If oil goes to $70, at what point do they charge you?

[Cruise, J.D.]

On the one hand, if it hits $70, the execs are looking at a nice potential revenue boost in a tough environment. On the other hand, they are looking at essentially increasing fares across the board in a tough environment and possibly alienating customers. Which cruise line will blink first?

[firefly333]

On the one hand, if it hits $70, the execs are looking at a nice potential revenue boost in a tough environment. On the other hand, they are looking at essentially increasing fares across the board in a tough environment and possibly alienating customers. Which cruise line will blink first?

 

Im guessing NCL and RCL since their threshhold is $65.

 

RCL already has it in place if oil hits $65 approx mid month, on a certain date, the month before the next qtr starts, the fuel surcharge will be reinstated.

 

Carnival is clear as mud. So, more people are going to complain since nothing is set in place yet.

[firefly333]

My thought is if you purchased when oil was under $70, you shouldn't get penalized. IF you purchased after $70/barrel, you should know full well a surcharge is in your future and I can honestly say people probably wouldn't have a huge problem with it anyway. Bob

 

So, if fuel is added to your already booked and fully paid for cruise, you would not have any issue? Well, you said you are in a cat 11, so percent wise its not a huge jump. For the person in a 1A, its a much larger percent add on.

 

I also have cruises bought out thru Jan 2011. If I pay in full now then I wouldnt get the fuel added on? Im guessing I will. I would gladly pay in full if that meant no chance they would add on the fuel surcharge.

[bigdaddyvoges]

So, if fuel is added to your already booked and fully paid for cruise, you would not have any issue? Well, you said you are in a cat 11, so percent wise its not a huge jump. For the person in a 1A, its a much larger percent add on.

 

I also have cruises bought out thru Jan 2011. If I pay in full now then I wouldnt get the fuel added on? Im guessing I will. I would gladly pay in full if that meant no chance they would add on the fuel surcharge.

 

I think we all don't want to pay the surcharge, all I am saying is make a clear cut rule as to when you add it on. Of course I have an issue with the fuel surcharge, and just because isn't as big of a percent, it is still $100+. My thoughts would be if you booked or PIF when oil is below the threshold then you shouldn't be surcharged.

[firefly333]

I think we all don't want to pay the surcharge, all I am saying is make a clear cut rule as to when you add it on. Of course I have an issue with the fuel surcharge, and just because isn't as big of a percent, it is still $100+. My thoughts would be if you booked or PIF when oil is below the threshold then you shouldn't be surcharged.

 

Oh believe me, I agree. I wish we had some idea what the terms are of when Carnival will add the fuel surcharge. Iv got 5 Carnival cruises booked, so will get hit extra hard.

[Nezmo]

Oh believe me, I agree. I wish we had some idea what the terms are of when Carnival will add the fuel surcharge. Iv got 5 Carnival cruises booked, so will get hit extra hard.

Truly understand your concern. However, I can't help thinking you're very fortunate to be able to have booked those five in the first place. Hope things work out for you.

 

N

[firefly333]

Truly understand your concern. However, I can't help thinking you're very fortunate to be able to have booked those five in the first place. Hope things work out for you.

 

N

 

Things will be what they will be, I just like to KNOW. I like to plan, or else I wouldnt be booked so far away. I just dislike the uncertainty. I got 14 days in Sept, after that, the impact wouldnt be such a big hit.

[RVman]

Wait until the first Hurricane gets in the Gulf, it will shoot up like a rocket. It's time to start crushing my beer cans :D

[Jeffy294]

What I wonder about this whole thing is this. Right now they are trading and selling Crude Oil for July, they sell oil two months in advance. So there is only a couple more days of trading left for July crude, June has already been purchased. I just wonder how that will work, will they instate the surcharge for August sailings if August crude goes over $70 or will they put it in as soon as it hits $70.

[bigdaddyvoges]

What I wonder about this whole thing is this. Right now they are trading and selling Crude Oil for July, they sell oil two months in advance. So there is only a couple more days of trading left for July crude, June has already been purchased. I just wonder how that will work, will they instate the surcharge for August sailings if August crude goes over $70 or will they put it in as soon as it hits $70.

