New Cancellation Policy for U.S. Bookings

I'm not sure if this has been mentioned before. If so, I have missed it.

While checking availability and pricing on Cunard's U.S. web site (cunard.com) for a crossing on QM2 in 2017, I was presented with this "Holiday note" (emphasis mine).

I have not yet found the new cancellation schedule showing cancellation fees beginning 30 days prior to the final payment date. This new cancellation policy appears to apply to voyages after the 2017 world voyages.

I found Cunard's new U.S. cancellation policy. On the "Legal Information" page of Cunard's U.S web site there are separate links to

Passage Contract Through Spring 2017

Passage Contract 2017 Post World Voyages

The changes to the cancellation policy that apply to "Voyage Length less than 30 days" are as follows.

Number of Days before Sailing --- Cancellation Fee

120 to 90 --- changed from "None" to "25% or Deposit Amount"

90 to 61 --- changed from "Deposit Amount" to "40% of full fare"

Similar changes apply to "Voyage Length 30+ days".

Number of Days before Sailing --- Cancellation Fee

150 to 121 --- changed from "None" to "30% or Deposit Amount"

120 to 91 --- changed from "Deposit Amount" to "40% of full fare"

All of the cancellation periods for the "Reduced Deposit Cancellation Policy" are being accelerated by 30 days.

I just booked the World Cruise for 2018 and noticed that immediately.

We have therefore placed a marker on the calendar for our last date to cancel without penalty as a reminder.

This is not pleasant news. I've yet to cancel a cruise but it is not very welcoming to have a policy that is out of line with the industry standard. I feel like this just makes the case even stronger to avoid booking early unless you really have no choice but to do so. The prices after final payment are usually so much less that, unless one is extremely picky about stateroom choice, there is little benefit to booking until you know your plans will not change [barring a catastrophe].

I wonder if other lines will follow suit...

I have to echo Bostonjetset. I don't like to cancel once that I've booked, but this new policy certainly will make me think twice before I do book. I believe Cunard is making a huge mistake. To my way of thinking it will only push Americans to book later, and at a possibly lower rate than they might have obtained if booking earlier.

I have to echo Bostonjetset. I don't like to cancel once that I've booked, but this new policy certainly will make me think twice before I do book. I believe Cunard is making a huge mistake. To my way of thinking it will only push Americans to book later, and at a possibly lower rate than they might have obtained if booking earlier.

I agree.

Bluemarble, thanks for the advance warning.

Salacia

One trivial oddity I just noticed is that the first cancellation schedule is being changed from "Voyage Length less than 30 days" to "Voyage Length of 30 nights or less" and the second schedule is being changed from "Voyage Length 30+ days" to "Voyage Length 31+ nights". Assuming voyage "days" and "nights" are equivalent, then in the case of a voyage of exactly 30 days/nights, the first more generous schedule now applies.

Also, I see this additional verbiage about cancellation policies has been included in the new passage contract.

For those who can't use the links I provided in my earlier reply, here are the U.S. cancellation schedules for "2017 Post World Voyages" copied here as screen capture images for improved readability and to prevent transcription errors on my part.

One trivial oddity I just noticed is that the first cancellation schedule is being changed from "Voyage Length less than 30 days" to "Voyage Length of 30 nights or less" and the second schedule is being changed from "Voyage Length 30+ days" to "Voyage Length 31+ nights". Assuming voyage "days" and "nights" are equivalent, then in the case of a voyage of exactly 30 days/nights, the first more generous schedule now applies.

 

Also, I see this additional verbiage about cancellation policies has been included in the new passage contract.

 

Since a cancellation likely means a diminished opportunity to sell space on other voyages, the cancellation fees in the schedules below apply regardless of whether Your space is resold. You hereby agree that losses sustained by us in the event of Your cancellation would be very difficult or impossible to quantify, and that the fees set forth in our cancellations policy represent a fair and reasonable assessment as liquidated damages.

