Florida Attorney General Bill McCollum has reached a resolution with two cruise lines over a retroactively-imposed fuel surcharge on cruise passengers. Oceania Cruises and Regent Seven Seas Cruises have separately agreed to refund more than $3 million to consumers nationwide who were charged the fuel surcharge after they had booked their cruises.
The agreements were reached after the Attorney General’s Economic Crimes Division received several hundred complaints from around the country because cruise lines were retroactively charging a fuel supplement after cruises had been booked and deposited.
Under the agreements signed Feb. 4, all consumers who were retroactively charged a fuel supplement will be refunded the surcharge. In the future, the cruise lines must also ensure clear and conspicuous disclosure of any fuel supplement charges at the time the reservations are made, as well as in their advertisements.
Oceania will pay over $2.1 million in restitution and Classic Cruise Holdings will pay more than $1 million in restitution, a small portion of which may be in the form of onboard credits for consumers who have not yet sailed.
The two companies –both of which fully cooperated with the investigation- will contact consumers eligible for refunds and must report to the Attorney General’s Office on the status of refunds within 30 days. Similar settlements were reached last year with Royal Caribbean, Celebrity Cruises and Carnival Corp. and its subsidiary cruise lines, resulting in another $61 million in consumer reimbursement.
The Cruise Lines International Association (CLIA) is offering preferred partnerships and new training and certification programs in 2009, including 85 in-market training events in the first quarter. The Association’s agents report that training and certification help generate an average increase in sales of 261 percent.
Norwegian Cruise Line’s Norwegian Star answered a mayday call lately from the U.S. Coast Guard, indicating a nearby 45-foot sailboat, the Carpe Diem, was taking on water approximately 60 nautical miles off the coast of Cabo San Lucas.
Travel agents were front-and-center during Royal Caribbean Cruises Ltd.’s fourth-quarter financial report on Thursday. Several times during the hour-long call with analysts, RCCL executives talked about the importance of retailers to the company's business model.
“In difficult times, agents get the word out about what a great value cruising offers in a way that cruise lines just can’t do on their own,” CEO Richard Fain said. “We work hard to help them and keep justifying their trust in us.”
Cruise line presidents Adam Goldstein (Royal Caribbean International) and Dan Hanrahan (Celebrity) brought up the distribution system in their comments. Hanrahan talked about ASAP (Agent Support Action Program), which gives agents extra marketing assistance and a 1-point increase in commissions. RCCL launched the program to support agents during the economic recession.
Trade relations are rarely discussed during earnings calls, and when they are, analysts ask about commissions in relation to costs. This call was no exception.
Near the end of the call, Goldman Sachs analyst Steve Kent asked for RCCL’s percentage of direct, Internet bookings. “I guess I’d ask once again why that isn’t more of a focus given the high returns of that strategy,” he said.
In a few months, many cruise ships will start finding new homes for the summer. While some cruises in the Caribbean and the Mexican Riviera are in full swing year-round, many ships in those regions now will soon move to Europe and Alaska for the spring, summer and fall seasons.
In a few months, many cruise ships will start finding new homes for the summer. While some cruises in the Caribbean and the Mexican Riviera are in full swing year-round, many ships in those regions now will soon move to Europe and Alaska for the spring, summer and fall seasons.