Unused OBC

[LabGuy64]

Steve...that last comment made NO sense...no offense....but, when they GIVE you 300.00 in OBC....even when you spend it with them they are making nothing.....yes..they are not losing 300.00 because there is a profit margin built into every thing they sell....but you are still getting something for nothing if you ONLY spend the OBC.....it's basically a loss leader but they are not making a profit on the 300.00

 

 

 

As to the "cash from the casino" thing, years back, they didn't charge...

The casino cashier was set up for two things: To cash out your chips and/or to get coinage to feed through the slot machines...

But, since you could get cash for the machines--using your shipboard account, people started using it as an ATM...or as a way to cash out their OBC...

...Which the cruise lines didn't like...

They didn't want to have to carry too much currency at the casino...or to create longer lines for the people actually there to gamble away their money...

So, the 5% charge was created--to act as a disincentive for using it as an ATM...

They really want you to USE that ATM on the ship...to use the spa, to purchase at the gift shops, to buy drinks...They have huge profit margin from that stuff...

They DON'T want you just cashing it out...and they don't want to let you use the casino as an ATM...

At some point, they will likely get really smart--They'll convert all slot machines to tokens or "card readers"...and they'll create chips that must be circulated through a gambling game before they can just be cashed out...and only give cash-outs in the form of a credit to your shipboard account...

That would take away the "ATM" function entirely...and force everyone to spend their OBC onboard...

AND, when that happens, if it's in conjunction with the current type of 123Go deal, you won't be able to cash out the OBC, can't use it to purchase drinks and can't apply it to gratuities...which will force you to spend it on the spa, gift shops, shore excursions and gambling only...

 

This will make pricing schemes with higher prices but with OBC much more attractive for the cruise line...

Say you would have had a cruise fare of $1200 pp...but instead, they offer the cruise at $1500 pp but with $300 pp OBC...Same net cost?

Sort of, but not really...

With the $1200 cruise fare, the passenger may not drink, go to the spa, gamble or drink--and books their port tours independently...and the cruise line makes $1200...But, with $1200 +$300 OBC, the cruise line still makes the $1200, but they guarantee that the customer spends another $300 pp onboard--and all that extra money comes back to them--at pretty good profit margins...

Edited March 1, 2015 by LabGuy64

[Bruin Steve]

Steve...that last comment made NO sense...no offense....but, when they GIVE you 300.00 in OBC....even when you spend it with them they are making nothing.....yes..they are not losing 300.00 because there is a profit margin built into every thing they sell....but you are still getting something for nothing if you ONLY spend the OBC.....it's basically a loss leader but they are not making a profit on the 300.00

 

I think you misunderstand pricing strategies...

They are not just "giving you" $300 of OBC...They build it into the pricing model...

Say you pay $2000 for a cruise and get $300 OBC...You are really buying a $1700 cruise and pre-spending another $300 onboard in the form of OBC...

It's a forced spending--if that OBC is non-refundable...

When you spend that $300 onboard, say you spend it on T-shirts in the gift shop--those cost them only a couple of dollars to print...and they sell them for $22...Or you buy drinks onboard--those cost them pennies a drink and they charge $8-10...That's how they make money...

 

When they pre-sell OBC as part of the pricing structure, they are ensuring that you will spend onboard...

 

I used to hear that the cruise lines had some routes they didn't make much money on--because the passengers, notoriously, did not spend much onboard--they'd pay for the cruise only, not book shore excursions, not drink a lot, not gamble, not shop in the gift shops, not eat in the specialty restaurants...

 

The cruise model is based on the average customer doing all of the above...It's one of the reasons they can offer such low fares. You want to draw in passengers with low fares, then encourage them to...or just hope they do...spend a lot more money onboard.

The OBC plus pricing is a compromise...You edge the prices up subtley and throw in the OBC so as to make it look like a big incentive or discount...but, it's really "seed money" for onboard spending...and it is not "free"...

 

And, whatever you use that OBC on onboard IS big profit margin for the ship--so long as you don't cash it out...

