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Will gas prices affect cruise prices?


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They are definitely affecting my bottom line right now. We are skipping a half way down motel stay in lieu of the increasing prices and opting to drive straight through to Orlando on Saturday (leaving our house at 4am), staying over there, and then going to Tampa on early Sunday morning. We were going to leave on Friday night, stay over somewhere in SC, and take our time going to Orlando on Saturday and doing some tourist stuff...not now. Florida just lost some cash on that deal, but they will make it up in that tank of gas we are going to have to buy down there...:)

 

My car gets almost 40 miles to a gallon, but at $2.25 a gallon, it's not making much difference in my pocket book!

 

Arghhh!

 

Stef

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http://www.cruisecritic.com/news/news.cfm?ID=1278

April 5, 2005pixel.gif

RSSC Implements Fuel SurchargesIn an unusual-for-the-cruise-industry move, Radisson Seven Seas Cruises has announced that it will levy a fuel surcharge on all new bookings made for 2005 sailings on Radisson Diamond, Seven Seas Navigator, Seven Seas Mariner, Seven Seas Voyager and Paul Gauguin. New customers will be assessed $2.85 per person, per day. Folks who have already booked 2005 cruises (and who haven't made their final payments) on these ships from May onward will also have to cough up the extra charge.

 

Assessing fuel surcharges has been quite a common practice for airlines; for instance, British Airways recently raised its per-person fee on long-haul flights from 10 pounds, or $20, to 16 pounds, or $31. But at the State of the Industry panel last month at Seatrade, the cruise industry's annual convention, speakers -- including Carnival Cruise Lines' Bob Dickinson, NCL's Colin Veitch, Royal Caribbean/Celebrity's Jack Williams and MSC Cruises' Rick Sasso (RSSC president Mark Conroy did not participate) -- downplayed the overall rise in fuel prices, saying that for the most part, onboard cost efficiencies balanced the additional cost.

 

In a statement released in late March, RSSC also says it will assess passengers who have booked 2005 cruises to Europe or French Polynesia, and who have purchased their air through the cruise line, a fuel charge on top of that levied on the voyage itself. For those heading to French Polynesia on Paul Gauguin, the fee will be an additional $30 each way. Passengers bound for European cruises will pay $19 to $40, depending on the airline. Customers who have already paid in full will not have to pony up the air surcharges

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There are two other couples going with us in Sept to Tampa. We were going to drive from Macon County which is right on the KY border, but with the gas prices and 6 of us in a Suburban, we chose to fly. Maybe I can have a few drinks before we board to steady the nerves. Hopefully, SWA will extend its flight schedules for Sept so that we can go ahead and book a flight before prices increase again.

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Do you think that Carnival will add any surcharges to my already paid deposit but not paid in full cruise? My balance is not due till June. We are trying to prepay as much as possible since gas will kill us alone driving from OKC to Galveston. We have paid for our hotel, cruise parking and excursions already. Anything up front helps.

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Just wondering if the rise in gas prices are going to increase cruise prices? I haven't seen any major increases as of yet?

 

It already has. High end Radisson Seven Seas cruise line implemented a $2.85 per person per day fuel surcharge for all bookings after February 18, 2005.

Large cruise lines today typically spend between 5% and 6% of their revenue on fuel, a percentage that has risen over the past few years. For Carnival Corp., that would have amounted to about $120 million in the first quarter.

Whether or not the larger mass market cruise lines such as Carnival Cruise Line will follow suit, time will tell.

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The price of gas doesn't bother me; my diesel Jetta Wagon gets 47+ mpg per gallon.

I hope gas hits $4 a gallon. For too long, people have been buying gas guzzling suv's. This helps send more $ to middle eastern countries which not only increases our trade debt, but also finances terrosim as well.

American vehicles consume 10% of all the world's oil. This needs to stop. Get a diesel- in the last three years, the money we have saved instead of driving the gas hog Honda CRV has more than paid for our last cruise.

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The price of gas doesn't bother me; my diesel Jetta Wagon gets 47+ mpg per gallon.

I hope gas hits $4 a gallon. For too long, people have been buying gas guzzling suv's. This helps send more $ to middle eastern countries which not only increases our trade debt, but also finances terrosim as well.

American vehicles consume 10% of all the world's oil. This needs to stop. Get a diesel- in the last three years, the money we have saved instead of driving the gas hog Honda CRV has more than paid for our last cruise.

