Airlines and Cruise Industry to "be unprofitable and go out of business".

 

However, with Oil now at less than $100 a barrel, and indications that the bulk of the world is entering into a recession, is it not time that both the Cruise Industry and the Airlines (some already have) remove all or at least part of that onerous "Fuel surcharge". Not only is that fair but its good business because tourism/travel is usually one of the first industries to suffer in times of enconomic depression. Making it a little cheaper for the consumer can only help.

 

So who will join me in writing to Royal Caribbean to suggest (politely) that they take a very close look at charging a fuel surcharge when Oil is actually priced lower than when they first introduced the charge.

 

If enough of us complain and/or suggest a change, it just might have some impact.

[BrainChemicals]

I firmly believe if we write to Florida Attorney General Bill McCollum we will get better results. RCL will continue to charge the daily $10.00 per-passenger fuel "supplement" on new bookings until the AG's Office is breathing down their necks investigating the disparity.

 

Bill's office was instrumental in Cruise lines refunding $21 million in fuel surcharges to consumers in March 2008.

[negc]

Are you sure that the price of oil is actually lower than it was when the fuel surcharges were first introduced? I think that while the price has come down considerably in recent weeks, it may still be higher than it was then. I do know that while our local gasoline prices are now down to nearly $3.00 a gallon, that price is still considerably higher than it was just one year ago. Prices are still quite volatile so I don't think that any of the lines are going to be quick to reduce or eliminate the surcharge but if prices settle at a reasonable level and remain there for the foreseeable future, your suggestion may gain more validity. When I see that prices we pay in our everyday life begin to stabilize at reduced levels, then I will expect to see those surcharges go down or disappear, but perhaps this is not yet the time to expect that to happen.:)

[BrainChemicals]

I believe the fuel surcharges were introduced in November 2007.

 

Diesel is currently selling at March 2008 levels, when the fuel surcharge for November through April 30, 2008 bookings was $5.00 per-passenger, per-day. It went to $8.00 per-passenger, per-day for May 1 - June 29, 2008 bookings and $10.00 per-passenger, per-day for bookings made on or after June 30, 2008.

[firefly333]

Are you sure that the price of oil is actually lower than it was when the fuel surcharges were first introduced? .:)

 

I think the OP was also exaggerating to make his point. They also said RCL has been charging the fuel surcharge for 12 months or more. It hasnt even been a year since it was implemented and it didnt start until Feb 09, so its kinda hard to see how this is 12 months or more.

 

Oil is down so RCL could reduced the fuel surcharge, but we know it would be a ton of paperwork and losses to lower it and RCL needs the capital now more than ever it sounds like if bookings are down as I suspect.

[bjlaac]

Are you sure that the price of oil is actually lower than it was when the fuel surcharges were first introduced? I think that while the price has come down considerably in recent weeks, it may still be higher than it was then. I do know that while our local gasoline prices are now down to nearly $3.00 a gallon, that price is still considerably higher than it was just one year ago. Prices are still quite volatile so I don't think that any of the lines are going to be quick to reduce or eliminate the surcharge but if prices settle at a reasonable level and remain there for the foreseeable future, your suggestion may gain more validity. When I see that prices we pay in our everyday life begin to stabilize at reduced levels, then I will expect to see those surcharges go down or disappear, but perhaps this is not yet the time to expect that to happen.:)

 

In november 2007 crude oil was $86.92 per barrel. Very Very closs to today's prices. So why is it that Gas, heating oil, fuel surcharges Etc Etc Etc are still at level very close to their highs

 

GREED GREED GREED !!!!

[Toddcan]

I wonder...

 

If RCI lowered, or eliminated the surcharge, would they see a significant enough increase in bookings before the other cruiselines could follow suit?

 

Talking my way through an answer: If RCI still sails their ships at, or near full capacity, there is no incentive to make cruising more appealing. They will still sell out each cruise.

 

IF they are not selling out each cruise, then lowering their cash flow by eliminating the surcharge needs to be offset through increase revenues due to more bookings.

 

Ah.. the crystal ball..

[Maraprince]

Just reduce the base price of a cruise -- easier than playing with the fuel surcharges! With different sets of fuel charges applying depending on the date of the booking it seems to be more confusing! If you move a reservation, you get hit with the higher fuel charges since RCCL considers it a "new" booking subject to the higher fuel surcharge! Getting way too complicated......

