Now that the holiday season has ended and the arctic weather in New Hampshire has subsided for a day or so, the thought of heading southward for a relaxing week or so in warmth and sunshine is very appealing. As much as I would love to get away from the snow and ice, I’m still too outraged at the best cruise lines’ fuel surcharges to make plans for a brief escape-away.
During the latter part of December, several more of the best cruise lines hopped aboard the fuel surcharge express and announced assessments for 2008. For anyone
Three Cheers for Disney Cruise Lines!
who is planning a cruise in 2008 but has not booked it, be sure the quoted price includes the surcharge as it can add a significant cost to your vacation.For those of you who booked a cruise prior to the fuel surcharge announcements and are so excited to get away that the increased costs do not matter – enjoy. But for anyone who is outraged by the charges, I suggest checking out Christopher Elliott’s comments on his Travel Troubleshooter blog.
The facts do not add up to support the cruise lines’ increased charges. For example, in announcing Third Quarter Earnings on October 22, 2007, Royal Caribbean Cruises Ltd (RCCL) posted a “better-than-expected” 14 percent rise in quarterly profit. This led to a more than 6 percent increase in the price of its shares.
In its announcement, RCCL stated it had taken steps to reduce fuel consumption by installing new diesel engines and using drag-reducing paint. These measures produced savings that were “nearly sufficient to offset the rise in fuel prices.” (Reuters News Service, October 22, 2007)
What happened in a month? The price of crude oil increased but certainly not as much as the amounts the cruise lines will reap with their increased charges. Using an approximate number of 1,000 occupied cabins per ship, this sudden and unanticipated fuel surcharge amounts to about $70,000 per sailing on a Voyager-class RCCL ship.
My guess is that the decision to implement fuel surcharges was made to court Wall Street analysts with impressive earnings and boost the executives’ year-end bonuses.
All at the expense of and without regard for the cruising public. In my next posting, I’ll share a suggestion for recouping some of the added costs if you are planning to cruise on an RCCL or Carnival PLC ship.
Best wishes for a safe and rewarding New Year and three cheers for Disney Cruise Line, my recommendation as the BEST Cruise Lines for its impeccable service, high value and refraining from boosting its profits at the expense of its clients.
Photo credit: Disney Wonder and Magic, Disney Cruise Lines