 

I hope that you also realize that the price of gas going up will also cause our home energy bills to rise along with grocery prices as it cost money for companies to deliver goods to the stores. Driving a car is not the only cost associated with rising oil prices.

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Gas in Katy (suburb of Houston) has just reached $2, but that's still too high for me! My hope for the cruiselines is that they will just stop circling all night and park it- keep the prices low! :)

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I hope that you also realize that the price of gas going up will also cause our home energy bills to rise along with grocery prices as it cost money for companies to deliver goods to the stores. Driving a car is not the only cost associated with rising oil prices.

 

I hope you do realize that most goods are NOT shipped with gasoline, they are shipped with diesel. Also, houses that are heated and electrified via natural gas are not affected by the price of oil.

Diesel is affected by the price of oil. However, oil goes up in prices demand increases-this is basic economics. However, we are ALL paying extra for the extra demand for oil created by SUV drivers. While soccer mom Sally might wrongly feel safer driving her suburban, she is also consuming 3-4x the amount of oil someone like me might use.If these people were to drive more efficient vehicles, we would see a dramatic decrease in oil usage which would cause oil prices to drop- again, simple economics. The poor senior who doesn't drive, but heats his house with oil would also see a drop in the price of heating oil.

If oil were to double in price, gasoline would easily hit $4 a gallon. Diesel? Not quite. Pure biodiesel, made from soybeans, can be had for $3 a gallon. Widescale production could bring the cost down. My local Costco sells Canola oil for $3 a gallon, something that I'll use more as prices increase. I still need to hit up the local greasey spoons to see if I can take their grease and use it in my car. Gas guzzling SUV can just keep paying more for gasoline.

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If oil were to double in price, gasoline would easily hit $4 a gallon. Diesel? Not quite. Pure biodiesel, made from soybeans, can be had for $3 a gallon. Widescale production could bring the cost down. My local Costco sells Canola oil for $3 a gallon, something that I'll use more as prices increase. I still need to hit up the local greasey spoons to see if I can take their grease and use it in my car. Gas guzzling SUV can just keep paying more for gasoline.

 

 

<OFFTOPIC><SOAPBOX> Actually, the price of crude did double from the $20 to $30 per barrel range that OPEC was trying to maintain to about $55 (or $1 per gallon). Which means that even if they gave it away, $2.25 - $1.00 is still $1.25 a gallon! Isn't $1.25 outragous? The biggest part of this run-up is shortage of refinery capacity. Add to that "gaming of the market" while the Federal Government looks the other way like it did for "Kenny Boy" Lay and company.

 

We are reaping the rewards of our poor planning. What were we thinking when we gave tax breaks to SUVs and cut C.A.F.E.s? Now, we are stuck with an inefficient fleet of cars as our refinery capacity slowly shrinks while demand for crude in China and India soars. I don't see any end.

 

Note that natural gas will be diverted to the vehicles driving up the price of electricity. And nobody has come up with a way to keep nuclear power plants from absorbing radiation so they won't need to become decommissioned waste piles.</SOAPBOX> </OFFTOPIC>

 

Short term, price hikes will be disguised as surcharges. Long term, it will become harder and harder to afford cruises as high energy costs ripple through the system. Prices will drop for the fewer people who will be able to cruise. The less profitable ships will be shifted to emerging markets (cruises sailing from Mexico?).

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<OFFTOPIC><SOAPBOX> Actually, the price of crude did double from the $20 to $30 per barrel range that OPEC was trying to maintain to about $55 (or $1 per gallon). Which means that even if they gave it away, $2.25 - $1.00 is still $1.25 a gallon! Isn't $1.25 outragous? The biggest part of this run-up is shortage of refinery capacity. Add to that "gaming of the market" while the Federal Government looks the other way like it did for "Kenny Boy" Lay and company.

 

from Mexico?).

 

The problem with gasoline prices is not refinaries, it is consolidation. One hundred years ago, Standard Oil Trust monopoly was broken up. Now, all the oil companies are becoming one again. Just the other day, Chevron and Unical announced that they'll merge. In the west, these mergers have helped keep gas prices up. The Bush ethanol mandate (his way of saying thanks to the midwest states that voted for him) also adds about a nickel to each gallon. Contrary to popular belief, there is nothing to stop oil companies from building more refinaries. The few that run are easy to control. Also, gasoline is imported from Europe.

If oil keeps climbing, I doubt CCL will raise prices. I think it is more likely that they will cut corners, ala RCL.

