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Fuel Surcharge


Bama Fan
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Even though oil is well above the price needed to trigger the surcharge, I would expect it would take either (1) a large spike in the price or (2) other lines invoking a surcharge for Carnival to start charging it.

Edited by emelvee
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The fuel surcharge is already added into the price of the cruise, it is no longer a separate charge that you have to pay for

Except that it says in the contract that they can charge a fuel supplement if they want to.

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Does anyone know at what point Carnival invokes the fuel surcharge?

 

All of the cruise lines have learned to use fuel price derivatives (futures) to stabilize their fuel costs for about 1-2 years at a time. Huge market volatility could trigger a surcharge if the derivatives don't cover the actual costs.

 

As we go into 2014 and towards 2015, when the 0.1% sulfur fuel requirements for the US ECA come into effect, you will see either a fuel surcharge, mostly on those ships operating inside the ECA a lot (NOLA based, and Alaska), or more likely in my opinion, a substantial jump in ticket price for those cruises, as I believe the fuel cost will exceed what the surcharge can be, and it won't go away, that high fuel cost will remain for all ships operating in the US ECA.

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  • 6 months later...

I actually read (part) of the contract tonight for the first time. Seems very one sided and though I bet it was written by the best corporate lawyers Carnival can buy it seems like it could be challenged based on basic contract law. It would cost a ton of time and money (which I as a cruiser don't have) and at 9.00 per day per person you could not even talk to a lawyers receptionist without exceeding the max they could charge you

(assume 2 per cabin x 9 per day x 7 days = 126.00)

 

The S storm that would hit the internet if a cruise line suddenly dumped max surcharge on fully paid cruisers would likely cost them more business then its worth. If you haven't paid in full and they implement a charge that's one thing (would still be pissed). Given the number of people that book way in advance, which cruise lines like as it helps maximize loads/profits, a broad application of fuel surcharges would likely drive early bookers and other cruisers away.

 

Would I walk away from a 2500 cruise for 125 bucks? No. Would I switch to all inclusive vacations and slag the cruise line every chance I got? You bet

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Not true.

 

Acutually it is true. The price of a cruise and the pricing structure is based on the cost of doing business. The surcharge "option" has been around for maybe 10 years since the oringinal spike. The surcharge is in place to handle unusual events in the world that might make a spike so high, that the budget for fuel is blown out. So the surcharge is the emergency card they have to play when needed.

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I have never heard of this. Has anyone else ? We paid a surcharge once when they first implemented it, but it was not refunded to us. Why would they charge it and then refund it.?:confused:

Both cruises I went on refunded me the fuel charge at the end of the cruise.

 

 

Sent from my iPad using Tapatalk HD

Edited by overthehillcruiser
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I have never heard of this. Has anyone else ? We paid a surcharge once when they first implemented it, but it was not refunded to us. Why would they charge it and then refund it.?:confused:

 

 

If I remember correctly, they instituted the surcharge on all cruises during a time period whether paid in full, booked and even after final payment. Then the were sued by the State of Florida since they had changed contracts and refunded surcharges to all except those who booked after the charges were implemented.

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my first cruise in 2009 they had added the fuel surcharge as well as the other lines. Then the price dropped and with the disclaimer if the price exceeds 70 a barrel, blah blah. but as we all know, to this date there hasn't been a charge. well, at least on a 2nd line lol. I agree with the one poster, if the other lines add it as a separate charge, then so will carnival I'm sure. but then again, if their "smart" they won't. but we know it will get added into the cruise fare, but would look good on their part not to lmao.

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I figure the language is still in the contract just in case there would be another jump like we have had in prior years. With the way things go in the middle east you never know and if there was a big price jump the lines could lose a bunch. I think most would understand the reasoning behind it if it did happen.

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so you don't think the fuel cost is built into the cost of the cruise?

 

The cost of the "known" fuel price variables is built it (any cruise line would be stupid not to build that in), but the "surcharge" clause covers them in case of extreme conditions.

 

Trying to implement the charge "during" those extreme conditions would only cause them more bad press, like it did the first time it was implemented.

 

So why *wouldn't* Carnival keep it in the contract?

 

Good business practice if you asked me.

 

I'm more concerned about the "we don't have to take you any port we don't want to" clause being implemented way more often than the fuel surcharge. (At least, it has in my experience). It is what it is.

 

GP

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The S storm that would hit the internet if a cruise line suddenly dumped max surcharge on fully paid cruisers would likely cost them more business then its worth. If you haven't paid in full and they implement a charge that's one thing (would still be pissed). Given the number of people that book way in advance, which cruise lines like as it helps maximize loads/profits, a broad application of fuel surcharges would likely drive early bookers and other cruisers away.

I remember well the "S storm" that hit the internet and news media the first time they did implement the charge. We were hit with the charge. We were notified via email. Basically, it said we had 24 hours to pay the charge or our booking would be cancelled. This was about one week prior to sailing. We did pay, we had not choice, but we received a refund a couple of months after returning from our cruise because of all the backlash.

Edited by scooterpopsnana
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