 

 

MARAPRINCE

[BrainChemicals]

I think the OP was also exaggerating to make his point. They also said RCL has been charging the fuel surcharge for 12 months or more. It hasnt even been a year since it was implemented and it didnt start until Feb 09, so its kinda hard to see how this is 12 months or more.

Sorry firefly333, Royal Caribbean and its sister line Celebrity Cruises implemented the fuel surcharges on November 16, 2007 according to this article, not February 2009 or 2008. The price for a barrel of oil on November 16, 2007 was $94.81.

[negc]

In november 2007 crude oil was $86.92 per barrel. Very Very closs to today's prices. So why is it that Gas, heating oil, fuel surcharges Etc Etc Etc are still at level very close to their highs

 

GREED GREED GREED !!!!

I won't argue with you about the greed of the oil companies (IMHO there is a significant need for an excess profits tax), but at least in our locality gas prices are nearly a dollar lower than they were just a few months back when they were near or at $4.00 a gallon. Still, today's price are higher than they were a year ago but at least they have been heading in the right direction.

 

Of course I am sure the fact that we have an election coming up in a few weeks has no bearing on the current prices of gasoline.:rolleyes:

[Mikey2611]

BrainChemical seems to have done ther homework that I thought I had done. Its funny how so many people seem to "stand up" for the Cruise Industry rather than "look after consumer interests". Im all for giving them the benefit of the doubt but its obvious that they will be much much slower to remove a fuel surcharge than they are to put one in place. The whole reason was that fuel prices had sky-rocketed but now they have come down - so RCL give us a break drop that surcharge altogether or at least reduce it to $5 per day pending confirmation that oil prices will remain under $100 barrel.

[737NG]

Why should they remove any surcharge? Their costs go up so our costs go up. Cruising is a luxury not a necessity. They are in business to make money. That's what makes this country great(well until our next election). Airline fares are way below what they should be. It was more expensive to fly in the 70's then it is now. Being in the airline industry I just get tired of hearing all the complaining from passengers. If you want a $49 on way fare then they should take Greyhound. If you can't pay $150 or whatever it is for a fuel surcharge after spending thousand's on a cruise you shouldn't be cruising.

[TEXASMUNK]

just a few facts....not stirring the pot, but facts.

Exxon did make $11 billion in the 3rd qtr of 08. BUT, at the same time the Federal Government got $33 Billion in taxes....So of the $44,000,000,000 in profits Exxon made, The FED got $33,000,000,000.

Who is gouging???

 

Also, excess profit tax? Jimmy Carter tried it! He got a luxury tax on yachts. So rich folks did not buy yachts. Who got hurt? Guys who made their living working for yacht builders.

 

You do not lift up the poor by destroying the rich. A poor man never created a job.

 

Want lots of jobs and cheap oil? The call Congress and tell them to let this country DRILL!!!!

[caribbeanboy]

Why should they remove any surcharge? Their costs go up so our costs go up. Cruising is a luxury not a necessity. They are in business to make money. That's what makes this country great(well until our next election). Airline fares are way below what they should be. It was more expensive to fly in the 70's then it is now. Being in the airline industry I just get tired of hearing all the complaining from passengers. If you want a $49 on way fare then they should take Greyhound. If you can't pay $150 or whatever it is for a fuel surcharge after spending thousand's on a cruise you shouldn't be cruising.

 

very well said!

[Merion_Mom]

BrainChemical seems to have done ther homework that I thought I had done. Its funny how so many people seem to "stand up" for the Cruise Industry rather than "look after consumer interests". Im all for giving them the benefit of the doubt but its obvious that they will be much much slower to remove a fuel surcharge than they are to put one in place. The whole reason was that fuel prices had sky-rocketed but now they have come down - so RCL give us a break drop that surcharge altogether or at least reduce it to $5 per day pending confirmation that oil prices will remain under $100 barrel.

 

And just what sort of confirmation do you want or expect?!?!??!?!?!?

[Aprille]

Sorry firefly333, Royal Caribbean and its sister line Celebrity Cruises implemented the fuel surcharges on November 16, 2007 according to this article, not February 2009 or 2008. The price for a barrel of oil on November 16, 2007 was $94.81.

