Watch that US - CDN cruise conversion rate!

[watcher_62]

As an add-on to the thread regarding the 3% foreign currency fee for the "convenience" of have Princess convert your cruise bill from US$ to CDN$ (or other currencies), you should also be aware that they will convert at a set rate for 2005...

 

1.41%

That's roughly .2% higher than most banks conversion rate!:eek:

So not only do you pay a fee that is anywhere from 3% (cash is n/c) to 1.5-.5% higher for this "service", you end up paying roughly $20CDN more per hundred!

 

CDN residents should be sure to say "NO" to this "service" on their cruise forms - it is negative-style billing, if you don't say no, you've said YES - and I would recommend any other "non-US" cruisers check with Princess for the fees and exchange rates offered on other currencies before accepting (or simply not declining).

 

It could end up being a very expensive "service" indeed.

[Baxter]

The last time I inquired, I was told that Princess adjusts their exchange rate once every 6 months. The agent suggested that we could buy shipboard credits at times when the exchange rate is favourable, and pay for them in USD on our credit card. That way, we'd get the best bang for our buck. We keep talking about doing that, but for some reason I don't fully trust their system.

[Vahishta]

We just try and take a big wad of US$ in cash and make sure that the bill is paid off that way on the last evening of the cruise. That way we have no conversion charges through Princess or on our Credit Card bill. I didn't always agree with my husband for doing this, but after reading all the comments I have to say that he's being quite smart.

 

Vahishta

[PaulnBetts]

I have been following this thread and have a couple of concerns about the content:

 

My earlier comments on the "3% conversion" thread have dealt mainly with the conversion rates being thrown around by what some say are what they pay (not with Princess but in general). Today's Bank of Canada closing rate is 1.2312 for a US$. Major banks are charging between 1.245 and 1.251 (local exchange agency is 1.237). That is approximately 16.0% lower than the rate of 1.41 that is always mentioned (or $160 CDN per $1,000 US :eek: ). Where do the cash to cash rates being quoted come from?

 

Second, Princess published their Cdn brochure pricing at a 1.41 rate to the US pricing. I understand that current pricing has been adjusted to a rate of approx 1.25. If this is true and pricing hasn't dropped then have US prices gone up?? I know my price converted at 1.23 from the US brochure.

 

Also, I have talked with a few TA friends that I know and they are not aware of the conversion practice that is being discussed. (No, these TA's are not from small agencies -- they are large cruise only firms). Where can I find this conversion practice on the Princess brochure or site??

 

No disrespect to posters is meant and I will be diligent but with the questionable info on the thread I need to see for myself. If it is happening, it is easy enough to deal with.

 

WESTCOAST - if you have any info to add on this practice -- let me know on our roll call!!

[watcher_62]

I was also shocked when a poster on the 3% thread mentioned the rate of 1.41. I expected a "worse than bank" rate - but that seemmed way off, so I called Princess myself and asked them what conversion rate would be used on my upcoming cruise (we sail on the 23rd of July) if I opted to have the currency conversion done from US$ to CDN$. They confirmed both the 3% and the 1.41.

 

But - just to be sure - I have AGAIN called Princess and asked what rate they would use to convert my US$ charges on my account over to CDN$ when I use the currency conversion option and have my CDN credit card charged in CDN, and they again confirmed the rates:

 

For 2005 it is 1.41.

 

For 2006 it is 1.25.

 

...plus that 3% of course.

 

:eek:

[iancal]

We ticked the appropriate box to avoid that outrageous 3 percent fee. Then went to the Purser's office to ensure that the charge would be in US dollars AS REQUESTED. They had NOT made a note of it. Frankly, I suspect that Princess ignores this. By the time you realize it, it is not worth the hassle to get it reversed. So, my advice is trust but also verify in person with the Purser's office.

[watcher_62]

I'd love to hear some better news!

[West Coast]

PnB,

 

As you can see, the 1.41 is pretty well known. This topic has been touched on before and people have mentioned how they were previously 'burned' by it. Especially with the on-board account. I specifially asked one person if the rate was printed on their statement at the end of the cruise and he confirmed it was @ 1.41. Also, one of the benefits of taking a cruise is booking a future cruise whilst onboard. The Future Cruise deposit can be booked in either USD or CAD. If booking in USD it's US$100 - if booking in CAD it's CA$141. Pretty simple arithmetic! Personally, we have always booked through a US (internet) TA and always pay in US$'s. When on-board, we do our future booking in US$'s. And when checking in we always 'tick the box.' Maybe it's my 15 years as a Banker that has kept me wise? But I always feel much better when I am in control of my money!

 

ps - RCL now does the same thing, but I don't know their rate. My parents sailed on the Radiance this Spring and I was sure to tell them to 'tick the box.'

[edYYZ]

Aside from the future cruise deposit and onboard account, they use this exchange for the actual cruise fare as well (for those of you who book directly with Princess). We booked the Coral direct with them and the price quote for CAD was significantly higher than USD converted to CAD. Luckily we still got our room despite changing the booking currency. Too bad we forgot to check off that we wanted to pay our shipboard credit in USD!

