Accurate Canadian Intel

[rhblake]

NCL needs the $300 to operate? You mean that loss of $300 will shut the doors of NCL if it is not recouped elsewhere??

 

But it only takes 3 people per ship (15 ships) per week to turn that $300 into $13,500 per week or $702,000 per year.

[NLH Arizona]

To be clear, I purchased my OBC in October! That means NCL had my money for 4 months. In that 4 months they didn't seem bothered by the fact that I was buying those credits at an exchange rate that was preferable to the banks and a rate to which NCL agreed to and posted. Four months later, the exchange rate has tanked and now it's a problem. What about the interest my money could have made in the 4 months that NCL had it in their coffers?

 

Just wondering, how much OBC did you purchase? I know here in the United States the interest rates are horrible, what interest would you have gained if you left your money in the bank for 4 months?

Edited February 6, 2016 by NLH Arizona

[xcell]

And you also didn't have to purchase the OBC so early - you couldhave just done it a few weeks before...the rate is locked in...

[Maverick!]

How do you know that Montreal Canadiens hockey players have been subsidized?

 

:D too funny.

Someone should be subsidizing them cause they are in DIRE need of being subsidized right now - playing horribly!

[Maverick!]

Here goes:

NCL has to pay the bank $0.77 per Canadian dollar. NCL charges $0.75.

NCL loses $0.02 per dollar.

Abuser customer buys $15,000 of OBC, and NCL loses $300.

NCL needs the $300 to operate.

NCL raises everybody else's fare, to compensate.

There you go.

Stephen

 

NCL's got foreign currency swaps up the ying yang. $CAD is not the only FX they deal with. Their treasury dept has hedging strategies going that mitigates this exact risk. If you think NCL's raising fares to compensate the microeconomics going on at the OBC level, I believe you are perhaps thinking too inside the box. NCL's raising fares and streamlining costs to pad the bottom line and create shareholder value.

Edited February 6, 2016 by Maverick!

[xcell]

And the assumption is that ALL canadians are cashing it out...versus using it for other things... last minute meal plans, shore excursion, pictures, casino, fcc....

[NLH Arizona]

And the assumption is that ALL canadians are cashing it out...versus using it for other things... last minute meal plans, shore excursion, pictures, casino, fcc....

Actually, I think most of us think it is a very small amount who have ruined it for everyone, including US citizens, but being that it was stopped so quickly, I'm now guessing it was probably more than what I would have thought. Most are upset, but say they understand but are still mad at how the policy came down. While others seem unduly upset sighting interest they lost (is your interest rate that high), etc., those are the ones my spidey sense tells me were taking advantage and are now upset because they can't.

 

There had to be enough of this for NCL to finally find it. I'm guessing that either Mr. Del Rio or Mr. Stuart had reports run on why they were refunding so much OBC or and when the accountants dug into it, they found out what was happening. They probably came up with the $1,000, because that might have been the average spend either by all or by those that they were giving the refunds to or perhaps because of all the perks they are giving out (UBP, SDP, OBC, etc.). Wondering, do Canadian passengers get these same perks when they book? I do think their new policy needs some tweaking, because someone on a 14 day cruise will possibly spend more than someone on a 7 day cruise.

 

On the plus side, you can still purchase items upfront at the great exchange rate, which should lessen the blow to many, especially the poster who wanted to surprise his wife with an excursion and was going to use his OBC to purchase the NCL excursion...he can purchase it up front and still get it at the great exchange rate.

Edited February 6, 2016 by NLH Arizona

[Lady Arwen]

Wow, what really gets me with this is the amount of Americans slamming Canadians (by the way, iOS devices will not auto-correct it to Canadiens if you in fact spell it correctly) and Canada in general as whiners. A number of people, mostly Canadians have tried to explain that it's HOW NCL went about it, the lack of communication and the lack of awareness from their front and second line workers that's upsetting.

 

I even saw some Americans saying stuff like "if you're stupid enough to live in Canada...".

 

It's all pretty sad really.

 

A proud Canadian here!

 

Yes, it's pretty insulting, but I just consider the source. Most Americans are decent, polite people and some, well, not so much. Just remember that Canadians are loved and respected all over the word and some Americans, well, not so much.

