|Cruise Line Battling Rising Fuel Prices|
The price of fuel has become a larger part of the operating expenses for cruise lines. Cruise lines are continually looking for new ways to reduce expenses.
Many are modifying their itineraries choosing ports closer to their embarkation points to reduce fuel consumption. In addition some cruise lines are adding overnight stays to not only allow more time in port but also keep costs in line. Another tactic is to spend more time at sea. When cruise ships operate at slower speeds, they burn substantially less fuel.
Carnival for example, has cut fuel consumption 24% since 2005 but is still expected to consume 3.3 million tons of fuel in 2013 at a price of $692/per ton. Most of Carnival's 2013 fuel savings are driven by itinerary changes, sometimes trading off itineraries with higher yield in favor of lessening fuel costs.
Other cruise lines are performing similar cost cutting measures to remain competitive and counter rising operating costs.
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