 

Exactly what I was thinking. There is no way Carnival will feel $70/barrel right now, because the gas used on the boats in the next 4-8 weeks have already been bought with futures contracts. The immediate want to imply the surcharge is really BS if you think about it. I guess it all comes back to my philosophy of charge me on the room $$$ when booking and don't bother me with surcharges.....

[*Mach*]

I just got an email from a friend at Carnival in Miami.

There will be no adjustment to prices on a cruises that have already set sail before the fuel surcharge goes into effect so no worries about it appearing suddenly on your Sail and Sign account.

I've asked a couple other questions and I'm waiting to hear back on those items.

:)

[bigdaddyvoges]

Thanks Mach!!!!

 

So I guess the other questions (which you probably asked are) how long will they wait to implement the surcharge, and how much will it be? $5, $7, $9???

[80sramfan]

I just got an email from a friend at Carnival in Miami.

 

There will be no adjustment to prices on a cruises that have already set sail before the fuel surcharge goes into effect so no worries about it appearing suddenly on your Sail and Sign account.

 

I've asked a couple other questions and I'm waiting to hear back on those items.

 

:)

 

 

What if your cruise is paid in full (by their mandatory date) not a year out or anything strange. How are they going to collect? Put it on sign and sail? Then a bunch of po'd people will just take away the tips to make up for the fuel surcharge. Not a good solution. Seems to me they should be able to add it up to final due date but not after the paid in full date. Just my thoughts

[*Mach*]

What if your cruise is paid in full (by their mandatory date) not a year out or anything strange. How are they going to collect? Put it on sign and sail? Then a bunch of po'd people will just take away the tips to make up for the fuel surcharge. Not a good solution. Seems to me they should be able to add it up to final due date but not after the paid in full date. Just my thoughts

 

 

Carnival got sued and lost last year because they added the fuel supplement to all cruises past a certain date regardless of payment status.

It was for that reason that this notice was added:

The company reserves the right to re-instate the fuel supplement for all guests at up to $9 per person per day if the NYMEX oil price exceeds $70 per barrel.

 

 

It's nebulous enough to allow them to add it regardless of payment status or sail date.

[80sramfan]

Carnival got sued and lost last year because they added the fuel supplement to all cruises past a certain date regardless of payment status.

 

It was for that reason that this notice was added:

 

The company reserves the right to re-instate the fuel supplement for all guests at up to $9 per person per day if the NYMEX oil price exceeds $70 per barrel.

 

 

It's nebulous enough to allow them to add it regardless of payment status or sail date.

 

That's not the point. The point is what should they do to cause the least amount of "outrage"/ disruption. I'm sure the staff wont be to happy if they lost their tips on a few crusies. There are enought nut jobs out there that would do this

[*Mach*]

Thanks Mach!!!!

 

So I guess the other questions (which you probably asked are) how long will they wait to implement the surcharge, and how much will it be? $5, $7, $9???

 

They aren't letting me pin them down to an incremental pricing schedule for obvious reasons.

The question of timing is being looked at.

Now, please remember, the folks I talk with at Carnival are mostly in entertainment and public affair so they have to go hunting for answers. It may take a bit of time to get a response.

:)

[tedjazz]

Carnival got sued and lost last year because they added the fuel supplement to all cruises past a certain date regardless of payment status.

It was for that reason that this notice was added:

The company reserves the right to re-instate the fuel supplement for all guests at up to $9 per person per day if the NYMEX oil price exceeds $70 per barrel.

 

 

It's nebulous enough to allow them to add it regardless of payment status or sail date.

 

I don't think there ever was an Lawsuit, if I remember right, I think there were alot of complaints to the FL AG and that office was investigating the complaints and talked the matter over with Carnival who then decided they would probably lose if it did go to court and so decided to change their policy and added the new language to give them the authority to add another Fuel Surcharge retroactively if and when they decided to do so.

[*Mach*]

That's not the point. The point is what should they do to cause the least amount of "outrage"/ disruption. I'm sure the staff wont be to happy if they lost their tips on a few crusies. There are enought nut jobs out there that would do this

 

 

Actually, that IS the point. That statement was prepared by their legal staff to avoid another lawsuit like they saw last year.

