Wednesday, March 23, 2011

Fuel Surcharges Weaseling Their Way Back


They're baaaaack... fuel surcharges. You remember them from not so long ago when you had the "privilege" of paying that extra fee for higher fuel charges. Cruise lines charged up to $12 per person per day, airlines charged $10-$25 per ticket, even taxis got on board and charged a flat rate fuel surcharge added to the base fare. No one was immune. Then the price of oil dropped and thankfully so did the fuel surcharge.

Alas, here we are again... the price of oil increasing and so are the incidents of fuel surcharges. Many international air carriers have started adding fuel surcharges ranging from $10-$15 per ticket, and some are even gouging those flying on miles (it was rumored that British Airways charged a passenger flying on miles $500 for the fuel surcharge!). I'm sure the fuel surcharges are not far behind for American carriers, perhaps some have already started charging.

Cruise lines have not formally announced fuel surcharges but they are gearing up for it and no one will be immune, not even those who have booked a future cruise. Warnings of fuel surcharges have ranged from $9 per person per day to $12 per person per day. They do, fortunatley, cap the fuel surcharge to a maximum of double occupancy for 7 nights. Third and fourth passengers in a cabin do not pay the surcharge either.

Some travel vendors who sell package vacations and tours are holding tight on their air prices, provided you book sooner than later. They can guarantee flight prices packaged in their tours only so long, but if you are thinking of traveling, a package or tour is your best value at this time.

With gas at $4.09 per gallon in my area, it will be short time before airlines and cruise lines burn through their oil futures and pass on surcharges. It's bad enough we are paying fees up the, wel, you know... baggage fees, seat selection fees, paper ticket fees, etc. The only advice I can give my clients is it's a cost that you have to build in to your vacation, just like spending money, or meal allowances, and don't stress over it. Yeah, it stinks, but your alternative is to not travel? I think not!

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