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Gas in Katy (suburb of Houston) has just reached $2, but that's still too high for me! My hope for the cruiselines is that they will just stop circling all night and park it- keep the prices low! :)

 

Lucky you. $2.59 per gallon here in No. Calif.

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Gas in Katy (suburb of Houston) has just reached $2, but that's still too high for me! My hope for the cruiselines is that they will just stop circling all night and park it- keep the prices low! :)

 

Just reached $2 :eek: I was happy to see $2.60 :rolleyes:

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Contrary to popular belief, there is nothing to stop oil companies from building more refinaries. The few that run are easy to control.

 

<OFFTOPIC>Since nobody wants one in their backyard, it's almost impossible. I will concede, however, that consolidation makes "gaming the market" easier. (Tricks like withholding a small amount of supply from busy markets like So. Cal. and shipping it to smaller markets.) When was there any increase in capacity anywhere in the US.</OFFTOPIC>

 

If oil keeps climbing, I doubt CCL will raise prices. I think it is more likely that they will cut corners, ala RCL.

 

I'd guess that if there were any corners to cut, Carnival would have cut them already. That's why they're Carnival. Maybe they could stretch the employees another 5%.

 

I'm not convinced, though, that fuel cost represents such a big expense for cruise lines like it does for airlines. I still think they're using this as an excuse to sneak a price hike in (unlike the airlines which are hurting).

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Just wondering if the rise in gas prices are going to increase cruise prices? I haven't seen any major increases as of yet?

 

I have spoke with a manager at RCI and was told that cruise prices have been set for this year and the beginning of next year. I was also told that prices would not increase until the ship begins to fill up.

 

As far as Carnival, I was told there has been 3 rate increases this year so far on all cruises.

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In South Jersey, you can still find it for under $2/gal at the end of the turnpike truck stops. Deisel is over $2 a gallon as well

 

As for the price of deisel, natural gas, butane, propane, gasoline - they will all go up as the price of oil goes up. Natural gas is the only item above that doesn't come from the refinement process but I still saw a 60% increase in my winter fuel charges because of "supply charges" My gas use last month was 76 ccf's for about $35. The supply charges were over $.85 per ccf for an additional $65 "delivery" charge. This is the reason natural gas cars are never going to be worthwhile for the avg user (that and the fact that they only get 200 miles on a tank) unless they can put in place a nationwide filling service and eliminate the "delivery charge" for home gas service.

 

But all things considered, we should consider ourselves lucky. We have been spoiled by gas prices and as a result became greedy. In Europe, they pay by the litre and pay over $6 per gallon in places.

 

We need a better infrastructure with more mass transit systems in place that reach these suburban business parks that have spread out all over the place that can only be reached by car. This country has the worse rail system of any major industrialized nation with only the most major cities having anything decent and the national Amtrak system being the joke that it is.

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Hi Icebrat001 ( Hay Neighbor)

If you drive 20 miles to Antioch, I can save you 11 cents a gallon :D

 

 

20 miles! I complain about driving more than 8 miles. Everything is close to me and the way I plan things I can use a tank of gas for 6 weeks. :D :cool:

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I'd guess that if there were any corners to cut, Carnival would have cut them already. That's why they're Carnival. Maybe they could stretch the employees another 5%.

 

I'm not convinced, though, that fuel cost represents such a big expense for cruise lines like it does for airlines. I still think they're using this as an excuse to sneak a price hike in (unlike the airlines which are hurting).

 

I started cruising with RCL back in '89, with CCL since late 90's. I have seen a lot of changes and cutbacks. RCL made major cutbacks in food quality, CCL made cutbacks by cramming morte people on newer ships (like the Glory) and getting rid of extras like the friends and lovers parties (free booze!) and rum swizzle parties (more free booze!).

I am hoping no one at CCL is reading this, but I think they could cut back in food quality. They could stop serving up the medium size lobster tails and use the dinky yucky ones that RCL uses. They could stop serving up punch, discontinue the delis, sub in frozen pizza instead of the fresh stuff,use round steak instead of sirloin, charge for frozen yogurt, I think you get the idea.

I read somewhere that the QM II uses about 3 gallons of diesel to move a foot. These ships do use a lot of fuel.It'd be nice if they could reuse their grease- at least it would make the smell from the smoke stack more pleasant. When I use biodiesel in my Jetta, the exhaust smells pretty good.

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