Canadian cruisers -- is the US/Cdn $ exchange rate affecting your plans?

[senorjim]

I book and pay for our cruises in Canadian $. Lately I have been bringing US $ in cash to pay my onboard account. Fortunately a long time ago I bought Us $ when we were at par.

 

 

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[whogo]

Currently one Canadian dollar buys US$.907. See if this exchange rate chart works: http://finance.yahoo.com/q/bc?s=CADUSD=X&t=1y&l=on&z=m&q=l&c=

 

[northernphoenix]

I book and pay for our cruises in Canadian $. Lately I have been bringing US $ in cash to pay my onboard account. Fortunately a long time ago I bought Us $ when we were at par.

 

 

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Ditto. We do add US$ to our bank account, and try to purchase at a rate close to par. Last year we actually, were above par for a period, so we took advantage of that,

Marilyn

 

 

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[kazu]

Currently one Canadian dollar buys US$.907. See if this exchange rate chart works: http://finance.yahoo.com/q/bc?s=CADUSD=X&t=1y&l=on&z=m&q=l&c=

 

 

That rate is the rate at the Bank of Canada - it is correct, but none of us normal people get that rate. The rate we are charged will be higher than that ;) no matter what source we get our $ from

[david,Mississauga]

My recent experience is with Cunard. (I don't know if HAL has a similar policy.) Until recently the Canadian rates were identical to the US rates, so that saved us a few cents per dollar. When the Canadian dollar dropped sharply earlier this year, Cunard revised the Canadian rates upwards by about 11%. We had booked at the Canadian "at par" rate and, even though we had not made final payment, Cunard honoured the rate for which we are grateful. I wonder if HAL does the same.

 

The extra 10% or so that we have to pay for US amounts is annoying, of course, but I recall many years ago (1980s I think) paying a supplement of 40% for fares in US funds, so I won't complain. Lately the Canadian dollar has recovered a little. Friday's banker's rate was U.S. 91.71 which is up 2 cents from a couple of months ago.

[kazu]

My recent experience is with Cunard. (I don't know if HAL has a similar policy.) Until recently the Canadian rates were identical to the US rates, so that saved us a few cents per dollar. When the Canadian dollar dropped sharply earlier this year, Cunard revised the Canadian rates upwards by about 11%. We had booked at the Canadian "at par" rate and, even though we had not made final payment, Cunard honoured the rate for which we are grateful. I wonder if HAL does the same.

 

The extra 10% or so that we have to pay for US amounts is annoying, of course, but I recall many years ago (1980s I think) paying a supplement of 40% for fares in US funds, so I won't complain. Lately the Canadian dollar has recovered a little. Friday's banker's rate was U.S. 91.71 which is up 2 cents from a couple of months ago.

 

david, yes HAL does the same thing. The price you book is the price you get. So anyone who has booked in Cdn dollars will have that honoured. HAL like Cunard hedges their currencies so that they don't lose;)

[CGYCruisingFamily]

$1.09 is nothing compared to when we took our first HAL cruise which was about $1.35. We will be watching the money but $1.09 isn't as bad as it could be.

[Sam.Seattle]

david, yes HAL does the same thing. The price you book is the price you get. So anyone who has booked in Cdn dollars will have that honoured. HAL like Cunard hedges their currencies so that they don't lose;)

Kazu -

 

This is at least the 2nd time you stated that HAL "hedges" currency. I would probably accept without question that maybe they hedge fuel prices.

 

Could you please share where you obtained the idea or fact that they hedge currency. I checked the CCl annual report and did not see a footnote or a line item for hedge commitments.

 

Please share with us your reference source for currency hedging.

[dwjoe]

$1.09 is nothing compared to when we took our first HAL cruise which was about $1.35. We will be watching the money but $1.09 isn't as bad as it could be.

Indeed. For a long time the Canadian dollar was worth $0.75 US or thereabouts. A 90-cent Canadian dollar is not so bad.

[iancal]

We tend to watch currency exchange because more often than not for us a cruise is a smaller part of an extended land tour. We did a number of European cruises and land trips over the past two or three summers. The cruise is usually 12-14 days out of a six-eight week land trip. Cruise prices (including USD pricing) were at an all time low because of the economy, as was the USD, GBP and the Euro. We got our innings in so to speak. Did exactly the same for US travel.

 

We have an informal list of where we want to travel and what we want to do. Currency exchange plays a part in how we prioritize the travel and how affordable it is compared to other vacation options.

Edited May 12, 2014 by iancal

[kazu]

Sam Seattle, I think the banker in you is coming out - Welcome to the club.;)

 

Hedging against volatility and hedging against currency exchange risk does not necessarily show on a financial statement as a 'hedge'. There are several ways to do it (ie. spots on the currency market).

 

For what it is worth I can assure you that HAL protects their currency risk. The rate is normally adjusted (for pricing) 3 to 4 times per year. In more stable markets 2 - 3 times a year.

 

I have been told that by several sources - Investment Advisors, a HAL corporate person as well as a prior TA who knew when they adjusted their pricing for Canadian clients. it is not unrealistic to expect HAL to protect themselves from exchange risk.

 

No wise corporation - and certainly one the size of CCL or HAL would expose themselves to foreign currency risk without taking prudent precautions especially with the time factor of final payments coming into play.

[iancal]

The business that I was in certainly hedged as our product came in to the country priced at USD, we sold in CAD, but with our financials reported and measured stateside in USD.

