Who else got a buyout offer from Oceania?

[marylander2]

Interestiiiiiiiing...

Just got a call from my TA - O. is offering us a full refund plus some measly cash bonus (less than 10% of what we paid) or future cruise sertificate (about 20% of what we paid) if we forfeit our trip. They are overbooked and trying to make ends meet.

 

Mind you, there is less than 2 weeks for our long-awaited cruise Bangkok-Beijing (Feb.27, 2008).

We paid visas/travel insurance ourselves, and they do not want to cover up these expenditures atop of what is already offered.

 

Has anyone else had this/similar offer now or in the past?

Please share your experience!

[jrkfrk]

My understanding, from previous threads, is that you are under no obligation to accept their offer - just refuse if it does not seem "a good deal". Apparently they will go on down the line, until they find someone to accept. Check this out with your TA. . .

Fran

[Wineart]

We were contacted by Oceania less than a week before our cruise was scheduled to depart last year, and were asked if we were willing to cancel out. We declined, and there were no problems. My understanding is that this is a relatively common practice for Oceania since their demand is higher than their capacity. As long as they don't "involuntarily" bump you, there's no harm in their asking for volunteers!

[worldly cruisers]

An offer of 5,000 was made 24 hours before we left on our trip. It wouldn't even cover the airfare which was non-refundable. Why is Oceania overbooking their cruise?

[marylander2]

jrkfrk, Wineart:

I, too, red several threads on this, all were Oceania's paxs. There's no issue for us - to accept or to reject... it's just a very odd practice, that's all. It looks like none of other cruise lines do that (overbooking), at least it is not a common habbit.

We all know the economy rolls down the recession, so for O. to promise, say, $ 3,000 towards future cruise - which may or may not be even within 1 year, I mean, similar to what they are bargaining about with me... - so for them it is a sure shot... 'cause they re-sell my cabin at a premium price instantly, which easily covers their future "rebate"...

 

If anybody accepted such offer, I wonder, how you were treated if they took future cruise rebate?

[Marebear]

All cruise lines overbook - some more than others - it is a very common practice.

[Imagineer]

...check the other line's boards, you'll find similar dealings, it's not unique to 'O'. Some are offered pretty good deals and they gladly accept them, as has been pointed out, you are under no obligation, just say no thanks...

...railroads, hotels, resorts and airlines all employ similar tactics, its not a new thing - I've worked in the travel and hospitality business and I can tell you its very common...

...don't fret, just say "no"...

 

cheers,

 

the Imagineer

[kathy16]

We have a window stateroom guarantee for a May Med cruise. Final payment was a couple of weeks ago, and still haven't heard about our cabin. Should I be worried? We also waitlisted for a balcony cabin (about #30 on list, so I'm not expecting too much action for that)

[shemp2000]

All cruise lines overbook - some more than others - it is a very common practice.

 

Princess offered it 4 years ago to many on a cruise we were on. Again, you were free to take the offer or turn it down

[meow!]

...railroads, hotels, resorts and airlines all employ similar tactics, ...

the Imagineer

Just curious, do airlines also overbook for business class, or just for economy?

 

P.S. On a totally different subject, do you folks also find this board slow or sometimes even "stuck" in the last few days? Is it again reaching operating capacity? Thanks

[lovecruisingtoo]

Just curious, do airlines also overbook for business class, or just for economy?

 

All airlines overbook business as well as economy. You hear more about economy because they overbook on both domestic and international flights. Business is only international (for the most part).

[joeinsb]

Meow, concerning that "other subject," the answer is yes. I just switched from AOL to Explorer because CC timed out on AOL and I got kicked off.

[meow!]

Thank you both for your informative replies!

[Leonid]

Meow: I have been having the same connectivity problem, although I have not been timed out. I use SBC (now A.T.&T. - what a laugh) DSL.

[hondorner]

When I can get in, the site usually works fairly smoothly and with reasonable speed. In the last few days, there have been several times when I could not get into the site at all -- I get a time-out error from my browser. At least once in the past several days, I fell victim to the dreaded duplicate post because the system was responding so slowly it allowed a second post before there had been a first.