Sorry Valium Boy ;), while the fuel surcharge was announced on Nov 16, 2007, it was effective for cruises sailing Feb 1, 2008 and later.

 

Excerpt from Cruise Critic Cruise News:

 

The domino effect continues: Royal Caribbean Cruises Ltd. -- the parent company for Royal Caribbean International, Celebrity Cruises and Azamara Cruises -- announced today that it will be implementing a fuel supplement to offset rising fuel costs.

 

The supplement will be $5 per person, per day, applicable for the first two guests in a stateroom, and will not exceed $70 per person, per sailing. The surcharge is effective on all new or existing North American bookings on all Royal Caribbean, Celebrity or Azamara ships that sail after February 1, 2008.

 

Guests who have already paid for their cruise in full are not be required to pay the fee.

 

Moreover, guests who were booked before November 16, 2007, and who do not agree to pay the supplement, may cancel their reservation prior to December 7, 2007, for a full refund -- and they will not be subject to any cancellation charges that would normally apply.

[Mark_K]

Sorry firefly333, Royal Caribbean and its sister line Celebrity Cruises implemented the fuel surcharges on November 16, 2007 according to this article, not February 2009 or 2008. The price for a barrel of oil on November 16, 2007 was $94.81.

They started collecting it in November 2007 - for cruises that departed on or after February 1, 2008.

[737NG]

In november 2007 crude oil was $86.92 per barrel. Very Very closs to today's prices. So why is it that Gas, heating oil, fuel surcharges Etc Etc Etc are still at level very close to their highs

 

GREED GREED GREED !!!!

 

It's not greed. It take refineries to turn that oil into gas, etc. When is the last time this country built a refinery? We have one hurricane hit and it creates a gas shortage.

[Mark_K]

I firmly believe if we write to Florida Attorney General Bill McCollum we will get better results. RCL will continue to charge the daily $10.00 per-passenger fuel "supplement" on new bookings until the AG's Office is breathing down their necks investigating the disparity.

 

Bill's office was instrumental in Cruise lines refunding $21 million in fuel surcharges to consumers in March 2008.

Good luck with that. The only reason the AG got involved in the first place was because they wanted to charge people who had booked their cruise prior to implementing it.

[bigal3967]

I am pretty ticked too. I just changed a pre-existing reservation that I had booked BEFORE the surcharges went into effect. I actually booked this on a cruise I took in July of 2007. I called in April and was told I would NOT be charged a surcharge even if I changed ships and dates as long as I kept by reservation number the same. WELL that is not true anymore. I was informed that I would now be charged the surcharge because RCCL is considering any change like a new booking. I guess greed has gotten the better part of them even for their loyaltay customers. Just because you are told one thing doesn't mean they will not change their policy just to charge you more.

 

my 2 cents worth

 

Big Al

[Rancher Dave]

Good luck with that. The only reason the AG got involved in the first place was because they wanted to charge people who had booked their cruise prior to implementing it.

 

 

The AG as Mark indicates isn't likley to work on an ongoing fully disclosed before booking surcharge...in fact RCCL could add more surcharges if they wanted and as long as they are disclosed ahead and not retroactively imposed it is up to the pax to decide, go/no-go...

 

Keep in mind the surcharges like tax is non-commissionable to the TA so as RCCL adds Surcharges $$ to their bottom line it is done without increasing costs on the commission side of their cash flow.

[BrainChemicals]

They started collecting it in November 2007 - for cruises that departed on or after February 1, 2008.

I stand corrected that the $5.00 per-passenger, per-day fuel supplement that was implemented on November 16, 2007 was for February 1, 2008 through April 30, 2008 bookings. Thank you for pointing that out without the argumentum ad hominem.

[PhoenixCruiser]

I read that Carnival stated they will remove the fuel surcharge when the cost per barrel is at or under $70 for three months. Does anyone have comments from RCCL?

 

###

[bigal3967]

I read today that some Carnival ships are dropping the surcharge.

[realtreebar]

The way I look at it if I want to cruise I will pay the price they are charging! if I do not pay I do not sail as simple as that! if they quit the fuel surcharge then I guess that will be a bonus and more onboard credit!!!:D but I like to cruise and I will pay what the charge is at the time.:)