My letter to NCL

[Maddysdaddy]

Note to all the whiners and complainers...NCL is not a bank. If you want to hedge your FX risk, buy USD at your bank or make your own arrangements in advance.

 

Which I would have done, had I not been advised by NCL that I could purchase OBC at the prevailing rate when I booked my cruise over a year ago.

 

NCL has now had the use of my money for well over a year, based on the perk for Canadians that the cruise, on-board expenses and OBC were being offered at a rate a few percentage points better than what I would have paid had I booked everything in USD.

 

If my OBC purchases over $1000 are now cancelled, I will now be stuck purchasing US cash at almost $1.45, rather than the $1.15-1.17 I could have purchased it at when I booked my cruise.

 

Is a limit fair to impose on a going-forward basis - absolutely, and I don't see many people disputing that (except for determining what a reasonable amount is). To not grandfather those who had already deposited their money with NCL is what I and most others object to.

 

At the end of the day, all it means is that I won't be spending any time in the casino (which I would have done with the OBC, or with money hedged at $1.15 from early 2015). That will be NCL's loss, not mine.

Edited February 5, 2016 by Maddysdaddy
Edited to add the last line.

[SuiteCruiser]

Casino, primarily. Avoidance of filling in forms at the border for transporting over $10k... getting your money from one country to the other without having to carry it.

 

Getting it at a discount, would be even better.

 

 

 

 

I am curious about those who get comped through CAS...are you able to pay the CDN exchange rate for the taxes, port fees, etc.? I haven't been able to even buy the $1k in OBC because my account has always been in USD.

 

 

 

Stephen

 

.

 

No, we can't we're not given the option.

 

I always charge my casino cash to my amex so I have points to fly for my next trip :)

[rochelle_s]

Might be a silly question but why can't you buy NCL gift cards and apply them when you board ?

 

 

Sent from my iPhone using Tapatalk

 

 

NCL gift cards can be purchased but only in in American funds. So it will cost you whatever the going rate is at time of purchase plus the exchange fees.

 

 

Rochelle

[triptastic]

When I book a year ago. The rates were only slightly favourable. Maybe 12% or so. I pre paid for 3000 OBC then. Had I have bought 3000 cash dollars at the time, my rate would have been about 1.23. By NCL changing the terms with this agreement, it is now costing me considerably more. They have also had the benefit of my money for that amount of time.

I really don't have an issue with the change of policy but the refunds should have been processing as they announce the change. They need to give their customers opportunity to access the money NCL has been holding prior to their departure and make alternate arrangements if necessary. For example, I was planning to use this 3000 to pay my DSC, possible spa visits, excursions and anything else I may want.

If I have proper notice and my money refunded before I leave, I can prepay online for most of these things. If I get onboard without a refund and only $1000 and no opportunity to pre book, NCL will loose out on all the additional things I may have bought, since I will not be paying for anything at todays exchange rate.

[NLH Arizona]

NCL gift cards can be purchased but only in in American funds. So it will cost you whatever the going rate is at time of purchase plus the exchange fees.

 

 

Rochelle

Are things you purchase, like shore excursions, from NCL prior to a cruise at the lower rate or the going rate?

[casofilia]

Are things you purchase, like shore excursions, from NCL prior to a cruise at the lower rate or the going rate?

 

At the rate set in stone when paying for the cruise itself.

 

Mike

[NLH Arizona]

At the rate set in stone when paying for the cruise itself.

 

Mike

So the lower rate? If so, why not purchase all the things you can prior to the cruise, that way you get the lower rate on many of the things, that is unless one was only interested in cashing the $'s in at the higher rate. Edited February 5, 2016 by NLH Arizona

[ColinIllinois]

NCL gift cards can be purchased but only in in American funds. So it will cost you whatever the going rate is at time of purchase plus the exchange fees.

 

 

Rochelle

 

 

Also, I believe the gift cards can only be shipped to U.S. addresses, correct?

[reveur15]

So the lower rate? If so, why not purchase all the things you can prior to the cruise, that way you get the lower rate on many of the things, that is unless one was only interested in cashing the $'s in at the higher rate.

 

I am in the same situation but prebooking a beachday excursion if it's a rainy day is not so good. I would have prefer to have more OBC and book shore excursions at the last minute.

[davesgirl51]

Why would anyone need $5k in OBC?

