New Pay-in-full Offer: 7% if > 365 days to cruise

[AroundWithMAPTravels]

Change in offer today… if over 365 days… 7% in obc…?

[tgg]

The phrases "select guests" "select bookings" and "eligible bookings" are used in this offer.  I wonder what those phrases mean.

[AroundWithMAPTravels]

Not sure, but apparently my sailing (2025 6/30 Baltic Inensive) is included, as this was part of an email I received today.

worth asking….

[Host Jazzbeau]

1 hour ago, Whitby100 said:

Brilliant! I like your idea of checking with my TA to see how long the promo is available for.  We have been offered 7% for being over 365 days.  I’d like to wait til it’s 370 days if possible.  Also, could others who have booked it provide some details of what fees are deducted to determine what the amount is that the percentage is applied to? Thanks.

That's a good strategy (waiting until 370 days), but note the caveat in the email:

"Offer and pricing are subject to availability and change without notice and may be withdrawn by Azamara at any time."

 

I called Azamara with some questions, and learned the following:

•  it is 7% of the cruise fare less NCF items (the line "Taxes, fees and port expenses" on your Booking Confirmation)

•  it is combinable with my Early Booking Bonus terms, so I keep the existing $150 pp OBC

 

I have my Travel Agent checking whether it is also combinable with the Amex Platinum benefit (another $300 OBC).

 

I also checked my Allianz Journey trip insurance policy:  Azamara is listed for Vendor Default Coverage (both when I bought the policy and still today).

 

Looking at the Azamara excursions offered on nearer calls on these ports, I will have no problem using up all the OBC!  I passed on the old 5% offer, because I could easily earn more over the remaining time; at 7% and closer to my sailing, it's worthwhile.

[ChucktownSteve]

1 hour ago, tgg said:

The phrases "select guests" "select bookings" and "eligible bookings" are used in this offer.  I wonder what those phrases mean.

Thats why I asked if my cruise qualified for the promotion. 
 

one of the reasons I don’t want to pay tooooo early is because my trip insurance broker only writes the covered amount for just the deposit. Then as I pay additional amounts towards the cruise needing the coverage, I have to pay the additional premium which is several hundred dollars or more depending upon the balance due. 
 

two extra months earlier isn’t that big a deal. 

Edited March 16 by ChucktownSteve

[KirkNC]

Am I the only one concerned about what this says about AZ cashflow?  I see where insurance would cover a default loss but just the fact that AZ has to give up 7% of their profit to help fund current operations is not a good sign.  Reminds me of Whimpy wanting a cheeseburger today but not paying until next Tuesday.

[Host Jazzbeau]

25 minutes ago, KirkNC said:

Am I the only one concerned about what this says about AZ cashflow?  I see where insurance would cover a default loss but just the fact that AZ has to give up 7% of their profit to help fund current operations is not a good sign.  Reminds me of Whimpy wanting a cheeseburger today but not paying until next Tuesday.

I did even better with Silversea: 10% discount (as a cash discount) for paying less than 10 months before the cruise date.  So are all cruise lines going out of business?  Or do they just think they can make more interest on prepayments than the discount?  [I don't like what 'bean counters' do to quality onboard, but I do believe they are very good at counting beans...]

[KirkNC]

15 hours ago, Host Jazzbeau said:

I did even better with Silversea: 10% discount (as a cash discount) for paying less than 10 months before the cruise date.  So are all cruise lines going out of business?  Or do they just think they can make more interest on prepayments than the discount?  [I don't like what 'bean counters' do to quality onboard, but I do believe they are very good at counting beans...]

Not sure two constituent all but I do believe cruise lines are under tremendous financial pressure.  The big three issued massive debt and significantly diluted their existing shareholder base to survive the pandemic.  The fruit from those decisions (not being critical as it’s how they survived) is starting to come due.  AZ avoided that by getting sold but the equity owners typically expect significant returns and based on all the issues including the data conversion, AZ ships are not exactly sailing full.  Now we have the Red Sea situation which is costing them a lot of money.  Onboard the Onward our first five legs of the world cruise are nowhere near full, probably averaging around 550.  Today we just learned we have to make an emergency stop to get fuel or we will not make it to Manila 🙄.  
 

