Final Payment Float?

[mscott]

This is kind of an obscure question, but here goes: Last week I booked a Celebrity Journey sailing with an agency I've never used before, but is one of the major online agencies. I was told the final payment date, and had to sign a document saying I wanted to book this particular cruise, etc., and send it back to them.

 

Anyway, after I sent in the doc, I noticed that the final payment due date was more than 100 days before the cruise date. Celebrity wants the payment, for this cruise, 70 days before the cruise date.

 

I called the agency and asked them why, they said they charge everyone a month before it's due and pay the cruiselines in one lump sum. Basically what this amounts to is a "float," where the agency is able to use the client's money for a month, and I assume, draw interest on it. Is this common? I've never seen this before.

 

I've always been charged a day, or a few days before the cruiseline wants the money.

 

This leads to another question - can one transfer reservations from one agency to another?

 

I'm not sure whether I should worry about this or not, but I kinda feels like I'm being used... maybe it's just me. Thanks.

[hajekfam]

I use a local TA and have never been asked to pay earlier than the Celebrity date.

Yes you can transfer your reservation from one agency to another, but the original agency must give their approval for this to be done. Our TA opened her own agency after we booked a cruise onboard and had it assigned to her at her old agency. We wanted the cruise to stay with her as she was our agent, not the agency - we followed her from one agency to another. According to Celebrity, we had to get a letter from the agency she left okaying the transfer of booking. The agency did charge her a fee which she took from her commission. I didn't think that was right as I wouldn't have had the booking at that agency at all if our TA had not been affiliated with them. The agency tried to tell us that it was a charge from Celebrity for transfering the booking but I called Celebrity and verified that they did not charge a fee.

[hancock]

Payment should always be charged directly to the cruise line. I would be very suspicious of this agency. Unscrupulous agencies have been known to disappear without ever paying the cruise line. They may be on the 'up and up' but...

[mscott]

Payment should always be charged directly to the cruise line.

 

Is this right? Any agents out there to confirm this? I guess I should be dubious if this agency charges final payment directly, when other agencies don't.

[chessbriar]

Is this right? Any agents out there to confirm this? I guess I should be dubious if this agency charges final payment directly, when other agencies don't.

I know I'd be pissed if I used my X card to get double points for my cruise, then the agent charged me instead of the Cruise line.

[BILLP1]

Did you get a better price or deal from this agent. If yes then don't worry about 30 days interest or if you could have gotten the same deal some where else , I guess you could cancel and re-book with another agent. Many agents want the money early so late paying clients don't miss the final payment and then complain to the agent that their reservation was canceled due to their mistake..

[timbo89]

I, for one, would be very very wary of paying a travel agency directly. I feel much more comfortable with the payment going direct to the cruiseline. That way, the agency cannot abscond with my money in the event of financial default by the agency - it HAS happened !!

 

The excuse of paying an agency directly in order to make sure deadlines are not missed simply doesn't hold water. The agency I use simply sends out automatic e-mail reminders to make the payment. They begin this process about 30 days before final payment is due. They facilitate direct payment to the cruiseline on my behalf.

[YD66]

I, for one, would be very very wary of paying a travel agency directly. I feel much more comfortable with the payment going direct to the cruiseline. That way, the agency cannot abscond with my money in the event of financial default by the agency - it HAS happened !!

 

The excuse of paying an agency directly in order to make sure deadlines are not missed simply doesn't hold water. The agency I use simply sends out automatic e-mail reminders to make the payment. They begin this process about 30 days before final payment is due. They facilitate direct payment to the cruiseline on my behalf.

 

i have to agree with this. i've seen this instance happen also!

 

my ta (who works for a large travel company) facilitates payment on my behalf also, but makes my due date on my "invoice" a couple of weeks prior to actual due date by the cruiseline so it gives her clients a buffer. however, her agency never holds payment since it goes directly to the cruiseline ... and that's how the charge shows up on my statement.

 

whatever you decide i hope this works out for you.

 

Jeffrey

[krusin']

:rolleyes: My TA always sends me a document asking for credit card no. and acceptance or refusal of insurance and the doc. states that Celebrity will be on the credit card statement when I'm billed.

[kitty9]

There's no way I would allow them to take my money and then keep it until they pay the bill. I most certainly wouldn't every book with a company like that. My TA cals me a week before the due date and then only pays it using my credit card the day before final payment is due.

[mscott]

There's no way I would allow them to take my money and then keep it until they pay the bill.

 

Yeah, I had no idea they worked this way when I booked with them. The only reason I did is they had a slightly better perk than my usual agency.