 

I asked the same ? in my head but then remembered a cruise where the 2 of us owed 1565 at the end of a cruise after 400 OBC. So I figured 5 ... Sure ... especially if they allow the kids in the Video Arcade unsupervised the first night ! :eek:

[DMH15]

Casino, primarily. Avoidance of filling in forms at the border for transporting over $10k... getting your money from one country to the other without having to carry it.

 

 

 

Getting it at a discount, would be even better.

 

 

 

 

 

 

 

 

 

I am curious about those who get comped through CAS...are you able to pay the CDN exchange rate for the taxes, port fees, etc.? I haven't been able to even buy the $1k in OBC because my account has always been in USD.

 

 

 

 

 

 

 

Stephen

 

 

 

.

 

 

Ah, Stephen. Thanks. I am not a high stakes gambler but like to play. And I take crisp 100s in a waist belt. Fortunately for me I usually don't have to cash in too many.... In fact on my first cruise wonmore than enough to cover the fare and all of my expenses.

 

But, you are right. A lit of people can bet high and run through $5k in a week.

[Jane Don]

Yes, people were taking advantage and it needed to stop, especially with the devaluation of the CAD. However, NCL is punishing all of its loyal Canadian customers for the misdeeds of a few.

 

Here is how I would have handled it in My Company.

 

Dear Valued Customer,

 

It has come to our attention that our Canadian Dollar OBC policy is being taken advantage of. (Or any spin that works.) For this reason, to keep offering you the same level of service you expect from My Company, we are forced to implement an immediate change that affects your upcoming cruise.

 

All OBC purchased in CAD over and above $500 will now and retroactively be non-refundable. Your Non-refundable OBC may be used for any and all service charges, all on board purchases, ship sponsored shore excursions and on board packages such as dining, photography and drinks. It may not be used in the casino.

 

You may cancel any or all of your pre-purchased OBC at any time before your cruise. We will deduct the non-refundable portion first, with the exception of gaming. Should you have OBC remaining upon disembarkation, the funds will be returned to you, via check, in CAD, at the rate you paid.

 

Here at My Company we work hard to offer you the best value for your dollar. We regret that this change is necessary, but we feel the solution is equitable for all. For answers to your questions or to make changes to your on board account, please call this guy at 1-800-someone who is aware of the policy.

 

Thank you for your patronage.

 

 

NCL wins, honest pax do not lose and no ill-will is generated. Whoever is running their "spin" department, whatever they call it there, should be fired for not protecting the company's image. The ill-will is spreading like Norovirus. Good executives keep their head of communications in the loop so that person can suggest alternatives to alienating the entire Canadian customer base when you just told investors how the plan is to grow it.

 

Another poor example of customer relations by NCL.

[rochelle_s]

Also, I believe the gift cards can only be shipped to U.S. addresses, correct?

 

This very well could be true. I inquired about purchasing one once and was told it cold only be purchased in American funds so I did not pursue it any further.

 

~~

 

Not directed at you Colin just did not want to make an additional post.

 

 

There does seem to be a bit of anger from some posters just for the fact that this 'perk' is available to Canadians. It is not something new that has just come out. Canadians have long been able to book and pay in Canadian funds with an exchange rate that 'sticks' with them throughout their booking. The only reason this has piqued the interest of so many if because of the the large and relatively quick change in our dollar recently. Couple the fact that there are those who have been able to make it work to their advantage and then some boasted about it here on the boards.

 

I think for most Canadians it is not about having a way to garner the system but more about trying to still be able to afford to cruise the way you would like.

 

And I'm sorry but I don't think that the average American can fully understand the situation. Yes they might have traveled and experienced differences in the dollar but I doubt ever to the extent that a Canadian does. Historically there have been times when our dollar was stronger or sitting close (within 10 points) of par.

 

Example:

 

A Canadian couple has a vacation budget of $5000. On the surface that sounds like a decent budget for a holiday. With good planning they should be able to have a wonderful cruise holiday, with their cruise cost, gratuities, airfare, pre cruise hotel, transportation. activities ashore and all the other little incidentals include.

 

But wait...

 

That couple's budget was in Canadian funds. Now they need to make it all happen with $3500 due to the rate of exchange.

 

That is $1500 gone the minute you place that cruise deposit.

 

It's not the easiest pill to swallow. For those jumping on their neighbours to the north, can you really blame folks for trying to find ways to maximize their vacation dollar?

 

 

Rochelle

[rochelle_s]

Jane Don

 

I am curious why you would punish the gambler? If I want to cruise with a $20,000 budget why should I not be able to do so by pre purchasing OBC? I can't just freely cross the border with those amount of funds.

