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Fuel Surcharge Question


hammsz

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Some months ago when oil first went back above the trigger price of $70/barrel Carnival President Gerry Cahill said, on John Heald's blog, that given the current economic conditions that the fuel surcharge would not be implemented.

Oil is currently above $80/barrel and Carnival is operating in fairly thin profits.

There is no surcharge now but don't be surprised if it pops up soon...

:)

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Some months ago when oil first went back above the trigger price of $70/barrel Carnival President Gerry Cahill said, on John Heald's blog, that given the current economic conditions that the fuel surcharge would not be implemented.

 

Oil is currently above $80/barrel and Carnival is operating in fairly thin profits.

 

There is no surcharge now but don't be surprised if it pops up soon...

 

:)

 

 

I would be surprised if we saw anytime before the economy picks up steam. This economy is far from a recovery state and the last thing any company wants to do is risk alienating their customer base when many are not even cruising anyway. The customer base is far more fragile now than it was when these fees were implemented.

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With the economy as bad as it is, they are lucky that the ships are sailing as full as they are!

 

The more a passenger spends on the fare, they less they will tend to spend on board. On-board revenue is already taken a big hit. Not as many passengers are booking ship's tours due to the high cost. We you are paying for someone other than yourself, the costs add up very quickly. A $170 tour for one is very different than paying that amount times 2 or 3 or 4. Somewhat limits your additional spending on board.

 

MARAPRINCE

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Some months ago when oil first went back above the trigger price of $70/barrel Carnival President Gerry Cahill said, on John Heald's blog, that given the current economic conditions that the fuel surcharge would not be implemented.

 

Oil is currently above $80/barrel and Carnival is operating in fairly thin profits.

 

There is no surcharge now but don't be surprised if it pops up soon...

 

:)

 

 

Almost kind of right, though not really, oil closed at $77.65, down $1.97 for the day.

 

CCL fuel expenses rose by 22% in the last quarter however with an average fuel bill of $ 326000 per cruise against $530000 last year the fuel cost is still way down.

 

Net revenue per cruise was down 5%, that includes ticket cost plus on board spend.

 

Revenue year over year was down $444 million (11.9%) due to $650 million (16.9%) lower ticket revenue.

 

They are going to do nothing to scare away passengers right now and the fuel surcharge will not come back.

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Almost kind of right, though not really, oil closed at $77.65, down $1.97 for the day.

 

CCL fuel expenses rose by 22% in the last quarter however with an average fuel bill of $ 326000 per cruise against $530000 last year the fuel cost is still way down.

 

Net revenue per cruise was down 5%, that includes ticket cost plus on board spend.

 

Revenue year over year was down $444 million (11.9%) due to $650 million (16.9%) lower ticket revenue.

 

They are going to do nothing to scare away passengers right now and the fuel surcharge will not come back.

 

I agree, at least not anytime soon. I just wish that would add it to the price instead of nickel and dimeing us to death with extra add on charges when the do decide to do it.

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