 

I use FireFox on a Sprint broadband air card, which seems to be almost as fast as DSL.

[marylander2]

Stakes keep rising.

Got another call from TA offering additional 5% buyout increase.

Looks like there's no takers, myself included.

 

Still, in the initial post I asked about similar experience of fellow cruisers who were actually offered a buyout (and took it or rejected it). I am perfectly aware about my choices here - my TA made it clear.

Except one post, most are irrelevant.

I am also aware (as many others are) about typical overbooking in hotel/air business. However those two businesses depend on much higher percentage of "quitters" - don't forget that most hotels do not charge you upfront... - and used to operate with greater flexibility in this regard.

 

And yes, we all heard about buyouts when some cruise lines have much more lucrative offers to charter this or that cruiser (just check the latest story with Selebrity Solstice...).

 

I think having only 3 ships makes O./FDR more nervous about empty cabins than it makes, say, RCCL or Princess.

What is going to happen with those paxs who bought "F guarantee", for example, and finally would not get their "guarantee" because everybody else on particular cruise is going to travel?

[lovecruisingtoo]

Stakes keep rising.

Got another call from TA offering additional 5% buyout increase.

Looks like there's no takers, myself included.

 

What is going to happen with those paxs who bought "F guarantee", for example, and finally would not get their "guarantee" because everybody else on particular cruise is going to travel?

 

O will keep raising the offer until they get some takers. They know what cabin categories they need and will match the offers to fill that need. They will not deny boarding to anyone.

[Wendy The Wanderer]

Still, I think this is a bad practice. I wonder how many other cruiselines do this--I'm doubtful that the luxury lines do it (I only know Regent, and I've not heard of it, doesn't mean it does not happen.)

 

Here's the thing--everybody pays the entire cruise fare, oh, 120 days before sailing, right? At that point, they must know if they are overbooked or not. A cancelled booking after that still triggers a full fare for them, so an empty cabin does not equal a loss in revenue. So they must be chasing extra fares--i.e., book a few too many, hope a few cancel close to sailing, then they make even more money. If this is true, it's sharp business practice, at the very least.

[lovecruisingtoo]

So they must be chasing extra fares--i.e., book a few too many, hope a few cancel close to sailing, then they make even more money. If this is true, it's sharp business practice, at the very least.

 

You are absolutely right. They are looking to maximize revenue. There is really nothing wrong with this - as long as they do not do an involuntary cancellation. Many frequent flyers try and get bumped off of flights so they get the compensation. By overbooking and planning on people canceling, it helps keep the fares lower for the rest of us.

[marylander2]

...They will not deny boarding to anyone...

...By overbooking and planning on people canceling, it helps keep the fares lower for the rest of us...

 

Well, isn't this just peachy?:D

(Second quote - "lower the fares for the rest of us"... - is just hilarious, pardon me...)

How's this possible in the situation - yes, this is unlikely, but it may happen... - when they are overbooked, and nobody from those who already have cabins assigned wants to back down?

 

Besides, there was at least one case with O. recently when a passenger was flatly told - 3 days before his cruise, as I remember - that he is not going to cruise because of overbooking. Full refund was issued, etc. ... He was spewing hot lava all over the message board, naturally. The situation was corrected only after FDR's personal involvement.

Do not remember that fellow's name, but you may find the full story by looking through the roll calls.

[Leonid]

We've done 14 sailings on Crystal, Seabourn & Silversea combined and never once heard of them being overbooked. Not that it might have happened; just never heard a whisper.

[naxos]

We were offered and declined a buyout offer on JAN 2 Regatta sailing- our friends were to take a med cruise last summer and accepted an offer about 1 week before sailing that was very generous- since they were using frequent flyer miles they did not have airline tix to cover.

[lovecruisingtoo]

Well, isn't this just peachy?:D

(Second quote - "lower the fares for the rest of us"... - is just hilarious, pardon me...)