[Karynanne]

OK we never to to the casino but I thought in the casino you played with chips? and then cashed them in at the end of the night? But if I am reading these boards correctly, you can go and just ask for cash? and then it is charged to your onboard account? Remember the old adage "there are no stupid questions :)"

 

Yes. You go to the Casino...hand them your Seapass card...tell them how much cash you would like (ex. $200.00 please)...they give you cash...you either take it with you out of the casino, or use it to play Blackjack, Craps, Slots, etc.

[need2bespoiled]

I think you misunderstand pricing strategies...

They are not just "giving you" $300 of OBC...They build it into the pricing model...

Say you pay $2000 for a cruise and get $300 OBC...You are really buying a $1700 cruise and pre-spending another $300 onboard in the form of OBC...

It's a forced spending--if that OBC is non-refundable...

When you spend that $300 onboard, say you spend it on T-shirts in the gift shop--those cost them only a couple of dollars to print...and they sell them for $22...Or you buy drinks onboard--those cost them pennies a drink and they charge $8-10...That's how they make money...

 

When they pre-sell OBC as part of the pricing structure, they are ensuring that you will spend onboard...

 

I used to hear that the cruise lines had some routes they didn't make much money on--because the passengers, notoriously, did not spend much onboard--they'd pay for the cruise only, not book shore excursions, not drink a lot, not gamble, not shop in the gift shops, not eat in the specialty restaurants...

 

The cruise model is based on the average customer doing all of the above...It's one of the reasons they can offer such low fares. You want to draw in passengers with low fares, then encourage them to...or just hope they do...spend a lot more money onboard.

The OBC plus pricing is a compromise...You edge the prices up subtley and throw in the OBC so as to make it look like a big incentive or discount...but, it's really "seed money" for onboard spending...and it is not "free"...

 

And, whatever you use that OBC on onboard IS big profit margin for the ship--so long as you don't cash it out...

 

The abov is ONLY true, if they raise the price by $300 and then give you $300 in OBC.

 

If the price is $2000 before an OBC offer and then you find the same price, $2000 with $300 in OBC, you ARE getting $300 in free money to spend onboard OR you could take it out in case and say you received a cruise for $1700.

 

The benefit to the cruise line is that instead of dropping the cruise price for that less desired itinerary to $1700, by giving $300 in OBC, their cost to give the $300 is MUCH less for the reasons you stated. PLUS other reasons including: there is breakage as some people don't use all their OBC and leave in on account AND some people don't keep track, as once they start spending, they go over whatever OBC they had and start spending their own money.

 

All smart marketing strategies that for a savvy consumer mean less.

 

Happy sailing,

Jenna

[Lexy08]

In the past, the OBC I received from my travel agent was refundable to the credit card I used if it went unused. However, on my last Reflection sailing, upon inquiring at Guest Services, I was told that the OBC from my travel agent that time was not refundable. Has to do with whatever code it was booked under.... So don't assume that all OBC from your travel agent is refundable.

 

Same thing happened to me in Jan. on Legend of the Seas. I was on B2B and the first OBC was non-refundable and the 2nd one (same amounts) was refundable. I was careful on the first cruise to not spend the TA's OBC and here I lost it all!!! First time this has happened to me. They told me that it depended on how it was coded. Why would they be different - maybe because the first cruise was quite a bit less than the 2nd one.

[rumpelstiltskin]

We were in the same situation on a recent cruise on another cruise line.

 

Had $600 OBC for a 7 day cruise.

 

The last couple days, we still had a $100 to go, so we used it in the specialty restaurants.

 

That is my recommendation...the specialty restaurants to use up any leftover OBC.

 

enjoy.

[MicCanberra]

Same thing happened to me in Jan. on Legend of the Seas. I was on B2B and the first OBC was non-refundable and the 2nd one (same amounts) was refundable. I was careful on the first cruise to not spend the TA's OBC and here I lost it all!!! First time this has happened to me. They told me that it depended on how it was coded. Why would they be different - maybe because the first cruise was quite a bit less than the 2nd one.

