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I guess this gives them more time to start discounting. They can do it in smaller increments and maximize revenue catching the people with the higher price points first.

 

This was my first thought too. I am already seeing the other thing I thought would result of the 'no discounting' policy. Cabins are being sold on travel agent sites with additional perks to entice new bookings. I have a sailing booked and the package that is available now was not available before final or even shortly after final. This new timeline together with the policy will only cause Royal to use this tactic more often.

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I didn't see a thread for this yet.

 

Royal Caribbean is changing it's cancellation policy effective March 7th.

 

The cancellation penalties now start at 90 days out for all cruises 5 nights or longer.

 

newpolicy_zpszuxqni4p.jpg

 

Is this the new policy if booking from uk

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:eek:

Thanks for this. I would assume that final payment date is being advanced by 15 days too.

 

Which would also impact price drops, upgrades, and promo's. If they apply the same logic that they do on changing ships and/or dates, it could also apply to any booked cruise that is re-priced or moved.:eek:

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Not sure why they need to hold the commission until after the cruise.

 

My aunt used to be a travel agent and the reason for this is that if a guest cancels the commission could be adjusted to a lower amount. I would think that if travel agencies paid their agents the commission sooner it would be an accounting nightmare to constantly update commissions due. At least this is the way my aunt explained it to me

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Commissions are commonly distributed after the vacation is complete. Not after final payment.

 

Not with the mainstream cruise lines. Most pay right after final payment is made, except for MSC, which pays after the cruise. Viking River sends it 3 weeks before the cruise starts. Tour companies pay after the trip is complete.

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Ok. For my travel agency I am paid after the cruise is complete and so are many of my colleagues at other agencies. Hence "commonly" is noted and not "always". Perhaps it's just common in my world.

Same with me.

 

 

I did notice on the flyer,it mentions Next Cruises too..........

 

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Capture.jpg.9d05513be45c02e684248f4afa542313.jpg

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My aunt used to be a travel agent and the reason for this is that if a guest cancels the commission could be adjusted to a lower amount. I would think that if travel agencies paid their agents the commission sooner it would be an accounting nightmare to constantly update commissions due. At least this is the way my aunt explained it to me

 

 

 

It kind of works like this

 

You book a 12 day cruise for $2800 ( these are just ball park figures )

In that amount there is a NON commissional fare so that drops the figure down to around $1900 so now the agent is getting about $220 commission but wait I forgot if they got the C&A discount you have to subtract a percent of that around $40 so now your commission is a whopping $180.

 

Now for the sake of make this story shorter, your cruisers put down a deposit of $900.00 and Final payment is Feb 8th. they make the final payment but on Feb 23rd they need to cancel they lose $900.00 for the cancelling within the

74-57 day cancellation period .

 

That leaves Royal $720.00 and the TA $180.00

 

why would they need to reduce the commission ?

 

Again this is all ball park figures but hope you understand my point.

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Ok. For my travel agency I am paid after the cruise is complete and so are many of my colleagues at other agencies. Hence "commonly" is noted and not "always". Perhaps it's just common in my world.

 

But RCI (and other lines) are paying the commission to the agency (other than group commissions). The agency isn't passing it on to you until after the cruise. Other agencies will pay the commission, then if there's any kind of recall they will take part of it back, either debiting the agent's account or charging a credit card.

 

I love the spin, though - "it's easier" (no mention of being a touch more punitive). Sort of like Princess sending out a gushing email that passengers going to Alaska can now required to prepay their excursions (they've always been able to, but now it's required).

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does anybody know if this will effect Celebrity and Azamara ? Or just strictly RCI?

 

Azamara already charge a $25 cancellation fee from the time of booking and require full payment 121 days out. And then you lose 15% of the fare, not just your deposit, until 91 days out. 100% penalty at 30 days out. So it's a lot more onerous.

 

Celebrity follows RCI's pattern, the current one, so perhaps they will change soon, too.

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I didn't see a thread for this yet.

 

Royal Caribbean is changing it's cancellation policy effective March 7th.

 

The cancellation penalties now start at 90 days out for all cruises 5 nights or longer.

 

newpolicy_zpszuxqni4p.jpg

 

Much tougher conditions here in Australia !

 

Cancel Before * Penalty per person

 

151 days no penalty

150 - 71 days deposit paid

70 - 46 days 25% of total price (taxes and fees excluded)

45 - 31 days 50% of total price (taxes and fees excluded)

30 - 15 days 75% of total price (taxes and fees excluded)

14 days or less No refund except for taxes and fees

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I didn't see a thread for this yet.

 

Royal Caribbean is changing it's cancellation policy effective March 7th.

 

The cancellation penalties now start at 90 days out for all cruises 5 nights or longer.

 

newpolicy_zpszuxqni4p.jpg

 

This may make booking a few cruises when Royal has their reduced deposit sales on seem very attractive. You would be able to cancel up to day 56 and only lose your small deposit if you saw a price drop.

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This policy makes it a bit more attractive to those that like to wait until after final payment for price drops. You now have a longer window in which to watch for price drops and book.

 

Not if RCI keeps with it's no discounting the last 30 days policy. There's no mention of final payment being moved up, but I can see the discounting between about 80 and 30 days out.

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Not if RCI keeps with it's no discounting the last 30 days policy. There's no mention of final payment being moved up, but I can see the discounting between about 80 and 30 days out.

 

I have still seen a lot of discounting after final payment date, mostly in the form of senior and military rates that were not put out until after final payment had passed.

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Azamara already charge a $25 cancellation fee from the time of booking and require full payment 121 days out. And then you lose 15% of the fare, not just your deposit, until 91 days out. 100% penalty at 30 days out. So it's a lot more onerous.

 

Celebrity follows RCI's pattern, the current one, so perhaps they will change soon, too.

 

Thanks Jean. I didn't know that about Azamara :eek:

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I have still seen a lot of discounting after final payment date, mostly in the form of senior and military rates that were not put out until after final payment had passed.

 

Right, but if the no discounting the last 30 days policy sticks, folks won't have to look for discounting then. Two years ago, I seem to remember many of the discounts on Oasis class ships came real late like 2-3 weeks before sailing. Right now, whatever discounting there is, seems to be 30-60 days out, so I suppose that could extend to 30-80 days out, but only if RCI also moves up the date at which the TAs must return unsold cabins (which I think happens around 60 days now).

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That means the commission comes earlier too.

 

Commissions are not paid until after the cruise. Even if you have paid in full before the cruise there is still the possibility of the cruise being cancelled before the ship sets sail.

The cruise line isn't going to pay a commission ahead of time until they're assured of getting paid themselves.

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This may make booking a few cruises when Royal has their reduced deposit sales on seem very attractive. You would be able to cancel up to day 56 and only lose your small deposit if you saw a price drop.

 

If you read the fine print they actually charge you the regular deposit amount if you cancel in the "Lose your deposit" time period, so you end up spending more than your original deposit. That would not sit well with me.

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I didn't see a thread for this yet.

 

Royal Caribbean is changing it's cancellation policy effective March 7th.

 

The cancellation penalties now start at 90 days out for all cruises 5 nights or longer.

 

 

That stinks for me. My employer doesn't let us put in for our vacations until 90 days from the time we want to go.

 

At least before at the 75 day cancellation mark I still had time to cancel if I was given the time off.

 

Now I can't book until after final payment date . OUCH!

 

Bill

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