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New USD-CAD exchange rate starting after June 5, 2019

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Notification: A change in USD-CAD exchange rate 

 

Effective with new bookings made after June 5, 2019, the Canadian currency exchange rate will change to $1 USD = $1.35 CAD. The updated exchange rate will be applied to new groups opened after June 5, 2019.

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The exchange rate was 1.24 in Sep 2017 then rose steadily to 1.36 in Dec 2018. Hasn't changed much since, just bounced around in a narrow range.

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How often does Princess adjust its exchange rate? Or does it adjust it when its rate is too high or low by a certain number of points?

 

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35 minutes ago, Fouremco said:

How often does Princess adjust its exchange rate? Or does it adjust it when its rate is too high or low by a certain number of points?

 

 Not very often that I've seen - maybe once every 8 or 12 months.  

 

Nice if you are on the right side of it! 

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39 minutes ago, Fouremco said:

How often does Princess adjust its exchange rate? Or does it adjust it when its rate is too high or low by a certain number of points?

 

There isn't a pre-determined time anymore.  Many years back they seemed to look at it once a year or so.  I would say this move is long overdue (from their perspective).  I have been expecting this move considering the market for some time now.  The CAD has been well above 1.30 for sometime and not coming back, so I think Princess finally made a move.  What hurts those who like to book in CAD is that they may hesitate to make a move the other way (reduce the rate) if the CAD recovers some.  With the slow growth economy we have right now, there is not much hope of CAD increase against USD in the near term as US economy is performing very well compared to us. 

 

It doesn't matter much as you pay the exchange by booking in CAD or USD in the end.  We book in USD always as we have USD, but especially because I like the nice discount from our US agent.

 

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13 minutes ago, cruisintoddler said:

Nice if you are on the right side of it! 

I did a bit of minor speculating a few years ago when the Loonie was much healthier but just starting to slide, buying several thousand dollars of OBC for a cruise two years in the future. I cashed it out at the end of the cruise, in USD, and made a tidy little profit. Better yet, I was able to replenish my USD bank account. In spite of its current value, projections seem to indicate a continued slide, so maybe it's time to buy some Princess OBC before the June hike. :classic_cool:

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37 minutes ago, steelers36 said:

It doesn't matter much as you pay the exchange by booking in CAD or USD in the end.  We book in USD always as we have USD, but especially because I like the nice discount from our US agent.

Our TA gives us generous OBC in USD, even though we book in CAD. As @canadarocks noted above, I'm glad that we've booked our 2020 cruise prior to the hike.

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4 minutes ago, Fouremco said:

Our TA gives us generous OBC in USD, even though we book in CAD. As @canadarocks noted above, I'm glad that we've booked our 2020 cruise prior to the hike.

I hope it works out for you, but for future booked cruises, it can also go the other way - as happened several years back when CAD climbed up to par and beyond.  We have a couple of "maybe" cruises booked in 2020 and 2021.  Who knows what exchange rate will be at final payment?  (Our deposits are FCD's so doesn't make much difference on variance in exchange for smaller amounts - it's the final payment that is the big hit). 

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8 minutes ago, steelers36 said:

I hope it works out for you, but for future booked cruises, it can also go the other way - as happened several years back when CAD climbed up to par and beyond.  We have a couple of "maybe" cruises booked in 2020 and 2021.  Who knows what exchange rate will be at final payment?  (Our deposits are FCD's so doesn't make much difference on variance in exchange for smaller amounts - it's the final payment that is the big hit). 

If the Loonie does an about face and the CAD booking price drops, I can always refare, but if the Loonie continues to sink, there's nothing I can do about it. As the general consensus seems to be  the latter - TD predicts a fall to 71¢ -  I think I'm ok. As you say, it's the final payment that's the potential big hit, which is why I generally feel safer booking in CAD.

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Posted (edited)
6 minutes ago, Fouremco said:

If the Loonie does an about face and the CAD booking price drops, I can always refare, but if the Loonie continues to sink, there's nothing I can do about it. As the general consensus seems to be  the latter - TD predicts a fall to 71¢ -  I think I'm ok. As you say, it's the final payment that's the potential big hit, which is why I generally feel safer booking in CAD.

Another way around it for those who book in CAD now, is you could purchase the USD early for final payment and lock in the rate if concerned it might be worse at that date.  IDK your TA, and we cannot discuss that specific here, but I have not come across a Canadian TA that discounts like US TA's and virtually all US TA's don't book in true CAD with Princess as it would require a second agency account with Princess.  That said, I have quit scouring around for a discount TA (discount off cruise price - not just more OBC) that will book in CAD since I have found our current TA who gives the largest discount for Princess cruises that I have come across or found.

 

Edited by steelers36

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I have a Canadian friend who just asked me what the current rate is now.  I told her I would ask, anyone know what it currently sits at?

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Posted (edited)

In the past, the rate change has onlyaffected new bookings.  