 

For those who can't use the links I provided in my earlier reply, here are the U.S. cancellation schedules for "2017 Post World Voyages" copied here as screen capture images for improved readability and to prevent transcription errors on my part.

 

 

 

This part of the voyage contract is something that is difficult for me to agree with...

"...You hereby agree that losses sustained by us in the event of Your cancellation would be very difficult or impossible to quantify, and that the fees set forth in our cancellations policy represent a fair and reasonable assessment as liquidated damages...

The changes to the Cunard cancellation terms are what we have had in place for many years and not just for this line. In effect almost all cruises booked in Australia have this - basically unless we cancel about 5 months out we will lose the deposit. A number of cruise lines specify that we must book through Australian sites and cannot use an overseas TA. We look at the conditions that US passengers have with some longing.

This new policy will make it more difficult - by 30 days - to take advantage of a fare reduction.

This is, as others have mentioned, just falling in line with the new "industry standard". I have said for years the ultimate goal is to emulate the airline model.......As soon as you book, you are paid in full. More and larger change fees and cancellation charges. My solution, book the best deal 45 days out when flights are usually fairly good prices. This is just the way the industry is heading so please don't shoot the messenger.

This is, as others have mentioned, just falling in line with the new "industry standard". I have said for years the ultimate goal is to emulate the airline model.......As soon as you book, you are paid in full. More and larger change fees and cancellation charges. My solution, book the best deal 45 days out when flights are usually fairly good prices. This is just the way the industry is heading so please don't shoot the messenger.

I respectfully disagree as this change is not in line with the industry standard when it comes to cruise lines. Could they all move in this direction? Sure. But as of now, it is not the norm.

The "airline model" is slightly different as airlines are solely in the business of moving people from one area to another. Also, airlines have it much easier to hold people prey to their pricing structures as there is very limited competition on many routes and sometimes people just MUST travel regardless of the price [business, family emergencies, etc]. Cruising is a luxury and with the exception of some of QM2's passengers [and a few on other lines' repo cruises], passenger ships are not generally used solely for transport purposes anymore. They would fall somewhere in between the airline industry and the hotel industry IMO. Hotels generally do not make you pay in full without refund unless it is a discounted rate [many times one can cancel for no penalty with as little as 1 day's notice].

It's anyone's guess what the future will bring.

I will be going on a Celebrity cruise at the end of August. When I booked in February there was a quite limited choice of rooms for the category I had chosen. I looked at the site yesterday and discovered a much larger range, including some rooms that are much better than the one I booked. I can only assume that these new rooms have been released because of cancellations. I am therefore in favour of people only booking a room if they fully intend to travel, not booking several cruises as placeholders. People like me end up being disadvantaged when the best rooms have been booked and later discarded.

I will be going on a Celebrity cruise at the end of August. When I booked in February there was a quite limited choice of rooms for the category I had chosen. I looked at the site yesterday and discovered a much larger range, including some rooms that are much better than the one I booked. I can only assume that these new rooms have been released because of cancellations. I am therefore in favour of people only booking a room if they fully intend to travel, not booking several cruises as placeholders. People like me end up being disadvantaged when the best rooms have been booked and later discarded.

FWIW, it appears to model that of Regent:

Cruises 14 Nights or Less

From date of deposit to 121 days prior to vacation date:

$200 / €200 per booking administration fee. This admin fee will be converted to a future cruise credit redeemable on bookings made up to 12 months after cancellation and for travel any time.

- 120-91 days prior to vacation date:15% of cruise fare per person

- 90-61 days prior to vacation date:50% of cruise fare per person

- 60-31 days prior to vacation date:75% of cruise fare per person

- 30-0 days prior to vacation date:100% of cruise fare per person

Another difference is that "Cunard Care" is now replace with a "Guest Protection Program" but I haven't done a comparison to see what the difference is in coverage.

My heart bleeds for you.

It would be terrible if you also had to stomach a 15% non-returnable deposit as we do in the UK. If that happened then availability and price discovery would become much more transparent and people would be forced into booking cruises they intend to actually ,take at a price they find acceptable on the day. What a shocking prospect.

