CARNIVAL ELIMINATES FUEL SURCHARGE

peninsularoad · #1 (**permalink**) October 10th, 2008, 05:09 PM

Carnival has announced that effective October 31, 2008, the existing fuel supplement will be eliminated for all new bookings on 2010 departures. At that same time, a price increase on 2010 sailings will become effective. Additionally, we have established specific guidelines under which the current fuel supplement may be reimbursed to our guests for 2008 and 2009 voyages.

For 2008 and 2009 departures, if the price of light sweet crude oil according to the NYMEX (New York Mercantile Exchange Index) is $70 per barrel or less at the 2:30 p.m. close of business as reported by Reuters on each of the 25 consecutive trading days ending five trading days prior to the guest's cruise departure date, the fuel supplement will be refunded in the form of a shipboard credit. Guests who book a 2010 cruise prior to October 31, 2008, will be charged the current fuel supplement but will also be eligible for a refund of the fuel supplement in accordance with the same fuel price conditions that are being implemented for the 2008 and 2009 departures. Within the next few weeks, we will provide the daily NYMEX fuel price information at Carnival.com.

Carnival is implementing these initiatives due to the recent trends in declining fuel prices in an effort to migrate away from charging a separate fuel supplement. If fuel prices stabilize below $70 per barrel, we will be able to effectively eliminate the fuel supplement. However, there is still a risk that fuel prices could move higher which would require us to maintain or reinstate a fuel supplement but we are hopeful that the goal of eliminating the fuel supplement can be achieved. These industry-leading initiatives demonstrate our commitment to our guests and travel agents to make Carnival the most attractive cruise vacation available.

The fuel supplement is currently $9 per person per day for the first and second guest (not to exceed $126 per person per voyage) and $4 per person per day for third, fourth and fifth guests (not to exceed $56 per person per voyage).

subtropic · #2 (**permalink**) October 10th, 2008, 11:14 PM

They should all follow suit. Oil is down to $85/bbl. Wise up !

#3 (**permalink**) October 11th, 2008, 12:12 AM

If there going to drop the surcharge but raise the fare price..That dosent make any differance in my book..Your still paying about the same..So your not saving anything..

Manuel · #4 (**permalink**) October 12th, 2008, 04:08 PM

I'm sure that it's only a matter of time before other cruise lines drop the fuel surcharge.

TM

kenna · #5 (**permalink**) October 18th, 2008, 08:44 PM

I agree with David. It doesn't make sense to drop the surcharge and raise the cruise price. The passenger still pays.

Manuel · #6 (**permalink**) October 18th, 2008, 08:54 PM

Quote:

Originally Posted by kenna

I agree with David. It doesn't make sense to drop the surcharge and raise the cruise price. The passenger still pays.

I guess it makes sense to the cruiseline

TM

Ron · #7 (**permalink**) October 18th, 2008, 09:27 PM

I booked the Carnival Glory again a few days ago and the fuel sur-charge was $ 63.00 per person. As I'm taking my older sister on this cruise and in her own cabin, that's $ 189.00 fuel charge for three of us.If I understand it correctly, if the price of oil stays at or below a certain level for so many days prior to sailing, they will refund the charges in the form of a shipboard credit. I hope so-- I 'm paying as much for my sister's cruise as I am for my wife and I so that $ 189.00 would help.

spencercoop · #8 (**permalink**) October 18th, 2008, 10:55 PM

Quote:

Originally Posted by Ron

I booked the Carnival Glory again a few days ago and the fuel sur-charge was $ 63.00 per person. As I'm taking my older sister on this cruise and in her own cabin, that's $ 189.00 fuel charge for three of us.If I understand it correctly, if the price of oil stays at or below a certain level for so many days prior to sailing, they will refund the charges in the form of a shipboard credit. I hope so-- I 'm paying as much for my sister's cruise as I am for my wife and I so that $ 189.00 would help.

In the first sentence of the news posting it says only on new bookings for 2010 cruises. So I don't think you will get any money back.

Ron · #9 (**permalink**) October 18th, 2008, 11:11 PM

Oh well-- a million here--a million there--it all adds up !!

Irish Shark · #10 (**permalink**) October 19th, 2008, 12:13 PM

By the time the oil is purchased, it takes three weeks before it is available as "fuel" on the market. It ain't going to happen folks - 25 days in a row under $70/barrel - not in this volatile market.

OPEC has said that it wants oil prices at $100, but they might settle on $80. What the news this week as OPEC has its summit.

"Iranian Oil Minister Gholam Hossien Nozari said Saturday that it would be "unsuitable" for both producers and consumers for oil to dip below $100 a barrel. He called on fellow OPEC members not to pump too much oil and avoid a drop in prices."

In the long term, I can see the surcharge going away being replaced by higher cruise fares to offset it.