Fuel Surcharge

[wieslaw]

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.

 

 

Hi,

 

Is the fuel surcharge really a bad thing and if removed will the price of cruising be lowered ?

 

I do not believe that the fuel surcharge if removed or if it is there will make any difference to the price that we are / or will be paying.

 

I feel that price of cruising is dictated by supply and demand and the necessity to make some profit to keep the cruise industry afloat.

 

"We" the users of the cruise ships will pay whatever it costs to operate the ships and provide us with the pleasure of cruising....... if 'we ' won't pay - who will ?

No cruise line will be in business for long if they do not make some profit.

 

Perhaps the surcharge is a good thing :

it makes the price of a cruise look better - $599.00 looks better than $669.00, ....

$999.00 looks better than $1069 ..... so more people will be 'hooked' by the lower price, and they will pay the surcharge once the have decided to cruise. More people on the ship - perhaps it helps to share the cost.

 

The cruise line do not pay commission to the TAs on the surcharge .... so more money stays with the cruise line, and hopefully making the cruising more affordable for some.

 

About the price of crude oil and Bunker C fuel which is part of the "Heavy fuel oil / residual oil".

About 1.76 gallons of residual oil is made from one barrel (42 gallons) of crude oil ( and not all of it is the Bunker C oil used by majority ships). So the price of crude oil is not the only thing that governs the price of Bunker C oil ...... demand is probably more of a factor in the pricing.

 

On Nov16, 2007 ( the date that some quote as the date that RCCL started imposing the fuel surcharge for future cruises)

the price of one barrel of crude oil (listed on web site of Energy Information Administration) was $94.81 for one barrel - the Residual Oil was listed for the US Golf Coast at $1.744 per gallon.

 

On Oct 7, 2008 ( using the same web site) crude was $90.18 a barrel and residual for the same US Golf Coast (prices do vary by region) was $1.768 per gallon........ close to the price that was on Nov 16, 2007.

 

But, what difference does it really make what the price is and if it is called surcharge or whatever ?

If I and 'you' want to cruise ..... we will pay for every drop of that oil and every other cost connected with our cruising ...... no one else will.

 

Wes

[bigal3967]

I do not have as big of an issue with the surcharge as with charging you when changing your existing reservation. Even when folks were told the surcharge would not be added as late as April, they are adding it now from what I understand even when you get a price changed to a lower price, not even changing ships or dates. That is just wrong. It is pure greed of a company go back on aggreements made espcially to loyalty cruisers.