 

Why not limit the amount of OBC that can be purchased at the reduced rate and charge higher for additional funds?

 

Not swishing to start an argument but curious coming from a gamblers point of view.

 

 

Rochelle

[Jane Don]

Jane Don

 

I am curious why you would punish the gambler? If I want to cruise with a $20,000 budget why should I not be able to do so by pre purchasing OBC? I can't just freely cross the border with those amount of funds.

 

Why not limit the amount of OBC that can be purchased at the reduced rate and charge higher for additional funds?

 

Not swishing to start an argument but curious coming from a gamblers point of view.

 

 

Rochelle

 

CAS can deal with each gambler on a case by case basis, as they do now. The rate of exchange would become part of the package.

[StolidCruiser]

<snip>

 

It's not the easiest pill to swallow. For those jumping on their neighbours to the north, can you really blame folks for trying to find ways to maximize their vacation dollar?

 

 

Rochelle

 

Rochelle - I don't think anyone is blaming others for trying to maximize their vacation dollar.

 

Anyone making bookings with a company in a currency other than their own home currency has the exact same struggles.

 

It's more about who bears the brunt of that differing currency, what a company is willing (and unwilling) to do to mitigate the financial situation of its foreign customers who suffer from a deflated buying power and the customer's attitude that it should be a right (not a privilege).

[sjbdtz]

CAS can deal with each gambler on a case by case basis, as they do now. The rate of exchange would become part of the package.

 

Except that they don't do that now.

 

 

.

[NLH Arizona]

Except that they don't do that now.

 

 

.

What if you were to get a line of credit, could they do that at the good exchange rate, so you wouldn't have to carry that much cash?

 

I would make it very simple, if it were my company. You can buy as much OBC as you would like. (1) any unused OBC will be credited back to your credit card at the exchange rate you originally got and (2) you could draw out funds at the casino at the exchange rate you originally received or you could get promotional chips or slot play. Seems like a win win for everyone, as no one is losing.

[Maddysdaddy]

Me (a year ago): Hi Caterer. I’m having a party and I’d like you to prepare a dinner for 200 on Date X.

 

Caterer: Sounds great. I’d love to do the job. I’d normally charge $60 per person, but if you pay me in advance, I’ll only charge you $50 a head.

 

Me: Fantastic. I’d like to take advantage of that deal. Here’s my credit card. Please go ahead and charge $10,000 on it.

 

--------------------------------

 

One week before Date X

 

--------------------------------

 

Caterer: I wanted to let you know that because the cost of food has gone up since you booked, I’m only prepared to give you 50 meals at $50 per person. Here’s your other $7500 back – thanks for letting me use it for the last 12 months. By the way, if you want the other 150 meals, it will now cost you $65 per person.

 

Me: We had a contract. I paid you for 200 meals at $50 per meal, and you agreed to that. The rise in food prices is your problem, not mine. If we had agreed to pay for 50 meals up front and then you’d charge the going rate for the other 150 at the time of the party, that’s a different story – but you contracted for a fixed price at the time we met.

[macandlucy]

There must be a sweet spot (maybe that's $1000) where it becomes worth it for NCL, or any cruiseline, to take the hit on the exchange.

 

If I have $500 in OBC, I'm going to spend about that much on board. I may have a few bucks left over, but I know from my own (limited) cruising history, that we spend more money on the cruises we have OBC in "the hopper". Most people are less free when spending cash vs. credit.

 

I am Canadian, and I think a pretty typical consumer, and I do plan to buy about $700 OBC for our next cruise. But, if NCL won't let me cash a couple hundred bucks out in the casino, then I won't buy any OBC.

 

My rate was 1.33; it might be 8-10% higher now. If it is, and they lose 10% - 3% surcharge = 7% overall, so $14 on a $200 cash out, they will get the mark ups/profit on the leftover $500 I spend onboard. If they won't allow me to cash out $200, they will likely lose more in lost revenue from the casino, bingo, spa, excursions, shops, etc, at least from me.

 

I think they know this -- the consumer behavior/ credit spend vs. cash spend is quite well documented in the literature.

 

Now that they have placed a limit on OBC pre-purchase, I sincerely hope they don't have any plans to prohibit cashing out in the casino.

 

I agree with Rochelle, and can\t see why they wouldn't allow one to buy more OBC as you like at the going rate (with $1000 of it at the preferred rate originally booked at).

[hamrag]

.....Now that they have placed a limit on OBC pre-purchase, I sincerely hope they don't have any plans to prohibit cashing out in the casino.....

