Canadian exchange rate issues

[nangirl79]

I booked on Oct 24 so I can't speak to before this. The new exchange rate for Canadian's is $1.25(.75) plus 10% off the cruise fare. Everything else pre cruise that you pay for should be charged at $1.25. My taxes, beverage package, prepaid gratuities and any OBC I would like to purchase is coming up at a rate of $1.33. I have read on cruise critics others that are having the same problems. If you try to do a booking today it will have two different exchange rates. I have contacted Norwegian along with my travel agent calling many times. The supervisor at Norwegian can see there is a problem but says the rate is pre set in the computer so she can't change it. So right now I am stuck with Norwegian making a mistake but claim they can't fix it. My travel agent can only recommend to send an email to Andy Stuart. I just wanted everyone booking now to be aware of this issue as it is for all NEW bookings. I have tried to attach the memo Norwegian employees received on Oct 2.

[Canagirl]

I've loved all our cruises on NCL. I've tried 2 other lines and NCL has been our favourite and this upcoming cruise is our 3rd cruise with them.

 

I booked October 3, so one day after the new rate took effect. I think I'm the first one that posted about having this problem with my booking in the other larger thread. I've got 3 adults and a child booked in 2 cabins and when calculating the difference this has made with taxes, pre-paid daily service charge and gratuities on the UBP it adds up - but it is more than that - it isn't solely about the money. This is an error in their system that needs to be fixed and to not be able to do so isn't acceptable.

 

It isn't just if you book with NCL (and I did book directly with them). The conversion rate comes directly from NCL, so if you book with another travel site that charges in CDN$, the error in conversion is there as well.

 

Like I said, I've loved NCL but this needs to be fixed and soon. If it is a programming error, someone has to be able to fix it and not being able to do so isn't acceptable. I'm going to again contact them on Monday regarding this. I expect they will fix this, but if not I won't be sailing with NCL again. I'll enjoy this upcoming cruise no doubt, but can't continue to sail with them if they can't fix a programming error in their prices which is overcharging people (many people don't even realize they are being overcharged when they don't see the US versus CDN prices). I wonder if and when it is fixed if people will be properly rebated or only if they realize the error and request the rebate.

[Canagirl]

It is too late for me to edit my previous post, but I wanted to add, the programming glitch hasn't resulted in everyone being charged 1.33. People are being charged various different amounts. Another one that a few people have reported is 1.08 (depending on what cruise you book as they seem to be programmed per cruise). NCL also knew 1.08 was an error since it should be 1.25, but that is how the system calculated it.

 

In some cases their glitch results in the cruise price actually being cheaper to book in CDN funds than US (I'm guessing because of that part in the memo you posted regarding 10% off the fare - at the 1.08 less 10% it actually mistakenly calculates it as cheaper to buy in CDN funds), but in other cases, some of us are being overcharged at 1.33.

 

I wonder if it some strange glitch: 33 - 8 = 25. 1.25 is supposed to be charged, but some are programmed to be charged at 1.33 and some at 1.08. Odd.

[Josher61]

Clearly there is an issue going on. As discussed on the other thread, so many different reports of rates that it makes no sense. Has cruisers guessing....booking date for rate, sailing date for rate, ship?? who knows, everyone has gotten different answers to their questions.

 

A few things stand out to me now.....the 10% discount. That was never offered when I was on the phone all those times with NCL. All quotes were straight 25%. So where was the 10 % discount in the fare??? (and now that you've explained it Canagirl, that certainly explains the AC site showing rates that were less than the US rate!!)

 

If this memo was sent to all NCL reps why the heck don't most of them know what the rate is when you call in??

 

If this memo is sent out to all NCL reps why aren't they able to book it that way, offer the rate, offer the discount and do it the way NCL states??

 

Is it that complicated to follow the company directives or to be knowledgeable about the product you are selling??

 

Is it that difficult for NCL to implement their own program??

 

I guess those booking at 1.08 are getting a deal. But for those that are finding their extras are coming in at 33%, it sure isn't right. Like you say, its a matter of principle now, not dollars!

 

For NCL to say they see the mistake but can't fix it is preposterous!

 

Nangirl, thanks for posting this!!! I was wondering what your update was and thanks for giving it along with this "memo" that NCL is supposed to follow!

Edited November 8, 2015 by Josher61

[sartoken]

We booked in April when the exchange rate NCL was offering was 1.09%. We were never advised by our TA about the exchange rate, or that we could be billed in Canadian dollars. As a result it has cost us over $850.00 Canadian for the higher exchange fees. NCL will not acknowledge that the TA made a mistake, and will not adjust our cost. If your Canadian, it all depends who you get for a TA, and whether they know about the exchange rates, and whether they advise you about it. It's sort of a buyer beware situation. Hope that other Canadians will have better luck with their booking, then we did.

