NCL Outlines End to Fuel Supplement

Surprising only in how long they took to announce this, NCL today outlined their process for eliminating fuel supplements on future bookings.

The thumbnail is this. For 2010 sailings booked on or after November 10, 2008, there will be no supplement.

For those booked prior to November 10, 2008, for sailings departing in 2009, the fuel supplement will be refunded via an onboard credit based on a specific formula. They've decided to use a formula similar to RCI's announced plan of basing fuel supplement on already-booked sailings on the price of West Texas Intermediate Crude on a particular date prior to each quarter. Thank you, NCL, for making this a bit easier! The table is below.

But basically what this means is this: If you're sailing for example in February, 2009, whether or not your fuel supplement will be refunded will be decided on December 18, 2008, when the price of West Texas Intermediate Crude will be evaluated. If the closing price below $65, you'll have a refund. Sailing in second quarter 2009? Then your date to watch is March 18, 2009 (by the way, these are the same dates RCI used for Royal Caribbean, Celebrity and Azamara). And so on and so forth.

Any questions on your particular sailing? That's what I'm here for - just give me a call.

If you're the type who likes to read the full formula, here it is:

The current fuel supplement will no longer apply to bookings made on or after November 10, 2008 for sailings that depart on or after January 1, 2010.

For guests booked prior to November 10, 2008 for sailings that depart on or after January 1, 2010, the company has established the following guidelines for the refund of fuel supplements paid:
The criteria for refund will be determined on a quarterly basis. Should the closing price on the NYMEX (New York Mercantile Exchange) of West Texas Intermediate fuel be below $65 per barrel two weeks prior to the beginning of the calendar quarter (dates specified below), the company will refund fuel supplements paid in the form of an on-board credit.

For guests booked on sailings that depart in 2009 (on or after January 1, 2009 and that depart on or before December 31, 2009), regardless of booking date, the company has established the following guidelines for the refund of fuel supplements paid:

The criteria for refund will be determined on a quarterly basis. Should the closing price on the NYMEX (New York Mercantile Exchange) of West Texas Intermediate fuel be below $65 per barrel two weeks prior to the beginning of the calendar quarter (dates specified below), the company will refund fuel supplements paid in the form of an on-board credit.

The dates on which the price of West Texas Intermediate fuel will be measured and the quarters during which refunds could apply are:

Fuel Price Determination Date Quarter of Possible Fuel Supplement Refunds
December 18, 2008 First Quarter 2009
March 18, 2009 Second Quarter 2009
June 17, 2009 Third Quarter 2009
September 17, 2009 Fourth Quarter 2009
December 18, 2009 First Quarter 2010
March 18, 2010 Second Quarter 2010
June 17, 2010 Third Quarter 2010
September 17, 2010 Fourth Quarter 2010
December 17, 2010 First Quarter 2011

Determination of what quarter a sailing is in will be based solely on the sailing date. The entire cruise will be considered to be part of the quarter that the sailing date originates in.

NCL Enriches Onboard Bookings

As a further incentive to book onboard, which clients of mine know I strongly encourage in most instances, NCL is sweetening the pot.

Their new program consists of a $250/cabin refundable deposit (NOT per person) on a future cruise. That's somewhat typical, though the per cabin rather than per person charge is a new twist. What's really exciting, however, is that the guest will also receive a $100/cabin onboard credit on their current sailing! While there's no onboard credit for the future sailing, having the extra in your pocket immediately is a different way of receiving the benefit, and I think it will be popular.

Of course, if you cancel your future cruise at a later date, the refund will only be $150 - so don't even think this is a way to get a free $100 with no obligation.

A one other twist on the program is that you have 12 months to specify (book) your future cruise, and 30 months in which to sail.

NCL Increases Fuel Supplements

Seemingly determined to maintain their status as having the highest fuel supplements in the industry, NCL today announced they would be raising their fuel supplement for new bookings as of June 20. The new daily supplement will be $11/person per day for the first and second passengers in a cabin, and $5/person per day for any additional passengers in the same cabin. Unlike other lines, NCL doesn't place a per-sailing maximum on the supplement.

The only mainstream lines yet to be heard from this week are the two RCI brands - Celebrity and Royal Caribbean. Anyone starting a pool on when they'll chime in?

Freestyle… For Your Face?

NCL has announced a new treatment available in certain of their Mandara-operated spas. Botox. That's right, the injections of the botulisim toxin which help relax certain facial wrinkles will be available on ships including the Norwegian Dawn, Norwegian Gem and Norwegian Spirit. NCL plans to launch fleet wide this fall.

All of the facial aesthetic treatments are under the supervision of Steiner's medical director, Dr. Brad Herman, a Miami-based, board-certified plastic surgeon and his team of medically licensed doctors who have been trained specifically in the administration of these treatments.

Guests can schedule a 30-minute consultation with the medi-spa physician on board who will create an individualized treatment plan.

NCL stated that BOTOX Cosmetic is a simple, non-surgical treatment that can safely and effectively soften lines and reduce wrinkles. Guests who want to reduce lines from the nose to the corners of the mouth can opt for Restylane or its sister product Perlane.

"By being the first to offer these popular medi-spa treatments, we are furthering the tradition of NCL-led innovation in the cruise industry," said Colin Veitch, NCL's president and CEO.

Not mentioned is whether the injections will be available for treatment of migranes, which is another popular use of the toxin.

Now, when you return from a vacation, your friends may actually be telling the truth when they say you look 10 years younger!

More Fuel Supplement Hikes

Following on the hikes announced by Carnival Corporation, Royal Caribbean International and Norwegian Cruise Lines have both posted increases of their own.

Royal Caribbean International (Azamara, Celebrity and Royal Caribbean Cruise Lines) announced that, effective for booking made starting May 1, 2008, the supplement will increase to $8/person per day, with a maximum of $112/person per cruise for the first and second passengers in the cabin. Third and fourth passengers will be assessed $3/person per day, with a maximum of $24/person per sailing.

Norwegian Cruise Lines will be raising their fuel supplement to $9/person per day for the first and second passengers in the cabin, with a supplement of $4/person per day for the third and fourth in the same cabin. Their increase is also effective for bookings made starting on May 1, 2008. One thing to note with NCL is that they don't have a per person maximum.

I'm a bit surprised by the NCL increase. While fuel costs have gone up dramatically since the supplements were originally announced in November and December, I thought part of the rationale behind the Carnival Corp. and RCI increases were the losses they suffered when they had to credit back supplements for sailings booked prior to their November announcements of the surcharge. However, NCL never had that issue, as they didn't make their supplements retroactive. However, their supplement did go up less per person, so perhaps that's how it all adds up together to make their respective balance sheets happy.

Expect to see further increases if the price of fuel continues to rise.

Nowegian Majesty and Dream Sold

Louis Cruise Lines, based out of Greece and specializing in Eastern Mediterranean cruises, has announced they have purchased both the Norwegian Dream and Norwegian Majesty from Star Cruises. These ships were expected to leave the NCL fleet as they don't fit the new Freestyle ship profile, but it was thought they'd go to parent company Star Cruises for use in their Asian market. Instead, this $380 million deal will send them to Greece.

The Dream will be chartered back to NCL until November 2008 and the Majesty will remain with the NCL fleet until December 2009.