Why Pre-pay OBC'S?

[Pam in CA]

If I purchase $1000 OBC with a credit card that gives me 3 points for each dollar spent, then don't use the OBC on the cruise and Princess refunds me the $1000, am I actually making 3% on this short term investment ??

I would assume so since the leftover credit is not refunded to the credit card. Of course, you'd have to have a lot more than $1K OBC to cover your onboard expenses.

[swedish weave]

I'm confused, I guess. Are you gambling that exchange rates will be less in your favor when you sail? Not sure how this is a "savings" unless you can predict what the exchange rate will be when you sail.

 

Sounds to me like he is making about 12% on his money. Not too bad !!!

[swedish weave]

I would assume so since the leftover credit is not refunded to the credit card. Of course, you'd have to have a lot more than $1K OBC to cover your onboard expenses.

 

I guess I should have said $1000 more than I intend to spend --- or maybe $10,000 !!

 

That would be better than playing the stock market !! lol

[Renmar]

Sounds to me like he is making about 12% on his money. Not too bad !!!

 

Correct, it does not matter what the rate is when we sail.

 

Theo

 

Sent from my GT-P7510

[mmckm]

Princess is charging a percentage now on Canadian charges. This has being going on now for a few month's. I believe it is about 10%, so there is some savings but not as good as it was for a short time.

 

Some of the folks up in Canada have been able to pre purchase USD $ onboard credit as well as coffee cards, drinks, etc.,0and pay in Canadian funds which is quite a saving at the moment with our exchange rate.

:)

[Kmkub]

I guess I am totally lost on how exchange rates work.

 

Today, $1 USD costs $1.09 CAD. How is that a savings for Canadians?

 

I thought I understood it, but I clearly need more info as we are going abroad next year.

[secretcastle]

Princess is charging a percentage now on Canadian charges. This has being going on now for a few month's. I believe it is about 10%, so there is some savings but not as good as it was for a short time.

We have been pre=paying OBC for our upcoming cruise over the last 3 months including last week.

We have called in 4 times and all 4 times it was charged in Canadian $. We were told that they were charging the pre-paid gratuities in US$ but we were just getting OBC. Guess we were lucky.

[disgirl]

Normally I just pay with my credit card at the end of my sailing. I read on here that they were charging Canadian Dollars for OBC. I thought, what the heck, lets try.

 

I bought $425USD OBC. I was charged $425CAD.

Had I used my credit card onboard with the exchange rate and currency exchange surcharge it would have been closer to $480CAD once I returned home.

 

To me, that is totally worth the savings and $55 I can put toward my cruise charges and stuff in Alaska in June.

[kjets]

One thing I love about the Royal Princess is the ability to check my folio, Patter, events, deck plans, etc. on my smart phone.

Pam can this be done on the Sapphire Princess?

[Kmkub]

I bought $425USD OBC. I was charged $425CAD.

 

Ah! If Princess isn't charging the exchange rate, that is indeed a very good deal for Canadians right now. Thanks for the explanation. I assumed exchange rates would apply so couldn't imagine how it was a savings.

 

There is sure to be a lot of grumbling when the exchange rate goes the other way.

[Pam in CA]

Pam can this be done on the Sapphire Princess?

No. It's not available yet on the other Princess ships. The Sapphire now has the large TVs and hundreds of movies on demand... for free.

[disgirl]

Ah! If Princess isn't charging the exchange rate, that is indeed a very good deal for Canadians right now. Thanks for the explanation. I assumed exchange rates would apply so couldn't imagine how it was a savings.

 

There is sure to be a lot of grumbling when the exchange rate goes the other way.

 

 

I dont know how or why, but I am doing the happy dance! At a 1.10-1.15 exchange rate Im happy to save that money!

[umbluemusic]

People who do not have a lot of wiggle room, tend to do things such as paying OBC ahead of cruise. They don't see the benefit of keeping their money in their account and earn perhaps a small return. I hear often enough "its only a few dollars"...."not going to make a difference". They are often the same people that take a loss at other things in life and or spend on things that perhaps they would be better off not spending.