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My heart bleeds for you. .

Very true Chunky, but I guess the cousins will get used to it eventually. I have always found it puzzling why Cunard went along with the old policy for so long. Could it be that they are working towards the UK terms eventually.

David.

This part of the voyage contract is something that is difficult for me to agree with...

"...You hereby agree that losses sustained by us in the event of Your cancellation would be very difficult or impossible to quantify, and that the fees set forth in our cancellations policy represent a fair and reasonable assessment as liquidated damages...

By agreeing to this clause and if you wish to sail you will agree or you will not sail, you relieve Cunard of the possibility of having you come after the fact of the sailing and sue for recovered fares because Cunard did in fact resell the cabin. I am sure people try that ploy all the time if they have access to inexpensive legal and investigative resources.

I will be going on a Celebrity cruise at the end of August. When I booked in February there was a quite limited choice of rooms for the category I had chosen. I looked at the site yesterday and discovered a much larger range, including some rooms that are much better than the one I booked. I can only assume that these new rooms have been released because of cancellations. I am therefore in favour of people only booking a room if they fully intend to travel, not booking several cruises as placeholders. People like me end up being disadvantaged when the best rooms have been booked and later discarded.

Not all cabins are booked by individuals. The larger travel agencies many times will buy a block of rooms with a release clause that only is provided to big bookers and as the time of sailing approaches if the agency has not resold the rooms they release them back into the system, hence suddenly a lot of available space where there had been none for months.

Not all cabins are booked by individuals. The larger travel agencies many times will buy a block of rooms with a release clause that only is provided to big bookers and as the time of sailing approaches if the agency has not resold the rooms they release them back into the system, hence suddenly a lot of available space where there had been none for months.

Is this just a US thing? Or do agents in all countries do this?

I ask because when I look at various UK travel agents websites, they always have exactly the same cabin numbers for sale.

Very true Chunky, but I guess the cousins will get used to it eventually. I have always found it puzzling why Cunard went along with the old policy for so long. Could it be that they are working towards the UK terms eventually.

 

David.

balf, no doubt those of us who book in North American will 'get used to' the new cancellation policy. However, options are many and whether or not Cunard retains US passengers remains to be seen. That the North American market is not a priority to Cunard has become more apparent in the past few years.

Does anyone doubt that other revenue enhancing measures are planned to pay for the 'remastering' of QM2? Take glee if you wish in the change of North American bookings: it's only the beginning.

Salacia

FWIW, there is a CC thread about booking overlapping sailings here. The number of posts commenting on the practice suggests that quite a few passengers are doing this: booking two or more overlapping cruises then monitoring pricing and cancelling the ones they decide not to take.

The defenders of the practice say that they are just following the rules of the game to get the best deal. The detractors counter that they are needlessly taking prime cabins off the market.

Just to play Devil's Advocate, a 120 day final payment date would give a line more time to sell these cancelled sailings at a higher fare.

[quote name=BlueRiband;

Just to play Devil's Advocate' date=' a 120 day final payment date would give a line more time to sell these cancelled sailings at a higher fare.[/quote]

On the other hand, it could also speed up the discount timeframe. Usually deep discounts happen after final payment when people book without any chance of cancelling without a loss. Now that period of no risk ends at 120 days rather than 90.

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If in USA you paid a deposit of 15% which is non refundable like it is in UK whenever you cancel perhaps this would stop people booking numerous cruises and blocking cabins with the intention of only going on one cruise.

Is this just a US thing? Or do agents in all countries do this?

 

I ask because when I look at various UK travel agents websites, they always have exactly the same cabin numbers for sale.

I know that my (big, cruise only) TA block books with Celebrity although I have never seen any sign of it with Cunard.

It makes the pricing much sharper than booking direct but my understanding when I queried it was that if they don't sell they can't just hand them back, they get goosed on the deal. Handing them back comes with a loss to the TA, so it's still better arrangement than the "multi-bookers" who play the system.

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