Oil prices tumble; gas falls to 2004 levels

[porsche9five1]

RCCL, Do we really need to continue instituting gas surcharges for 2009 reservations.

 

"Gasoline prices nationwide continued to decline, falling 2.3 cents overnight to $1.885, their lowest levels since September 2004 when the average price for three days was $1.886, according to auto club AAA, the Oil Price Information Service and Wright Express. The current price is $1.20 below where it was a year ago and down $2.225 from the peak in July when prices hit $4.11 per gallon."

 

Where were the surcharges for the past 3 years '04 - '07?

 

In these tough economic times, cut us a break!

[Sue L]

They do no just pull up to the pump and fill up, their fuel is purchased months in advance so they are likely still paying the higher prices of a few months ago. They already have a plan in place and it is based on the this chart. If the price on Dec 18th is less then 65$ a barrel then the fuel surcharges will be give back in on board credit for the cruises in the first quarter of the new year. Each subsequent quarter will be handled this way

 

 

http://www.uprr.com/customers/surcharge/wti.shtml

[Gonzo70]

RCCL, Do we really need to continue instituting gas surcharges for 2009 reservations.

 

"Gasoline prices nationwide continued to decline, falling 2.3 cents overnight to $1.885, their lowest levels since September 2004 when the average price for three days was $1.886, according to auto club AAA, the Oil Price Information Service and Wright Express. The current price is $1.20 below where it was a year ago and down $2.225 from the peak in July when prices hit $4.11 per gallon."

 

Where were the surcharges for the past 3 years '04 - '07?

 

In these tough economic times, cut us a break!

 

If oil stays down, the fuel surcharges for 2009 cruises will be refunded. If oil goes back up, the fuel surcharges will not be refunded. That seems pretty fair to me.

[porsche9five1]

Is the refund 100% or only partial? i.e. FS = $270, my cruise meets the criteria for the qtr pricing review.

[want2seaitall]

They do no just pull up to the pump and fill up, their fuel is purchased months in advance so they are likely still paying the higher prices of a few months ago. They already have a plan in place and it is based on the this chart. If the price on Dec 18th is less then 65$ a barrel then the fuel surcharges will be give back in on board credit for the cruises in the first quarter of the new year. Each subsequent quarter will be handled this way

 

You are absolutely right. I emailed RCI inquiring why only 2009 sailings? Why not 2008 sailings since I'm book 12/20/08 and the current oil prices are well below $65/barrel. This was the reply I got:

 

Dear Ms. XXXXXX:

 

Thank you for your email. We appreciate the opportunity to respond to your concerns.

 

As a company that consumes large amounts of fuel, Royal Caribbean International is forced to purchase fuel in advance by the metric ton to meet our needs. Unlike a direct consumer, where the benefits of decreased fuel costs are instantaneous, our fuel is pre-purchased, causing a delay in the positive impact of reduced fuel costs. Therefore, we are starting the process to determine the possibility of fuel supplement refunds in the next quarter of the calendar year available to us, which is the first quarter of 2009. We sincerely regret any inconvenience this may cause.

 

Ms. XXXXXX, thank you for contacting Royal Caribbean International.

 

Sincerely,

 

Emily Christinat

Customer Service Representative

[vermontvoyager]

They do no just pull up to the pump and fill up, their fuel is purchased months in advance so they are likely still paying the higher prices of a few months ago. They already have a plan in place and it is based on the this chart. If the price on Dec 18th is less then 65$ a barrel then the fuel surcharges will be give back in on board credit for the cruises in the first quarter of the new year. Each subsequent quarter will be handled this way

 

 

http://www.uprr.com/customers/surcharge/wti.shtml

 

Hi Sue...

We cruise on December 11 on Navigator. Do you know if we would be out of luck getting our fuel surcharges back as OBC ?, or is it all sailings after 12/18 ?

Thanks for any help with this.

[BayStateguppy]

If fuel prices stay down, they will NOT be refunded. They will become OBC.

[Sue L]

Is the refund 100% or only partial? i.e. FS = $270, my cruise meets the criteria for the qtr pricing review.

