Overly-strong US dollar eliminating many cruisers

[Karennella]

The exchange rate does not necessarily reflect the strength of an economy. Our Aussie dollar was low in the middle of the financial crisis and we have not had a recession for 25 years.

What is hard for individuals is that the rates change so quickly. What looked like good value six months ago is not any longer but if we cancel we lose deposit and non-refundable flights. So I guess we will be more careful with on-board spending.

[Blue Mudshark]

Would you feel better if we all rejoiced at having to pay a 42% mark up on our cruises?

I'd feel better if people would understand the simple difference between an exchange rate and a markup.

[caladezi]

 

Would you feel better if we all rejoiced at having to pay a 42% mark up on our cruises?

 

You are not paying a 42% markup on anything. The fact is that you are buying a product (your cruise) in the US at US prices. If you were paying with Euros, it would be fewer Euros but not less in cost. If you paid with Tai Bahts it would be way more bahts but the same cost. You just can not compare your Canadian dollar to the USD because it is not worth as much. Therefore, you are not paying a markup but rather just exchanging a less valuable currency for a more valuable one. The only way that everything would be equal would be if we all paid for everything with gold bullion and even then some will argue.

[sapper1]

I'd feel better if people would understand the simple difference between an exchange rate and a markup.

 

I fully understand the difference. My choice of words was poor.

[sapper1]

You are not paying a 42% markup on anything. The fact is that you are buying a product (your cruise) in the US at US prices. If you were paying with Euros, it would be fewer Euros but not less in cost. If you paid with Tai Bahts it would be way more bahts but the same cost. You just can not compare your Canadian dollar to the USD because it is not worth as much. Therefore, you are not paying a markup but rather just exchanging a less valuable currency for a more valuable one. The only way that everything would be equal would be if we all paid for everything with gold bullion and even then some will argue.

 

I used a poor choice of words. I have spent most of my life living close to the US border. For many years I lived a few hundred yards from the border. I have been dealing in both currencies all that time and fully understand exchange rates. Thanks for the refresher course though.

 

The end result is that it seems like a mark up on our cruise. That is what I should have said and then you would not have assumed that I am unintelligent.

[kazu]

You are not paying a 42% markup on anything. The fact is that you are buying a product (your cruise) in the US at US prices. If you were paying with Euros, it would be fewer Euros but not less in cost. If you paid with Tai Bahts it would be way more bahts but the same cost. You just can not compare your Canadian dollar to the USD because it is not worth as much. Therefore, you are not paying a markup but rather just exchanging a less valuable currency for a more valuable one. The only way that everything would be equal would be if we all paid for everything with gold bullion and even then some will argue.

 

When the shoe is on the other foot we will see what you say if and when it happens. I hope we will be more sympathetic and less patronizing.

 

If you want to get caught up on semantics, go ahead and do it. I am fully aware of exchange rates, have worked in the financial industry for more years than I care to count.

 

The bottom line is it is costing that much more for a Canadian to cruise and the bottom line, as this is what this THREAD IS ABOUT is that it is going to affect Canadian's decisions to cruise and, in fact, to travel to the U.S.

 

that's what the thread is about. Calling it a mark up is not really a misnomer since Canadians' pricing is marked up by that percentage rate, but since it seems to cause so many problems with our American friends who are not facing this issue then let's just call it "higher pricing due to exchange rate"

[Host Walt]

One Bermuda dollar has equaled one US dollar as long as I can remember ...

 

And in Panama, the currency is the USDollar, so there never is a fluctuating exchange rate.

 

About 15 years ago the CDN$ and A$ were very close to the US$. At one point the CDN$ was exchangable for 96 cents US.

 

However, way back in the 60's, the exchange rate was pegged (fixed) at 92.5 US cents per CDN$ 1.00. The British pound was pegged at $2.40.

 

In the 70's the rate was unpegged so it was allowed to float making arbitraging foreign currencies into a high stakes casino look-alike.

Edited December 22, 2015 by Host Walt

[CowPrincess]

I certainly hope this is rhetorical since there are many markets, commodity prices, etc that are centralized around the US dollar and none (to my knowledge, apologies if incorrect) that are based around the Canadian dollar...

 

I get the issue. Trust me, my agency has a lot of Canadian clients and many of them are VERY hesitant to travel right now but currency exchanges ebb and flow over time as you know you were near/on par not all that long ago.

 

And while I'm not sure how it works exactly, what logistics are needed and if/when it would make good financial sense but I know of a lot of Canadians that also have an account in USD. I believe most were set up when the exchanges were on par. Likely because they knew it wouldn't always be the case but if the Canadian dollar dropped they would have a lot in a currency that is "stronger" (note the quotes and let's not have anyone nitpick terminology please) and take less of a hit in a down swing

 

I think you are taking my post and comments out of context. My comments were specifically in response to another poster who said something like "sometimes in your (Cdn) favor, sometimes in our (US) favor" so I wanted that poster to show me where US citizens had ever had to pay $1.40 for a Cdn $1.00.