 

I don't believe that will happen, as the $1000 OBC limit appears to apply only to those booked in CAD. They would need to deny all passengers access to casino cash, the vast bulk of whom would be USA citizens (apart from say European and Asian cruises), and I cannot see them doing that. More likely IMHO that they would increase the commission rate from 3% to 5%, that is what RCI and Celebrity charge!

[NLH Arizona]

I don't believe that will happen, as the $1000 OBC limit appears to apply only to those booked in CAD. They would need to deny all passengers access to casino cash, the vast bulk of whom would be USA citizens (apart from say European and Asian cruises), and I cannot see them doing that. More likely IMHO that they would increase the commission rate from 3% to 5%, that is what RCI and Celebrity charge!

I thought I read a post from a poster from California who said she/he could only purchase $1,000 OBC as well. Maybe she/he is also from Canada, but it said she/he was from California.

 

I don't think they should deny Canadian citizens from cashing out OBC at the casino, just that they should get the same exchange rate that they paid for the OBC. Making it an even trade.

 

Not sure why you would say that US citizens should not be able to get cash. The exchange rate is the same nor do we don't get a special exchange rate, since the ship uses US dollars as their currency, thus US citizens can not use the casino cash to make a profit, like those from Canada did.

 

BTW, since the cruise lines I cruise on (NCL and Celebrity) started charging the percentage to take money out and apply to my onboard account, I stop taking money out of the casino and just bring X amount of dollars to play and when that is gone, I'm done.

Edited February 5, 2016 by NLH Arizona

[cjcruises]

Me (a year ago): Hi Caterer. I’m having a party and I’d like you to prepare a dinner for 200 on Date X.

 

Caterer: Sounds great. I’d love to do the job. I’d normally charge $60 per person, but if you pay me in advance, I’ll only charge you $50 a head.

 

Me: Fantastic. I’d like to take advantage of that deal. Here’s my credit card. Please go ahead and charge $10,000 on it.

 

--------------------------------

 

One week before Date X

 

--------------------------------

 

Caterer: I wanted to let you know that because the cost of food has gone up since you booked, I’m only prepared to give you 50 meals at $50 per person. Here’s your other $7500 back – thanks for letting me use it for the last 12 months. By the way, if you want the other 150 meals, it will now cost you $65 per person.

 

Me: We had a contract. I paid you for 200 meals at $50 per meal, and you agreed to that. The rise in food prices is your problem, not mine. If we had agreed to pay for 50 meals up front and then you’d charge the going rate for the other 150 at the time of the party, that’s a different story – but you contracted for a fixed price at the time we met.

 

Please tell me that you are in contact with NCL about all this. I feel like if we all start calling and demanding action, or at the very least, expressing our displeasure, they will at least acknowledge that they handled this poorly and will (hopefully) being alerting customers and refunding monies promptly.

[casofilia]

Me (a year ago): Hi Caterer. I’m having a party and I’d like you to prepare a dinner for 200 on Date X.

Caterer: Sounds great. I’d love to do the job. I’d normally charge $60 per person, but if you pay me in advance, I’ll only charge you $50 a head.

Me: Fantastic. I’d like to take advantage of that deal. Here’s my credit card. Please go ahead and charge $10,000 on it.

--------------------------------

One week before Date X

--------------------------------

Caterer: I wanted to let you know that because the cost of food has gone up since you booked, I’m only prepared to give you 50 meals at $50 per person. Here’s your other $7500 back – thanks for letting me use it for the last 12 months. By the way, if you want the other 150 meals, it will now cost you $65 per person.

Me: We had a contract. I paid you for 200 meals at $50 per meal, and you agreed to that. The rise in food prices is your problem, not mine. If we had agreed to pay for 50 meals up front and then you’d charge the going rate for the other 150 at the time of the party, that’s a different story – but you contracted for a fixed price at the time we met.

 

From what I am reading in this thread they would get away with that with lots of Americans!!!

[Maddysdaddy]

Please tell me that you are in contact with NCL about all this. I feel like if we all start calling and demanding action, or at the very least, expressing our displeasure, they will at least acknowledge that they handled this poorly and will (hopefully) being alerting customers and refunding monies promptly.

 

Not yet. After I received the email from NCL this afternoon saying they were refunding everything over $1000, I put in a call to Visa, who are investigating, since it was NCL who initiated the refund and not me.

 

I don't want a refund. I want the OBC that I paid for a year ago. Change the policy going forward - that's fair. Don't keep my money for months and months and then say "sorry, changed my mind".