Tag Archives: price increase

Carnival: ‘Fuel Surcharge Not Off The Table

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Carnival Pride passing the Seacombe Ferry in Liverpool photo credit Spacejunkie2

With fuel prices on the rise, a fuel surcharge is not off the table at Carnival Corporation, according to Josh Weinstein, president and CEO.

Cruise lines typically reserve a right to add a fuel surcharge to ticket pricing, should the price of oil go over a set amount. Most cruise companies have rarely used this option

“It’s certainly not off the table. We wouldn’t take anything off of the table. It’s not something we’re planning to implement in the near-term, although that could certainly change,” said Weinstein, speaking on the company’s third quarter earnings call.

“There are certainly considerations that have to be made about what’s the norm in society with the expectations of our customer,” he continued. “Obviously, you don’t go retroactively too. So you’re talking about forward bookings.

“But I wouldn’t take anything off the table. I would reiterate, though, even a fuel surcharge is temporary. And really, the one thing that we can do, no matter what, is use less fuel and that’s where our focus is. And we estimate it saved us about $375 million on the bottom line this year versus what our profile looks like in 2019 because of all those efforts.”

Royal Caribbean hikes price for drink packages

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Image result for royal caribbean drinks package

The cost of quenching your thirst on Royal Caribbean International is going up in 2019, at least if you buy a bundled package of beverages in one of three plans.

The Deluxe Beverage Package, which includes alcoholic drinks as well as most types of nonalcoholic beverages, is rising to $63-70 a day, up from the 2018 rate of $57-63. The cost varies from ship to ship and sailing to sailing.

The Premium Refreshment Package charge will be $29 a day, up from $26-29 currently. The packages include premium coffees and teas, bottled still and sparkling water, fresh squeezed orange juice, non-alcoholic cocktails and fountain sodas, as well as Coca-Cola Freestyle beverages.

The Soda Package will cost $12.99 a day, up from $8.50-9.50.

Raising the prices amounts to an 11% increase on average for the Deluxe package, an 11.5% maximum increase for the Premium package and a 44% increase on average for the Soda Package.

Inflation in the overall economy in September was reported at an annual rate of 2.3%.

Jotun: Higher Raw Material Costs Will Force Price Increase

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SkySea Drydocking

Jotun has posted a profit before taxes of NOK 464 million on revenues of NOK 5.6 billion for the first four months of 2018, compared to profit before taxes of NOK 643 million on revenues of NOK 5.3 billion for the same period last year.

The company said that sales increased by 6 per cent compared with the same period last year, driven by growth in Decorative Paints and in the Protective and Powder Coatings segments. However, weak demand for new tonnage in the shipping industry depressed sales of Jotun Marine Coatings.

According to Jotun CEO Morten Fon, one in five vessels trading today are coated by Jotun.

“Jotun remains the world’s largest marine coatings supplier so when the market is weak, it impacts our business,” he said. “In the short term, we do not anticipate improvement in this market. The remaining three segments experience good sales growth”.

The decline in earnings was also attributed to rising raw material prices as well as lower sales of marine coatings.

“We have seen weak marine and offshore markets for a long time, and expect this to continue also going forward,” said Fon. “We have taken steps to adjust to this challenge by controlling costs rigorously. As the effect of increased raw material prices will continue to influence Jotun in the months to come, price increases will be necessary.”