Any Issues with Paying Early?

[judatt]

Greetings everyone. We have an interesting situation and know that our fellow cruisers will have some input.

 

We are frequent flyers with Delta and many of you would know they implemented a new system a couple of years ago where you not only have to fly X miles for levels of medallion status you also have to spend X dollars on those flights. We make the miles to be Platinum but buy cheap tickets and this year only made gold because of that. Delta has now put in a "kicker" that if you spend $25K on your Delta AMEX card they waive the X dollars provision. I have already made my $25k spend and we have obtained a card for my wife. Doesn't look like she will make her $25k but will most likely come fairly close.

 

We have a retirement cruise booked which is a b2b from Singapore to Sydney to New Zealand and back to Sydney. We've paid our deposits and still owe $7,500 or so. Normally I wouldn't even think about paying before final payment is due which is about July/August of 2016. I'm now thinking if she gets close, we may just go ahead and pay off the remaining balance on the cruise to put her over the $25k.

 

Any input on potential downsides to doing this. I'm a CPA and first thing that comes to mind is time value of money but these days that is almost zip! Maybe interest rates will start to go up sometime in the next few months but I can't imagine anyone is going to pay much more than they do now for quite some time.

 

Thanks for any input anyone may have.

[chemmo]

Only thing I would query is would they refund, no problem, if for any reason you did want to cancel or reschedule your cruise? I know you are not planning to do that but life being life sometimes family issues can result in

[bertrande]

I'm actually thinking of doing the same thing but more because the USD is not my home currency and it's appreciating against my home currency quite quickly so we were wondering whether to pay off the balance for our three cruises now instead of waiting until mid to end 2016. Following this thread closely.

Edited July 24, 2015 by bertrande

[judatt]

I'm actually thinking of doing the same thing but more because the USD is not my home currency and it's appreciating against my home currency quite quickly so we were wondering whether to pay off the balance for our three cruises now instead of waiting until mid to end 2016. Following this thread closely.

 

Not a lot of traffic on this subject! Don't know what your home currency is but sounds as if you have another good reason to consider paying early. When the U.S. Federal Reserve begins to raise interest rates - most likely in Sep or Dec at the latest - chances are the U.S. Dollar will continue to gain strength. As I sometimes say, if we knew exactly what FX rates were going to do, I wouldn't be spending my time on these boards, but it sure seems as if there is a good chance the dollar could continue to strengthen.

[chemmo]

Just realised the end of my post is missing! I would suggest you contact Celebrity and ask to be put through to finance to ask them directly what happens if you pay in front and then have to cancel for any reason. I would also ask them to either confirm their response by email or direct you to the contractual small print that explains.

 

Hope you get a positive answer!

[bertrande]

I asked my TA about this and she's replied to say that terms and conditions remain the same no matter how much payment you've made. So we will be able to pay in full now but still retain cancellation and rebooking privileges right up to final payment date. Just FYI

[Hlitner]

Interesting dilemma. It sure sounds like prepaying the final payment is a reasonable move. Yes, it goes against the grain of most basic rules of financial transactions (do not make payments in advance) but there are certainly exceptions to all financial rules :). As to the downside, other then being out of pocket with that money its hard to think of other issues.

 

Hank

[gimletgal]

I asked my TA about this and she's replied to say that terms and conditions remain the same no matter how much payment you've made. So we will be able to pay in full now but still retain cancellation and rebooking privileges right up to final payment date. Just FYI

 

Absolutely, 100% correct!

[mickey89]

We are frequent flyers with Delta .................................

 

Can you trust DELTA ? I definitely can't, they switch people about, re-schedule, swap with their code-share partners. I have vowed too never fly with them again, shambles of an airline !

[bertrande]

Interesting dilemma. It sure sounds like prepaying the final payment is a reasonable move. Yes, it goes against the grain of most basic rules of financial transactions (do not make payments in advance) but there are certainly exceptions to all financial rules :). As to the downside, other then being out of pocket with that money its hard to think of other issues.

 

Well, given that the US$5,000 could be worth about 10% more come March 2016 (the first final payment date), I would rather prepay that cruise now. We will let the other two cruises go for the moment and revisit again in due course.

[judatt]

Can you trust DELTA ? I definitely can't, they switch people about, re-schedule, swap with their code-share partners. I have vowed too never fly with them again, shambles of an airline !

 

I think all airlines have issues of one kind or another from time to time. You have to compare the alternatives and in the USA right now that is United and American and given those choices I'll take Delta. Far from perfect but they usually get us from point A to point B and most often either on time or close to it - you have to expect delays on occasion and Delta is no exception.

[JFontaine]

Does your wife fly enough without you that the higher level will make a difference to her? If yes, go ahead. If no, make the early payment only if knowing that the cruise is fully paid will bring you a good deal of pleasure. Otherwise, I don't see the benefit. The downside is you see a price drop or promotion and as fully paid you run into reps who don't know how to handle it and you spend a good time frustrated trying to get it figured out.

[FunForUs]

I think all airlines have issues of one kind or another from time to time. You have to compare the alternatives and in the USA right now that is United and American and given those choices I'll take Delta. Far from perfect but they usually get us from point A to point B and most often either on time or close to it - you have to expect delays on occasion and Delta is no exception.

 

I agree. We have taken 2 international flights on Delta recently and have thought the flights to be comfortable and they arrived on time.

[judatt]

Does your wife fly enough without you that the higher level will make a difference to her? If yes, go ahead. If no, make the early payment only if knowing that the cruise is fully paid will bring you a good deal of pleasure. Otherwise, I don't see the benefit. The downside is you see a price drop or promotion and as fully paid you run into reps who don't know how to handle it and you spend a good time frustrated trying to get it figured out.

 

Yes, she has been Gold Medallion for a few years. That is the important level to get to - with Gold you get Sky Priority boarding and baggage and can use the Sky Priority lines for check in and if you need to make any changes. So, that is basically all she tries to get to. Not too much difference between Gold and Platinum except a little higher priority for upgrades.

[judatt]

I agree. We have taken 2 international flights on Delta recently and have thought the flights to be comfortable and they arrived on time.

 

We are currently in Thailand and flew Delta. Left RIC on time and arrived JFK 15 minutes early; left JFK on time and arrived Tokyo over 1 hour early; left Tokyo on time and arrived Bangkok 45 minutes early.

 

Certainly doesn't always happen like that but we are grateful when it does.