[PaulnBetts]

I understand what is happening here -- because I'm watching, and dealing with, a '06 sailing the 1.25 rate is all that I'm seeing in my file. As I said the 1.41 was published in brochures, out in late '04 (for '05/'06 sailings), and updated apparently only for '06 sailings -- so cruise pricing is 1.41 if you want to go this year. Apologize as I didn't ask TA or Princess about both years:o!

 

However, as of yesterday afternoon, Princess booking and customer service have said that "all ship board charges to a credit card are billed in US $$ and converted by the issuing bank/card company". I have not sailed this year but last fall this was the practice -- so is there a recent change? (Never saw the box so didn't tick it!!)

 

WC --T, understand being in control is important -- your years as a banker you can understand by 30 years as an accountant/auditor -- keep digging until the clarity comes through -- both VISA and MC tell me that if charges to my card are not what I agreed to then I can dispute them and have them charged back -- risk is by not paying the total statement and waiting for the credit I could be charged interest (high rate). VISA did give me nice little credit for the class action for failure to disclose conversion costs.

 

Again, I'll be watching closely my account and know what I'm paying. This is probably the only real way to deal with it. Princess, as with most large firms will listen and ignore until backed into a corner.

[West Coast]

PnB,

 

The box to tick is on the page you sign (page 3?) and is in the Blue Booklet that comes with your ticket package (2-4 weeks before you sail). It's still there... we just came off the Dawn Princess last month!

 

re: Princess - as with any large organization, when you call their call centre you'll get one, two, three... different answers to the same question. Yes, you are 'charged' in USD on-board the ship, but when the account is closed on the last night of the cruise, unless you have 'ticekd the box' your account will be converted the the currency of the issuing card, for your convenience!

 

re: CC chargebacks - I learned something a few months ago that I'll share. I had a charge that I disputed with Visa. Basically, it was an internet transaction where I did not receive the 'services' I had paid for. So I thought, no problem, I'll ask Visa to charge it back. I submitted the claim and they came back and said that "International Merchants" are not bound to the same rules and regs as domestic merchants and the merchant did not have to accept the chargeback. This was a deposit for a shore excursion I had booked in Belize (through a marketing company based in Grand Cayman) and subsequently cancelled within 24 hours when they sent me the confirmation that included an additional sur-charge for VAT (except that VAT I know VAT cannot be charged as an add-on so I felt I was getting ripped off - the advertised price through this company was the same as others. So, I contacted the others, and they told me their price includes VAT (as it should). I wasn't pleased so I cancelled (they then advised me I could cancel but I would not get my deposit back) - I told them the charge would be disputed! But, in the end, I was the one who took the hit and was out $30 - lesson learned. So, the moral of the story is... don't always rely on the ability to charge-back a transaction!

[watcher_62]

The cruise booklet we received had the box to be ticked (and I made sure EVERONE in my party ticked it!;) ). It seems Princess hedges their exchange exposure each year, and not only applies it to the cruise price, but carrys it throughout the year and applies it to all onboard puchases.

 

In some years, it could be a good deal, but with the rally in the CDN $ last year and into this year, it could mean alot of $$ that did not need to be spent.

 

It also explains why the US TA I purchased the cruise through offered a much better price vs the CDN TA for the same cruise:) .

[PaulnBetts]

OK -- I'm prepared and will look out for this "SCAM" when my docs arrive. Did go back through what was received for last fall's sailing (so I'm a pack rat, too:rolleyes: ) and couldn't find any mention of this.

 

Knew that Princess did the cover our *** thing for the cruise pricing. At one point when the Cdn $ started up they didn't want to accept Cdn pricing but thankfully had a change of heart and adjusted the rate.

 

Watcher -- don't know where you're located but I haven't received any pricing from US online sellers that is any better (after exchange) for the cruises and cabin we want. For January - shopped the web and ended up with a better deal through our TA working with Princess (reduced pricing, reduced exchange and upgrade booking bonus). Do you use a US online wholesaler or are you close enough to use a hard site TA?

 

Todd - knew about the off shore thing for VISA charge backs but haven't had this problem with US$.

 

Thanks for all the info - I'll make use of it!!

[Perky1]

Go to TD bank and get the US dollar Visa. It cost $25 US per year. I use it for alot and pay it in US dollars when the bill comes in. I also have a US sav acct. and buy US $$ when it's at a good rate and save it in the savings account. there is no monthly service charge as long as you make no more than 1 wilthrawal a month...sure saves alot of exchange fees. I purchase my money online so it's even cheaper.

[West Coast]

I purchase my money online so it's even cheaper.

 

Perky,

Is this an on-line web site? Which one?

[Tania]

Thanks for reminding me that I need to check this box again.

 

Perky...I tried that TD visa...only it became a CityBank visa with the merger and I frankly found them to be a real pain. By the time I received a statement, it was already due...once I was three days late, and they called...and this on an account I paid in full every month. No Canadian bank has ever called...I admit that now that I use TD online, it is probably a simpler.

