Royal Caribbean abolishes fuel supplements in 2010 cruises

Royal Caribbean Cruises has become the latest cruise company to abolish fuel supplements.

The charge will no longer apply to new Royal Caribbean International, Celebrity Cruises and Azamara Cruises bookings made on or after November 10 for sailings that depart on or after January 1, 2010.

“This decision takes into consideration the recent reductions in global fuel prices,” a statement said. 

The move follows that of rival Carnival Corporation.

Royal Caribbean will determine on a quarterly basis whether fuel supplements will be refunded for 2009 sailings and 2010 sailings booked before November 10.

“The company has also established specific guidelines that will determine whether fuel supplement refunds will be provided for sailings that begin in 2009 and later, which were booked prior to  November 10, 2008, if fuel prices remain below a specific price threshold,” a statement said.

Refunds, in the form of an onboard credit, will be provided if the closing price of West Texas Intermediate fuel is $65 or less, at the closing time of the New York Mercantile Exchange, two weeks prior to the beginning of the upcoming calendar quarter, the statement said. 

“When those conditions are met, an onboard credit will be provided to all passengers on sailings that begin during the upcoming calendar quarter.”

But Royal Caribbean said it would continue to closely monitor the movement of global fuel prices and “recognise that an upturn in those prices could necessitate the reinstatement of a fuel supplement”. 

*The dates on which the price of West Texas Intermediate fuel will be measured, and the quarters during which refunds could apply are:

Fuel Price Determination Date           Quarter of Possible Fuel Supplement Refunds

18^th December 2008                           First quarter 2009

18^th March 2009                                  Second quarter 2009

17^th June 2009                                    Third quarter 2009

17^th September 2009                          Fourth quarter 2009

18^th December 2009                           First quarter 2010

18^th March 2010                                  Second quarter 2010

17^th June 2010                                    Third quarter 2010

17^th September 2010                          Fourth quarter 2010

by Phil Davies