Jump to content

Shock!!!! Are britons charged much more (25%) for cruise than continental residents?


Cahpek
 Share

Recommended Posts

We received marketing material from Oceania through our email. Although we are based in the UK, sometimes our computer is logged in a remote access VPN site based in the Netherlands. Sometimes, we just not use VPN so our server would be based in the UK.

 

We were shocked to see two substantially different prices offered to those who reside in the UK and those residing in the Continent (Netherlands). The difference could be about 25 percent HIGHER if you live in the United Kingdom.

 

For example, for their "Stars of the Pacific" cruise from Papeete to Los Angeles (May 28-June 15, 2018), for a B1 Veranda Stateroom, they offered Dutch residents Euro 4449 (which is about £3,999). However, if we checked the fare offered to us if we did not use VPN, and therefore they know we were in the UK, the fare offered is £5099, a difference of more than £1,000 , or 25 percent. This did not seem to be an isolated case, other fares showed differences offered to Continental Europeans to be substantially lower than British residents who were "hampered" with paying more.

 

Could we be right? We could not believe our eyes!!!!

 

We know cruise lines like airlines, offer different fares to different residents in different countries, but 25 per cent is too much, don't you think?

 

Please tell us we are mistaken (maybe other Cruise Critic posters would like to double check?) because if we are right, we feel rather disappointed with Oceania Cruises. We always think so highly of them, but then, we discovered this!!!!

Link to comment
Share on other sites

Could it be due to exchange rates? Oceania will calculate their prices in US Dollars and then convert into Euros and Sterling. Since the Pound weakened considerably against the Dollar last year, that may explain the difference.

Link to comment
Share on other sites

Could it be due to exchange rates? Oceania will calculate their prices in US Dollars and then convert into Euros and Sterling. Since the Pound weakened considerably against the Dollar last year, that may explain the difference.

 

The thing is, the conversion calculation (between Euros and Pounds, which the two set of fares were listed) has been done based on rates on the internet today, not weeks ago.

 

This would have taken into consideration AFTER the pound has fallen due to the effects of the last year's Brexit result.

Even comparing the value of the pound before Brexit vs post Brexit, it may have fallen against the US dollar but nothing close to 25 percent ( hope it may not fall any further though, touch wood x 3!)

Link to comment
Share on other sites

I hear ya! a few years ago princess were advertising a canada/New England cruise on the US site for $999 but on the UK site it was £999 - this was back when it was just over 60c to the £ so they were charging practically double. Of course if you tried to book via the US site it defaulted to the UK site so the only option was to pay the increase - which we didn't as I was so annoyed.

 

 

Sent from my iPhone using Forums

Link to comment
Share on other sites

Also different benefits - hence not always apples to apples.

 

 

No, it is not different benefits, it is exactly the same benefits, that is the point.

 

The only different benefits there is , is probably Oceania Cruises will get MORE BENEFITS from the British customer (because he/she has to be more) than the Continental (Dutch) customer, because he/she pays much less.

 

As for the customer in both countries, they get the same benefit, but one pay much more.

Link to comment
Share on other sites

Could it be due to exchange rates? Oceania will calculate their prices in US Dollars and then convert into Euros and Sterling. Since the Pound weakened considerably against the Dollar last year, that may explain the difference.

Considering that the pound has fallen against the USD as well as against the Euro and nothing positive will come out of Brexit. Those rates are what Oceania has been told from Forex experts to charge British residents.

Welcome to Brexit!

Link to comment
Share on other sites

Considering that the pound has fallen against the USD as well as against the Euro and nothing positive will come out of Brexit. Those rates are what Oceania has been told from Forex experts to charge British residents.

Welcome to Brexit!

Myself as a foreigner I would expect that someone from England would be more aware of the of affect on their life from Brexit then I would know.

 

That aside, just to comment on the exchange rate it is not adjusted daily. The cruise lines hedge funds and adjust the rate on a set period basis; for instance every three months perhaps. The exchange rate is also used as a marketing tool so sometimes the rate can be artificially in favour of a certain market. A cruise lines exchange rate, if they offer it, in CAD might be less favourable than the rate they are currently offering in AUD.

 

That way they can in effect put O on sale in selected markets without having to actually lower the price for everyone. It simply target marketing.

 

Oceania sets their exchange rate will be based on a number of factors and the "Forex experts" would not be telling them what to charge. The anticipated exchange rate over a period would be just one of the tools.

 

I too would not be able to rationalize a 25% difference between the two prices on the identical cruise in different markets versus the current exchange rate on those two currencies. Like the OP I would be questioning it.

Link to comment
Share on other sites

Capek,

just checking in from NL to confirm your latest nightmare!!, not only do we get a cruise for EU 4,449 at the moment there is also a special offer.

"For a limited time, make your voyage even more memorable by upgrading your cruise up to 2 categories from selected grades In addition, you get to take advantage of the generous OLife Choice package which includes Unlimited Internet and your selected amenity. Limited time offer ends 25 July 2017."

