Wednesday, November 28, 2007

Fuel Surcharges for Cruise Lines

In the past few weeks, most of the popular cruise lines announced that fuel surcharges would be added to most current and future reservations. The cost of oil is hovering around $100 a barrel and these surcharges, like those that the airlines have imposed, will help defray the skyrocketing costs.

Unfortunately, it has fallen upon the travel agents who have booked the cruises to become the bearer of bad news. I spent a few hours emailing all clients effected and luckily, my clients have been pretty much OK with the news.

Here is a list of most of the cruise lines policies regarding the fuel surcharges:

Here are the details of the fuel surcharge, by cruise line. This may not be 100% accurate but it will provide a good idea of what is going on within the cruise industry.

Lines with grace periods during which new bookings will not incur fuel surcharges

Regent Seven Seas has instituted a fuel surcharge of $7.50 per person, per day for all 2008 bookings that are not paid in full by December 1, 2007. This charge is applicable to all passengers in a cabin. Book and pay in full by 12/1/07 to avoid the additional surcharge.

Oceania Cruises has announced a fuel surcharge of $7 per person, per day, applicable to new and existing reservations that are not paid in full by December 1 and effective for all published sailings now through April 2009. The fee is applicable to all passengers in a cabin. Book and pay in full by 12/1/2007 to avoid the additional surcharge.

Norwegian and Orient Line plan to assess a fuel surcharge for all new reservations made on all sailings on or after December 1, 2007. The additional charge will be $7 per person, per day for the first and second passengers in a stateroom, and $3 per person, per day for any additional passengers in the same stateroom. Again, book by 12/1/07 to avoid the additonal surcharge.

MSC Cruises will apply a fuel surcharge of $6 per person, per day to all new bookings made on or after December 1 for cruises leaving on or after Feb. 1, 2008.The surcharge will only apply to the first two passengers in each cabin. Book by 12/1/2007 to avoid the surcharge.

Majestic America and Windstar will add a fuel surcharge of $8.50 per person, per day to all bookings that are not paid in full by December 15, 2007. The fee is applicable all passengers on all cruises departing now through March 2009. Book and pay in full by 12/14/2007 to avoid the surcharge.

Viking River Cruises will assess a fuel surcharge of $7 per person, per day, applicable to all passengers in a cabin, to bookings for all currently published sailings through December 2008 that are not paid in full by 12/19/2007. Book and pay in full by 12/18/07 to avoid the surcharge.

Crystal will institute a fuel surcharge of $7 per person, per day, applicable to all passengers, for all 2008 reservations that are not paid in full by January 1, 2008. Book and pay in full by 12/31/07 to avoid the surcharge.

Lines with no grace period that exempted existing bookings from fuel surcharges

Silversea is assessing a fuel surcharge of $10 per person, per day, effective immediately, on all new bookings for 2008 voyages. The surcharge is applicable to all guests in a cabin, and reservations made prior to November 14, 2007 are exempt from the additional fee.

Royal Caribbean, Celebrity and Azamara will assess a fuel surcharge of $5 per person, per day on all cruises that depart on or after February 1, 2008. The fee will apply only to the first two passengers in each stateroom, and will not exceed $70 per person, per voyage and will not apply the surcharge to bookings that were paid in full prior to November 16, 2007.

Cruise West will add a fuel surcharge of $12 per guest, per day, applicable to all passengers on all sailings, effective immediately. Cruise West will not apply the surcharge to bookings that were made prior to 11/12/07 and paid in full by 12/7/2007.

Lines with fuel surcharges applied to all existing and future bookings regardless of whether or not they were paid in full:

Carnival Corp., the largest cruise operator in the industry, will charge passengers an additional $5 a day on all new and existing bookings with Carnival, Costa, Cunard, Holland America, Princess, and Seabourn for sailings that depart on or after February 1, 2008. The fee will apply only to the first two passengers in each stateroom, and will not exceed $70 per person, per voyage.

There are still other cruise lines that have not announced policies yet but are expected to follow suite shortly.

In my opinion, I would have rather seen the cruise lines raise the prices of new cruises booked after they announced the fuel surcharge but that is not what they felt the need to do. This created lots of addtional work for the thousands of travel agents who have clients effected. You might say that $5 per person per day is not that much money, but consider the family of 4 in 2 cabins on a 7 night cruise. It all adds up.

Wil it stop people from cruising- not at all. It just seems to be a reflection of the times.

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