 

The cost of the hedge was an expense. The exposure never made it to the balance sheet because it was minimal. The hedge was often done only for a quarter in the future. It was not like hedging oil where the outlook often carries over one of more fiscal periods with much higher commodity and exchange risks.

Edited May 12, 2014 by iancal

[CowPrincess]

What adds to the grief for Canadians is that we have to choose between an FCD in Canadian dollars or one in US dollars. Aggravating. We don't have crystal balls. Since the US $ is traditionally higher than the Canadian dollar, I don't understand why HAL doesn't let us buy those and let us use them in either currency. Right now I am sitting with unused ones because of the exchange rate.

 

Last time we bought FCDs we hedged our bets, and bought some US $ ones and some Cdn $ ones.

[CowPrincess]

Based on this thread, it looks like only DH and I are concerned about the exchange rate, that most others are just carrying on. Good for you ;)

[cruz chic]

Last time we bought FCDs we hedged our bets, and bought some US $ ones and some Cdn $ ones.

 

Hope you reported that in your financials :D;).

[gophercruiser]

Just booked a 21 day Caribbean for January 2015 and was pleasantly surprised to find my cost in Cad $ was only 2% above the USD cost, so considering the current rates that is certainly appreciative.

[Sam.Seattle]

[quote name='kazu']Sam Seattle, I think the banker in you is coming out - Welcome to the club.;)

Hedging against volatility and hedging against currency exchange risk does not necessarily show on a financial statement as a 'hedge'. There are several ways to do it (ie. spots on the currency market).

For what it is worth I can assure you that HAL protects their currency risk. The rate is normally adjusted (for pricing) 3 to 4 times per year. In more stable markets 2 - 3 times a year.

I have been told that by several sources - Investment Advisors, a HAL corporate person as well as a prior TA who knew when they adjusted their pricing for Canadian clients. it is not unrealistic to expect HAL to protect themselves from exchange risk.

No wise corporation - and certainly one the size of CCL or HAL would expose themselves to foreign currency risk without taking prudent precautions especially with the time factor of final payments coming into play.[/QUOTE]
I see.... They don't really utilize a currency hedge. You just assumed so.
raising prices is not a currency hedge.
thanks for reply.

[CowPrincess]

[quote name='gophercruiser']Just booked a 21 day Caribbean for January 2015 and was pleasantly surprised to find my cost in Cad $ was only 2% above the USD cost, so considering the current rates that is certainly appreciative.[/quote]

Our next two cruises have been booked in Cdn $s because we found the Cdn price advantageous. The "sundry" expenses though (hotels, meals, HSC, other onboard spending, shorex) will be US $, and those add up quickly. For us, we often find the "sundry" expenses to be more money than the cruise price :eek: :D

[Travelbug 2]

My plans do not change because of exchange rates.

I remember the days back in the mid eighties when the Can $ was only worth 60 cents US. :eek:
My late wife and I were living in Nova Scotia and were wintering annually in Florida at that time, even though it hurt we just got on with it and still enjoyed our US visit.

Not much you can do about it.....life is short...... live it to the max and enjoy every day. :)

[iancal]

It impacts us only to the extent that is a factor in our decision as to where to travel. When the US exchange rate was very high we simply made alternative travel decisions. When it was low, or in our favour, we travelled extensively in the US, did USD cruises, and did lots of shopping in the US.

We have many places on our list. For us, it can just as easily be Costa Rica or Thailand in the winter (and it has been in the past) as it can Florida, Hawaii, or Arizona. South America, in particular Argentina is now moving quickly up our list simply because of the opportunities that their weak currency offers to us.

We will continue to do USD based cruises....but the net price will have to be good. Cruises for us are just one of many great competing travel and vacation alternatives.

[drgrinch]

With the trillions of USD our treasury has printed (paper or electronic) in the last few years, I'm surprised it has held its value at all. For me this will be a pleasant change from my last two visits to Canada when the Canadian dollar was on top. It will certainly make it easier to shop at the Canadian ports we are visiting this summer.

[iancal]

Please spend lots of money in Canada while you are in port.

[cruz chic]

[quote name='Kinta']Kazu- you might like to have a look at the no-fee Sears Mastercard. You can order it on-line. We have used it when out of the country with great success.[/QUOTE]

I wanted to come back and thank you for this tip. I did get this card and have used it and I'm happy with the exchange and not having to pay extra on top. I appreciate this info.

[iancal]

We have found that some US airlines like AA give very good exchange rates-often considerably better than the spot rate of the day.

The last time we rented a car in the US they rental company automatically converted USD to CAD...but at a 3 percent charge. Fortunately it was only a one day rental.

We have found that some stores in Florida ask the question 'do your credit card to be charged in CAD". If you say yes, they add 3 points for doing this.

If we ask a Canadian TA for a cruise price, we always ask for a CAD price and USD price. There have been variances in the past that have worked in our favour. Just ensure the USD quote comes from the cruise company and is not just a conversion done by the TA staff. Edited May 26, 2014 by iancal

[sapper1]

A few years ago I had FCD's in one currency and our TA was able to get HAL to refund them and re issue them in the other currency. I forget whether we switched Can for US or vice versa. I really didn't think we would be able to do that but in that instance it was allowed.

The cost of US dollars is just the cost of doing business. It hasn't stopped us from making plans.
I can remember being in Florida many years ago when our CC was charging 1.64 as an exchange rate so the 1.14 we paid this last month wasn't too troubling. Mind you, I would hate to see a return to the good old days. Edited May 26, 2014 by sapper1