Therefore anyone with a cruise booked at a current rate of 1.30 for exmple, would still be able to buy their OBC etc at the rate they booked at, up until the cruise happens.  

 

Only NEW BOOKINGS were subject to the rate change. 

 

Is this not the case this time.    I'm wondering as Fomr above are talking about rushing to buy OBC.  

Edited by cruisintoddler

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Posted (edited)

Whatever exchange rate you booked your cruise at is what you will pay to pre-purchase OBC, regardless of what the cruise exchange rate increases to. You're locked in at what the exchange rate was when you booked.

 

That hasn't changed, has it?

 

LOL I see cruisintoddler has just posted the exact same response!

Edited by canadarocks

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19 hours ago, canadarocks said:

Ouch indeed. Glad I've got my 2020 cruises already booked. 

If you have future cruises booked does that mean when you add to your cruise

like shore excursions, specialty dinning do you get the rate you booked or the new rate?

 

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2 minutes ago, cruisinggran said:

If you have future cruises booked does that mean when you add to your cruise

like shore excursions, specialty dinning do you get the rate you booked or the new rate?

 

Shore excursions & specialty dining are always priced in US$. So pre-purchasing OBC at the lower exchange rate is the best idea to cover those (although you have to wait to use OBC for dining once you're onboard).

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Posted (edited)

Yes I realize they will be in US but if you do not have OBC you gratuities and other

purchases will be at the new rate?  Sorry if I am repeating myself.

Edited by cruisinggran

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27 minutes ago, cruisinggran said:

If you have future cruises booked does that mean when you add to your cruise

like shore excursions, specialty dinning do you get the rate you booked or the new rate?

 

 

If you pre buy on the personalizer, gratuities, drink packages, and OBC are at the " booked" exchange rate, paid in $Cad when you buy them.   Shore ex and dining are at current rate as they are priced only in $Us and charged to your card at time you buy them.  

 

Not sure why different items are treated differently but they are.  

 

If the rate is favourable, we usually load up on OBC and buy on board against the OBC for whatever is not at booked rate in advance.     

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17 hours ago, Host CJSKIDS said:

I have a Canadian friend who just asked me what the current rate is now.  I told her I would ask, anyone know what it currently sits at?

Depends on the nature of the question.  Princess has been converting USD pricing at 1.30 if accessing Princess.com from Canada (or signed in as a Canadian Captains Circle member).  The market rate is readily obtained by checking on the internet for various financial institutions or publications.

 

It is easy to know what rate Princess is using from virtually all CAD pricing - when the rate is even (like 1.1, 1.2, 1.3).  Prices will end in .40 or .90 with a 1.10 rate; end in .80 with a 1.20 rate and end in .20 or .70 with a 1.30 rate.  This is because virtually all USD pricing ends in "9", and some in "4".  That said, for some inexplicable reason, Princess "plays around" with some converted CAD pricing and may change the mathematical result up or down by fifty cents or so. 

 

When it changes to 1.35, we should see a lot of .65 and some .90.  But if they mess with the results, you have to do some bit of math logic to get back to the actual true USD pricing.  (Of course, Canadians can always check a third-party website for current USD pricing).

 

 

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11 minutes ago, steelers36 said:

Depends on the nature of the question.  Princess has been converting USD pricing at 1.30 if accessing Princess.com from Canada (or signed in as a Canadian Captains Circle member).  The market rate is readily obtained by checking on the internet for various financial institutions or publications.

 

It is easy to know what rate Princess is using from virtually all CAD pricing - when the rate is even (like 1.1, 1.2, 1.3).  Prices will end in .40 or .90 with a 1.10 rate; end in .80 with a 1.20 rate and end in .20 or .70 with a 1.30 rate.  This is because virtually all USD pricing ends in "9", and some in "4".  That said, for some inexplicable reason, Princess "plays around" with some converted CAD pricing and may change the mathematical result up or down by fifty cents or so. 

 

When it changes to 1.35, we should see a lot of .65 and some .90.  But if they mess with the results, you have to do some bit of math logic to get back to the actual true USD pricing.  (Of course, Canadians can always check a third-party website for current USD pricing).

 

 

 

 

Thank you for the detailed answer.  I'll be sure to pass it along. 

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28 minutes ago, cruisintoddler said:

 

If you pre buy on the personalizer, gratuities, drink packages, and OBC are at the " booked" exchange rate, paid in $Cad when you buy them.   Shore ex and dining are at current rate as they are priced only in $Us and charged to your card at time you buy them.  

 

Not sure why different items are treated differently but they are.  

 

If the rate is favourable, we usually load up on OBC and buy on board against the OBC for whatever is not at booked rate in advance.     

If I understand u correctly, If I purchase shore ex now, I will be charged at the current US/Cdn exchange rate at the day I book the ex., Correct?   Can I not withdraw funds from my OBC when I book the ex now?  Am a little confused.

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