Cruise Ships, Fuel Costs and Fuel Offset Trends
The Rising Cost of Fuel May Raise the Cost of Your Next Cruise
Aug 20, 2008
Rising fuel costs may have you wondering if the cost of your next cruise will soar. Certainly these large vessels require large amounts of fuel in order to cruise from port to port. In fact, through the spring and early summer numerous cruise lines have been quietly increasing their fees to offset the rising fuel costs. While this increase appears to be a growing trend fear not, it is unlikely to increase rates drastically.
Increases in Fuel Offset Fees on Favorite Cruise Lines
Beginning in April of 2008 after fuel costs saw continuing increases around the world the major cruise lines began to quietly increase their fee supplement rates. In April Royal Caribbean raised its fee supplement rate to 8 dollars per person per day double occupancy and 3 dollars per person for a third guest. This increase applies to the three fleets in the Royal Caribbean brand including Celebrity and Azamaran Cruises and includes a cap at 112 dollars per person on any one cruise.
Increasing Fees a Growing Trend
The trend continued through May when Majestic increased its fuel fees from 8.50 dollars to 10 dollars per person per day. In early June both Carnival cruise lines and Norwegian Cruise Lines followed the now growing trend and increased from 7 to 9 dollars per person per day on Carnival cruises and up to 11 dollars per person per day on NCL. Crystal Cruises is perhaps at the top of this trend with a whopping 12 per person per day fuel surcharge.
Fuel Costs Challenge Cruise Profits
Fuel supplement fees are not new we probably have not seen the last of them. Going back as far as 2005 and 2006 cruise lines began adding fuel fees. These charges were largely nominal and seemed not always related to real rises in fuel costs on the world market. The fall of 2007 however saw an industry wide scramble to cover rapidly rising fuel costs. This new round of spring increases to those fees demonstrates the challenge faced by cruise lines to keep costs in line while maintaining performance and profits.
Comparison Shop to Avoid High Fees
Cruise lines sympathize with their client’s needs to find affordable packages to meet their travel and entertainment needs yet still insist these fees are necessary in order to maintain profitability. Cruisers should take note that not all lines have increased their fees to the same degree. Comparable cruises might see a difference of two to three dollars per person per day on the fuel fee alone. This is important to note as you comparison shop.
As you plan for your next cruise keep watch for a fall announcement of another fuel supplement increase. Whether or not worldwide fuel prices continue their climb, cruise lines will likely continue to increase the fuel offset. These announcements often allow for some time to take effect and generally only apply to new bookings. So if you are thinking about a cruise in the fall or winter, or even next spring, it may be better to book now and lock in your rate and fees.
