No future cruise credits if paid in full?

[GICNJC]

I notice that in the latest Oceania update on cancelled cruises they make no mention of the 25% cruise credit they did in their last update for cruises paid in full.  Am I missing something?

[Redtravel]

Be happy with a refund if you can get it. At first offering 125% was tempting. After all, in the beginning of the pandemic, many people thought we would stop cruising for a short time.  We know that isn’t happening. Taking the 125% on a company that isn’t operating is just giving them your money. 125% of nothing is nothing.  It would be different if ships were really sailing safely.  Since there is no really firm sail date, a refund is good. 

[Daniel A]

1 hour ago, Redtravel said:

Be happy with a refund if you can get it. At first offering 125% was tempting. After all, in the beginning of the pandemic, many people thought we would stop cruising for a short time.  We know that isn’t happening. Taking the 125% on a company that isn’t operating is just giving them your money. 125% of nothing is nothing.  It would be different if ships were really sailing safely.  Since there is no really firm sail date, a refund is good. 

That's one way of looking at it.  I see getting an additional 25% in spending power to be like getting 25% interest in one year or so.  That's better than any bank I know of.  You're correct to point out there is some risk involved but many investments involve risk.  So, the question people need to figure out is how much potential gain is measured against the likelihood of risk?  

[rosiegsy]

Just watch when you need to book by - we just found out we had to book by April and use by Dec 22.

[YoHoHo]

2 hours ago, rosiegsy said:

Just watch when you need to book by - we just found out we had to book by April and use by Dec 22.

This is a good and timely reminder, rosiegsy.

 

Friends on related line NCL had FCCs from cancelled 2020 cruise applied to new 2021 that will be cancelled so rebooked now while still a cabin selection for 2022 (each booking costing substantially more and despite the bonus amount had to reach into their pocket for a shorter cruise).

 

Some FCC and deposit used so thought they were good. It was pointed out that the not yet applied FCC amount (relatively a lot) expires this June, well before Final Payment on the new booking which is when they intended to used it. So had to make Final now so as to not lose the FCC value. Even though the sail by date for the new cruise was within the FCC rule, the "use by date" was before FP so it is wise to check and be aware.

 

I took a cash refund when O cancelled our cruise. Maybe "book by date" is different than NCL "use by date" so as you advise, watch your dates.

[Hanoverian]

Perhaps this article might help.

 

https://www.seatrade-cruise.com/finance/nclh-stopped-offering-future-cruise-credits-months-ago

[YoHoHo]

On 3/1/2021 at 6:19 PM, GICNJC said:

I notice that in the latest Oceania update on cancelled cruises they make no mention of the 25% cruise credit they did in their last update for cruises paid in full.  Am I missing something?

Sorry, replied w/o addressing your question. 

 

The cruise lines have a lot of FCCs on the books already. They want those used and the rest to pay cash. With reduced capacity (on ship, fewer ships) and increase in demand they no longer feel a need to offer the big bonuses. Plus, people booking now are aware of the pandemic and cancellations so additional compensation for a "not a surprise we cancelled on you, sorry" is not needed. I saw one line that was 25% is now 10%. Now only "here is your refund"? They also have systems in place to better facilitate the refunding. And those booked with FCC already do not get additional FCC with a subsequent booking cancelled so don't give 25% to new cash bookings.

 

And Cruise lines are in a balance in that they have raised rates to help offset these very expensive "loans" at 25% which then drives away new cash paying customers. I've looked a a number of sailings and noticed the low end are all available - there are a lot of folks who might stretch to take a cruise on O and now priced out or income too dicey with pandemic  issues. Insides available a few days after opening was rare.

 

Once sailing resumes I can see lines taking a harder line on extending dates of expiring credits so they can get them used and off the books. They have been successful raising money, getting loan dates extended and shares dilutions - they want to get get back to their business of sailing I am sure.

 

 

EDITED TO ADD:

There you go. I now see Hanoverian posted with the actual answer to your question rather than my long-winded one.

Edited March 5, 2021 by YoHoHo

[clo]

10 hours ago, Daniel A said:

That's one way of looking at it.  I see getting an additional 25% in spending power to be like getting 25% interest in one year or so.  That's better than any bank I know of.  You're correct to point out there is some risk involved but many investments involve risk.  So, the question people need to figure out is how much potential gain is measured against the likelihood of risk?  