[rvsullivan]

I'm sure this isn't very funny to the ones dealing with it right now. However, for a couple of months now, many Canadians on here have been using the NCL exchange rates to actually make money! They have been buying and selling OBC to their advantage. Perhaps NCL is now trying to fix the holes that were allowing this exchange? As long as they are charging whatever the current rate is, how can it be an issue? Not sure I understand the problem. It was no problem when some/many were buying and selling to their advantage, what has changed?

[Canagirl]

I'm sure this isn't very funny to the ones dealing with it right now. However, for a couple of months now, many Canadians on here have been using the NCL exchange rates to actually make money! They have been buying and selling OBC to their advantage. Perhaps NCL is now trying to fix the holes that were allowing this exchange? As long as they are charging whatever the current rate is, how can it be an issue? Not sure I understand the problem. It was no problem when some/many were buying and selling to their advantage, what has changed?

 

The problem is they are telling us and their policy is to charge 1.25 but they are charging 1.33.

 

They raised the rate and that is their right, but if the policy is to charge 25% extra, don't actually bill 33% and tell us you can't fix it because it is a programming error.

 

Although this is a problem just impacting those booking in CDN$ I can't imagine anyone would be ok if NCL charged them an extra 8%, admitted they weren't supposed to, but said they couldn't fix it because it is a programming error in their computers.

[xcell]

We booked in April when the exchange rate NCL was offering was 1.09%. We were never advised by our TA about the exchange rate, or that we could be billed in Canadian dollars. As a result it has cost us over $850.00 Canadian for the higher exchange fees. NCL will not acknowledge that the TA made a mistake, and will not adjust our cost. If your Canadian, it all depends who you get for a TA, and whether they know about the exchange rates, and whether they advise you about it. It's sort of a buyer beware situation. Hope that other Canadians will have better luck with their booking, then we did.

 

If your cruise is in April 2016 then why not cancel and rebook?

 

Not sure how they got the exchange rate as I have read $1.08, 1.09, 1.11....

 

My past experiences have been mostly $1.11 with the extras OBS, prepaid grats and anything prior to the cruise staying at the booking exchange rate

[macandlucy]

Re: the .75 exchange...

 

I got caught on this one myself, thinking that .75 makes the exchange 1.25. But, my mathy husband pointed out that that is not correct. At an exchange of .75, he explained, the cost to buy one US dollar would be 1.33 Canadian. So I am guessing that is where the 1.33 number comes from. (That's what I see if I want to buy OBC for example $100 OBC = $133 CAD.

 

Cursed math...still flummoxing me all these years later. Pfft!

[Josher61]

I know what he means about that. Except in this case NCL rates have actually been at 25%. IE: if the American fare was 899 US then they charged 1124 CDN. not 1196. I found it interesting that the memo shown above said .75. Because they all say it the other way 25%. And when others here post their rates of 1.08 or 1.11 etc that's what they are getting. A few times in these conversations I have thought about the rate differential between saying .75 and 25% but it would appear that from most bookings people are actually pay the rate they are quoted. In my case 25%. Not .75. Am I making sense?? LOL

[Josher61]

As an add on to that last post....it may very well be that whoever is programming their rates (and the rates are all over the map) or a programming error they say....they are indeed in some instances inputting the rate at .75 so that's why the extras are coming out at 1.33. Regardless though, they claim all purchases are to be at the initial rate you received when booking. So if the base fare is at 1.25 why are the extras coming in at 1.33? Doesn't make sense. Except someone entered the info incorrectly. If indeed they are using .75 then that is no bargain rate. That's today bank rate of 1.33%. They claim they are giving us a break. If everything is at 1.33 then its not. The main issue here is some items are at 1.25, some are at 1.33 and for others its all at 1.25. Doesn't compute :confused:

[Canagirl]

Thanks macandlucy and Josher61. That provides another possible explanation.

 

If that is the way they are doing it, the NCL reps aren't aware as they admit there is an error. Knowing that some are being charged at 1.08 and when the 10% discount is applied it is cheaper than booking in US$ also seems to indicate something is wrong at least for some bookings.

 

If the calculations are being done correctly, I'm fine with it. I just don't want to overpay. Having to pay a 33% premium to travel isn't fun! But I'm still looking forward to the cruise

[Josher61]

Ok Ive done a calculation. If you take the base fare in US funds....subtract 10%...then do the conversion at .75 or 1.33 you get the fare I am being charged. (Effectively a 20% surcharge). So that may explain the base fare. But then how do you explain the rest of the charges being at 1.25? And others here who are getting their OBC and DSC at their fare rates of whatever they paid? 1.19 or 1.08 etc. It still doesn't make sense that for some people the 10% discount comes into play and for others it doesn't. And the responses from NCL regarding cruise date vs sailing date vs cabin selection even was posted as well. :confused:

[canadianeh934]

I booked by phone in Late March and the TA knew I was a Canadian and yet never told me about the savings if I booked in CAD....