 

 

 

I get tired of posters who don't have any reason to care about an issue, and don't really have an informed opinion, telling others of us that our concerns are not valid. (That comment is not directed at you.) Therefore my response to the other poster (which you quoted). This thread and some of the comments remind me of the posters who, when HAL changed the wine policy, suggested that we could all just order off the Wine Menu. IMHO those kinds of cavalier comments are far too much like "let them eat cake".

 

 

 

And for the record, we own "cheap" US $s, but they aren't going to last forever.

 

(as an aside, sorry it has taken me so long to reply, I have been stricken with a migraine)

[jtl513]

... let's just call it "higher pricing due to exchange rate"

No, let's not. The higher pricing is due to a weaker currency, and the exchange rate does not cause that, but merely reflects it.

[Stratheden]

When the shoe is on the other foot we will see what you say if and when it happens. I hope we will be more sympathetic and less patronizing.

 

If you want to get caught up on semantics, go ahead and do it. I am fully aware of exchange rates, have worked in the financial industry for more years than I care to count.

 

The bottom line is it is costing that much more for a Canadian to cruise and the bottom line, as this is what this THREAD IS ABOUT is that it is going to affect Canadian's decisions to cruise and, in fact, to travel to the U.S.

 

that's what the thread is about. Calling it a mark up is not really a misnomer since Canadians' pricing is marked up by that percentage rate, but since it seems to cause so many problems with our American friends who are not facing this issue then let's just call it "higher pricing due to exchange rate"

 

Of course you are correct Kazu. Some people are playing word games.

 

Currently it is costing Canadians and Australians et al a lot more to travel on US Currency based ships and to travel in the US than it did a year or so ago in OUR OWN CURRENCY.

 

Therefore we will pick and choose where we will spend our AU$. This is what the Title of the thread is all about.

 

I have no idea if the price of a HAL cruise on the HAL website is more expensive in AU$ or not as I can never see the price in US$ only AU$ and we book the cruise that we can afford. What does make us stop and think is the Onboard account. Drinks will be more expensive, excursions more expensive, HSC more expensive etc.

[kazu]

No, let's not. The higher pricing is due to a weaker currency, and the exchange rate does not cause that, but merely reflects it.

 

seriously???? When you buy U.S., you are subject to the exchange rate - pure and simple. What causes it may be a stronger currency or a weaker one, but it is the exchange rate where you pay the price.

 

All this nit picking rather than discuss the issue which was the purpose of this thread. <sigh>

[SilvertoGold]

When the shoe is on the other foot we will see what you say if and when it happens. I hope we will be more sympathetic and less patronizing.

 

If you want to get caught up on semantics, go ahead and do it. I am fully aware of exchange rates, have worked in the financial industry for more years than I care to count.

 

The bottom line is it is costing that much more for a Canadian to cruise and the bottom line, as this is what this THREAD IS ABOUT is that it is going to affect Canadian's decisions to cruise and, in fact, to travel to the U.S.

 

that's what the thread is about. Calling it a mark up is not really a misnomer since Canadians' pricing is marked up by that percentage rate, but since it seems to cause so many problems with our American friends who are not facing this issue then let's just call it "higher pricing due to exchange rate"

 

Excellent. All the right points made. Thanks for this post!

[poutanen]

Let's just hope that demand for oil keeps growing, and production finally slows to match demand.

 

This time last year the USD was worth $1.15 CDN, the fall has pretty much paralleled the price of oil. If/when oil comes back, our dollar will come back.

 

At the moment however, I'm leaving my foreign investments in USD! :D

[CowPrincess]

Of course you are correct Kazu. Some people are playing word games.

 

Currently it is costing Canadians and Australians et al a lot more to travel on US Currency based ships and to travel in the US than it did a year or so ago in OUR OWN CURRENCY.

 

Therefore we will pick and choose where we will spend our AU$. This is what the Title of the thread is all about.

 

>SNIP<

 

Great post! Thank you!

 

For those of us who negatively affected by the exchange rate, let's try continuing to discuss it and do our best to disregard any background noise ;)

[SilvertoGold]

Great post! Thank you!

 

For those of us who negatively affected by the exchange rate, let's try continuing to discuss it and do our best to disregard any background noise ;)

 

Good idea!

 

I just took a look and the rate is 1.4179 for purchasing USD today. Hmm....

 

But, it isn't snowing here, so how good is that!?

 

Anyways, one cruise we are looking at, a TA in the spring, is selling at about a 30% exchange rate.