[fshagan]

Yes, it's pretty insulting, but I just consider the source. Most Americans are decent, polite people and some, well, not so much. Just remember that Canadians are loved and respected all over the word and some Americans, well, not so much.

 

The "favorable exchange rate" is just a type of discount that encourages people to buy cruises, which in turn fills the boats, which in turn makes the line profitable, which in turn makes it possible for me to cruise with them later in 2016. That's the way it works in free markets; the seller can offer inducements to purchase to different groups (except for some prohibited offers that discriminate based on very specific classes).

 

I hope no one who uses an AARP discount ever makes that statement. The Canadians, Kiwis, and Australians are all subsidizing their discount, and it is only available to Americans. I hope no one who ever books a late cruise because its cheaper, or uses points from their shore entertainment company, or buys on a sale at a special promo price uses that statement either.

 

A few people scamming NCL by intentionally buying OBC with the intention of cashing in ruined it for us all. It doesn't even matter if they were Canadian.

[xcell]

Yes and I guess all those CDN who bought US houses when the market crashed and flipping them now for a 40% bump as well...vultures...scavengers....

[Maverick!]

The "favorable exchange rate" is just a type of discount that encourages people to buy cruises, which in turn fills the boats, which in turn makes the line profitable, which in turn makes it possible for me to cruise with them later in 2016. That's the way it works in free markets; the seller can offer inducements to purchase to different groups (except for some prohibited offers that discriminate based on very specific classes).

 

I hope no one who uses an AARP discount ever makes that statement. The Canadians, Kiwis, and Australians are all subsidizing their discount, and it is only available to Americans. I hope no one who ever books a late cruise because its cheaper, or uses points from their shore entertainment company, or buys on a sale at a special promo price uses that statement either.

 

A few people scamming NCL by intentionally buying OBC with the intention of cashing in ruined it for us all. It doesn't even matter if they were Canadian.

 

Not sure I would call it "scamming"....The opportunity was there available to those who booked in CDN. It was completely legal and above board. Why the hate to those who executed a smart transaction when it's NCL who closed the door ?

[NLH Arizona]

Yes and I guess all those CDN who bought US houses when the market crashed and flipping them now for a 40% bump as well...vultures...scavengers....

Wow! Just Wow!

[triptolemus]

Yes and I guess all those CDN who bought US houses when the market crashed and flipping them now for a 40% bump as well...vultures...scavengers....

 

Wow is right. The ramblings of a full on nutter.

 

By the way... I know the OP means well, but as we all know, NCL phone reps -- this include PCCs -- are notoriously wrong. Simple as that. I also know someone else tried to post a screen shot, but they failed. The new policy is quite clear.

 

 

The booking engine might allow purchases of OBC to exceed the limitation, but ultimately, it will be reversed.

Edited February 6, 2016 by triptolemus

[cjcruises]

Wow is right. The ramblings of a full on nutter.

 

By the way... I know the OP means well, but as we all know, NCL phone reps -- this include PCCs -- are notoriously wrong. Simple as that. I also know someone else tried to post a screen shot, but they failed. The new policy is quite clear.

 

 

The booking engine might allow purchases of OBC to exceed the limitation, but ultimately, it will be reversed.

 

That notation of a limit was not showing on MyNCL 48 hrs ago unless one was looking at OBC certificates of $500 or $1000. It wasn't showing for any amount less than a week ago. The policy supposedly changed January 21st. Also, I didn't purchase my OBC online so I wouldn't have seen notations as I called to make the purchase. I had been regularly checking my NCL to see if our our cases were showing there (which is how we first saw that notation early this week, which led us to start demanding answers from people up higher in the NCL chain).

[c-ditty]

And you also didn't have to purchase the OBC so early - you couldhave just done it a few weeks before...the rate is locked in...

 

Afraid not. The rate for me was originally 11%, then went to 26% and then 40% and finally 46%, all with no warning. That is not what I consider locked in. And rather than risk the rate rising (since NCL doesn't bother communicating with customers) I bought what I needed.

[c-ditty]

Just wondering, how much OBC did you purchase? I know here in the United States the interest rates are horrible, what interest would you have gained if you left your money in the bank for 4 months?