 

I called asking about this twice and was told so sorry too sad....they said I could re book....the cost of the cruise went up $350 as well as I would have to pay the gratuities on the UBP which would be another $150...

 

So I was SOL....this is per cruise so it cost me a lot of money just because of random luck of getting a TA who did not know or care to get me a CAD rate. The rate was 1.08 then.

[macandlucy]

Ok Ive done a calculation. If you take the base fare in US funds....subtract 10%...then do the conversion at .75 or 1.33 you get the fare I am being charged. (Effectively a 20% surcharge). So that may explain the base fare. But then how do you explain the rest of the charges being at 1.25? And others here who are getting their OBC and DSC at their fare rates of whatever they paid? 1.19 or 1.08 etc. It still doesn't make sense that for some people the 10% discount comes into play and for others it doesn't. And the responses from NCL regarding cruise date vs sailing date vs cabin selection even was posted as well. :confused:

 

About a week before I booked, I called to price out the cruise. At that time the agent told me it was 1.11 (or something like that). When I finally booked, it had jumped up ... to .75 the new agent told me (this is where math-challenged me though that meant 1.25 exchange).

 

From this, and from reading this forum, I understand that the exchange rate is solely based on booking date -- that is what the rate was at the time of booking (and that's why we see so much variability, because it seemed to go from 1.08 to 1.11 etc). What I now suspect is that there was never a 1.25 rate -- and maybe a math-challenged NCL agent (with whom I can relate) interpreted the .75 exchange rate as 1.25 CAD, when in fact it never was. That 1.25 figure was discussed here, but did anyone actually, definitely get it?

 

But then I reread your (quoted post) and you mention other charges taxes/tips etc being at 1.25 ( was that on your booking specifically?). If it was, then please nevermind my "maybe there was never a 1.25 exchange rate" theory.

 

I will ask my mathy husband to take a look at our booking and see what he can deduce re: exchange rates and discounts (if I attempt it my post will likely be followed by a whole bunch of "waitasec I think I did the math wrong" revision posts, lol) and then report back.

Edited November 9, 2015 by macandlucy

[Jane Don]

Yes, .75 is equal to 1.33. What we have here is a serious devaluation for Canadian cruisers. The 10% discount may be worth while, but I imagine that if the value of CAD rises even a little, anyone locked in at the 1.33 will lose on extras purchased.

 

The generous exchange rate was the major reason I booked NCL. This change means CCL becomes a lot more attractive.

 

I also encourage posters to check expedia canada site because they sometimes have great rates. Just don't buy your extras at 1.33 unless you are willing take the hit if our dollar increases.

[Josher61]

Ok here's my conclusion...it doesn't make it the right one...but its what Im concluding from my calculations and conversations with a variety of NCL reps. The rate is .75. A nicer way for NCL to say to their customers 1.33, which we all know is no bargain, its the going conversion rate. Period.

 

They are offering 10% off the base fare. Then they convert, using 1.33. So when you ask for the total amount and convert X US to X CDN it appears to be at 25%. But its not. Its at 1.33 but the base fare had a discount applied before hand. When I look at the posts of others on the older thread from those who booked recently, they were paying 20% on their base fare was their calculation, then 33% on their extras. That caused all the confusion I think. For those that recently got 1.08 and all the extras are 1.08, that is indeed the rate. Not calculated as a percentage but as a rate. Why they got 1.08 I don't know. Myself, previously, I called about a March cruise and received the 1.08 rate, but today, when I called again for the exact same cruise the rate was 1.33. Even though I was again told it was 25%. I asked about the 10% off base fare (which I never knew before) and was told yes, that's calculated. When I asked for the breakdown, it worked out to 1.33. The rep said: it still works out to the same thing as 25%. I said no, its not, but Im not getting into that end of it with the rep. Post that call, I went onto AC Vac and the same March cruise was showing at less than the NCL US site. It was 10% off and then 1.08 conversion. When I clicked on it, it came up at 10% off then 1.33 conversion (significantly higher). I called AC. They said..oh, must have just had a price increase. While on the phone with them when I start over on the website that cheap base fare doesn't come up anymore. I chose another date, April, showing up cheaper than US NCL fare, clicked on it, it stayed the same. So I asked her to quote me that one. Came out at 10% off then 1.33. Again, I asked why. She said the same thing. Must have just gone up. So I called NCL back yet again to price the April date. Came out at 10% off, 1.33 conversion. By this time I am thinking that somewhere at NCL they are frantically going through their system trying to find the mispriced cruises and correcting them lol.