 

 

Yes it will be 100% of the fuel surcharge you paid IF the oil is below the 65$ a barrel mark in the benchmark date in the quarter BEFORE your cruise. No cruises have met the mark yet as the first one will be on December 18th for the first quarter of 2009.

[Sue L]

Hi Sue...

We cruise on December 11 on Navigator. Do you know if we would be out of luck getting our fuel surcharges back as OBC ?, or is it all sailings after 12/18 ?

 

Thanks for any help with this.

 

 

It is for sailings January 1, 2009 and beyond.

[Sue L]

If fuel prices stay down, they will NOT be refunded. They will become OBC.

 

On board credit is just as good, it is still money to spend.

[Redheada]

This sucks since I am booking a cruise leaving in two weeks. The fuel add on is $140 for our cabin.

[Gonzo70]

If fuel prices stay down, they will NOT be refunded. They will become OBC.

 

Which is the same exact thing as being refunded.

[cruisinfanatic]

Asked and answered about 100 times on this board.

It's quite clear and not open to interpretation.

 

Fuel Supplement Update

October 24, 2008

 

Our fuel supplement will no longer apply to new Royal Caribbean International, Celebrity Cruises and Azamara Cruises bookings made on or after November 10, 2008, anywhere in the world, for sailings that depart on or after January 1, 2010.

 

This decision takes into consideration the recent reductions in global fuel prices. The company has also established specific guidelines that will determine whether fuel supplement refunds will be provided for sailings that begin in 2009 and later, which were booked prior to November 10, 2008, if fuel prices remain below a specific price threshold.

 

For 2009 sailings and 2010 sailings booked before November 10, 2008, the company will determine on a quarterly basis whether fuel supplements will be refunded. Refunds, in the form of an onboard credit, will be provided if the closing price of West Texas Intermediate fuel is $65 or less, at the closing time of the New York Mercantile Exchange, two weeks prior to the beginning of the upcoming calendar quarter. When those conditions are met, an onboard credit will be provided to all guests on sailings that begin during the upcoming calendar quarter.

[land lover]

This sucks since I am booking a cruise leaving in two weeks. The fuel add on is $140 for our cabin.

 

 

And I would imagine you got a great price on your cabin...

[mclaire]

i applied a savings cert to my cruise for 2/09. it looks like it was applied against fuel surcharge and my current invoice shows no surcharge and a small credit balance. so if fuel goes below $65 12/18 do i still get an obc for my fuel surcharge?

[land lover]

RCCL,

 

"

Where were the surcharges for the past 3 years '04 - '07?

 

!

 

The cruise lines were/are playing catch up. In 2007 , I was charged a fuel surcharge of 10 per day for 2 different river cruises I went on....in 2006 a land vacation I booked to Europe hit me with a fuel surcharge...personally I was shocked the cruise lines took so long.

[land lover]

i applied a savings cert to my cruise for 2/09. it looks like it was applied against fuel surcharge and my current invoice shows no surcharge and a small credit balance. so if fuel goes below $65 12/18 do i still get an obc for my fuel surcharge?

 

I would call C&A for verification....what you are describing should not have happened.

[phaeton]

They would be wise to give OBC on any cruise that is saling after December 1, 2008. Failure of RCCL to do so will cause some consumer issues and I am sure they don't want that as earlier in the year I read about a class action suit dealing with some ship and the winner in any class action is not the Cruise ship or the consumer but the Trial attorney.

 

So Hopefully RCCL will be consumer oriented and deal wih the issue as its about customer satisfaction and creating Wow Moment!

 

You are absolutely right. I emailed RCI inquiring why only 2009 sailings? Why not 2008 sailings since I'm book 12/20/08 and the current oil prices are well below $65/barrel. This was the reply I got:

 

Dear Ms. XXXXXX:

 

Thank you for your email. We appreciate the opportunity to respond to your concerns.

