Major cruise lines withdraw fuel supplements

A number of Carnival Corporation cruise brands have withdrawn fuel supplement charges on new 2010 bookings from the end of the month.

But Cunard, along with Carnival Cruise Lines, Costa Cruises, Holland America Line, Princess Cruises and The Yachts of Seabourn, will increase prices.

Additionally, the company said it had established specific guidelines under which the current fuel supplement may be reimbursed to passengers for 2008 and 2009 voyages.

Other UK brands such as P&O Cruises and Ocean Village have followed suit.

“If the price of light sweet crude oil according to the New York Mercantile Exchange Index is $70 per barrel or less at the 14.30 close of business as reported by Reuters on each of the 25 consecutive trading days ending five trading days prior to the guest’s cruise departure date, the fuel supplement will be refunded in the form of a shipboard credit,” Carnival said.

People who book a 2010 cruise prior to the end of this month will be charged the current fuel supplement but will be eligible for a refund of the supplement in accordance with the same fuel price conditions that are being implemented for 2008-09 departures, the company added.

The fuel supplement for five of the six Carnival Corporation brands is currently $9 per person per day for the first and second passenger (not to exceed $126 per person per voyage) and $4 per person per day for third, fourth and fifth passengers (not to exceed $56 per person per voyage).

Seabourn’s fuel supplement is $15 per person per day for the first and second passenger (not to exceed $210 per person per voyage) and $4 per person per day for third and fourth passengers (not to exceed $56 per person per voyage).

Carnival Corporation marketing director Bill Harber said the moves reflected declining fuel prices and an effort to “migrate away from charging a separate fuel supplement”.

He said: “If fuel prices stabilize below $70 a barrel, we will be able to effectively eliminate a separate fuel supplement.”

But Harber cautioned that there is still a risk that fuel prices could move higher “which would require us to maintain or reinstate a fuel supplement but the company is hopeful that the goal of eliminating the fuel supplement can be achieved.”

Harber added that “these industry-leading initiatives demonstrate our commitment to our guests and travel agents to make our brands the most attractive cruise vacations available.”