Crystal ‘holding the line’ on imposing fuel surcharges amid Middle East conflict

 

Addressing agents at parent company Abercrombie & Kent Travel Group’s 100 Club conference in Chicago last week, the group’s senior vice-president of trade sales for the Americas, Matias Lira, said: “We are holding the line on imposing any sort of fuel surcharges. It’s definitely a tough conversation internally because we’re paying a lot more for crude [oil] today. 

 

“We’re not a larger corporation like Royal Caribbean or Carnival Corporation that are hedged for 14 to 16 months into the future, because that involves a huge, significant investment, but we are holding the line.”

 

Lira said the situation in the Middle East had been “quite impactful” on Crystal. 

 

The line recently made the “difficult decision” to end its 2026 world cruise onboard Crystal Serenity - due to conclude in Dubai in May - a month early due to the ongoing war and blockage of the Strait of Hormuz.

 

The company is also facing the prospect of cancelling two upcoming voyages from Athens to Rome departing on May 11 and May 15 onboard Crystal Serenity, both of which sold “incredibly well”. 

 

Lira said: “We were having conversations about having to cancel those trips because we were not going to be able to travel through the Red Sea but would rather have to circumnavigate Africa.

 

“The circumnavigation of Africa [with an empty vessel] costs millions of dollars and it takes 27 days to travel from Mumbai to Rome via this route, rather than six days via the Red Sea.”

 

 

Lira said: “Luckily, we’ve been able to get the right insurance coverages and escorts to hopefully get us through the Red Sea safely, so stay tuned.”