Saturday, November 17, 2007

Cruise Lines and Fuel Surcharges

Because of the skyrocking price of oil the cruise lines are now adding Fuel Surcharges for their North American Sailings. Below are the surcharges, dates and rules being added by the different Cruise Lines. It's important to read the fine print to see which passengers are affected as every line seems to have different policy. So far 20 cruise lines have announced these new fees.

Regent Seven Seas will add a fuel surcharge of $7.50 per person per day. The fee applies to all cruises booked after December 1, 2007, and to all passengers who have existing reservations but don't pay in full by that same date.

Carnival Corporation which owns Carnival Cruise Lines, Costa Cruises, Cunard Line, Holland America Line, Princess Cruises and The Yachts of Seabourn will add a $5 per person per day fuel surcharge to their US based brands bills starting on Feb. 1, 2008. There will be a maximum of $70 per cruise and only applies to the 1st and 2nd person in a stateroom. A standard 7 day cruise would amount to an additional $35 each for the first 2 passengers in a stateroom. Those already booked and paid in full for a sailing after Feb. 1, 2007 will have to pay the surcharge. Carnival already has implemented similar surcharges on its European brands, Costa Cruises and AIDA Cruises, which has been in place for months.

Oceania Cruises will add $7 per person per day to customer bills, or about $100 per week per cabin. The charge, which is effective Dec. 1, 2007 for new and existing bookings. Unlike Carnival, however, Oceania's surcharge won't apply to customers who already have paid in full for upcoming cruises. Oceania says customers who already have paid in full or pay in full by Dec. 1 will be exempt from the charge.

Silversea Cruises will implement a charge of $10 per person, per day, and is assessing the fee on all new cruise bookings for 2008 from this point forward. Those who have already made reservations prior to November 14, 2007, are exempt. The surcharge is in effect through 2008.

NCL Corporation which owns Norwegian Cruise Line, NCL America and Orient Lines says effective on all new bookings made on or after Dec. 1, 2007 the fuel supplement will be $7 per person per day for the 1st and 2nd guest in a stateroom and $3 per person per day for each additional guest in the same stateroom.

Cruise West, the charge will be $12 per person, per day and applies to anyone with future cruise bookings that doesn't pay in full by December 7, 2007.

Royal Caribbean Cruises Ltd which owns Royal Caribbean International, Celebrity Cruises and Azamara Cruises has announced their fuel surcharge of $5 per person per day for the 1st and 2nd guest only not to exceed $70 per person per sailing that sail after February 1, 2008. Guests who have already paid for their cruise in full will not be required to pay the fee. Moreover, guests who were booked before November 16, 2007, and who do not agree to pay the supplement, may cancel their reservation prior to December 7, 2007, for a full refund, and they will not be subject to any cancellation charges that would normally apply. Those guests who do not cancel their reservation and pay in full will receive one logo item per stateroom on their cruise. Pullmantur Cruises, the Madrid-based, wholly owned subsidiary of Royal Caribbean Cruise Ltd., has also implemented a fuel supplement of €50 euros for its tours and cruises that depart on or after January 1, 2008.

Majestic America Line, the largest river and coastal cruising company in America, announced a fuel surcharge of $8.50 per person, per day for future sailings would be implemented due to escalating fuel prices. The surcharge applies to new bookings made after Dec. 15, 2007, and to existing bookings that are not paid in full by the same date.

Windstar Cruises, which operates a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most treasured destinations, announced a fuel surcharge of $8.50 per person, per day for future sailings would be implemented due to escalating fuel prices. The surcharge applies to all currently published sailings through March 2009, that have not been paid in full by Dec. 15, 2007.

Viking River Cruises is adding a fuel surcharge of $7 per guest, per cruise night for all reservations that are not paid in full by Dec. 19. The surcharge will apply to all currently published sailings through December 2008.

Crystal Cruises fuel surcharge is $7 per guest per day for all 2008 reservations that are not paid in full by Jan. 1, 2008. Crystal is protecting 2008 bookings that are made and paid in full prior to Jan. 1, 2008 at the current fare, without the fuel surcharge. There will be no change to the current fuel surcharge of $5 per person, per day that is currently in effect for all 2007 voyages.

Uniworld Grand River Cruises has implemented a cruise fuel surcharge of $7.00 per person per cruise night for all 2008 European cruise programs and $10.00 per person per cruise night for all Russian and Ukraine cruise programs. All existing and new bookings for these cruise programs will have the surcharge added to the booking. If a booking is currently paid in full, or is paid in full on or before December 31, 2007, the surcharge will be waived.

Disney Cruise Line has not implemented a fuel surcharge and has committed not to impose a fuel surcharge on any existing bookings or any new bookings made through April 1, 2008. We will reassess market conditions at that time.

Tack World Discovery has pledged that it will not follow many major cruise lines in enacting fuel surcharges on its small ship cruise program. It comes down to Tauck choosing to maintain its sense of integrity and the image and reputation it has built over half a century rather than opting to pull in a few more dollars of revenue to offset increased cuel costs.

Blame the airlines for fuel surcharges. When petroleum prices began climbing back in 1999, the airlines saw not just a challenge but an opportunity. Instead of increasing their fares to match the increase in expenses, most major airlines created fuel surcharges, which are add-on fees. Now cruise lines are doing the same.

A fuel surcharge can be discontinued when fuel prices stabilize, instead of a fare increase to cover the additional fuel cost, and we know price increases never seem to come back down. Despite this small additional cost, cruising is still one of the best vacation values available.

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