 

The amount is not important. And I don't deal with banks. The return I could have seen on that money is better in my pocket than NCL.

[NLH Arizona]

The amount is not important. And I don't deal with banks. The return I could have seen on that money is better in my pocket than NCL.

Thanks, I think you answered my question.

[sjbdtz]

I'm taken aback by comments on both sides.

 

So lots of been taken aback, over OBC being given aback...

:cool:

 

 

 

NCL's got foreign currency swaps up the ying yang. $CAD is not the only FX they deal with. Their treasury dept has hedging strategies going that mitigates this exact risk. If you think NCL's raising fares to compensate the microeconomics going on at the OBC level, I believe you are perhaps thinking too inside the box. NCL's raising fares and streamlining costs to pad the bottom line and create shareholder value.

 

 

I'm glad they're doing that. As a shareholder.

 

 

.

[j-9]

Afraid not. The rate for me was originally 11%, then went to 26% and then 40% and finally 46%, all with no warning. That is not what I consider locked in. And rather than risk the rate rising (since NCL doesn't bother communicating with customers) I bought what I needed.

 

 

This is strange. My cruise in Sept 2016 was booked in Dec 2014. My exchange rate was and is 1.0753. I can purchase $100 OBC for $107.53 CAD, purchase shore excursions and pre-pay my DSC at this rate.

I will purchase OBC to cover my on-board expenses, and as it is a 14 day cruise, I'm really glad we have UBP and UDP, or $1000 might not be enough. I can understand them limiting their exposure though. I appreciate this locked in exchange rate as it lets me take this cruise at the amount I originally budgeted for. I would not expect or ask NCL to fund the crummy exchange rate for my off ship activities and purchases as well so will not cash any out.

 

 

 

Sent from my iPad using Forums mobile app

[Canagirl]

I've read a lot of threads here about the changes to Canadian passengers in terms of exchange rates, OBC restrictions and a 10% discount on fares in lieu of the favourable exchange rate previously offered to Canadians.

 

I spoke to my PCC yesterday to check in on these changes, because I wanted to make some decisions about future cruises. My PCC has told me that none of the above is correct.

• NCL hasn't cancelled the special exchange rate. It sets it every quarter as their regular policy, but adjust it if the market is volatile. The current rate is .75.

• There is no restriction of a maximum of $1000 OBC for Canadian passengers.

• There is no 10% fee in place of the advantageous exchange rate.

 

My guy was prepared to sell me a 2017 cruise with a set special Canadian exchange rate and also arranged more than $1000 for an OBC for my already booked 2016 cruise.

 

So, the above is what I have personally experienced as a Canadian NCL customer. if you have any different information - what is it and where are you getting it from?

 

 

Hopefully you will get a new PCC as pretty much everything yours told you is wrong.

 

I booked in October - right after everything above (that your PCC said doesn't exist) was put in place - except for the $1,000 OBC limit - that came later. Hope they explained that at that time, the .75 exchange rate actually equalled being charged 1.33 CDN (NCL couldn't explain that to me either, others on cruisecritic figured it out).

 

As for where the info came from, NCL sent a memo to all their PCCs (stating the exact things your PCC said aren't the case - e.g. the 10% discount). See a copy of the memo in this thread:

 

http://boards.cruisecritic.com/showpost.php?p=48221629&postcount=1

 

Now - the .75/1.33 rate is gone. Your PCC is right that they update the rate and they have - they are now charging 1.46 to Canadians (you'll do better buying in U.S.$) and the 10% discount is now much lower (about 5%) on the base fare ONLY.

 

You can confirm any of this by doing a mock booking on NCL.com in US$ and then doing a mock booking on a CDN site that charges in CDN$ - you'll see a small discount (about 5% down from the 10% they indicated in October) on the conversion of the base fare, but the taxes are converted at 1.46% (as will anything else you buy in advance - DSC, gratuities on your promos, etc.). The way to tell NCL's current rate is to do a mock booking, as I indicated above, and see what the taxes convert at. Your PCC got everything wrong. Perhaps they'll adjust the 1.46 rate as that is higher than the bank/credit card conversion rate.

[Freckles_51]

Hopefully you will get a new PCC as pretty much everything yours told you is wrong.