I can't speak for Carnival but I hope that there would be enough lead time on the addition of the fuel supplement to avoid many of last year's problem.

I'd also hope that those who have paid their cruises in full would not be subject to an added expense but that's just me. I often pay off a cruise MANY months in advance and I certainly understand your concerns.

:)

[bigdaddyvoges]

I think that is a good point for Carnival to abide by. If the cruise is PIF then the surcharge shouldn't apply, but if you think about it, how many people would be paying right now if that were the case? Carnival would get a "windfall" of money right now which could be used as a band-aid for the cruisers they can't put the surcharge on. From an accounting standpoint, seeing that cash up front for so many cruises to come would allow better forecasting and budgeting for future cruises knowing that a lot of passengers are PIF. Just a thought. They could even take money from cruises at 8-12+ months out, invest it, get interest on it which could offset an increase in gas prices!!!!

[*Mach*]

I don't think there ever was an Lawsuit, if I remember right, I think there were alot of complaints to the FL AG and that office was investigating the complaints and talked the matter over with Carnival who then decided they would probably lose if it did go to court and so decided to change their policy and added the new language to give them the authority to add another Fuel Surcharge retroactively if and when they decided to do so.

 

 

I think there was a lawsuit filed against RCCL, Carnival, NCL and a few other lines that sail from Florida. If I remember right it concerned the lines entering into a cartel designed to raise the surcharges beyond the additional cost of the fuel but it was settled. My incorrect choice of words...

The new defunct Imperial Majesty line was sued and lost for the fuel surcharge...

[tedjazz]

I think there was a lawsuit filed against RCCL, Carnival, NCL and a few other lines that sail from Florida. If I remember right it concerned the lines entering into a cartel designed to raise the surcharges beyond the additional cost of the fuel but it was settled. My incorrect choice of words...

The new defunct Imperial Majesty line was sued and lost for the fuel surcharge...

 

I just remember reading an article about the Fuel Surcharge issue when it was a hot topic and the FL AG came out looking like a hero of sorts for brokering a resolution before it got drawn out through years of possible litigation. He even commended Carnival for backing off the retro charge implemented at the time. The matter you mentioned I don't recall but I'm sure there were quite a few legal matters that came to the halls of justice over this issue. There ususally are.

[bigdaddyvoges]

$66.35 and counting!!!!

 

The price is up over 20% in just under a month..... What a joke.....

[*Mach*]

I just remember reading an article about the Fuel Surcharge issue when it was a hot topic and the FL AG came out looking like a hero of sorts for brokering a resolution before it got drawn out through years of possible litigation. He even commended Carnival for backing off the retro charge implemented at the time. The matter you mentioned I don't recall but I'm sure there were quite a few legal matters that came to the halls of justice over this issue. There ususally are.

 

 

I think all that was tied together... could be mistaken. Carnival settled about six weeks after RCCL...

[tedjazz]

Actually, that IS the point. That statement was prepared by their legal staff to avoid another lawsuit like they saw last year.

I can't speak for Carnival but I hope that there would be enough lead time on the addition of the fuel supplement to avoid many of last year's problem.

I'd also hope that those who have paid their cruises in full would not be subject to an added expense but that's just me. I often pay off a cruise MANY months in advance and I certainly understand your concerns.

:)

 

I agree that those who paid in full should not be subjected to the Fuel Surcharge, but the added language does seem to take care of that matter, although even with the added clause there would probably be a few customers who might challenge the "retro" clause in the contract. I'm not an attorney, but it could happen and one of two things might happen. Class action lawsuit in favor for customers = Millions of $$$ for customers or Long drawn out lawsuit that costs lots of $$$ in attorney fees and doesn't improve the imagine of Carnival. I sure hope the Fuel Surcharge doesn't come back, but we'll just have to wait and see.

[firefly333]

I'd also hope that those who have paid their cruises in full would not be subject to an added expense but that's just me. I often pay off a cruise MANY months in advance and I certainly understand your concerns.

 

:)

 

I have a call into my PVP asking if she thinks we should pay off the Crazies B2B in Sept. If that might protect me. At worst, they charge my sea pass account when Im onboard?