But aren't people now saying that the prices have gone up to and beyond the point of the increased FCC is not longer going to buy them what their original cruse was?

[clo]

3 hours ago, YoHoHo said:

They also have systems in place to better facilitate the refunding.

Well, that's good to hear.

[Daniel A]

11 hours ago, clo said:

But aren't people now saying that the prices have gone up to and beyond the point of the increased FCC is not longer going to buy them what their original cruse was?

Yes, I have seen those posts too.  If somebody took the cash refund without the 25% and another took the FCC with 25% more, the FCC would still have 25% more to apply against the new, increased cost of the cruise than the cash refund.  It's a personal decision each person needs to make.  A year ago, I remember many posts where people were complaining that they needed their cash refund right away because their financial condition was now suffering due to the pandemic.  Obviously FCC with 25% wouldn't have done much good for those people but for those who weren't as cash strapped, the FCCs were a good deal.  Again, it's an individual choice, one size didn't fit all.

[clo]

2 hours ago, Daniel A said:

Obviously FCC with 25% wouldn't have done much good for those people but for those who weren't as cash strapped, the FCCs were a good deal. 

And if you don't want to travel on that line or you want to do a different kind of travel, well....

[LHT28]

4 hours ago, Daniel A said:

Yes, I have seen those posts too.  If somebody took the cash refund without the 25% and another took the FCC with 25% more, the FCC would still have 25% more to apply against the new, increased cost of the cruise than the cash refund.  It's a personal decision each person needs to make.  A year ago, I remember many posts where people were complaining that they needed their cash refund right away because their financial condition was now suffering due to the pandemic.  Obviously FCC with 25% wouldn't have done much good for those people but for those who weren't as cash strapped, the FCCs were a good deal.  Again, it's an individual choice, one size didn't fit all.

Then there is  the other scenario

if the cruise lines fail the person who took the cash  is ahead  of the one that took the FCC which would be worthless

Two sides to every story 😉

[Daniel A]

5 hours ago, LHT28 said:

Then there is  the other scenario

if the cruise lines fail the person who took the cash  is ahead  of the one that took the FCC which would be worthless

Two sides to every story 😉

Indeed!  You might want to review my prior post at #3 where I think I covered that.

[Daniel A]

6 hours ago, clo said:

And if you don't want to travel on that line or you want to do a different kind of travel, well....

Well... then wouldn't it be foolish to take the FCC in the first place?  

[clo]

Just now, Daniel A said:

Well... then wouldn't it be foolish to take the FCC in the first place?  

Right. I can't imagine locking myself into a particular line, especially if we're talking a couple of years out.

[Daniel A]

1 minute ago, clo said:

Right. I can't imagine locking myself into a particular line, especially if we're talking a couple of years out.

Then it looks like taking the cash would work better for you.  If my July cruise gets cancelled and they only offer dollar for dollar in FCC, then, I would take the cash.  If there was an incentive to take the FCC, I would seriously consider that as I would want to book the same itinerary for the following year.  Each situation is different and each consumer has different needs.  Like I said earlier, this is not a 'one size fits all' type of situation.  Whatever the case, I'm sure you will make the right decision for yourself.

[clo]

6 minutes ago, Daniel A said:

If there was an incentive to take the FCC, I would seriously consider that as I would want to book the same itinerary for the following year. 

But it's unlikely that your FCC is going to cover a future cruise. I was just talking to someone at lunch who had that experience.

[njhorseman]

On 3/5/2021 at 4:47 PM, YoHoHo said:

They also have systems in place to better facilitate the refunding.

 

22 hours ago, clo said:

Well, that's good to hear.

Nah...When they went to all fares paid with cash automatically get a refund and all fares paid with FCC automatically get rolled to FCC it eliminated the need for human intervention in the processing of cancellations, which is one reason why the refund process is faster now. Prior to the change, when you had choice of a cash refund or FCC the FCC was automatic, but if you wanted a cash refund you had to submit a cash refund request form by a specified date, and then that cash refund request had to be input to the system by a human, which is a lot slower than an automated process particularly when people were working remotely.

