Fuel Surcharge

[simcoediver]

I remember back a couple of years ago when fuel prices were high all the livaboards implemented a fuel surcharge.
Why is this still in effect with the really low cost of fuel now? It must be a nice tidy profit for them. ?

 

[kelemvor]

Since prices are lower than they have been in decades, they should be giving "fuel discounts" now right?

 

[Wookie]

I remember back a couple of years ago when fuel prices were high all the livaboards implemented a fuel surcharge.
Why is this still in effect with the really low cost of fuel now? It must be a nice tidy profit for them. ?

Don't think so. We didn't, and WWDS didn't. I'm pretty sure the red sea boats didn't. Never saw one on any of the Bahamas liveaboards, but I admit I don't pay that much attention. Fling did for about 2 weeks, never saw one on the California boats. So, the vast majority of the boats didn't.

 

[diversteve]

Try buying diesel in Providenciales and you'll understand why Explorer still does.

ActiveCaptain - Fuel Prices in Turks and Caicos

 

[admikar]

I never really understood fuel surcharges(in all transport branches, not just liveaboards). You have expenses, you do calculations and price accordingly. You have food, salaries, various taxes for anchoring etc. Why separate something that is also direct operating cost?

 

[Wookie]

I never really understood fuel surcharges(in all transport branches, not just liveaboards). You have expenses, you do calculations and price accordingly. You have food, salaries, various taxes for anchoring etc. Why separate something that is also direct operating cost?

It's a gimmick to emulate what the airlines do. I prefer to charge a all inclusive price. I think it's fair, I think it's up-front, and it's how I like to be treated. But, the American public has spoken, and continue to speak on this subject. People would rather buy a plane ticket with hidden fees and BS extras tacked on, so the skinny little guy sitting in row 27 can brag that he got his ticket for $100 less than me, who pays for the extra legroom, checked bag, early boarding, etc. I fly Southwest when I am able.

The guy on the lieaboard would rather pay marine park fees, fuel surcharge, $2 for his beer, $150 a week for his nitrox, and be able to brag that he got his liveaboard for $300 less than the guy who just pays it all up front.

 

[diversteve]

I don't dive Nitrox so I prefer the charges to be broken out separately.

I'm sure some of the boats with one bundled charge offer credits but I've never sen it offered - or asked about it.

 

[Wookie]

Some boats provide air instead of nitrox for the same all inclusive rate.

 

[admikar]

I don't dive Nitrox so I prefer the charges to be broken out separately.

Nitrox is an EXTRA expense for operator, So, yes it should be charged separately. Fuel is same for all involved, and you know approximately how much you use, so you should price your cruise accordingly.It would be hard to do a cruise without some fuel being burned, so you can't say that I demand extra that should be charged.
Some Red Sea packages charge all inclusive (fuel, park fees), some charge base price only, and you look for extras in small print.
Basically, it's all a marketing ploy to get you hooked to one boat instead of that of a competitor.

 

[nudisusie]

For many operators their trip spaces are sold far in advance - sometimes as much as 3 years, the trip price obviously increases year on year due to inflation but in some nations, like the Maldives in 2012, the fuel prices rocketed to an absurd rate.

To compensate, liveaboard operators reserve the right to impose a fuel surcharge to cover this unforeseen increase. The surcharge is (or at least from what i have read) then based upon the rate at the pump being over a certain amount - so therefore when the price goes down there is no surcharge to pay.