 

As a company that consumes large amounts of fuel, Royal Caribbean International is forced to purchase fuel in advance by the metric ton to meet our needs. Unlike a direct consumer, where the benefits of decreased fuel costs are instantaneous, our fuel is pre-purchased, causing a delay in the positive impact of reduced fuel costs. Therefore, we are starting the process to determine the possibility of fuel supplement refunds in the next quarter of the calendar year available to us, which is the first quarter of 2009. We sincerely regret any inconvenience this may cause.

 

Ms. XXXXXX, thank you for contacting Royal Caribbean International.

 

Sincerely,

 

Emily Christinat

Customer Service Representative

[Daycare Provider]

1. fuel here is still 2.40 a gallon...sometimes it doesn't pay to live in a desirable place...like the central coast of California..

2.I applied my C&A certificate of 65.00 towards my account...if you print a detailed invoice under my cruises it will show you detailed that the is still fuel supplement is still 210.00....C&A certificates have thier own little catergory on your invoice...

I am looking foward to the obc....I know that it will be get spent between the bar, spa, and casino...

[Redheada]

They would be wise to give OBC on any cruise that is saling after December 1, 2008. Failure of RCCL to do so will cause some consumer issues and I am sure they don't want that as earlier in the year I read about a class action suit dealing with some ship and the winner in any class action is not the Cruise ship or the consumer but the Trial attorney.

 

So Hopefully RCCL will be consumer oriented and deal wih the issue as its about customer satisfaction and creating Wow Moment!

 

 

Yes, I agree - I think they should either reduce them or elimnate them. I understand the buying in bulk, but since it has been a few months with the prices so low - It is time for concessions.

[Sue L]

Yes, I agree - I think they should either reduce them or elimnate them. I understand the buying in bulk, but since it has been a few months with the prices so low - It is time for concessions.

 

 

they have made the concessions starting Jan 2009, they made this announcement a month and a half ago when the prices were just starting to drop. They have outlined the process, I don't know what is not clear. Go look at the crazy rules for Carnival's fuel surcharge refund and you will appreciate RCCL's all the better.

[Broch]

1. fuel here is still 2.40 a gallon...sometimes it doesn't pay to live in a desirable place...like the central coast of California..

 

Oh! my heart bleeds for you. Fuel here is about $8.00 a gallon. I know it is not your fault, but please count yourselves lucky in the States. We have our own refineries now and the oil is pumped only a few hundred miles off the coast of Scotland but with the tax it costs at least 3 times as much here as it does in the States. Even our whisky is taxed to the hilt. it costs me less to buy a bottle of Scotch Whisky in the States than itis to buy one which is bottled about 30 miles from my home

[phaeton]

Costco in Missouri had gas at 1.46 per gal on Sunday. Fuel is a big issue and you know that the RCCL folks are looking at it everyday. They had to pre-buy fuel or hedge fuel at a higher cost last spring for the the fall and winter months but they also have a duty to the consumer to apply the fuel surcharge in a fair an uniform manner. That is their big question. How to do it and avoid another class action lawsuit.

 

http://www.bizjournals.com/orlando/stories/2008/02/11/daily28.html

 

1. fuel here is still 2.40 a gallon...sometimes it doesn't pay to live in a desirable place...like the central coast of California..

 

 

Oh! my heart bleeds for you. Fuel here is about $8.00 a gallon. I know it is not your fault, but please count yourselves lucky in the States. We have our own refineries now and the oil is pumped only a few hundred miles off the coast of Scotland but with the tax it costs at least 3 times as much here as it does in the States. Even our whisky is taxed to the hilt. it costs me less to buy a bottle of Scotch Whisky in the States than itis to buy one which is bottled about 30 miles from my home

[phaeton]

http://www.cruisecritic.com/news/news.cfm?ID=2908

[Redheada]

I dont think there are issues with the changes to the fuel surcharge for 2009 and going forward. My comments relate solely to right now today through the end of December. If they are starting in January, I dont understand why it would be so difficult to do something for December 2008 cruisings. Even if it it just a 50% consideration. That is all I am saying. Jeez - who knew this would be such a hot topic. I would think the customers would all be on the same side.....