Is Princess currency exchange rate really this bad??

[time4me2cruiseagain]

We will be cruising on the Sea Princess out of Australia in January. The on board currency is in Australian dollars. We have a $75 US dollar OBC for this cruise. On my cruise personalizer this credit shows up as $82.50 Australian dollars. The current exchange rate should be closer to $100 Australian dollars.

Does anyone know if Princess will update the exchange rate when it gets closer to my sailing date? It is understandable for Princess to want to make a little money on an exchange rate but this seems a little excessive.

Thanks for your help.

[Red Hat Cruise Cat]

The cruise ship's exchange rate is one of the worst. There's nothing you can do about the ship's OBC conversion rate.

 

But if you need local currency in the ports, for a better rate, use a Bank's ATM.

[time4me2cruiseagain]

Thank you Red Hat. Not what I wanted to hear but at least I know what to expect now.

[Colo Cruiser]

They are not in the business to give you a good deal on the exchange rate.

Its that way with all currency exchange with Princess. ;)

Edited August 10, 2015 by Colo Cruiser

[CruiserBruce]

Yes, the pure exchange rate would be around 100 AUD. But the way to be closest to the pure rate is to use an ATM.

 

Curious what you think an "acceptable" profit is, and what it is based on. I know US banks would, if you were getting cash to go overseas, charge up to 12% markup.

[caribill]

Be sure not to allow your onboard account to be closed out with Princess converting the AUD $ to US $.

 

Make sure they bill your credit card company in AUD $.

[WeeCountyMan]

I believe a few US banks offer debit card accounts which do not incur fees at ATMs abroad - except any commission that the machine's bank may charge.

 

Don't know about the Land of Auz - but I've never come across an ATM in Europe that charges a fee over and above the card issuers charges - only in the USA.

 

There are also decent prepaid card deals, but again I'm not up on the American scene.

 

One cardinal rule when taking cash from an ATM in a foreign country - NEVER choose to settle in the native currency of the local bank - ALWAYS select to allow your own bank to do the FX at their prevailing rate.

 

The same applies when buying goods and services.

 

These may be of interest.

 

http://www.nomadicmatt.com/travel-blogs/avoid-paying-bank-fees-traveling/

 

http://www.nerdwallet.com/blog/banking/debit-card-foreign-transaction-international-atm-fees/

 

http://thepointsguy.com/2014/02/the-top-11-checking-accounts-for-avoiding-foreign-atm-fees/

Edited August 10, 2015 by WeeCountyMan
additional information

[icat2000]

You should try being an Australian and paying in USD dollars and then talk about bad exchange rates. In 2013 1 AUD was USD $1.13 now it hovers around $0.73. Ouchie.

 

Get some Aussie cash in the USA if you think you can get a better rate or let them bill your credit card as others suggested.

Edited August 10, 2015 by icat2000

[bconley351]

Our $100USD OBC turned into $110AUD. If you check most currency converters it would work out to about $134AUD. Oh well.

[icat2000]

Our $100USD OBC turned into $110AUD. If you check most currency converters it would work out to about $134AUD. Oh well.

 

Thats because Princess fixed the rates when the Australian dollar was a lot higher.

[time4me2cruiseagain]

Thank you all for the great information. I for sure wasn't planning on using the ship to exchange other monies. I am glad obc is just an extra perk and no matter the exchange rate it is better than nothing!

[AE_Collector]

The Canadian $ has basically done the same as the Australian $ against the US$. As far as prices of cruise costs Princess sets the exchange rate for a year at a time and when they adjust the rates the announce it about 6 months before the new exchange rate takes effect.

 

Additionally, I suspect that they are trying to alleviate some of the drastic price shock for Canadians and Australians by minimizing the exchange rate to some extent. Canadians and Australians represent a large block of Princesses customers.

 

I don't follow the Australian Princess exchange rate but do closely follow Princesses Canadian exchange rate. We are just running out of cruises priced at only $1.10 Canadian to $1 US over the next month or so and moving to $1.20 to $1 US.

 

While most of these favourable exchange rates are there to help the Australian and Canadian cruisers with the adverse exchange rates that came very quickly, I suspect that the OP's problem with a bad exchange rate from $US to $AUD on his Onboard Credit is what I would call collateral damage. Not to minimize it for the OP, it is just what I suspect has led to the situation.

 

On a side note, cruise pricing is always "all over the board" but take that and then add a multiplier to the final cost of 1.2, 1.3 (or who knows where it is going) and all I can say is that this is killing us. We almost booked a Med cruise for September on Emerald Princess. Even though there was no US factor in this cruise and our (Canadian) dollar has remained quite steady in value against the Euro, Princess pricing is determined in the US$ so not cruising anywhere near the US doesn't do anything for us, the price is heading up irregardless.

 

Terry

[Steelers36]

AE -- HI. Correct observation. Princess is all based on USD, so no advantage for us Canadians in EUR.

 

But, I don't think Princess is being helpful at all on the rate. It's just that the CAD sunk ever more since they set the rate. I remember several years ago when the CAD was quickly climbing out of its funk and Princess was stuck on a old 25% exchange rate (or was it 30%) and CAD was closer to 10% (certainly under 15%) when we were booking. Naturally, I went with USD at the time. Back then I was upset they didn't re-visit the rate and change it more often.

 

I figure what they are losing now at 20% rate they will look to get back when CAD rises again. Of course, those of us that can, will seek to book in the currency that suits us or works in our favor.

Edited August 11, 2015 by steelers36

[AE_Collector]

Absolutely correct. The time will come where we will be better off booking in US$. We've been through it before as well. We still have 3 US$ Future Cruise Deposits each that we have been maintaining waiting for the day that we will be booking in US$ again. The long delay in catching up with the exchange rate (going up or down) does give us flexibility so in a round about way that helps us by giving us the choice. Better rates most of the time while the CDN$ declines and then "proper rates" (rather than worse rates) as our dollar climbs.

 

Of course "Par" is much much better than having to play these games!

 

Terry

[martin jenkins]

i just bought $1,000 us as obc for $1,100 aus for my upcoming cruise to the caribbean for us i think the rate is locked in at the moment at about 0.91

[AE_Collector]

Emerald Princess cruises are set at $1.10 exchange rate to the Canadian dollar right through until she returns to Fort Lauderdale from te Mediterannean on October 17. Then the rate changes to $1.20.

 

Terry

Edited August 11, 2015 by AE_Collector

[Steelers36]

We still have 3 US$ Future Cruise Deposits each that we have been maintaining waiting for the day that we will be booking in US$ again.

Of course "Par" is much much better than having to play these games!

 

Terry

 

Remember those FCD's might expire on you and you can phone Princess and have them converted to CAD - it might even be advantageous to you to do so.

[AE_Collector]

Remember those FCD's might expire on you and you can phone Princess and have them converted to CAD - it might even be advantageous to you to do so.

 

Just renewed one of them in US$ Again. I will wait until the CdN$ is $1.50 to the US$ to cash out! OUCH.

 

Terry