 

But this agency has been around 11 years and is (I believe) one of the biggest online agencies. I'm sure 1000s of cruiscritic members have booked with them, and maybe didn't even know this was their policy.

 

But I get paranoid --like what if I decide to cancel AFTER the agency has billed me but BEFORE the cruiseline has been paid. Can I be sure they'll get my money back to me promptly, if at all? Yeah, I'm being paranoid here...

 

They have a $50 cancellation policy - I wonder if they charge that if I transfer to another agency?

[rjg41]

Payment should always be charged directly to the cruise line. I would be very suspicious of this agency. Unscrupulous agencies have been known to disappear without ever paying the cruise line. They may be on the 'up and up' but...

 

Not so. While most cruise charges will be directly to the cruise line, if it is special pricing or coupled with add ons provided through the travel agency, a portion of the deposit my be charged to the agency and all of the final might be charged to the agency.

 

Some agencies, even if charging the client's credit card directly to the cruise line will add a couple of weeks to provide a buffer to assure that the final payment date is not missed.

 

Now, if it is a straight cruise, with no special pricing all charges should go to the cruise line.

 

Also, with today's interest rates coupled with the fee the travel agency pays for charging to a client's credit card, I assure you no one is making money on the float.

[BILLP1]

If you ever have a credit card charge that you dispute , most credit card company's will investigate..

 

I book with Costco and I don't think that they are out to rip me off. They stand behind every product they sell and have been a great travel agent for us..

[Sky Sweet]

Payment should always be charged directly to the cruise line. I would be very suspicious of this agency. Unscrupulous agencies have been known to disappear without ever paying the cruise line. They may be on the 'up and up' but...

 

For the most part I agree with you but can think of one notable exception. If you have a AAA Visa Card, you get coupons mailed to you everytime you have accumulated enough points, and these coupons can be used for any product you buy through AAA including cruises. If you use these coupons as part of your payment for a cruise, the difference between the coupons used and amount due the cruise line gets charged to your credit card, and AAA pays the full amount to the cruise line on your behalf.

[tuggers]

But we're not talking about AAA here. We're talking about an online agency and I would bet it is the no frills on that wants you to act 'quickly'. They will indeed charge you $50 for ANY reason that they do not get the commission.

I feel very uncomfortable dealing with these agencies, especially if, god forbid you should have a problem. 11 years in business is not exactly a ringing endorsement. If you said 50, I might be more impressed.

Personally, no 'perk' could induce me to book like this. Go through AAA, Costco, Sam's Club or any of the agencies we can't mention that allow you to pay when the cruiseline says (or very close to). 30 days out is too much and reeks of the con.

[tuggers]

But we're not talking about AAA here. We're talking about an online agency and I would bet it is the no frills on that wants you to act 'quickly'. They will indeed charge you $50 for ANY reason that they do not get the commission.

I feel very uncomfortable dealing with these agencies, especially if, god forbid you should have a problem. 11 years in business is not exactly a ringing endorsement. If you said 50, I might be more impressed.

Personally, no 'perk' could induce me to book like this. Go through AAA, Costco, Sam's Club or any of the agencies we can't mention that allow you to pay when the cruiseline says (or very close to). 30 days out is too much and reeks of the con.

BTW, did you read this AFTER you signed it? If so, Bad, very Bad!:)

[lysolqn]

With almost forty cruises under our belt, every deposit and every final payment we've made has appeared on our credit card statement as a charge by whichever cruise line and never the travel agency. Regardless of being protected by your credit card company for potential unscrupulous business practices by a vendor, you might wish to look into moving your booking to a more "traditional" travel agent. The "slightly better perk" you opted for may end up costing you dearly.

[bubbie617]

One of our recent cruises was booked with a travel agent who had group space for the ship. The price was waaaaay better than the cruiseline's price. When final payment was due, it had to be paid to the travel agency, not the cruiseline. We lost the double points on the credit card, but we saved a big chunk of $$$.

[RadioCarla]

I work part-time for an online travel agency that specializes in Disney travel. I know some agencies do have their clients pay them instead of the supplier, but we choose not to do that for exactly the reasons people are voicing here. If you don't feel comfortable with this "float", definitely pursue other agencies or even booking it yourself. Check your documentation from the original agency to see if transferring is even possible and check to see if your new agency to accept the transfer. Some agencies won't as a professional courtesy. Disney, for the most part, won't allow transfers from one agency to another without some major reason and sometimes, not even then.

 

HTH,

 

Carla