Like most cruisers, I hate being nickeled and dimed to death. And while surcharges and extra fees feel like that sometimes, they’re really fare increases that reflect the rising cost of doing business.
There’s a reason cruise lines call them as “surcharges” and “extra fees”. They pay travel agents a 15% commission on the price of the cabin. However, they DON’T want to pay a 15% commission if it can be avoided. So, by calling increases surcharges and fees, they skip paying the extra 15%. It’s the same reason that port charges are categorized as separate charges.
Airlines pass along the increase of doing business by simply raising fares. It would be a lot simpler and raise less of a fuss if the cruise industry did the same. For example, I generally notice that cost of living has climbed in New York but . Imagine my shock when I read that milk had increased 64% since 2003 in New York! Personally I’ll take denial over reality any day. Does that mean we should switch to beer?
I asked Carnival Cruise Lines’ Jen de la Cruz about the actual increase in the price of fuel. “The price the company pays for fuel has increased 140 percent over the past three years, with a 50% increase occurring in just the last seven months. Up until now the company has been absorbing this significant fuel cost increase. Unfortunately, we cannot continue to absorb the increase…..,” she said.
Aside from gasoline, have you noticed prices increasing where you live?
11 December
3 Comments Why Do Cruise Lines Add Surcharges?
Suzannah V
December 12th, 2007 at 3:14 pm
1One pet peeve surcharge is Canada post has one on parcel delivery to cover petrol…….I think we pay enough! Many prices here have gone up, but over all, because of the Canadian dollar gaining the way that it has, many things are slowly coming down over here in price. Our next cruise looks like a bargain basement sale, we saved over a thousand dollars for our group of 4 going in january because of the dollars climb on our tickets alone, thats not even mentioning the cash and so on. You mentioned milk, it bothers me greatly that milk costs more than pop!
Anne Campbell
December 12th, 2007 at 5:46 pm
2HUH? The post has a surcharge? It will be interesting to see if it disappears when (if?) petrol costs decrease. I’m indeed happy for Canadians since you’re big cruisers and it’s so much more affordable now. And, those Canadian winters are brutal
Suzannah V
December 13th, 2007 at 5:13 pm
3Tell m about it Anne, we have been spoiled the last few years, easy winters, but this year it is in like a lion……..hope that means come Jan 1st it will go away?? We are also lucky the dollar went up, as the price of oil is in US dollars, we would pay much much more had the dollar been lower.
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