Surge in oil prices signal talk of cruise line fuel surcharges

Financial experts are talking about oil prices that could surge to $220 a barrel. Political unrest, mainly concern over a violent power struggle in Libya, could disrupt oil supplies. As oil prices rise, airline, cruise line, and other transportation sectors consider taking action.

Most cruise lines have held off adding fuel surcharges but all have implementation plans in place once the decision is made to add them back on. Most have set somewhere between $70 and $100 per barrel as the mark at which the unpopular fee can be added on to bookings. The price of oil has risen above that level on several occasions but cruise lines have held back from adding the fee last charged in 2008.

Still, even before the current situation, speculation began on the possibility of more fuel surcharges late last year.
Some airlines, already increased fuel surcharges earlier this month and Jet Airways announced an increase today. Will others follow?

“Brent crude, one of the key benchmarks for crude oil, was up 3 percent to $109.70 a barrel in European trading Wednesday. CNBC reported that some traders think oil could surpass $200 a barrel if disruptions continue” reported the South Florida Business Journal.

Yesterday saw a fall of 8 to 13 percent as Royal Caribbean Cruises Ltd and Carnival Corp, among others were affected by tumbling stock prices.

Flickr photo by nestor galina


Weather delay angers cruise passengers at Texas port

They may call today’s cruise ships “floating hotels” but there are some big differences between land-based vacations and a cruise ship heading out to sea.

Sometimes they can’t.

Such was the case last weekend and into Monday at the Port of Galveston where ships of all shapes and sizes were kept at sea when heavy fog made sailing dangerous. While the situation was obviously out of the control of cruise lines, guests that should have been on board ship sailing out to sea were less than understanding.

“This is my first cruise ever. I’ve been in hotels for the past three nights. I’ve had to buy my own food. Carnival has not treated us good. The refund is not acceptable. More needs to be done for everyone on that Ecstasy ship,” a passenger told Click2Houston.

Always choosing safety first, maritime authorities closed the port when fog made successful navigation impossible. While a weather delay often angers cruise passengers, there is only so much cruise lines can do.

The Royal Caribbean Blog notes that Voyager of the Seas return to Galveston was delayed by several hours and that passengers were able to board on Sunday evening but the ship wasn’t ready to leave until Monday.

Carnival Cruise Lines issued the following statement:

“The ship has been delayed due to severe fog and near zero visibility at the Port of Galveston. The ship was not able to enter the Port of Galveston from its previous cruise until yesterday afternoon, approximately one day later than scheduled because of the severe fog. It has been waiting for the fog to clear to depart on its next voyage. 

Because of its delayed arrival and subsequent delayed departure, Carnival Ecstasy will now sail on a modified three-day cruise that will return on Thursday, Feb. 24 (originally, the ship was scheduled to sail on a five-day cruise to Cozumel and Progreso operating Saturday to Thursday).

Guests have the option of canceling and receiving a full refund, a 25 percent discount off a future two- to five-day voyage and a $45 per person meal allowance. Guests who opt to sail on the modified three-day cruise will receive a 50 percent refund of their cruise fare, a 50 percent discount on a future two- to five-day cruise, and $45 per person meal allowance in the form of a shipboard credit.

Carnival sincerely apologizes to its guests for this disruption in their vacation plans.”  

On the other hand, guests held on those ships waiting for the fog to clear enjoyed an extended vacation. Complementary phone calls and Internet usage made rebooking flights and rearranging travel plans much less of a burden.

Flickr image: USACEpublicaffairs


New Jamaica cruise port gets their act together

Long-delayed new cruise port Falmouth, Jamaica welcomed it’s first Royal Caribbean ship this week as Voyager of the Seas became the first ship to visit. It’s a custom-built port designed to handle mega-ships Oasis and Allure of the Seas. Both have been patiently waiting for months as construction has been dragging on. Early reports from the nearly-complete port indicate full speed ahead on construction and a positive, welcoming mood.

“Today was truly priceless! The people of Jamaica made today an experience I’ll never forget. Their early morning anticipation of the ships arrival was quite impressive. Buildings, rooftops, streets and any open spaces were filled with people awaiting Voyager’s arrival. The first passengers to disembark were well organized for tours and met by various performers. They created nice distractions to avoid noticing the construction around them. The ship did a superb job ensuring expectations by passengers were set at a proper level” said cruise expert Stewart Chiron CEO CruiseGuy.com, one of the first visitors to the nearly-complete port.

In full operation were a variety of new shore excursions as well as variations on some Jamaica favorites.