 

Spend your OBC, by booking in for specialty restaurants or getting a memento from the jewellery shop, you can easily use up large amounts, other wise cash out.:D

Edited March 1, 2015 by MicCanberra

[MindyJohn]

When we were on Oasis OTS TA last fall, we had $950 of nonrefundable OBC to use up. In our experience we haven't had to monitor which OBC is being used. The ship has always used the nonref OBC first. Anyway, fortunately for us, they offered a special during the crossing when you could withdraw up to $300 pp cash from the casino against your OBC. Was very happy with that.

[poeticlicensed]

Yes....

 

I think you have nothein to worry about, I have found wives are quite skilled at disposing of pesky OBC

 

Puleeze, that's a little sexist. Husbands earn, wives spend. What year is this?

[A Sixth?]

Forgive me if this has been covered, but if you purchase US$ OBC in a foreign currency:

 

A) I assume it's refundable right?

 

B) Do they pay you back in cash US$ if requested or do they credit your credit card in US$ or the amount you paid in foreign currency? :confused:

[LabGuy64]

I think YOU need to get real....everything women buy costs more than male equivalents...(when they exist) female hair care....cut and color plus tip...EASY 300.00 or more (my last haircut cost 25.00)....make up...I won't even go down THAT bottomless pit, spa treatments...not sure if you are male or female..gut feeling makes you as male.....but GO to a spa....you can spend hundreds or even thousands in there....clothes....a CHEAP pair of boots can cost a hundred bucks....So don't tell me my business....women spend....hopefully you can find one worth it.

 

 

Puleeze, that's a little sexist. Husbands earn, wives spend. What year is this?

[poeticlicensed]

I think YOU need to get real....everything women buy costs more than male equivalents...(when they exist) female hair care....cut and color plus tip...EASY 300.00 or more (my last haircut cost 25.00)....make up...I won't even go down THAT bottomless pit, spa treatments...not sure if you are male or female..gut feeling makes you as male.....but GO to a spa....you can spend hundreds or even thousands in there....clothes....a CHEAP pair of boots can cost a hundred bucks....So don't tell me my business....women spend....hopefully you can find one worth it.

 

Well,you would be wrong about that. I am a woman, married for many many years with grown children. I just don't buy into those 1950's stereotypes about men who bring home the bacon while the little woman waits at home with her hand out and runs to the store to spend hubby's hard earned money. Some us us "girls" actually have real careers and make as much as or more than our husbands. As far as spending money, I see men spending as much as women, albeit maybe on different things.

[Project_gal]

Forgive me if this has been covered, but if you purchase US$ OBC in a foreign currency:

 

A) I assume it's refundable right?

 

B) Do they pay you back in cash US$ if requested or do they credit your credit card in US$ or the amount you paid in foreign currency? :confused:

 

A) Yes

 

B) They will pay it back to the card you registered at check-in unless to specifically request that it is refunded to you in cash. You try to ensure that they do pay you in cash unless you really do not have any need for US$ or you register a US$ credit card at check-in. The currency credited back in should follow the same rule as you select on the card should you owe Celebrity at the end of the cruise but you will always lose out if currency is converted whether that conversion is made by Celebrity or your credit card company.

Edited March 5, 2015 by Project_gal

[MicCanberra]

Well,you would be wrong about that. I am a woman, married for many many years with grown children. I just don't buy into those 1950's stereotypes about men who bring home the bacon while the little woman waits at home with her hand out and runs to the store to spend hubby's hard earned money. Some us us "girls" actually have real careers and make as much as or more than our husbands. As far as spending money, I see men spending as much as women, albeit maybe on different things.

 

Agreed, spending is not gender specific, neither is earning.:D

Edited March 5, 2015 by MicCanberra

[MarkusToe]

my be the request on cc is confusing

 

I've a request for reservation on every item I've bought on board on my credid card, but all was covered by obc in the end...., so nothing was booked in the end.

[MarkusToe]

Puleeze, that's a little sexist. Husbands earn, wives spend. What year is this?

 

It's not - that's life :)

[4getmenot]

Just to confirm - no one has personally experienced a case where they withdrew OBC from the casino and the withdrawn amount was charged to their credit card after the cruise right?