As you said they all do this but the 25% you quoted does seem extreme, I would use your VPN site to make a booking in NL. I hope this is possible.

Rosalyn

Link to comment
Share on other sites

A few reasons for the difference:

 

1. Local market competition. I suspect that the UK market has more pricing power when compared to competition (land vacations and other cruise lines). The PTR tends to make offerings in the UK a bit higher so it does give the cruise lines more pricing power.

 

2. Currency risk. The UK still has substantial currency risk based upon the outcome of the Brexit negotiations. The chance of the pound dropping in value between booking and cruise completion is higher than the Euro which has been gaining strength lately.

 

3. Cost of regulatory compliance. Due to the PTR cruises marketed and sold in the UK has additional protections than ones sold on the continent. As such the cruise line does have additional regulatory risk for cruises sold in the UK.

Link to comment
Share on other sites

Is there some way you can pay in US dollars, not in pounds? If the mark-up is due to the conversion rate, then if you pay in US currency, there should not be a different price for residing in the UK. You may get a better exchange rate converting to US dollars yourself. Not sure this is possible, but just a thought.

Link to comment
Share on other sites

For me, as I don't work it over, our dollar has always been weaker than the pound and those from the UK always get a better deal.

 

This is true! When your economy has an issue, why should cruise lines be expected to make up the difference? Canadians have had to pay more for cruises for quite a long time. And, as has been said, for many itineraries, the U.K. gets a better deal that those of us in the U.S. And, due to differences in laws, everything is not the same in terms of some benefits in the different countries.

Link to comment
Share on other sites

I noticed our drink package prices have gone up in pounds.What are they in dollars now?

from O website

 

 

flourish.png Packages & Rates

 

  • Prestige Select
    Unlimited premium spirits, Champagne, wine and beer wherever and whenever you wish
    from $59.95 per guest, per day
  • House Select
    Unlimited Champagne, wine and beer with lunch and dinner
    from $39.95 per guest, per day

 

  • Wine by the Bottle+
    All bottles are priced at $47.50 (Gratuity Included)
    7 bottles of wine are required for each package

All Packages are non-refundable.



+Additional bottles cannot be added to the initial package. Available only on board for purchase.

Link to comment
Share on other sites

Cahpek, I totally agree with your view from the UK, I have been commenting on another thread and did a search which brought me to you. I fail to see why in this Global age Oceania are restricting our personal right to choose which TA we buy from, we get the comments that the UK has greater protections but that is a lot of baloney as the 'protections' only apply when you book at package or if the flight is ATOL, when you book the commensurate parts of the package individually these 'protections' do not apply and a credit card fills the void. I believe what is actually happening is Oceania are protecting their own office in the UK which acts as a TA, if customers had the ability to buy for a discount worldwide then the ability to fund their UK office would be limited. I do transfer my booking to a UK TA who is a Connoisseur Club member and do receive some greater benefits to Oceania but I would like the option of shopping around maybe for a better price and definitely for better service which my current TA fails to offer.

Link to comment
Share on other sites

We received marketing material from Oceania through our email. Although we are based in the UK, sometimes our computer is logged in a remote access VPN site based in the Netherlands. Sometimes, we just not use VPN so our server would be based in the UK.

 

We were shocked to see two substantially different prices offered to those who reside in the UK and those residing in the Continent (Netherlands). The difference could be about 25 percent HIGHER if you live in the United Kingdom.

 

For example, for their "Stars of the Pacific" cruise from Papeete to Los Angeles (May 28-June 15, 2018), for a B1 Veranda Stateroom, they offered Dutch residents Euro 4449 (which is about £3,999). However, if we checked the fare offered to us if we did not use VPN, and therefore they know we were in the UK, the fare offered is £5099, a difference of more than £1,000 , or 25 percent. This did not seem to be an isolated case, other fares showed differences offered to Continental Europeans to be substantially lower than British residents who were "hampered" with paying more.

 

Could we be right? We could not believe our eyes!!!!

 

We know cruise lines like airlines, offer different fares to different residents in different countries, but 25 per cent is too much, don't you think?

 

Please tell us we are mistaken (maybe other Cruise Critic posters would like to double check?) because if we are right, we feel rather disappointed with Oceania Cruises. We always think so highly of them, but then, we discovered this!!!!

 

The US price for this sailing is $7099 for O'Life and $5699 cruise fare only. That is the website price. Depending on the Travel Agent, the price would be reduced in some way.

Link to comment
Share on other sites

Cahpek, I totally agree with your view from the UK, I have been commenting on another thread and did a search which brought me to you. I fail to see why in this Global age Oceania are restricting our personal right to choose which TA we buy from, we get the comments that the UK has greater protections but that is a lot of baloney as the 'protections' only apply when you book at package or if the flight is ATOL, when you book the commensurate parts of the package individually these 'protections' do not apply and a credit card fills the void. I believe what is actually happening is Oceania are protecting their own office in the UK which acts as a TA, if customers had the ability to buy for a discount worldwide then the ability to fund their UK office would be limited. I do transfer my booking to a UK TA who is a Connoisseur Club member and do receive some greater benefits to Oceania but I would like the option of shopping around maybe for a better price and definitely for better service which my current TA fails to offer.

