Question for anyone that's ever received OBC

[bubbles1209]

I noticed that the price of the category we booked went down $50 today, so I called Carnival to see about an OBC. We got it $100 OBC waiting for us:D yay! Ok, so to get to the question. When we first booked, I got the e-mail confirmation, you know the one, that states the cruise fare, any add-on amounts, tour package, airport fees and Federal Taxes/Fees. Well, when we got the e-mail confirmation on the OBC today, it shows us overpaying by $100.00 (the credit). So DH's question is, why is it that the amount of the Federal Taxes/Fees amount did not change? Granted, fees aren't going to change, but if they tax 938.00, and add the fees and the taxes/fees come to 113.30, why is the taxes/fees the same amount with a fare of 838.00 plus taxes and fees? They lowered the fare, but used the higher fare tax amount. I think it's a good question. I know, I know, you're only talking a very small difference, and no it's not something earth shattering that I'm worried about saving, but DH did make a good point. Anyone else ever notice that? Just something to think about, and thought it was worth asking if anyone else had ever noticed.

[psblin99]

It works like using a coupon in the grocery store. You are taxed on the total then the discount is taken.

[Legend]

The federal taxes on each itinerary on each ship are the same no matter how much you pay. They don't change based on what you pay.

[Ship Addict]

The taxes you pay are a flat tax per person, not a percentage like you would pay for sales tax. Same thing with the port charges -- flat fee per person.

[DaytonCruiser]

Here is an interesting article on the subject of "Govt taxes and fees/port charges" taken from USATODAY.

 

Read cruise lines' fine print

 

Question: My mom turned 60 in July 2005, and six members of my family took a cruise on Carnival's Sensation to celebrate. She used a two-for-one cruise discount certificate she'd received for opening a bank account, and booked through the required travel agency, Airlines Promotions Inc (API).

Hurricane Emily struck during the cruise and both of our ports of call were cancelled. The cruise was not rerouted to any alternate ports, and we were not allowed off the ship for the duration of the cruise, so we just circled in rough waters for five days, trapped on the boat. While we were on board, Carnival offered passengers a small non-refundable shipboard credit for the missed ports and a discount on a future cruise.

 

After the cruise, my mom called Carnival's customer service and asked for a refund of the port charges. They told her that she shouldn't worry about getting the port charges back because "it's not very much money." My mom pointed out to them that the port charges were $119 per person, for a total of $714, and to us that's a lot of money. We were sure about the amount because she had to pay the port charges for the free person when she used API's certificate. We also tried to invoke the Carnival satisfaction guarantee, but they wouldn't let us use it.

 

We could have booked a cheaper cruise to nowhere if we didn't care about stopping at any ports. We paid about $4000 for six people. What I'd really like is a complete refund and those five days of my life back. At the very least, I'd like a refund of our port charges, since we didn't stop anywhere.

— Jody Fordham

 

Answer: I can't get those five days back for you, but I can clarify what happened behind the scenes. It all boils down to wording: Travelers and travel agencies use the term "port charges" differently, and Carnival explicitly avoids using those words.

 

When you see cruise fares advertised, there's inevitably a disclaimer alongside explaining that government taxes and fees cost extra, and that these charges vary by port. Travelers often refer to government taxes and fees as port charges.

 

On the other hand, travel agents see a charge embedded in cruise fares that's off the radar for most cruisers because it's never broken out separately on customer invoices. In industry lingo, this charge is called "noncommissionables," and as the name suggests, it's the chunk of the cruise fare that agents don't earn a commission on. Non-commissionables are a hodgepodge of costs the cruise lines incur, and may include anything from piloting fees to stevedoring to port labor.

 

As non-commissionables is an awkward word, many travel agents just say port charges instead, and in years past, that's what everyone called them. However, the cruise industry scrupulously avoids using that term after settling an expensive series of class-action lawsuits that alleged cruise lines padded port charges to inflate their profits.

 

Your mother paid both government taxes and fees and non-commissionables for the companion fare, as required by her two-for-one certificate. After the aimless cruise, she decided to ask Carnival for a refund of port charges. Since that's not a term Carnival uses, and most cruisers don't discuss non-commissionables, I'm guessing the representative she spoke with interpreted port charges as government taxes and fees, which totaled just $23.15 per person.

 

But when your mother asked the travel agency about port charges, it understood that as non-commissionables, which were $119 per person. "Our agents are supposed to use the term non-commissionables, and the certificate says non-commissionables," says API's manager of operations Jennifer Rodgers.

 

Referring to the $119 as port charges reinforced your belief that you should get a refund, since your cruise skipped all ports. But non-commissionables are a component of the cruise fare and aren't refundable, whether you stop at every port or none of them.

 

"We do not present non-commissionable costs to the consumer under any circumstances," says Carnival representative Jennifer de la Cruz. "All the agency has done is cause confusion for this customer."

 

When ships skip scheduled stops, cruise lines try to substitute alternate ports. If that's not possible, companies usually give a small onboard credit to cover both the government taxes and fees and the letdown. However, travelers and cruise lines often have very different ideas about what's appropriate.

 

Carnival's standard missed-port compensation policy is $20 per person, per port, which exceeds the government taxes and fees for any given port, according to De La Cruz. Because the Sensation didn't stop at all, all passengers received a $50 onboard credit plus a 50% discount on a future cruise.

 

Now, about that satisfaction guarantee. Carnival's policy states that passengers who are unhappy with their cruises can get off at the first port of call, and Carnival will pay to fly them home and refund the unused portion of the cruise. The policy doesn't apply to certain voyages, including Alaska, Europe, Hawaii, Panama Canal trips and cruises to nowhere.

Although your cruise was supposed to stop in Cozumel and Costa Maya, it didn't, so you couldn't get off at the first, or indeed any, port. And that means — you guessed it — the satisfaction guarantee didn't apply.

How can you avoid trouble?

Work with an agent specializing in cruises. A good agent will explain cruise costs, not confuse you with terminology.

Be prepared for itinerary changes. Though you may think skipped ports are worth much more, cruise lines will normally give passengers only nominal compensation for changes.

Remember that all guarantees carry fine print.