Jumping on the Fuel Surcharge Bandwagon

MSC Cruises joined the growing list of best cruise lines with fuel surcharges on November 21, with a $6.00 per day per person, to a maximum of 2 passengers per cabin, charge. Rick Sasso, President and CEO of MSC Cruises stated in his letter to travel agents: “This was a very difficult decision for us to make. The surcharge only represents a small portion of the increase in fuel prices and we look forward to the day when fuel prices stabilize to a level that will allow us to eliminate this supplement.”

MSC is the only cruise line to indicate a possible end to this added cost. The other lines have tacked it on to their cruise fares along with government taxes and port fees. This is not a good precedent, for it seems the fuel surcharge is now a permanent additional charge that will mainly bolster their bottom lines.

It was surprising to note that Windstar Cruises implemented an $8.50 per person per day fuel surcharge, effective December 15. Windstar’s own definition of its 3 vessels is: “ships are officially motor-sail-yachts (msy), but the designation belies the vessels' unique rigging. Unfurling in two minutes at the push of a button, billowing white sails reach to the sky.”

With one of the highest fuel surcharge levies among the best cruise lines (a complete listing of the fuel surcharges for each cruise line is posted on our website), one wonders whether the fee is based on a valid assessment of fuel costs (in this case, primarily wind power) or whether the new owner, Ambassadors International Inc (NASDAQ: AMIE), is taking advantage of a new-found opportunity.

Disney Cruise Lines is alone among the best cruise lines to resist the temptation to camouflage a price increase and call it a fuel surcharge. Will they succumb to the trend? Perhaps they’re waiting to analyze the fallout from last month… and determine whether possible law suits and federal /state investigations are worth the additional income. Stay tuned.