Oil Prices. Is it time?

Ok for the past decade, prices have gone up, quality of food has gone down, crews have been cut....is it time?

Is it time for Royal Caribbean to add back some of the quality many feel has been in decline over the last ten years?

Is it time for prices to be reduced?

Cruise lines do not pull up to the pump and say filler up and pay rack rates. They buy futures which they execute over time. They can also buy on the spot market. With oil down to $43.00 a barrel, it is time to not only put large numbers on the corporate bottom line, it is time to pass on these massive savings to the customer.

A barrel was $115.00 a short time ago. That is nearly a 66% drop.

Royal, you owe the stockholders, so reward them, but try not to forget who makes those profits for you.....us, your customers.

Amazing isn't it that all lines used it as an excuse to raise prices as oil went up, but haven't seen drops as it falls.:confused:

Not just in the cruise industry either.

As long as they keep filling ships, why would they or should they lower prices or add back quality?

Lowering prices is why quality has gone down.

As long as they keep filling ships, why would they or should they lower prices or add back quality?

Yep. It's simple economics - supply and demand. As long as demand is high, so are prices.

Cruises don't sell on a cost plus basis, but just as part of their costs that they try to manage.

Prices go up and down independently of fuel prices (aside from when they had the specific fuel surcharge some years back). Can't see any fall on the cards - unless demand itself falls, which has long been the way it's been.

Their price will have been negotiated for at least a year, or a season with their supplier, depending on ship and location of sailing. They don't pay at the pump like we do. They might actually be paying more per gallon right now in their contract, than the actual going rate.

The problem is that oil has dropped too much. It's negatively affected the economy, markets and a lot of large corporations bottom lines. Furthermore, more than the price is the volatility. In this unstable economic climate, who's to say how long they will stay low? You are correct that they leverage futures. But right now, oil futures are pretty restrictive. Because it's hard for even the best market analysts to have a high confidence interval.

As long as they keep filling ships, why would they or should they lower prices or add back quality?

You broke the code.As long as people are willing to pay crazy prices,why should they lower them.:confused:

I shall hold my breath in anticipation.

I shall hold my breath in anticipation.

Breath, please breath.:)

The problem is that oil has dropped too much. It's negatively affected the economy, markets and a lot of large corporations bottom lines.

i always laugh how logic does not apply to oil. oil is low and negatively affects the economy, oil is high and negatively affects the economy.

im not saying your statement is wrong, but just a total load of BS when it comes to oil, its pricing and its affects on the market/economy

i always laugh how logic does not apply to oil. oil is low and negatively affects the economy, oil is high and negatively affects the economy.

 

im not saying your statement is wrong, but just a total load of BS when it comes to oil, its pricing and its affects on the market/economy

I wouldn't say it's BS. It's a pretty unique double edged sword though. Because when it goes too high, it hurts the consumer. This drastically changes the way the public spends their money. But when it goes too low, it can dramatically negatively effect industry, because so much revenue is invested in oil and oil futures, that when it suddenly becomes worth so little, these industries, corporations, etc... Suddenly don't have the capital.

Aintnofun007, You are so correct. It is the biggest crock of BS. There's obviously no rhyme or reason to the philosophies of Oil business. I also believe that business all together tends to operate without any form of "code of ethics" JMHO

Ok for the past decade, prices have gone up, quality of food has gone down, crews have been cut....is it time?

Is it time for Royal Caribbean to add back some of the quality many feel has been in decline over the last ten years?

Is it time for prices to be reduced?

Cruise lines do not pull up to the pump and say filler up and pay rack rates. They buy futures which they execute over time. They can also buy on the spot market. With oil down to $43.00 a barrel, it is time to not only put large numbers on the corporate bottom line, it is time to pass on these massive savings to the customer.

A barrel was $115.00 a short time ago. That is nearly a 66% drop.

Royal, you owe the stockholders, so reward them, but try not to forget who makes those profits for you.....us, your customers.

No! It is not time. Stockholders Need to be rewarded, not customers. Yes the customer is needed for this, but as Longs as the customer pays the Price and accepts the Service they absolutely have to Keep the Price up there and the cost down to make more $$$$ for their stockholders. Only if they can´t fill their ships anymore they have to take Action. Only high oil Prices will have an effect on this not low oil Prices.

BTW low oil Prices result in more disposable Money for the General public, so they are more likely able to spend high Prices on stuff like Cruises.

leisuretraveler223, you are so correct.

There are winners and losers in each change, and some can only see things from one perspective - their own.

A big fall in prices of what you sell will stop many from selling it, leading to a subsequent rise in prices. Just the same as if your income suddenly halved - and more, many would suddenly want to look for a different job. Pity some don't get that.

The problem is that oil has dropped too much. It's negatively affected the economy, markets and a lot of large corporations bottom lines. Furthermore, more than the price is the volatility. In this unstable economic climate, who's to say how long they will stay low? You are correct that they leverage futures. But right now, oil futures are pretty restrictive. Because it's hard for even the best market analysts to have a high confidence interval.

It's not that clear cut. Low oil prices are a reflection of an economy that is failing to grow sufficiently to maintain high oil prices. IOW, a bad economy can cause low oil. It has negative effects upon certain companies bottom lines like Exxon, Haliburton, etc. It has positive effects on others, notably transportation companies or other companies which use a lot of petroleum products.