 

Think of it this way. O, as a corporation, needs to make a certain return on its investment. In order to make that ROI (Profit) they need to maximize their total income on each cruise. If you have say, 5 cabins cancel in the last 30 days and you have not overbooked, you will probably have 5 empty cabins. Yes you would have revenue from each cabin. However, if you overbook by the 5 cabins, you have an additional, say, $50,000 in income with very little expense. That $50K goes straight to the profit line. So if you target a certain ROI / Profit on a cruise, the $50K made by overbooking gets offset by lower cabin prices for everyone else. It all goes into the pricing of each and every cabin.

 

Look at your basic corporate finances and the investment world and you will see that the above is absolutely true.

[JimandStan]

Profit on a cruise, the $50K made by overbooking gets offset by lower cabin prices for everyone else. It all goes into the pricing of each and every cabin.

 

lovecruisingtoo,

 

You are completely correct. There is also a dread of empty cabins because empty means that there are that many less people on the ship, spending money.:eek:

That captive audience of passengers who often have no choice but to buy things on and from the ship, are a major consideration.

This is another reason why big brother instituted onboard accounts in place of cash and carry. They know exactly what we spend, what we spend it on, and how often we spend it.

And don't think that the Cruise Lines don't use this information to their advantage. Did you ever wonder why there are so few single cabins on cruise ships?

Examination of onboard accounts reveals that singles by and large spend only 75% of what each partner of a couple do.

I always tell singles who complain that if they really want to see more single cabins, they should vote with their wallets.....get onboard and be a big sport :rolleyes:

 

Note: I'm willing to sacrifice myself to the cause, if you want to buy me a drink to forward the cause of increased single occupancy, I will make myself available ;)

[KIWP]

I have ben a member of the Travel Industry for over 30++ years and can attest that this is a common practice.

 

Each of the travel suppliers works with a "yield management" process. This incorporates both historical information of past activity and the present needs. Based on this the airlines, cruise lines, hotels and car rental companies may at times overbook because they know there will be a certain percentage of last minute cancelations and no-shows. As such they don't want any of their space to go unused. Inventory for the afore mentioned suppliers is not like what you find on a store shelf. Once the day of travel passes, there is no way to recoup the unused inventory. As such the suppliers do whatever they can to ensure that all their inventory is utilized.

 

As many have said - when the offer comes in "you have right of refusal."

 

Several years ago we had booked a QM2 8 day Caribbean Cruise. One week before the cruise Cunard called and asked us if we would give up our cabin and for that they would offer us the following compensation:

 

A choice of a 12 day New England Fall Foliage Cruise or a 12 day round trip NY to Southhampton. Additionally we would receive a full shipboard credit for what we had paid...and they would refund us any unspent money. In essence we were offered a FREE cruise with the option of money back.

 

We opted for the New England Cruise, as our goal was to try the QM2, and when all was done we also had a nice refund.

 

NOW...that being said...this is a somewhat unusual situation. Such generosity is usually reserved when travelers reserve premium cabins. However that should not stop anyone for taking the initiative of "asking the supplier if they will sweeten the offer." After all nothing ventured - nothing gained.

 

The principle of overbooking is mostly used by airlines. Seldomly will they overbook the premium classes...but it may happen. The most common reason for this occurence is when an airline has to change the planned equipment for a flight. Weather delays, mechanical issues are main causes for the changes. Potentially the new aircraft could be a smaller or have a different seat configuration than the original one planned for the flight. As such the same number of seats per service cabin may not be available as what was originally offered.

The airlines will be most generous and customer service oriented to their most frequent flyers ... and ... they will start (and work their way down) with those who have the highest levels within the Frequent Flyer Programs.

 

When making air reservations ALWAYS obtain a seat assignment, even if it may not be your prefered one. A less desirable seat assignment may possibly be change dfor a better one. But not seat assignment may mean that you get "bumped" off the flight.

 

Overall I can say that Oceania is among the best. We've taken 8 cruises (from 14 to 35 days per cruise)with them so far and have 4 more booked and are already looking at several others after that.

 

I wish you all safe and enjoyable travels regardless of the supplier.