I’ll take your bean counter comments as a compliment as I was one for forty years 😉.

[fruitmachine]

10 hours ago, KirkNC said:

Am I the only one concerned about what this says about AZ cashflow?  I see where insurance would cover a default loss but just the fact that AZ has to give up 7% of their profit to help fund current operations is not a good sign.  Reminds me of Whimpy wanting a cheeseburger today but not paying until next Tuesday.

Unless their costs are zero, it's a lot more than that! 

 

Equally, what rate do you think they can borrow at on the market.  I suspect a lot more than 7%.

[uktog]

38 minutes ago, fruitmachine said:

Unless their costs are zero, it's a lot more than that! 

 

Equally, what rate do you think they can borrow at on the market.  I suspect a lot more than 7%.

Agree

For most people it’s under 7% as they’re offering me the discount on a cruise that 18 months out so it’s nearer 4.5%

Edited March 16 by uktog

[ghstudio]

7 hours ago, KirkNC said:

Today we just learned we have to make an emergency stop to get fuel or we will not make it to Manila 🙄.  
 

This is the most concerning post on the topic....indicates a real cash issue.  We have AZ B2B cruises booked in Dec....and we've already made backup plans if (when?) the cruises are cancelled. 

[KirkNC]

12 hours ago, ghstudio said:

This is the most concerning post on the topic....indicates a real cash issue.  We have AZ B2B cruises booked in Dec....and we've already made backup plans if (when?) the cruises are cancelled. 

I think this is less about cashflow than piss poor planning on someone’s part.  We have over 1,000 days on cruise ships and outside of Covid, we have never run out of fuel.  I feel the worst for our Philippine crew who had made arrangements for family visits that won’t take place as we are now losing a day in Manila as well as Hong Kong.

[Host Jazzbeau]

28 minutes ago, uktog said:

Agree

For most people it’s under 7% as they’re offering me the discount on a cruise that 18 months out so it’s nearer 4.5%

Don't forget that you have to pay in full almost 4 months before the sail date.  So your prepay period is only 14 months.  And you can wait until 12 months plus a day if you want to risk it.

[G2G]

2 hours ago, KirkNC said:

I think this is less about cashflow than piss poor planning on someone’s part.  We have over 1,000 days on cruise ships and outside of Covid, we have never run out of fuel.  I feel the worst for our Philippine crew who had made arrangements for family visits that won’t take place as we are now losing a day in Manila as well as Hong Kong.

That is terrible, I’m so sorry for staff & passengers alike, it’s inconceivable that you are in that position. 

[uktog]

38 minutes ago, G2G said:

That is terrible, I’m so sorry for staff & passengers alike, it’s inconceivable that you are in that position. 

The impact on the staff morale will be immeasurable 

[mchell810]

23 hours ago, Host Jazzbeau said:

I did even better with Silversea: 10% discount (as a cash discount) for paying less than 10 months before the cruise date.  So are all cruise lines going out of business?  Or do they just think they can make more interest on prepayments than the discount?  [I don't like what 'bean counters' do to quality onboard, but I do believe they are very good at counting beans...]

 

19 hours ago, KirkNC said:

Not sure two constituent all but I do believe cruise lines are under tremendous financial pressure.  The big three issued massive debt and significantly diluted their existing shareholder base to survive the pandemic.  The fruit from those decisions (not being critical as it’s how they survived) is starting to come due.  AZ avoided that by getting sold but the equity owners typically expect significant returns and based on all the issues including the data conversion, AZ ships are not exactly sailing full.  Now we have the Red Sea situation which is costing them a lot of money.  Onboard the Onward our first five legs of the world cruise are nowhere near full, probably averaging around 550.  Today we just learned we have to make an emergency stop to get fuel or we will not make it to Manila 🙄.  
 

I’ll take your bean counter comments as a compliment as I was one for forty years 😉.

 

Silversea stopped offering that 10% discount two years ago. 

[Host Jazzbeau]

20 minutes ago, mchell810 said:

Silversea stopped offering that 10% discount two years ago. 

