Early Payment on Cruises 18 days or Longer

[doubledobles]

I just received the information that the rules for payment on 18 day or longer cruises have changed as of Jan. 1, 2013. It seems that now you have to pay 150 days in advance, rather than 90 days. That way Oceania gets to work with your money and you don't.

 

I don't think this is fair.

[Hawaiidan]

Its a business, and we can accept or not the terms.

Extending the payment out 60 more days for high value products Is a good insurance for Oceania that the customer isn't going to back out requiring the line to scramble to fill cabins.

Heck, I recently had to make a down payment for a home that was not even built yet.

 

If fairness, I see more than a few people going out an booking several cruises and then deciding at the last moment which of those they are going to dump.

 

If this is necessary to keep the company profitable and a long term future producer of a quality product then it is us who also benefit also.

[LAexNY]

I just received the information that the rules for payment on 18 day or longer cruises have changed as of Jan. 1, 2013. It seems that now you have to pay 150 days in advance, rather than 90 days. That way Oceania gets to work with your money and you don't.

 

I don't think this is fair.

 

Yes, we are deprived of the ability to earn 0.05% interest on it.

[YoHoHo]

Though it could help cash flow a little, they do have new ships to pay for, I think the interest earned would not be that significant. well in $ terms it could be a good chunk but at current rates of return not a big %.

 

I recall a now defunct charter airline many years back when interest rates were high. They sold vacation packages near cost but took full payment at least 6 months, sometime a year in advance. The investment made their profit, gave them very reliable forecasts, better purchasing and fewer / smaller refunds. 'Buy insurance but we get paid in full'

 

Perhaps more importantly O policy change is in reaction to those who booked a number of cruises and prime cabins immediately when they new itineraries are released but have no intention of keeping all of them. Earlier Final Payment encourages them to release them sooner while those cabins are still more saleable to O. Also cut down on somewhat on unnecessary 'upgrade/upsell deals'

 

Fewer folks are interested/can take/can afford the longer cruises so O needs more time fishing the pool of potential buyers.

[Caroldoll]

And I for one hope Oceania continues to be profitable. We don't get any interest on our money from the banks anyway.