 

Booking with a US TA is still much cheaper on a 2006 cruise, regardless of the diminished exchange rate...and regardless of the fact that Princess now allows Ontario TAs to book with a consolidator.

 

Where we Canadians really get $%%$# on exchange rates is when we buy currency other than US. When we buy euros, the sum is converted to US FIRST and then to Canadian...double conversion fee..aren't we lucky...I would like to open a euro account like the US dollar account I have. Can't do that either last time I checked...Even you know differently, please let know...thanks!

[senior lady]

Our upcoming cruise next May on the Coral, 19 day Panama repositioning cruise was much cheaper going through our TA here. His pkg included air, 1st night hotel and all taxes. I couldn't find anything on the internet that could match it. We even have a TA friend in Calif and she couldn't get us as good a price.

 

So it pays to shop around. I've also found that sometimes you TA will match the prices that are on the internet:)

[senior lady]

I've never been charged extra to get Euro's. I go to a Currency Exchange here in Surrey and they guarentee the best rate. Any currency I go to get is the rate that is advertised. They've never converted to US and then to the other currency:confused:

[watcher_62]

CC won't be too happy if we start naming TA's, so Paul, if you are really interested, email me at watcher_62@yahoo.com and I'd be happy to give you the names of the companies I checked and the one I finally used to book.

 

There are a huge number of factors that play into whether one TA has a better price than the other (block purchases, volume pricing, etc), but when I was booking (it was November last year), the CDN $ had just moved back from the $.65USD range to the mid $.84USD range, and with Princess using their $1.41 which is around $.70USD, it gave me a clear price advantage paying the USD Princess price through a US TA (they are WEB based) vs the CDN $ Princess price through a CDN TA (both WEB and local). I'm sure I could have asked a CDN TA to give me the US$ price, but didn't go there. I was very happy with the US TA (they beat out the other US WEB based agencies I checked), and will most likely use them again.

 

Anyhow, the long and the short of it seems to be that we need to check into all our options and not assume that something being offered as a "service" is necessarily the best route to go. Next year, if the CDN $ craps out - the 1.25 rate could be a terrific advantage;) .

 

One of the things that makes this a real issue for me is to have it structured into my documents as a "negative billing" process - ie: if you don't say NO, you've said YES.

 

I would have been very shocked and angry to have found this out on the last night of my cruise - or worse, when I arrived home.

 

So, CDN cruisers on Princess this year - take note:D

 

Kerry.

[PaulnBetts]

Watcher -- I'll go public on this. Agree that we shouldn't be exchanging or commenting on specific TA's. Believe that is a "rule" on CC, too. Anyway, I didn't mean to ask for the TA contact but rather just whether you were near enough to the US to use a TA or if you used a soft (web based) TA.

 

I also was looking to pay the US$ price, based on the exchange, if it were better. When Princess came out with their promotion price (CDN$) and then when the TA contacted them it got even better I went with the CDN$ fare.

I "subscribe" to about 10 different cruise newsletters watching what they may offer but when I enquire about the itinerary, cabin and dates I want the deals seem to disappear. Great price if I will do their offer over what I want:rolleyes: so I end up with my TA. (Tania-- unless my TA is the consolidator (no!) I haven't booked through one). Maybe I'm lucky or something but I have always beat the brochure and web pricing easily so I'm happy.

 

My philosphy on this is that I'm only going to pay what I'm willing to pay and you're only going to sell at a price you're willing to sell at. (The old happy/happy scenario I guess)

 

On the billing currency, the primary message from this thread is "buyer beware".

[West Coast]

...I would like to open a euro account like the US dollar account I have. Can't do that either last time I checked...Even you know differently, please let know...thanks!

 

HSBC offers foreign currency savings accounts of many types: Euro is one of them.

 

CLICK HERE FOR DETAILS

[West Coast]

...I would like to open a euro account like the US dollar account I have. Can't do that either last time I checked.

 

HSBC has foreign currency savings accounts, including Euro.

 

Check-out: http://www.hsbc.ca/code/tools/site/Renderer.jhtml?cp=/public/canada/rates/html/en/foreigncurrencyproduct.html&bu=canada&toolName=personal_en&ln=en&isPc=false&bt=&pId=e5b71860-ec57-11d6-8508-080020c629df

 

ps - what's really cool is once your account is set up, if you also have a CAD account with them, you can transfer between accounts, on line, through their internet banking service. So, if you want to 'put a little bit' aside every month, this is very convenient.

 

 

>

[Tania]

West Coast,

 

Thanks for the info. I wish I had known about it during the fall of 03 when Ross Healy (they guy who predicted the demise of Nortel) recomended buying Euros. I'll be looking for another soft spot in the US dollar. May be awhile.

 

Kpalmer,

 

Your bank does not show you it converts to euros to US to CDN but they do. The double conversion charge is buried in the "official" rate.