Cruise passengers battered by unethical surcharges
Cruise lines are taking a hard line when it comes to fuel surcharges.
Consider the recent case of Ron and Gwenda Bennett, who paid a £900 deposit on a £9,000 Mediterranean cruise but were told by the travel company that a surcharge was also due.
Voyages of Discovery, the luxury cruise line with which they’d booked the cruise, blamed the rising cost of fuel and currency exchanges. But since the surcharge came in at £8 less than 10 percent of the total cost of the holiday, the couple were not entitled to a refund of their deposit.
Gwenda Bennett was understandably upset by the loss.
It was quite expensive to start with but with everything going up so much over the last 12 months we found it more and more difficult to rake the money together. The extra £892 was a bitter blow.
Are higher fuel costs really to blame for these surcharges?
No. We don’t have to wait until fuel costs come back to earth to know that this has little — if nothing — to do with higher energy costs. Like airlines, cruise lines have been waiting for an opportune time to impose these surcharges.
It turns out that Carnival had quietly approached Florida’s attorney general as far back as 2006 with a request to impose a fuel surcharge. At that time, a barrel of oil cost about $60.
Cruise lines have wanted this for a long time, and they are clearly delighted that they’ve finally gotten their way.
This is not going to end well, I’m afraid. We’ll see a lot more cases like the Bennett’s. And since the cruise lines don’t have to prove to anyone that the “surcharges” are offsetting the price of fuel, these fees could potentially become pure profit, if companies hedge their fuel purchases or if the cost of oil falls.
Who says you don’t have to worry about pirates anymore?
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6 Responses to “Cruise passengers battered by unethical surcharges”
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This is not limited to the cruise lines. Resort fees, Fitness Fees Baggage Fees Change Fees
Of all the fees we have seen in other areas of travel (air, hotel and car) I have to say the cruise lines have been more than patient and while I disagree with the concept of a surcharge (rather than increasing the price) you cannot dispute that the cruise lines are taking a HUGE hit in terms of fuel cost.
Dispute the charge - make them prove the costs are fuel related. Look up their annual reports on fuel hedging and costs as a percentage of the trip.
Adding a 900 [dollar, pound, lira whatever] fuel charge makes you wonder since most of the cost of a cruise is amortization of the cost of the vessel and improvements therein - NOT fuel. Its just a price increase without the increase.
Once again, read the contract - can they change the the price after booking? What if the price of water or executive bonuses goes up in the middle of the cruise- do they pass the hat and you pay or they let you off at the next port?
Most contracts allow them to change the price up to the point when the reservation is paid in full.
Yes, their contracts state very clearly that they can add surcharges and taxes and fees up until paid in full. But, most cruise lines are not adding anything more once you pay your up front deposit.
The reason they do not add it to the price of the cruise is because then they would have to pay a percentage of that to travel agents that do the booking.
They already have many taxes and other “noncommissionable” fees. This is just one more. Once the public gets used to it, believe me, it will never end.
I’m a speculator in oil WRT to travel. I bought a cruise with air travel from Celebrity, knowing full well its $5pp per diem fuel surcharge–a notice on the surcharge is first thing you see on Celebrity’s web site. The fuel surcharge for the cruise has since increased to $8pp per diem. Also, the airlines remaining in business have decreased the number of flights and are charging more for them. The costs to me to book airfare for this cruise is over 3 times what I paid Celebrity. Celebrity hasn’t come back to me asking for additional airfare funds. I hope the flights are available. Checking two second bags both ways for $60 and the airline or cruiseline I’ve booked with going out of business, I made my choice. I’m an oil speculator.
No one has noticed yet that the luxury cruise lines are charging much higher fuel surcharges. When Royal Caribbean last increased fuel supplement, it was to $10 per person, per day. The same amount for Celebrity Cruises, owned by RCI.
But RCI increased it’s luxury brand, Azamara Cruises, to $15 per person, per day.
Why, because it’s better fuel? Because Azamara uses champagne as fuel?