I was lucky then.  Was able to switch from D2D, dropping the air and Business upgrade, to P2P with 10% off for prepaying.  Saved a pretty penny.  If they offer it again, I'll jump on it again.  [I can count beans too...] 

[ChucktownSteve]

One thing some people appear to be missing is that Azamara isn't really giving up 7 or 10% cash.  You get OBC. Considering the cost of goods for that means they're generating real cash flow early for a greatly reduced out of pocket cost later which is use it or lose it.  I hope they stock the shops with tons of merch. Since cruise lines usually double the supplier's excursion cost, that's still 50% on the dollar. Much better cost of money than borrowing.

[Host Jazzbeau]

8 hours ago, ChucktownSteve said:

One thing some people appear to be missing is that Azamara isn't really giving up 7 or 10% cash.  You get OBC. Considering the cost of goods for that means they're generating real cash flow early for a greatly reduced out of pocket cost later which is use it or lose it.  I hope they stock the shops with tons of merch. Since cruise lines usually double the supplier's excursion cost, that's still 50% on the dollar. Much better cost of money than borrowing.

Yes it's a good deal for them.  But since we will be taking the shore excursions anyway, it's also a good deal for us.  I have no problem helping the cruise line when it also helps me.

[ChucktownSteve]

40 minutes ago, Host Jazzbeau said:

Yes it's a good deal for them.  But since we will be taking the shore excursions anyway, it's also a good deal for us.  I have no problem helping the cruise line when it also helps me.

Agree.

 

My comment was more directed toward people who believe the promotion is about financial instability instead of a smart business decision due to relatively high interest rates from inflation. After all, isn't the investment company, Sycamore Partners, about generating cash flow revenue and profits while still providing an excellent product?

Edited March 18 by ChucktownSteve

[combine]

We’ve just taken up the 5% obc offer and we are fine with it. Paid by credit card and have  travel  insurance.
Many guests will have booked and paid in full for their long haul flights nearly a year in advance  (BA is I believe 350 days out ). In the past we have committed a fair few £s to airlines  a long time in advance with no financial or gift incentive offered. 

Edited March 18 by combine

[CavershamCruiser]

11 hours ago, combine said:

We’ve just taken up the 5% obc offer and we are fine with it. Paid by credit card and have  travel  insurance.
Many guests will have booked and paid in full for their long haul flights nearly a year in advance  (BA is I believe 350 days out ). In the past we have committed a fair few £s to airlines  a long time in advance with no financial or gift incentive offered. 

Hi, does your 5% OBC show on your booking in £ or $? Mine is in $ and therefore, because of the exchange rate, is considerably less than 5%. My TA is chasing Azamara but not having much success in getting it rectified.

[combine]

50 minutes ago, CavershamCruiser said:

Hi, does your 5% OBC show on your booking in £ or $? Mine is in $ and therefore, because of the exchange rate, is considerably less than 5%. My TA is chasing Azamara but not having much success in getting it rectified.

It’s been added in $ which is incorrect , but I have assurance by email from Azamara that it shows as two separate amounts (£&$)   at their end. They are unable to show it seperate at the moment. All will be revealed in June when we board and the £ should be converted to $ 🙏

[Whitby100]

I will be taking advantage of the 7% OBC shortly.  I presume the credit will be in US dollars, although my balance is in Can. I suppose there are 2 ways to calculate this exchange.  Az could convert my fees to US and then calculate OBC, or they could get 7% of Can value and then convert to US.  I don’t think it matters?   Does anyone know how the exchange rate is calculated? Has any Canadian done it?  Thanks

[combine]

4 hours ago, combine said:

It’s been added in $ which is incorrect , but I have assurance by email from Azamara that it shows as two separate amounts (£&$)   at their end. They are unable to show it seperate at the moment. All will be revealed in June when we board and the £ should be converted to $ 🙏

Explanation to above. I also have some US $$ obc but the new 5% £sterling obc amount has been  added to this amount without using an exchange rate, which as  @CavershamCruiser says, devalues the discount.

If all goes to plan the £ sterling will be converted to US$ in those preceding few days prior to embarkation when any outstanding unused obc in any other currency is converted to US$$ and will show up as such  when we get onboard. 🙏