 

People who have more wiggle room in their budget, tend not to purchase OBC ahead of the cruise.They see the benefit of keeping their money in their accountant and earning a small return. I hear them often saying "not going to lose the chance to earn a few bucks in free money"......."those few dollars here and there add up to a lot". They are often the same people that limit any loss at other things in life and or do not spend on things that perhaps they really don't need.

 

You would think it would be other way around, but I find this is the way it is.

 

I do not make much, but I scrimp and save any way that I can. I also like to prepay/budget for things when possible because it makes me less nervous. I think it's pretty elitist to assume that everyone who "doesn't have wiggle room" spends money on things they shouldn't. The $100 for my gratuities in my savings account wouldn't earn me enough to make me calmer about my upcoming cruise. I booked it far out to give us the most time to save a bit each month, to price airline tickets, to shop for the excursions we want.

 

It really does come down to what your comfort is and what you want to do. I like paying for OBC because to me, the auto gratuities might as well just be charged at the time of payment (like the port taxes). I keep my drinks/excursions/etc. budget in my savings account because those are all optional things that I slowly set aside for each month, but the tips need to be paid regardless and I'd rather just have it done.

 

Phrasing it that they "don't see the benefit" really just means the benefit is offset to them by the other benefit of already having something that you need to paid done and out of the way. It is a personal preference which benefit is higher to which individual.

[lovevacadays]

Interesting thread. I have never prepaid for OBC. I didn't even know you could. If one wanted to do this how would you go about it?

[bhopal21]

Interesting thread. I have never prepaid for OBC. I didn't even know you could. If one wanted to do this how would you go about it?

 

Just follow this link on the Princess website and gift yourself whatever you like.

 

http://www.princess.com/learn/onboard/gifts_services/onboard_credit/Index.jsp

 

Mike:)

[lovevacadays]

People who do not have a lot of wiggle room, tend to do things such as paying OBC ahead of cruise. They don't see the benefit of keeping their money in their account and earn perhaps a small return. I hear often enough "its only a few dollars"...."not going to make a difference". They are often the same people that take a loss at other things in life and or spend on things that perhaps they would be better off not spending.

 

People who have more wiggle room in their budget, tend not to purchase OBC ahead of the cruise.They see the benefit of keeping their money in their accountant and earning a small return. I hear them often saying "not going to lose the chance to earn a few bucks in free money"......."those few dollars here and there add up to a lot". They are often the same people that limit any loss at other things in life and or do not spend on things that perhaps they really don't need.

 

You would think it would be other way around, but I find this is the way it is.

 

:(:(:(:( While I never pre-purchase my OBC I do travel with my nieces who are on a tight budget. I'm thinking this may be an option for them.

 

Judgmental much????

[sailinglisa]

I do not make much, but I scrimp and save any way that I can. I also like to prepay/budget for things when possible because it makes me less nervous. I think it's pretty elitist to assume that everyone who "doesn't have wiggle room" spends money on things they shouldn't. The $100 for my gratuities in my savings account wouldn't earn me enough to make me calmer about my upcoming cruise. I booked it far out to give us the most time to save a bit each month, to price airline tickets, to shop for the excursions we want.

 

It really does come down to what your comfort is and what you want to do. I like paying for OBC because to me, the auto gratuities might as well just be charged at the time of payment (like the port taxes). I keep my drinks/excursions/etc. budget in my savings account because those are all optional things that I slowly set aside for each month, but the tips need to be paid regardless and I'd rather just have it done.

 

Phrasing it that they "don't see the benefit" really just means the benefit is offset to them by the other benefit of already having something that you need to paid done and out of the way. It is a personal preference which benefit is higher to which individual.

 

Thank you for explaining it better than I did. I am weaning myself from credit cards and starting to pay as I go. Honestly, if I can pre-pay my tips and decide ahead of time just exactly what I am going to buy on a cruise (and after 21 cruises, I certainly KNOW what I am wont to buy), I can save up prior to my cruise and prepay my onboard account as needed to REDUCE THE HIT AT THE END OF THE CRUISE! Yes, I may be loaning the cruise line a bit of my money before the cruise, but I am saving myself the interest after the cruise if I am not able to pay off my sign and sail bill at the earliest possible date. And plus, when I pre-pay, I have set myself a budget that I have to stick to. Easier for me all around

Edited April 11, 2014 by sailinglisa