 

 

Actually the PTR coverage is not baloney. If you do some basic research you will find that it applies to cruises. A cruise by its very nature includes both lodging and transportion and therefore falls under the PTR.

 

The following is a question posed to John Snyder the assistant general counsel at Carnival UK.

What day-to-day practical problems are you currently experiencing in your industry?

 

Many pieces of legislation affect the cruise industry.

Since our business is consumer-facing, we need to comply with the same legislation as many other businesses in the UK—whether it be related to the level of credit card charges applied, Committee of Advertising Practice code compliance or consumer protection regulations.

In addition, we have an international maritime and a travel law angle and,in the case of the latter, we have the Package Travel, Package Holidays and Package Tours (Amendment) Regulations 1992 and Civil Aviation (Air Travel Organiser’s Licensing) Regulations 2012, which shape the way we sell our holidays.

 

 

Regulations 1992

. Our cruise holidays, which include those offered by P&O Cruises, Cunard, Princess Cruises, Seabourn and Holland America Line brands, are already a ‘package’ as defined in legislation and therefore we ensure that consumers are given the benefit of the various protections afforded to them.

 

 

So you might think that it does not apply but the legal departments of the cruise lines think differently. If you go through the cruise contracts sold in the UK they are written differently then other areas to deal specifically with the requirements of the PTR.

One reason why the cruise lines limit how the cruises are sold is because of the way the laws are written. For example if a package is marketed and sold in the UK then UK law applies. As a result the cruise lines need ways to make it very clear who qualifies under which laws. Otherwise someone could claim that a package they purchased through a US travel agent from their home in the UK was really marketed and sold their. By putting the road blocks in place, one can go to extremes and work around the blocks to still buy in the US, but at that point there is no way that they could claim that the package was marketed and sold in the UK.

Edited by RDC1
Link to comment
Share on other sites

Cahpek, I totally agree with your view from the UK, I have been commenting on another thread and did a search which brought me to you. I fail to see why in this Global age Oceania are restricting our personal right to choose which TA we buy from, we get the comments that the UK has greater protections but that is a lot of baloney as the 'protections' only apply when you book at package or if the flight is ATOL, when you book the commensurate parts of the package individually these 'protections' do not apply and a credit card fills the void. I believe what is actually happening is Oceania are protecting their own office in the UK which acts as a TA, if customers had the ability to buy for a discount worldwide then the ability to fund their UK office would be limited. I do transfer my booking to a UK TA who is a Connoisseur Club member and do receive some greater benefits to Oceania but I would like the option of shopping around maybe for a better price and definitely for better service which my current TA fails to offer.

 

If you want another reference here is from a legal site in the UK that specializes in travel compensation claims.

 

What is a Package Holiday?

 

The Package Travel Regulations 1992 lay down rules that tour operators and holiday companies must follow and these rules are found in the company’s ‘booking terms and conditions’.

For a holiday to receive the benefit of protection under the Package Travel Regulations 1992 the package must meet the following definition:

  • The package was sold or offered for sale in the UK
  • The package was sold at an ‘inclusive price’ (eg one price for everything);
  • The package must comprise of two of the following:
    • Transport (eg airplane, ship, train, coach)
    • Accommodation (eg hotel, villa, apartment)
    • Other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package (eg tours or excursions included in the overall package)

    [*]The package must cover a period of at least 24 hours or include overnight accommodation

Note: a cruise can constitute a ‘package’ because it covers both transport and accommodation.

Link to comment
Share on other sites

If you want another reference here is from a legal site in the UK that specializes in travel compensation claims.

 

What is a Package Holiday?

 

The Package Travel Regulations 1992 lay down rules that tour operators and holiday companies must follow and these rules are found in the company’s ‘booking terms and conditions’.

For a holiday to receive the benefit of protection under the Package Travel Regulations 1992 the package must meet the following definition:

  • The package was sold or offered for sale in the UK
  • The package was sold at an ‘inclusive price’ (eg one price for everything);
  • The package must comprise of two of the following:
    • Transport (eg airplane, ship, train, coach)
    • Accommodation (eg hotel, villa, apartment)
    • Other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package (eg tours or excursions included in the overall package)

    [*]The package must cover a period of at least 24 hours or include overnight accommodation

Note: a cruise can constitute a ‘package’ because it covers both transport and accommodation.

 

Thank you so much for your posts. It is very enlightening and makes one wonder why anyone living in the U.K. would want to book with a U.S. travel agent!?

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share

  • Forum Jump
    • Categories
      • Welcome to Cruise Critic
      • ANNOUNCEMENT: Set Sail Beyond the Ordinary with Oceania Cruises
      • ANNOUNCEMENT: The Widest View in the Whole Wide World
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Cruise Critic News & Features
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...