“I went out to Good Hope Estate and watched the tours happen. What a difference since I was last here in September. Passengers thoroughly enjoyed their various experiences. This was evidenced when we returned as Voyager was departing. The crowds of Jamaicans never dissipated and were cheering Voyager’s departure. What was truly emotional for many, was every open space on every deck of Voyager was lined with passengers and crew cheering and thanking the people of Falmouth for a most memorable day. I would think the comment cards from today will be extraordinarily high! This is a port experience unlike any other” added Chiron

Cruise passengers arriving into Falmouth will be able to choose between the shore excursion options in both Ocho Rios and Montego Bay since the new port is equidistant from both of these Jamaican towns. Additionally there will be an array of options for both tour and non tour guests at Falmouth. Royal Caribbean hopes that passengers arriving at Falmouth will feel like they are in the old world of the Caribbean with numerous shopping and authentic dining opportunities right at the port.

“I look forward to returning for Oasis’ arrival. What a spectacle that will be considering what occurred today. The Royal Caribbean staff that worked so hard on the pier were magnificent. What a team to make this dream come true” Chiron concluded.


Cruise line shopping experience to feature more, better information

On any given cruise line, onboard programming includes a variety of activities, dining, shopping and entertainment options. While at sea, that programming is often themed to a particular port of call that will be coming up soon, providing information on the port, shore excursions and shopping options. Now, in a way similar to how they are handling onboard entertainment and dining options, Royal Caribbean International is taking on shopping.

Starting in October, Royal Caribbean will be working with a new partner to handle their port shopping program. Royal Media Group will greatly expand what the line is currently doing, adding to the standard shopping talks and fliers left in guests staterooms.

“We are very excited to once again be working with the team at Royal Caribbean International and to not only increase revenue for the port shopping program, but to be a partner in driving all onboard revenue,” said Philip Levine, president and CEO of Royal Media Partners.The plan is to embed the shopping program much deeper into the cruise experience.

Before the cruise, web and smart phone-based port shopping and concierge information will be available. Much like pre-reserving shore excursion, dining, beverage packages, Bon Voyage gifts and entertainment options is possible right now, guests will have much broader access to port and shopping information.

Television options on board will feature new destination programming in addition to port talks which have traditionally been thinly veiled sales pitches on many cruise lines.

The big question is

“Will this be more annoying shopping information or will it add value to our port experience with more in-depth information on ports of call?”


More, better information that will enable passengers to have a more meaningful experience ashore would surely be welcomed. Yet another way to advertise shopping options? Not so much.

The new program will be on Royal Caribbean ships sailing the Caribbean, Bahamas, Bermuda, New England, Mexico and Alaska starting in October. Oh, catering to the American market just as the holiday shopping season begins.

Score so far on this particular topic: Sell us more stuff 1, Enrich experience 0.

It should be fun to watch how it all plays out.

Flickr photo by waldsee2008 who captioned “this lady talked about shopping in Mexico, but she spend 75% of the time talking about a good price for Diamonds…. like I wanted to buy them.?


Carnival Splendor back in service on the West coast, repairs complete

Carnival Splendor, the ship that was in the news after it caught fire in November, putting an abrupt end to sailings of the ship from the West coast, will be back in service February 20, 2011.

Taken out for repairs in November, Carnival Cruise Lines announced at the time that all sailings between then and January 16th had been cancelled for repairs to be made. Later, the line had to push that date forward when repairs took longer than normal. Now, the ship is ready to resume normal operations, doing seven-day sailings from Long Beach, California.

“Carnival Cruise Lines continues to be the number one West Coast operator with two ships based in Long Beach year-round, as well as a ship operating seasonal itineraries from San Diego and Laos Angeles. We have more year-round capacity dedicated to the West Coast than any other cruise line and we are committed to maintaining our leadership position in this important market,” said Gerry Cahill, Carnival’s president and CEO.Carnival Splendor has been throughly inspected by the U.S. Coast Guard and Lloyds Registry, a ship classification society, which monitored the progress of repairs during the ship’s dry-dock period.

“We’re obviously very pleased that the Carnival Splendor is returning to service and we’re looking forward to welcoming our guests aboard this fantastic ship,” Cahill said. “We would also like to thank our guests for their patience over the past few weeks, as well as our travel agent partners, the ports of San Diego and San Francisco and all of the government agencies, repair contractors and countless others who have provided invaluable assistance and support.”

Carnival will carry nearly 400,000 passengers a year between Carnival Splendor doing seven-day sailings to Puerto Vallarta, Mazatlan and Cabo San Lucas on Mexico’s Pacific coast and Carnival Paradise doing three and four-day Baja, Mexico itineraries.

Photo courtesy Carnival Cruise Lines