Islander Charters Fuel Surcharge Letter
June 16th 2008
For the last three seasons Islander Charters has refrained from imposing any type of fuel surcharge, choosing instead to build the cost of fuel into our advertised ticket price. Our policy has clearly stated that unless fuel rises above $3.00/gallon a surcharge will not be necessary. The unfortunate news (as everyone knows) is that fuel has exceeded the $3.00/gallon mark and has done so with a vengeance. The Islander recently filled her tanks at $4.17/gallon - considerably higher than ever before. In an effort to make our fuel policy transparent and fair to the consumer we feel it is necessary to explain the simple formula by which we arrive at our daily rate.
Islander's ticket prices are structured on a baseline fuel price and daily burn of $3.00/gallon and 500 gallons/day respectively. At times (if the run is extended or we are moving at full cruise) we burn more than 500 gallons per day and at times we burn less, but 500 gallons is a realistic average. To come up with our surcharge rate we simply take the monetary amount above $3.00/gallon, multiply it by 500 gallons/day and then divide it by the printed passenger load for the pertinent trip. For example: If fuel is $4.00/gallon and the 1.5 day trip has a passenger load of 29 we would multiply $1.00 (amount over $3.00) by 500 (gallons) for a total of 500. We would then divide 500 by 29 for a total of $17. This equation will be updated each time we fuel the boat and we will make the price available to each passenger.
We appreciate your understanding as we all weather this adverse fuel situation together. Unfortunately, in this current climate a surcharge is the only margin that allows us to continue to fish at the necessary range and in the style required to make a catch. Be assured that if there are biting fish to be had, we will spare no expense get you there.
Sincerely,
John Conniff & Shane Slaughter
Owners/Operators
M/V Islander.
