| Royal Caribbean Cruises Ltd. Announces Fuel Supplement |
| SC Admin |
11/16/2007
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Airlines & Cruiselines
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Need to offset costs
Miami - Nov. 16, 2007 - In an effort to deal with the sharp
increase in fuel prices, Royal Caribbean Cruises Ltd. today announced
the implementation of a fuel supplement of $5 per guest per day for
sailings that depart on or after February 1, 2008.
"I thank our guests for understanding our need to implement
this fuel supplement," said Brian Rice, executive vice president and
chief financial officer of Royal Caribbean Cruises Ltd. "We have gone
to great lengths to minimize the impact of rising fuel costs, for
example, designing and building more fuel-efficient ships, installing
energy-saving lighting, and using air conditioning more efficiently.
Unfortunately, as fuel prices have reached record highs, we are forced
to take this extraordinary step to offset those costs."
The company has taken measures to soften the impact of this decision.
For example, the company will not apply the supplement on any bookings
where the guest has already paid the full cost of the cruise. In
addition, guests who were booked before November 16, and who do not
agree to pay the supplement, may cancel their reservation prior to
December 7, 2007, for a full refund of all monies they have paid to the
company, and they will not be subject to any cancellation charges that
would normally apply. Those guests who do not cancel their reservation
and pay in full will receive one logo item per stateroom, onboard their
cruise. Finally, the supplement will apply only to the first and second
guests in each stateroom and will not exceed $70 per person, per
sailing.
The supplement will assist the company in offsetting the
widespread increases in fuel prices, which have more than doubled in
recent years. The supplement will be periodically reviewed, with the
intent of being temporary, and may be adjusted as fuel prices
fluctuate.
The company will provide travel agents with an administrative fee of
$12 per existing booking to help offset the costs associated with
contacting guests with existing reservations and collecting payment of
the supplement for each booking that sails on or after February 1, 2008.
The charge will involve three Royal Caribbean Cruises Ltd. brands:
Royal Caribbean International, Celebrity Cruises and Azamara Cruises.
Pullmantur Cruises, the Madrid-based, wholly-owned subsidiary of Royal
Caribbean Cruise Ltd, has also implemented a fuel supplement of €50 for
its tours and cruises that depart on or after January 1, 2008.
"We know the rising cost of fuel has affected everyone, and,
unfortunately, our company is no different," Rice said. "We hope the
options we are providing, including additional time for guests to
finalize vacation plans, will underscore our commitment to our guests."
The supplement is effective for new and existing North
American bookings. The company cannot predict the impact of the fuel
supplement on its earnings, as it does not know the number of new or
existing bookings that will accept the proposed supplement.
Royal Caribbean Cruises Ltd. is a global cruise vacation
company that operates Royal Caribbean International, Celebrity Cruises,
Pullmantur, Azamara Cruises and CDF Croisières de France. The company
has a combined total of 35 ships in service and seven under
construction. It also offers unique land-tour vacations in Alaska,
Asia, Australia, Canada, Europe, Latin and South America and New
Zealand.
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