Jump to content

Advantages/Disadvantages to paying cruise fare early


dchurchward
 Share

Recommended Posts

Since I am cruising in July 2019 next year, my final payment is not due until April. I was wondering if there are any reasons to make the final payment early, or if it makes more sense to invest the money, and pay closer to the final payment date?

 

It seems to me that the advantage of paying early would mostly relate to not facing an unexpected expenditure that requires you to use the money, but I don't see any other reasons. Am I more likely to see sales on the beverage and dining packages, shore excursions, etc.?

 

The only real downside to paying it late is if the payment somehow didn't get applied in time and you lost your reservation. Since I'm going through a TA, that possibility seems remote.

 

Any thoughts from the experts here?

Link to comment
Share on other sites

Since I am cruising in July 2019 next year, my final payment is not due until April. I was wondering if there are any reasons to make the final payment early, or if it makes more sense to invest the money, and pay closer to the final payment date?

 

It seems to me that the advantage of paying early would mostly relate to not facing an unexpected expenditure that requires you to use the money, but I don't see any other reasons. Am I more likely to see sales on the beverage and dining packages, shore excursions, etc.?

 

The only real downside to paying it late is if the payment somehow didn't get applied in time and you lost your reservation. Since I'm going through a TA, that possibility seems remote.

 

Any thoughts from the experts here?

 

My cruise is through a big box store so with the 2% cash back on the credit cardfor travel and 1% for executive I will pay before the end of the year so I get the cash back in Feb and use that for excursions. I don't earn anything like that on liquid cash so for me why wait.

Link to comment
Share on other sites

My cruise is through a big box store so with the 2% cash back on the credit cardfor travel and 1% for executive I will pay before the end of the year so I get the cash back in Feb and use that for excursions. I don't earn anything like that on liquid cash so for me why wait.

 

Thanks, that is a good point that I didn't consider.

Link to comment
Share on other sites

I was wondering if there are any reasons to make the final payment early, or if it makes more sense to invest the money, and pay closer to the final payment date?

 

I know it wouldn't make a difference to you, as you're in the US, but we chose to make final payment early to take advantage of a - for us - very favourable euro/usd exchange rate, which saved us around 60 euros on what we were expecting to pay.

Link to comment
Share on other sites

I always pay off my cruise within 2 months of final. I also have a separate acct for cruising so the money isn't coming out of my house acct. I call my TA when I want to make final and she in turn calls the cruise lines. if I have more then 1 cruise to pay off, I do a spreadsheet and set up my payments, dates to pay and amount. I will try and make payments toward a cruise depending on its total, in 2 to 3 payments after deposit up to final.

Link to comment
Share on other sites

I had booked a harmony suite under the old rules (sailed march 2018) I paid it off 6-7months early. As we got to the 5 month mark royal was offering obc to pay off cruise. I missed out on that.

I now have my last cruise booked under old rules, april of 2019. Final payment is due dec 27. I will wait til dec to pay off my $67 balance. Lol

 

Sent from my SAMSUNG-SM-N920A using Tapatalk

Link to comment
Share on other sites

For all things, if someone's giving me a 0% loan (or more or less similar) I'm not paying it early. My savings accounts aren't earning a lot but they're certainly earning more than if I give it to royal early! But I put money aside in a vacations account so I don't have to worry about spending it.

 

Not to mention if I prepay but then have to cancel! No desire to deal with a company to get money back unless I have to.

 

Sent from my SM-G960U using Tapatalk

Link to comment
Share on other sites

I do not wait to last day but always wait till we are about a weeks before final payment, why should I let them hold my money

 

I would do this but my final payment is due 1-31 to TA (2-14 to Royal).

My statement cycles on about the 8th so I will charge in November after the 8th and pay off in Dec to get the cashback in Feb for my May cruise. So 55-60+ days early to add to my cash back. Nowhere else am I going to get 3% on parked cash for 60 days.

Link to comment
Share on other sites

I would charge larger payments on the balance by having the cruise acct, but it is down so haven't been able to use it toward the upcoming Hawaii cruise but will still pay off in two additional payments after deposit. Final will be called in next month which is due Dec 9th. The daughter is also paying me for her cost.

Link to comment
Share on other sites

Funny you posted this today. I paid off our cruise a bit early today and I have been making regular payments for a while now. That 0.25% saving rate didn't provide much incentive to keep it there.

 

I have a money market account through Capital One that pays 1.85%

I see no advantage to paying off early. My travel agent just has my credit card on file and gives that to the cruise line. 46 for 46 times it's worked so I don't worry about it getting paid. Cash flow is no problem anyway.

Link to comment
Share on other sites

Funny you posted this today. I paid off our cruise a bit early today and I have been making regular payments for a while now. That 0.25% saving rate didn't provide much incentive to keep it there.

If you're only getting 0.25% return on your investments, then you should probably consider other investments! :D

 

I see no reason to pay it off early. I prefer to leave as much of my money invested as long as possible. No reason to let RCI use my money before I have to!

Link to comment
Share on other sites

I pay ours off early to get the Chase Sapphire points. Then, I either transfer points to my Southwest account to pay for domestic air, or I use the points as a statement credit to reimburse for air purchased on another airline.

 

The cruise payment AND the airline (cash) charge both get me double points.

 

I haven’t paid full price for air in years.

Link to comment
Share on other sites

I know it wouldn't make a difference to you, as you're in the US, but we chose to make final payment early to take advantage of a - for us - very favourable euro/usd exchange rate, which saved us around 60 euros on what we were expecting to pay.

 

I agree with that completely. I've paid off my next cruise (December) in April, taking advantage of a low $. A month ago, there was a nice price drop, and I've been reimbursed the 300$ difference in 3 days (to my credit card).

Besides, the interest rate here is 0% ....:(

Link to comment
Share on other sites

I had booked a harmony suite under the old rules (sailed march 2018) I paid it off 6-7months early. As we got to the 5 month mark royal was offering obc to pay off cruise. I missed out on that.

I now have my last cruise booked under old rules, april of 2019. Final payment is due dec 27. I will wait til dec to pay off my $67 balance. Lol

 

Sent from my SAMSUNG-SM-N920A using Tapatalk

Oasis did that last fall for a few sailings. Pretty sure it only applied to JS and higher then.

 

Sent from my SM-G965U using Tapatalk

Link to comment
Share on other sites

If you're only getting 0.25% return on your investments, then you should probably consider other investments! :D

 

I see no reason to pay it off early. I prefer to leave as much of my money invested as long as possible. No reason to let RCI use my money before I have to!

Not all investments increase in value. [emoji33]

 

Sent from my SM-G965U using Tapatalk

Link to comment
Share on other sites

I had booked a harmony suite under the old rules (sailed march 2018) I paid it off 6-7months early. As we got to the 5 month mark royal was offering obc to pay off cruise. I missed out on that.

I now have my last cruise booked under old rules, april of 2019. Final payment is due dec 27. I will wait til dec to pay off my $67 balance. Lol

 

Sent from my SAMSUNG-SM-N920A using Tapatalk

 

Thats interesting about the OBC offer for paying off a balance early, I have not heard of that before.

Link to comment
Share on other sites

Just pick one that does CDs, money market, etc.
I was thinking they might be playing the market. A 2% CD really isnt investing to me. I can get a 3 month CD at that rate. 5 grand at 2% for 3 months nets around $25. Hardly worth the effort.

 

Sent from my SM-G965U using Tapatalk

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share

  • Forum Jump
    • Categories
      • Welcome to Cruise Critic
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...