 

So, based on way too many phone calls and way too many calculations. the rate is 1.33 for Canadians. If you get lucky and find a cruise that NCL is still selling for 1.08 that's great. Some have indeed done so as per the old thread. But I suspect that whatever glitches are in their system are being found and converted to the 1.33 rate as they go along. I think those ones are the ones that were in error. But how do I know, I don't work for NCL lol.

 

IMHO, the NCL rate is whatever the banks are charging today. They no longer offer a discounted conversion rate as some other lines still do. They are however offering a base fare rate reduction of 10% off, which for whatever reason, they never seem to tell you about. And rather than post rates of 1.08, 1.11 or 1.19 etc as they did in the past, which we could all easily see and know was a deal, they have switched to posting as .75 because it looks and sounds better than 1.33. That's easily discernible as not being a deal. But there is nothing false about it. Its the CDN dollar value vs the US dollar. But Its NOT the conversion rate. And many NCL reps say the conversion rate is 25%, not knowing any better. Its just NCL's way of marketing a poor dollar exchange for Canadians with a better sounding spin. And many at NCL don't understand the difference. For those who have gone back and forth with NCL, the problem is they (NCL) don't understand how a dollar converts so they assume its 25% and are at a loss to explain it. Hence, I myself have been told, it makes no sense. No, it doesn't if the rate of exchange is the quoted 25%, but it sure makes sense if its the dollar value of .75. Its that 10% off the base fare that makes it "look" like 25%. Until Nangirl posted that image, I believed, because I was told by NCL, the exchange rate was 25%. I wonder what the older memo looked like or said. I wonder if those had a 10% discount on base fare. Regardless, today it is what it is. And to me, that is a 1.33 conversion rate. And that's not a discount. But the 10% off base fare is. Not much different than the seniors rate, or resident rate or whatever else they may offer. That's how I am doing the comparisons now between cruise lines. Nothing to do with the exchange rate. Buts that just me :) And as I really am not planning on cruising in April to get the 1.08 one I priced out it doesn't factor in for me.

 

Im not sure if this helps anybody or not but I hope so. Again, this is MY conclusion....not an answer from a TA or NCL themselves. And I may indeed be wrong lol.

[Canagirl]

Josher61 - I think you got it AND you did make a lot of phone calls and do other work to figure out what NCL has been unable to explain (which quite honestly, they should have been able to).

 

Like I said before NCL has been our favourite line (mainly due to the the lack of a formal night). It has been 3 years since we cruised (since we had a baby during that time, we weren't able to go until now). I did shop around prior to booking this cruise, and did find I could get better fares with other lines, but we had our future cruise certificate. It expires next year and I'm not sure if we'll be able to fit in another cruise before then, so we went with NCL in a large part because we had that certificate.

 

I'm looking forward to the cruise! But I know in the future, I will shop around and go with the line that gives the best overall deal. We may even consider going to an all inclusive resort instead (definitely not our first choice) if the dollar doesn't improve since flight plus trip is so much cheaper overall.

 

In any event, thanks for figuring it out Josher61. It was a strange and odd mystery and as you mention, I'm sure they are trying to correct any errors still in the system at the moment.

 

I'm counting down the days now and will occupy myself with packing soon!

[macandlucy]

That's very helpful, Josher61. Thank you!

[Josher61]

I hope you have a great cruise!! Im sure it will be wonderful! Personally, I haven't ruled NCL out or anything for the exchange reason, not at all. Our dollar simply sucks. I just thought NCL was giving us a better deal. And if the dollar continues to tank then 1.33 may indeed become a great deal down the road. And I wish NCL reps knew what they were talking about on this subject. And I think that if they offer a Canadian resident rate with a better exchange, they should offer it to all Canadians when they book, not just those wise enough to ask. Many moons ago I had a store which offered a discount on certain days to a certain segment of my market. I sure didn't hope that they didn't know about it and not give it to them. If they qualified I gave it to them automatically. Simple as that. Many were surprised and pleased and to me, customer satisfaction/retention was king.

 

Im still deciding on the Getaway cruise the week before Xmas I wanted to take all along when this started. But now I am indeed pricing a Celebrity as well that seems to have good fares and I guess we will decide. Soon, I hope! We are already going to be in Florida for 2 weeks so it made a lot of sense to spend an additional week on a cruise not having to pay airfare again. The Getaway looks enticing and a cruise would be nice. But with a US/Caribbean trip already planned for Feb Im not sure I will justify the cost for the cruise with our dollar sitting where it is. Who knows :)

 

Once again, enjoy your cruise, it sounds like you will have a great time with a new little one in tow :)

Edited November 9, 2015 by Josher61
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