 

I understand that there are rumors that X is cracking down on the use of the casino as an ATM, etc but they haven't officially implemented a policy to prevent this yet right?

[cruisestitch]

On three cruises so far in 2015 I have successfully taken money from the casino with no charges to my credit card post-cruise.

[happy cruzer]

So once you are onboard could you cancel prepaid tips and then pay them with obc?

[cle-guy]

So once you are onboard could you cancel prepaid tips and then pay them with obc?

 

From all I have read, prepaid gratuities can not be canceled and refunded, regardless of if you just pay them because you want to so you have no further charges once on board (as I typically do), or because you elected select dining that requires it.

 

There's another thread running, where another poster says that if you decide to change from select to fixed dining on board, they will refund them, but they did not EXPERIENCE this they say the HD told them it could happen.

 

All I have ever read, but that post I just referred to, says prepaid gratuities are booked and done. There are many discussions about how unfair it is since people can't use OBC to pay grats in these cases.

[MicCanberra]

Any left over OBC can go back to the Credit card or just pull it out as cash and they take the 5% commission.

[CanadianDee]

We would never pay for the package either, the convenience comes from not having to worry about "do I pick-up the bottle of water as I leave the ship, just in case" or not. Sure, I'll have a second latte, smoothie with lunch? SURE.

 

Happy sailing,

Jenna

 

Yes, this is true for us as well. We don't drink a lot, so my husband usually picks up the soda (or pop, as we're more likely to call it in Canada :) ) package and I just have the occasional alcoholic drink that piques my interest.

 

With the perk package, I'm sure I'll be more likely to try beverages I might not otherwise try.

[dbsb3233]

When we were on Oasis OTS TA last fall, we had $950 of nonrefundable OBC to use up. In our experience we haven't had to monitor which OBC is being used. The ship has always used the nonref OBC first. Anyway, fortunately for us, they offered a special during the crossing when you could withdraw up to $300 pp cash from the casino against your OBC. Was very happy with that.

This was my concern. An upcoming cruise we're doing will have both OBN and OBR for the first time (and it's not a group booking). So I want to make sure they use the OBN first so the remaining OBR goes back on our credit card after the cruise.

 

When we check the account in the room on the TV, does it actually display which OBC is being used up first (for excursions)?

 

Despite the many people saying "aw, just spend it!", I'm more practical than that. I figure every $300 I don't blow on things that aren't a priority for me adds up cruise after cruise and allows me to take an extra cruise down the road. :D I'd much rather take an extra cruise than blow it on over-priced treats onboard.

Edited March 23, 2015 by dbsb3233

[bogofman]

recently returned from a royal Caribbean cruise which we had On Board credit, we understood spend it or lose it, however at the end of the crusie we has just over $1 left so let it go,

 

returning home we found this had been credited to our credit card.

 

I wonder if there was $*** left to spend, would this also be credited?

I assume no one has taken the chance :-)

[dbsb3233]

recently returned from a royal Caribbean cruise which we had On Board credit, we understood spend it or lose it, however at the end of the crusie we has just over $1 left so let it go,

 

returning home we found this had been credited to our credit card.

 

I wonder if there was $*** left to spend, would this also be credited?

I assume no one has taken the chance :-)

The amount shouldn't matter. Some OBC is refundable, some is not. You can usually see the different on your account statement (on the cabin TV, or printed at a kiosk or from the front desk). It will typically show a code of "OBR" or "OBCR" for Refundable, or "OBN" or "OBCN" for Non-refundable. Usually by the 2nd or 3rd day of the cruise it should be there on your statement so you know which it is, and know what you can do with it. Any unused OBR will automatically go back on your credit card (assuming you checked in with a credit card) within a few days after the cruise.

 

My understanding is that OBC issued by the cruiseline is usually non-refundable, while OBC issued by a TA is usually refundable.

 

We had $230 refunded from our Asia cruise on Millenium last year. Showed up on my credit card account the same day the cruise ended.

Edited March 23, 2015 by dbsb3233