MIAMI -- Royal Caribbean Cruises Ltd. agreed to issue $21 million in refunds to consumers who were slapped with a retroactive fuel surcharge on cruises that were booked but not paid for in full by Nov. 16.
RCCL said it came to a resolution with the Florida attorney general's office for its three brands -- Royal Caribbean International, Celebrity Cruises and Azamara Cruises -- to issue the refunds.
The lines did not apply the surcharge to passengers who had paid in full before Nov. 16. The $5 per day surcharge remains in place for North American bookings made on or after Nov. 16, for cruises departing on or after Feb. 1.
"We were in a dialogue with the attorney general's office that we felt would lead to a win-win situation," said Adam Goldstein, president and CEO of Royal Caribbean International, in an interview at the Seatrade Cruise Shipping convention here last week.
"Royal Caribbean and Celebrity Cruises are the first cruise lines to step forward and take actions to resolve this matter in their customers' best interest," Florida Attorney General Bill McCollum said in a statement. "This resolution will serve as a model for the rest of the cruise line industry, and I expect the other companies to take this example and follow suit."
As of press time, no other cruise line had made a similar decision. Carnival Cruise Lines President Gerald Cahill said that the company was in talks with the attorney general's office. Carnival Corp.'s six North American brands added a charge of $5 per person, per day to all its bookings leaving on or after Feb. 1, including those that had been paid in full at the time of the announcement.
The agreement was reached after the Florida Attorney General's Economic Crimes Division received several hundred complaints nationwide that the cruise lines were retroactively assessing fuel surcharges after cruises had been booked and deposits had been made.
Tim Conder, managing director of leisure equity research for Wachovia Capital Markets, said in a note that RCCL's decision "will likely put to rest concerns related to this matter."
He added that the financial impact on RCCL would be minimal, as it would be for Carnival Corp. if it followed suit. He even predicted the decision could possibly "open the door for incremental fuel supplement charges" if fuel prices sustain current levels.
Any customer of any RCCL brand that booked before Nov. 16 and already cruised will be sent a refund. Customers who booked before Nov. 16 and paid the surcharge but who have not yet cruised will receive their refund as an onboard credit during their cruise.
To contact reporter Johanna Jainchill, send e-mail to [email protected].