Frequent clients of Global Alliance Worldwide Chauffeured Services will have noticed a periodic fluctuation in the percentage of fuel surcharge on their confirmations and receipts for transfer services with the company in Toronto. Since several clients have enquired about this cost, we thought it best to lay out the rationale behind the fuel surcharge in an open forum such as our website’s blog (where surcharge adjustments are also announced with regularity). Such an explanation will allow our clients the opportunity to understand how an adjustable fuel surcharge is calculated, as well as to be persuaded that the surcharge is ultimately about saving them money in their regular transactions with Global Alliance.
Over the past 5 years, Global Alliance management has elected not to increase the base rates for our limousine services in any substantial manner. This decision was taken mainly in consideration of the variable cost of fuel and in the interest of cost fairness to our dedicated clientele. Instead of raising and lowering base rates in response to changes in fuel price, we have opted for the use of a variable fuel surcharge using the scale seen below.
Average Canadian Retail Fuel Price Per Litre :: Fuel Surcharge
$0.90 – $1.05 :: 5%
$1.06 – $1.15 :: 7%
$1.16 – $1.25 :: 10%
$1.26 – $1.40 :: 12%
When the local fuel price rose over the $1.25/litre mark, Global Alliance still did not raise the fuel surcharge to 12%, as our scale might have dictated. Our clients mean the world to us and we strive to achieve maximum customer satisfaction whenever possible. A key strategy to achieve such consistent satisfaction is to strive at all times to save our clients money. We therefore found it difficult from a client care perspective to raise the surcharge above 10%, anticipating that adverse client reaction to this change would make any short-term cost benefit ultimately disadvantageous to our standard of service.
That said, Global Alliance must also maintain its operating costs while balancing our clients’ wish for the best service possible at the most economical rate possible. By employing the method of the fuel surcharge, we also save our clients the additional charge of the 20% service fee that would be applied to a higher base price. If the base price were to be raised instead of applying a separate fuel surcharge, the service fee would be applied to that higher base rate and therefore increase the final cost.
Since the service fee is not applicable to the fuel surcharge and that surcharge is variable and fluctuates based on the price of fuel, this dynamic pricing policy saves our valued clients more money overall. Should the price of fuel drop below $0.90 per litre, it would be expected that the rate will be removed entirely from final bills, as per our grid.
Should you have any further questions concerning the fuel surcharge, any other cost concerns, or any issues whatsoever with Global Alliance’s services, do not hesitate to speak to your Global Alliance reservations specialist or to contact our experienced management team for more involved enquiries.