Thread: Fuel Supplement? Deception!!

With Carnival implementing a 'fuel supplement', I finally had to say something about this travesty! Not that it will do any good, but I sent Carnival an email voicing my outrage.

I understand the need to increase the cost of a cruise when it's affected by increases in expenses, especially given the current situation with the cost of fuel. But I have always been against companies practicing this form of disception so they can keep their 'marketing pricing' competitive without appearing to raise their prices.

The cost of a cruise should include all the expenses involved in providing that cruise, with the exception of taxes. In other words, if labor goes up, does this necessitate a labor supplement? Or if the cost of food goes up, do you then include a new food supplement? Of course not - so what makes fuel any different? When the price of conducting business goes up, the cost of the cruise goes up - simple economics. But to increase the cost of a cruise by adding a so-called 'supplement' is simply a way to by-pass advertising the true cost of the cruise while not having to pay out additional commission.

What everyone fails to understand that when fuel goes up, all of our costs go up as well. And if our costs increase and our income does not increase, then we have to absorb the additional expenses out of our own pockets. So then are we, too, suppose to add a fuel supplement on top of everything?

With this type of thinking, everyone should add a fuel supplement instead of raising their prices; a restaurant should charge a fuel supplement for cooking your meal, a clothing store should charge a fuel supplement to that new pair of pants because it costs more to heat their store, and so on.

Let's call this what it is - an increase in the cost of conducting business and apply it to the cost of a cruise. To do anything else is simply a way to by-pass obligations while not increasing the 'advertised rates' and this, to me, is not the right thing to do - it's deception for the purposes of increasing the bottom line.

Pete

Let us know if you get a reply

Pete, you have made a very valid point. Unfortunately, it is a way of life these days in so many industries to raise costs without "visibly" raising prices.

Good Rant Pete. Let us know if you hear anything.

Pete, I have to agree with you. Please let us know their response.

I agree with you. Fuel prices have been raising for some time. They should have built them into the price structure by now. They do like to keep there advertised prices low and it is deceptive when they have add-ons like this. Also, if they are going to have a supplement, they should tag it to a certain price point where it is in effect if the price of oil is over X $ and dropped if the price goes below that.

What is more insulting is that Carnival is only applying this charge to their US lines, when the US dollar has been steadily losing value. Fuel cost have been going up in Europe and down under as well, but the lines based out of the UK, Germany, Spain and Australia have not had this levied on them.

But the real stuff hitting the fan is that Carnival has steadily been increasing their quarterly dividends to shareholders. I think this supplement is funding that instead of fuel!!!
Carnival Corporation | Investor Relations | Dividend/Split History

I am a CCL stock owner (100 shares, guess why) and it was not my idea to up the prices!

RE MC's post . . .

And while fuel prices ARE higher here in the US than they were a couple of years ago, there are still NOWHERE as high as they are and HAVE BEEN in other parts of the world! So . . . well, you get the picture.

From a business perspective you have to understand that brochures have already been printed so it would be impractical to adjust the pricing to reflect the current fuel market. I went on my first cruise in 1997 the total cost for that 7 day cruise was $1800. I am going on a 7 day cruise in January of 2008 and the total cost is $1267. If you adjusted my orginal cruise for inflation cruising should be more expensive but in real terms it has dropped in pricing. I will pay $35 more and enjoy the cruise because it is still the best value for the dollar.