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Cruise Travel Talk > Lido Deck - Cruise Line Information > Royal Caribbean Cruise Line > Royal Caribbean Cruises Ltd. Announces Fuel Supplement


Royal Caribbean Cruises Ltd. Announces Fuel Supplement
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hstrybuf
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 Posted: Fri Nov 16th, 2007 08:09 pm1st Post

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MIAMI - November 16, 2007 - In an effort to deal with the sharp increase in fuel prices, Royal Caribbean Cruises Ltd. today announced the implementation of a fuel supplement of $5 per guest per day for sailings that depart on or after February 1, 2008.

"I thank our guests for understanding our need to implement this fuel supplement," said Brian Rice, executive vice president and chief financial officer of Royal Caribbean Cruises Ltd. "We have gone to great lengths to minimize the impact of rising fuel costs, for example, designing and building more fuel-efficient ships, installing energy-saving lighting, and using air conditioning more efficiently. Unfortunately, as fuel prices have reached record highs, we are forced to take this extraordinary step to offset those costs."

The company has taken measures to soften the impact of this decision. For example, the company will not apply the supplement on any bookings where the guest has already paid the full cost of the cruise. In addition, guests who were booked before November 16, and who do not agree to pay the supplement, may cancel their reservation prior to December 7, 2007, for a full refund of all monies they have paid to the company, and they will not be subject to any cancellation charges that would normally apply. Those guests who do not cancel their reservation and pay in full will receive one logo item per stateroom, onboard their cruise. Finally, the supplement will apply only to the first and second guests in each stateroom and will not exceed $70 per person, per sailing.

The supplement will assist the company in offsetting the widespread increases in fuel prices, which have more than doubled in recent years. The supplement will be periodically reviewed, with the intent of being temporary, and may be adjusted as fuel prices fluctuate.

 The company will provide travel agents with an administrative fee of $12 per existing booking to help offset the costs associated with contacting guests with existing reservations and collecting payment of the supplement for each booking that sails on or after February 1, 2008.

The charge will involve three Royal Caribbean Cruises Ltd. brands: Royal Caribbean International, Celebrity Cruises and Azamara Cruises. Pullmantur Cruises, the Madrid-based, wholly-owned subsidiary of Royal Caribbean Cruise Ltd, has also implemented a fuel supplement of €50 for its tours and cruises that depart on or after January 1, 2008.

"We know the rising cost of fuel has affected everyone, and, unfortunately, our company is no different," Rice said. "We hope the options we are providing, including additional time for guests to finalize vacation plans, will underscore our commitment to our guests."

The supplement is effective for new and existing North American bookings. The company cannot predict the impact of the fuel supplement on its earnings, as it does not know the number of new or existing bookings that will accept the proposed supplement.

http://www.royalcaribbean.com/ourCompany/pressCenter/pressReleases/info.do;jsessionid=0000zYryCNQrM7BXEL_Hcaq6xd0:12hdhu87a?prDate=11-16-2007&prCode=A

Fuel Supplement Charge
November 16, 2007
 
Because of the sharp increases in fuel prices, Royal Caribbean International has announced a fuel supplement for North America reservations of $5 per guest, per day, for sailings that depart on or after February 1, 2008.

The supplement applies to the first and second guests in a stateroom up to a maximum of $70 per person per sailing, for new and existing bookings. The company will not apply the supplement where the guest has already paid the full cost of the cruise for bookings paid in full prior to the implementation date.

The supplement will assist the company in offsetting the widespread increases in fuel prices that have more than doubled in recent years. The supplement will be periodically reviewed, with the intent of being temporary and may be adjusted as fuel prices fluctuate.

We thank our guests for understanding our need to implement this fuel supplement. We have gone to great lengths to minimize the impact of rising fuel costs. Unfortunately, as fuel prices have reached record highs, we are forced to take this extraordinary step to offset our record costs and to remain competitive within our industry. 

http://www.royalcaribbean.com/contentPage.do?pagename=important_updates



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 Posted: Fri Nov 16th, 2007 08:34 pm2nd Post

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wonder when the $hit will hit the fan over at cc??


we are already paying for our March Crown Princess cruise...  our pour TA was so busy with calls, that DH sent her an email and said she didn't need to call us.  Guess she's had to deal with a lot of grief.

Last edited on Fri Nov 16th, 2007 08:35 pm by Eeyore



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 Posted: Fri Nov 16th, 2007 09:01 pm3rd Post

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and to al lthe people that canceled their CCL cruises and went to RCI - :lmao1:



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 Posted: Fri Nov 16th, 2007 09:06 pm4th Post

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So much for all the RCI apologists who said RCI wouldn't have to institute a fuel surcharge because "RCI had the foresight to purchase fuel futures." :nana:

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 Posted: Fri Nov 16th, 2007 10:06 pm5th Post

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Fuel supplement?

Have to be different.  It's the same damn thing.

And regardless of the words used the bottom line means the same.  Mercy sakes alive!  I just hit the thesaurus and it does look like a l-o-n-g ride indeed!

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Last edited on Fri Nov 16th, 2007 10:08 pm by kimdave68



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 Posted: Sat Nov 17th, 2007 03:53 pm6th Post

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I've just been posting over on CC, and I cannot believe that people are jumping in to complain to state and federal agencies about a "price increase", and not realizing that the fuel has to be paid for.  So, if they whine enough, RCCL will maybe back off.  But, then they take away something else on the cruise, or start chaging for stuff, because they gotta get the money somehow.