Edited December 22, 2015 by SilvertoGold

[shrimpboat123]

And in Panama, the currency is the USDollar, so there never is a fluctuating exchange rate.

 

About 15 years ago the CDN$ and A$ were very close to the US$. At one point the CDN$ was exchangable for 96 cents US.

 

However, way back in the 60's, the exchange rate was pegged (fixed) at 92.5 US cents per CDN$ 1.00. The British pound was pegged at $2.40.

 

In the 70's the rate was unpegged so it was allowed to float making arbitraging foreign currencies into a high stakes casino look-alike.

 

You mean these famous $$. :)

 

 

 

I wish it was only 92.5 cents. ;)

[Copper10-8]

You mean these famous $$. :)

 

 

 

I wish it was only 92.5 cents. ;)

 

Whoa; change the "f" in "Diefendollar" into a "v" and you've got Dievendollar = 'thief dollar" in Dutch. Just a tidbit of worthless trivia intel

[iancal]

We will be in Cambodia in March.

 

We have been told that US currency is what is primarily used by the locals. Not great, but we have a USD account and we will use a lot less there than we would on a Caribbean cruise.

Edited December 22, 2015 by iancal

[Blue Mudshark]

I ordered a pizza for eight bucks. I expected it to be cut into eight slices. But he only cut it into six. I was ripped off. I paid eight bucks for eight slices, and I only got six slices! I want two bucks back. He started in with some stupid arithmetic about me getting eight bucks worth of pizza for eight bucks, but I don't want to hear that kind of nit-picking.

 

I don't care how they divide up a pizza on his side of the border. I paid for eight slices, and I got a two buck markup. What a ripoff. I was robbed, I know I was robbed, and nit-picking numbers can't convince me otherwise.

[Stratheden]

I ordered a pizza for eight bucks. I expected it to be cut into eight slices. But he only cut it into six. I was ripped off. I paid eight bucks for eight slices, and I only got six slices! I want two bucks back. He started in with some stupid arithmetic about me getting eight bucks worth of pizza for eight bucks, but I don't want to hear that kind of nit-picking.

 

I don't care how they divide up a pizza on his side of the border. I paid for eight slices, and I got a two buck markup. What a ripoff. I was robbed, I know I was robbed, and nit-picking numbers can't convince me otherwise.

 

I can buy a pizza in Australia for $AU8. I can come US and order a pizza for $US8. When I get my Visa card statement, that pizza in US cost me $AU11.05. That is why some people may consider not travelling to US or on US ships. It doesn't matter a hoot how many slices of pizza there is.

[Blue Mudshark]

I ordered a beer in Bermuda, and it cost me five US one-dollar bills. A Bermudian sat down at the bar next to me, ordered the same brand of beer, and paid with a single Bermudian five-dollar bill. He only paid one banknote, but I was charged five banknotes.

 

A four-banknote markup. The bartenders started some background noise about different denominations, but that didn't do anything about my outrage.

[OVgirl]

But CAD 2800 is not 40% more than USD 2000. It's the same value.

 

The idea that it costs 40% more depends on the (incorrect) expectation that the two currencies should be at par. And numerous people on this thread have made pretty much exactly that statement.

 

Exactly.

 

2000USD = $1824Euro = $2800 CAD

 

at today's rate. So far from being 40% more, $2800 CAD is exactly the same as $2000 USD.

 

I'd like to suggest that to determine the value of each currency against the price of the cruise, one should calculate how many hours you have to work to pay for a specific cruise. That takes into account the price of the cruise, the built in exchange rate that the cruiseline uses and the income that people in each country make. If $1000US is the same value as $1400CAD, then the Canadian income should also be 40% higher. Which I don't think it is.

[jtl513]

I ordered a beer in Bermuda, and it cost me five US one-dollar bills. A Bermudian sat down at the bar next to me, ordered the same brand of beer, and paid with a single Bermudian five-dollar bill. He only paid one banknote, but I was charged five banknotes.

 

A four-banknote markup. The bartenders started some background noise about different denominations, but that didn't do anything about my outrage.

Are you sure the exchange rate didn't cause that? ;)

[chopper65]

Every little bit counts these days

#1 Use an american online ta

#2 change money using Norms Gambit [on a financial chat group I follow]

use an online brokerage [i use RBC] find an interlisted stock that trades on US and Canadian exchange. buy on the canadian side and immediately sell on the US side and journal the shares.this saves the 2 percent the bankcharges less the 20 dollar brokerage fee.

#3 use a sears credit card if using a Canadian credit card. They recently changed to Scotia bank but kept the no exchange fee on foreign currency feature

[Blue Mudshark]

Are you sure the exchange rate didn't cause that

 

I think it's the size of the bills. Five US one dollar bills make up a total of about 80 square inches, but a Bermuda five is 9380 square millimeters. They obviously use the metric system to make Americans pay more.