 

I booked in October - right after everything above (that your PCC said doesn't exist) was put in place - except for the $1,000 OBC limit - that came later. Hope they explained that at that time, the .75 exchange rate actually equalled being charged 1.33 CDN (NCL couldn't explain that to me either, others on cruisecritic figured it out).

 

As for where the info came from, NCL sent a memo to all their PCCs (stating the exact things your PCC said aren't the case - e.g. the 10% discount). See a copy of the memo in this thread:

 

http://boards.cruisecritic.com/showpost.php?p=48221629&postcount=1

 

Now - the .75/1.33 rate is gone. Your PCC is right that they update the rate and they have - they are now charging 1.46 to Canadians (you'll do better buying in U.S.$) and the 10% discount is now much lower (about 5%) on the base fare ONLY.

 

You can confirm any of this by doing a mock booking on NCL.com in US$ and then doing a mock booking on a CDN site that charges in CDN$ - you'll see a small discount (about 5% down from the 10% they indicated in October) on the conversion of the base fare, but the taxes are converted at 1.46% (as will anything else you buy in advance - DSC, gratuities on your promos, etc.). The way to tell NCL's current rate is to do a mock booking, as I indicated above, and see what the taxes convert at. Your PCC got everything wrong. Perhaps they'll adjust the 1.46 rate as that is higher than the bank/credit card conversion rate.

 

The above may have been the case for you, but not for me. I booked just a week ago, first I did a mock booking on NCL web site, making a note of the itemized pricing (fare, taxes and fees, 18% service charge on the UBP), then booked through my TA who sent me the confirmation from NCL. Each item works out to 1.33 exchange rate, and I can purchase OBC etc for 1.33.

[Canagirl]

The above may have been the case for you, but not for me. I booked just a week ago, first I did a mock booking on NCL web site, making a note of the itemized pricing (fare, taxes and fees, 18% service charge on the UBP), then booked through my TA who sent me the confirmation from NCL. Each item works out to 1.33 exchange rate, and I can purchase OBC etc for 1.33.

 

That is completely possible. I'm not sure of the date of the rate change (1.33 is the rate put in place in October - based on some recent posts, it has been changed to 1.46 sometime within the last week or so - this can be confirmed by doing a mock booking).

 

However, a number of TA's will have group bookings under a lower rate. If I was booking now, I'd search online for one those. Either, you were fortunate to book before the change (based on posts it looked like it MAY have taken place around Feb. 3 roughly) or your TA had a group booking.

 

But, the 1.46 rate today, without being able to find a group booking is easily confirmed.

 

I booked in October just days after they raised their rate to 1.33. That was high at the time compared to what everyone else had, but today it is a good rate.

 

Edit to add: if you are saying it was also 1.33 on the base fare (no discount) that indicates some sort of change. They were giving 10% off the fare in October and for people booking now at 1.46, it looks like they have lowered the discount to about 5% based on posts and based on mock bookings. I was going to see what I got for your cruise, but can't find one in March leaving from San Francisco. It is currently coming up on the NCL site when I search.

Edited February 8, 2016 by Canagirl

[abe3]

I think this whole issue is silly. People just want to work the system to profit of a favorable rate.

 

I am completely in favor of restricting OBC in other country currencies.

Edited February 8, 2016 by abe3

[Canagirl]

I think this whole issue is silly. People just want to work the system to profit of a favorable rate.

 

I am completely in favor of restricting OBC in other country currencies.

 

Who wouldn't want a favourable rate? This is an entirely different issue than the OBC issue discussed in other threads.

 

Would most people want to look at the posted price and pay a 46% premium on top of that? Who wouldn't want a good rate?

 

The CDN$ is what it is right now, but for me I wouldn't book a cruise right now. I prefer cruising, but can go to an all exclusive for far far less flight included despite the low dollar. The reason better rates were being offered was to encourage Canadians to cruise. Cruise fares are fairly high as it is, and there is no value in the pricing at the moment for me. I'll vacation where there is better value.

[Freckles_51]

I think this whole issue is silly. People just want to work the system to profit of a favorable rate.

 

I am completely in favor of restricting OBC in other country currencies.

 

Restricting OBC is not the issue. The issue is HOW NCL has implemented it.