Fuel Surcharge

[g2]

Fuel surcharges cause real animosity when you're already bought your airline tickets and paid your non-refundable deposit for a trip, and then you receive a letter in the mail from the liveaboard company saying you need to pay a lot more.

We all have "unforeseen" expenses. That's why we save, plan, and budget for it. Very few of us can go to our employers and say, "Hey, you have to pay me more this month because I had expenses that I didn't anticipate." We can't do that, and neither should tour operators.

 

[chillyinCanada]

Nudisuzie, I'll agree that the Maldives were in a spot with fuel prices awhile back, unfortunately they're still charging fuel surcharges despite decreases in fuel costs and in spite of guests repeatedly asking "on what basis". (that is to say, the boat I've been going on is still charging)

 

[Maverick17]

For the airlines I've always believed it was in consideration of online booking. In the rush to show up at the top of the search results, they could eliminate the "fee" of fuel and suddenly they look like the better deal when some sites used to show results listed by fare rather than all-in. Nowadays all the large sites like Orbitz etc show all-in fare anyway.

In actuality though some of these extreme sales/errors that you see on airlines from time to time are a direct result of the fuel surcharges. At times the combination of carriers/locations/fares etc confuses the system to where the fuel surcharge is inadvertently dropped.

As for who unbundled airfare, I believe it was more Ryanair than any US company, but the result is the same.

 

[BRT]

Fuel surcharges cause real animosity when you're already bought your airline tickets and paid your non-refundable deposit for a trip, and then you receive a letter in the mail from the liveaboard company saying you need to pay a lot more.

We all have "unforeseen" expenses. That's why we save, plan, and budget for it. Very few of us can go to our employers and say, "Hey, you have to pay me more this month because I had expenses that I didn't anticipate." We can't do that, and neither should tour operators.

However if your employer doesn't raise your wages enough to cover the additional cost of fuel and other things he will eventually have only the dregs left of his employees. And the dive boats will have to cut something else to stay in business with higher un-budgeted fuel costs.

If the fuel surcharge was part of the agreement made when the live aboard was booked and it was tied to real life fuel cost increases, it is fair. If not, not fair. Fuel has got to be close to the #1 cost of each trip on a live aboard.

 

[WarrenZ]

I would rather have one price without a whole bunch of additional fees taxes and surcharges however since this isnt the case I just read through all the fine print and then total it up myself.

 

[Wookie]

However if your employer doesn't raise your wages enough to cover the additional cost of fuel and other things he will eventually have only the dregs left of his employees. And the dive boats will have to cut something else to stay in business with higher un-budgeted fuel costs.

If the fuel surcharge was part of the agreement made when the live aboard was booked and it was tied to real life fuel cost increases, it is fair. If not, not fair. Fuel has got to be close to the #1 cost of each trip on a live aboard.

About half of labor and less than food.

 

[chillyinCanada]

But you can figure it in advance, am I correct on this Wookie?

Getting charged the fuel surcharges on the 4th lobs in the past year really stuck in my craw. Even as late as this past January! Wha?

 

[Wookie]

But you can figure it in advance, am I correct on this Wookie?

Getting charged the fuel surcharges on the 4th lobs in the past year really stuck in my craw. Even as late as this past January! Wha?

So... Not so much. An operator has 2 choices. Some, like me, plan on $3 fuel. I'm seeing a nice benefit right now, although the increase in food over the past year is certainly offsetting. So, with that said, no, we didn't raise prices this year, and no, we will not be lowering them for this year.

Another operator might not add fuel into their pricing at all. They will always charge a fuel surcharge, because that keeps their base price low. I often get compared to a certain fleet of sailboats or people ask me why I'm more expensive than another liveaboard fleet. My response is to add in all of the extras, fuel, marine park fees, etc. and then compare. And they come back with "Yeah, but they are $200 less than you". Well, they charge $170 fuel surcharge and $30 marine park fees, we include that. "Yeah, but they are $200 less than you."

It's all marketing. It's like discounting. I don't discount. Ever. I'll give away spots, but I rarely have a special (Only once). And then it's targeted towards a certain segment of the general population. But, other liveaboards will discount within a couple of months of departure. My personal belief is that this practice teaches the traveler to wait until the last minute to book. You never know what to do with a trip, which is why I went to Cay Sal with 3 people last year. I lost $18k on the trip. The year before, 9 people came in within 30 days of departure. It just isn't how I do things. I don't like it done to me.

 

[BRT]

About half of labor and less than food.

Interesting! Not how I guessed.

 

[g2]

If the fuel surcharge was part of the agreement made when the live aboard was booked and it was tied to real life fuel cost increases, it is fair. If not, not fair.

It was not. And this is not a question of "fair", it's a matter of good business practice. We had an agreement; they reneged and I had no recourse other than to pay up or lose everything I had already paid.

I will not book with that company again.