If fuel reinstate, will they start at $5 per day?

[caribbeanboy]

Will they start at $5 per day like they did last time when fuel was above $100 already (if not mistaken) or will they go directly to $10 per day?

[ken_nyc]

This is something I talked about on my thread this morning...here is the link: http://boards.cruisecritic.com/showthread.php?t=1007320&highlight=

[thompson4131]

Will they start at $5 per day like they did last time when fuel was above $100 already (if not mistaken) or will they go directly to $10 per day?

 

My online payment screen shows that RCL reserves the right to charge a $10 fuel surcharge PP per day if West Texas oil goes above $65 per barrel. THATS $140 PER COUPLE.

[Toddcan]

I guess we'll know in a few hours, right? Isn't today the day they check the prices and decide on 3rd quarter surcharges?

 

They might take a few days to make up their mind too.

[ken_nyc]

I guess we'll know in a few hours, right? Isn't today the day they check the prices and decide on 3rd quarter surcharges?

 

They might take a few days to make up their mind too.

Yes, Todd you are correct.

This is what it said this morning:

Royal Caribbean International reserves the right to impose a fuel supplement on all guests if the price of West Texas Intermediate fuel exceeds $65.00 per barrel. The fuel supplement for 1st and 2nd guests would be no more than $10 per guest per day, to a maximum of $140 per cruise; and for additional guests would be no more than $5 per person per day, to a maximum of $70 per cruise.

[caribbeanboy]

It says no more than $10 so there is a chance that they start at $5 (again)

[ken_nyc]

It says no more than $10 so there is a chance that they start at $5 (again)

Well if there is, all of us will definitely hope for the $5!

[Gonzo70]

As I mentioned in the other thread, they are not likely to invoke it this quarter for various reasons - but most importantly because Carnival recently said they are not reinstating their fuel surcharge for now (despite being able to per the parameters they set). In the unlikely case that they do reinstate the fuel surcharge for the third quarter I would be completely shocked if it was more than $5 per person/per day. Carnival Corp. already has cheaper fares when comparing similarly aged ships/itineraries so if they are tacking on another $140 per cruise ($10 per day for two people on 7 night cruise) they might be pricing themself out of the market. I do not think they can afford to make a decision that would cut significantly into their market share considering that oil only recently creeped above $65 and they are partially hedged at lower prices for the next several months.

[ken_nyc]

Gonzo...hope you are right!

[caribbeanboy]

They are even hedged for 40% already for 2011 !

[Gonzo70]

They are even hedged for 40% already for 2011 !

 

That was mighty smart of them too!

[caribbeanboy]

That was mighty smart of them too!

 

Sorry it was 40% for 2010 and 25% for 2011

 

Hedged 50% for the 2nd quarter of this year and 48% for the full year (2009)

[newaggieparents]

I'll be perfectly honest...Our cruise final payment has been made and the Carnival group (Carnival, Princess etc.) has stated that they will not implement the fuel surcharge. If Royal Caribbean decides to go ahead and charge anything additional for our cruise in these tough economic times, I will truly be very unhappy about it! I like RC, but I would not in any way condone this added last-minute charge.

 

I think they need to carefully consider whether they will be alienating their good customers before they go ahead and add any additional surcharges, especially for fuel that has been hedged.

[Gonzo70]

I'll be perfectly honest...Our cruise final payment has been made and the Carnival group (Carnival, Princess etc.) has stated that they will not implement the fuel surcharge. If Royal Caribbean decides to go ahead and charge anything additional for our cruise in these tough economic times, I will truly be very unhappy about it! I like RC, but I would not in any way condone this added last-minute charge.

 

I think they need to carefully consider whether they will be alienating their good customers before they go ahead and add any additional surcharges, especially for fuel that has been hedged.

 

Well said. It would be a public relations nightmare for them to reinstate the fuel surcharge now. If come September oil is trading in the $80s I could understand them reinstating it for fourth quarter (and I have a fourth quarter cruise booked so it would impact me), but I just can't see justification for it for third quarter '09. I think it would be a lose-lose situation (unhappy passengers and the cruise line would likely lose more than they gain).

[kruzerci]

I can understand them asking for $5 a day, but at this point $10 is overkill. $10 was understandable when crude was $140, but there is no need for $10 a day when it is hovering at $70 a barrel.