Low oil discount?

Are cruise companies now lowering their prices as oil is way less then half

of the standard $70.-?

I haven't seen it so far...go figure. :rolleyes:

Out of a great many cruises, I was never charged a fuel surcharge when oil went so high and I would not expect a reduction because oil is down.

Cruise lines, like airlines etc, leverage their fuel purchases. Who knows at what price they committed to how many tons of fuel.

Are cruise companies now lowering their prices as oil is way less then half

 

of the standard $70.-?

 

I haven't seen it so far...go figure. :rolleyes:

Highly unlikely . They didn't do any thing when was over $70 . Won't do anything oil under $70. The fuels they normally haven't roped in price either.

Nope.

If anything prices are creeping up.

Maybe the higher food costs override the lower oil costs ;)

Definitely a "Do Not Hold Your Breath"

Wee have no idea. There is still inflation in other areas and they are a business so I suspect they want to make money.

Keith

In 2014 fuel costs for Royal Caribbean were about 16% of the ticket revenue. So if your average fare was $1,000, fuel cost would be about $160. Even if actual fuel cost dropped by half ($80) (a big if) why on earth would a cruise line drop prices if they didn't have too? Any smart business person would pocket the savings and boost profits.

Input costs like fuel have no barring on pricing. Pricing is derived from supply vs. demand and the intensity of competition in the industry.

Now, the drop in oil prices might negatively affect demand from Canadians, for example as the drop in oil prices has caused our dollar to decline vs. the U.S. dollar. But for U.S. cruisers demand has likely increased as U.S. consumers have more disposable income to spend on things like cruises because they are spending less on oil and gas.

Do you volunteer to take a pay cut because it now costs you less to fill up at the pump?

Maybe the higher food costs override the lower oil costs ;)

Ssshhhh... We don't need an "egg surcharge". :rolleyes:

No way having the price of oil down will change our pricing!!!

Because all ships operating within the US ECA (200 miles from the North American coastline) must burn diesel fuel instead of residual fuel, the net fuel cost for the cruise ships over 2015 is virtually the same. Low sulfur diesel fuel is twice as expensive as residual fuel. Now, some ships are installing scrubbers to allow them to burn the cheaper residual fuel, but these cost about $5-8 million per ship, so they will want to cover that capital expense before giving any discount.

Also, marine bunker prices are not like gasoline or crude prices, and are trending upwards this year as demand increases.

Many cruises with RCI and only once was I charged a fuel surcharge...however...things changed before we sailed and we were given an OBC for this amount when fuel costs went down.

Air isn't going down either but at least AA is giving snacks now :D