I posted that they did this same thing in the 1970's during the oil/gasoline crises, and drop the surcharge as soon as the prices dropped.  The precedent has already been set.

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 Posted: Sat Nov 17th, 2007 06:38 pm7th Post

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pcur wrote: I've just been posting over on CC, and I cannot believe that people are jumping in to complain to state and federal agencies about a "price increase", and not realizing that the fuel has to be paid for.  So, if they whine enough, RCCL will maybe back off.  But, then they take away something else on the cruise, or start chaging for stuff, because they gotta get the money somehow.

I posted that they did this same thing in the 1970's during the oil/gasoline crises, and drop the surcharge as soon as the prices dropped.  The precedent has already been set.


Hey Peggy! Good to see you! How was your trip?

All of the cruise lines are going with the fuel surcharge and most of the boards on CC have been in an uproar, especially Carnival. I think they'll hold on to the surcharge until they can still meet their financial goals and drop them.



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 Posted: Sat Nov 17th, 2007 07:52 pm8th Post

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I don't think the surcharges will be dropped, today is a whole new ballgame where oil is concerned. It's not like the early 70's where the reason was purely political (Saudi Arabia and OPEC absolutely pissed at Nixon). U.S. oil production had just peaked and frankly, no one knew what to do. What's interesting about these thing is, over time, they can be disguised. An example of this is FedEx and UPS just announced price increases of 4.9% for next year BUT will make a cut to the fuel surcharge. I would expect the mass market lines to do the same if oil/fuel prices don't drop (which they won't at current consumption rates). Either way, the charge will be there in some form.

It seems there is a bigger problem with RCI now, the fishermans' platter will no longer have lobster in 2008....horror of horrors.:big grin: 

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 Posted: Sat Nov 17th, 2007 08:17 pm9th Post

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BobBeaSea wrote: I don't think the surcharges will be dropped, today is a whole new ballgame where oil is concerned. It's not like the early 70's where the reason was purely political (Saudi Arabia and OPEC absolutely pissed at Nixon). U.S. oil production had just peaked and frankly, no one knew what to do. What's interesting about these thing is, over time, they can be disguised. An example of this is FedEx and UPS just announced price increases of 4.9% for next year BUT will make a cut to the fuel surcharge. I would expect the mass market lines to do the same if oil/fuel prices don't drop (which they won't at current consumption rates). Either way, the charge will be there in some form.

It seems there is a bigger problem with RCI now, the fishermans' platter will no longer have lobster in 2008....horror of horrors.:big grin: 


What? No lobster????? :shock: :big grin:

If they can't afford to drop the fuel surcharges for those cruises where they now apply, I wonder if instead we'll see some kind of "padding" on the cruises yet to be released? Seems like they're going to have to make their money somewhere if only to satisfy their stockholders.

 



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 Posted: Sat Nov 17th, 2007 08:54 pm10th Post

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Yeah, I read a few weeks ago about them dropping the lobster.  Someone talked to a maitre 'd on one of the ships about it.  He said their supplier couldn't supply the volume they need anymore (insert here: probably at the right price).

Hi, Deb!

My trip last Spring was fabulous!!  JC's over there now, huh?  Or, is he on the TA portion of it now?

I had a major health "event" in late August.  Sitting at my desk on a Monday around noon, and my left foot and lower leg started to go numb.  30 minutes later I was numb from the waist down on my left side.  1:30 AM the next day I was in the ER, as it was spreading to my right side.  I was hospitalized for 3 days, and I couldn't walk.

Mucho tests later and it was determined it was all muscular:  no heart, stroke, spinal nasties.  So, I've been in PT ever since.  About 60% of the numbness is gone, but my balance is still screwed up on my left side.  About a month after it all started I fell flat on my face and badly sprained my left ankle.

And, the coup de grace:  we decided to move back to B (we were renting an apartment, and commuting back home during the contract).  Our U-Haul trailer, with all our household goods from the apartment, was stolen from the underground garage at our apartment!!!!!  Some asshole hooked it up to his truck and drove away with it!!

But, I'm still cruising  :big grin::big grin:  Got one in early December.

Anyway, back on topic:  the fuel surcharge is such an "in your face" extra charge, that I think it is temporary.  They will hide the extra charge somewhere else in the cruise costs, IMO.

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 Posted: Sat Nov 17th, 2007 09:06 pm11th Post

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Good grief! You've really had a time of it! Glad to see you're doing better and are back with us. For some reason I thought you were off on another interesting trip. You keep at that PT, okay? :kiss:



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 Posted: Sun Nov 18th, 2007 02:52 am12th Post

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Will do!!  

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 Posted: Sun Nov 18th, 2007 11:57 am13th Post

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Sounds like you really need that cruise Peggy...enjoy!



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 Posted: Sun Nov 18th, 2007 03:24 pm14th Post

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Thank you!  I am leaving on the Vision in December!! As my siggy on CC says:  I want to die on board a ship!!!!

......but, not just yet:big grin::big grin::big grin:

When's JC back, anyway?

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 Posted: Fri May 23rd, 2008 07:40 pm15th Post

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It's up to $8 a day now.....



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 Posted: Fri May 23rd, 2008 07:44 pm16th Post

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Is that just on new bookings?



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 Posted: Sat May 24th, 2008 12:45 am17th Post

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Yes.



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 Posted: Sat May 24th, 2008 01:48 am18th Post

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At least they can't touch my 2 current bookings...........but I guess if we go on the Mariner cruise, they'll stick it to us..........:finger:



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