The second reason why the process is  a lot faster now is that cruises are being canceled on a month-by-month basis, while early on multiple months of cruises were being cancelled at a time, so there was a lot more work that had to be done at once .

[Kate-AHF]

19 minutes ago, njhorseman said:

 

Nah...When they went to all fares paid with cash automatically get a refund and all fares paid with FCC automatically get rolled to FCC it eliminated the need for human intervention in the processing of cancellations, which is one reason why the refund process is faster now. Prior to the change, when you had choice of a cash refund or FCC the FCC was automatic, but if you wanted a cash refund you had to submit a cash refund request form by a specified date, and then that cash refund request had to be input to the system by a human, which is a lot slower than an automated process particularly when people were working remotely.

 

Quote

The second reason why the process is  a lot faster now is that cruises are being canceled on a month-by-month basis, while early on multiple months of cruises were being cancelled at a time, so there was a lot more work that had to be done at once .

 

We'll see.  They allowed booking and payment of shorex without final payment.  I'll let you know how it goes.  I'm thinking human intervention is still necessary, even without final payment.

 

The second reason I agree with.  I think that's a BIG part of faster refunds.

Edited March 7, 2021 by Kate-AHF

[njhorseman]

46 minutes ago, Kate-AHF said:

 

 

We'll see.  They allowed booking and payment of shorex without final payment.  I'll let you know how it goes.  I'm thinking human intervention is still necessary, even without final payment.

 

The second reason I agree with.  I think that's a BIG part of faster refunds.

I'm not sure why the processing of any refunds due for shore excursions would be any different than the processing of fare refunds.

Oceania says: "Ancillary items and packages, etc. purchased through us will be automatically refunded."

[Kate-AHF]

9 hours ago, njhorseman said:

I'm not sure why the processing of any refunds due for shore excursions would be any different than the processing of fare refunds.

Oceania says: "Ancillary items and packages, etc. purchased through us will be automatically refunded."

Oh, I'm not worried about getting the refund for shorex, but I do think that items like this slow down the refund process.

[njhorseman]

1 hour ago, Kate-AHF said:

Oh, I'm not worried about getting the refund for shorex, but I do think that items like this slow down the refund process.

As long as it doesn't require any manual intervention, which it shouldn't if their programmers have done their job, it shouldn't delay the process.

 

[Daniel A]

On 3/1/2021 at 9:19 PM, GICNJC said:

I notice that in the latest Oceania update on cancelled cruises they make no mention of the 25% cruise credit they did in their last update for cruises paid in full.  Am I missing something?

To respond to the OP's question, if a cruise is cancelled under the Travelers Assurance Program, (Program covers "all reservations made between August 1, 2020 and March 31, 2021, for scheduled voyages departing on or before October 31, 2021"), the FCC FAQ's for the Travelers Assurance Program states "For Future Cruise Credits issued as part of a voyage cancellation due to the COVID-19 related pause of vessel operations, two credits are issued. The first credit is based on 100% of the cruise fare paid on the original booking, less applicable taxes and ancillary items that had been refunded at time of cancellation. The second credit is based on 25% of the cruise fare paid, less applicable taxes and ancillary items."

 

It looks like any bookings covered by the Travelers Assurance Program, you would get a 125% FCC, but it needed to be booked between 8/1/20 and 3/31/21 for travel before 11/1/21.  Any bookings outside those time frames would get the 100% refund.

 

The above is my read of the refund policy for Covid related cancellations made by O.  Cancellations made by the passenger have different requirements.  If anyone knows my read of the TAP is wrong, please let us know.  I'm holding my breath for a July, 2021 cruise to sail.  If it doesn't, I'm planning on the 125% FCC as compensation.

[GICNJC]

That was what was posted prior to Oceania latest posting (Feb 16 or 19th) where they dropped the FCCs

[Daniel A]

33 minutes ago, GICNJC said:

That was what was posted prior to Oceania latest posting (Feb 16 or 19th) where they dropped the FCCs

So, do you think O is reneging on their earlier promise?  It may well be that, but I'm hoping to not find out.  🤞