Cancelling a cruise with P&O

[GrannieB54]

Lost my husband last year. No problem cancelling with P&O. My deposit was refunded straightaway. No cancellation fee to pay and did not want to see the death certificate either. Not like Royal Caribbean change £25 to cancel and deposit not refunded. Had to claim on the travel insurance for them.

[Harry Peterson]

Interestingly, the Telegraph did a piece on this over the weekend headed 'How cruise firms double their money when you cancel':

 

https://www.telegraph.co.uk/money/consumer-affairs/cruise-firms-double-money-cancel

 

It's a Premium article, so you'd need an account to read it in full, but it's all about cruise companies pocketing the money from hefty deposits even though they've resold the cruise.

 

The article covers cruise companies in general, but about P&O in particular it says:

 

After Telegraph Money contacted it, P&O Cruises said it would add a note to the cancellation section in its terms, making clear the definition of “extraordinary or unavoidable circumstances”.

 

This is probably why the P&O T&C were unavailable recently (they're back now) and they have added the extra clarification. It doesn't help customers in any way though - just makes it clear that:

 

“unavoidable and extraordinary circumstances’’ means a situation beyond the control of P&O Cruises the consequences of which could not have been avoided by P&O Cruises even if all reasonable measures had been taken and which means that P&O Cruises cannot, as a result, provide the Package, or part thereof, including any part of the itinerary, and includes (without limitation) technical problems, war or threat of war, terrorist activity or the threat of terrorist activity, riots, civil commotion,
disaster, Act of God, natural and nuclear disaster, fire, closure of ports, strikes or other industrial action, medical problems on board the ship or at intended ports, including, in each case, incidents of infectious or other diseases or illnesses, lawful deviation at sea in response to a distress call or other emergency and adverse weather conditions; “

 

Back to the main point of the article, though, there was this comment:

 

None of the firms said they would refund a customer if a cancelled holiday was resold. Most claimed it would be too complicated to do or the sum would be impossible to calculate.

 

A CMA spokesman said: “It’s vital that businesses check to make sure their terms and conditions are fair. Unfair contract terms are not legally binding. Being clear on the small print can help prevent disputes, save businesses time and money and ensure customers don’t lose out.”

 

Lost deposits are very profitable to cruise companies (and not just P&O)  -  but they can't necessarily keep them.  It's likely to depend on how good you are at claiming them back!

[Bazrat]

15 minutes ago, Harry Peterson said:

Interestingly, the Telegraph did a piece on this over the weekend headed 'How cruise firms double their money when you cancel':

 

https://www.telegraph.co.uk/money/consumer-affairs/cruise-firms-double-money-cancel

 

It's a Premium article, so you'd need an account to read it in full, but it's all about cruise companies pocketing the money from hefty deposits even though they've resold the cruise.

 

The article covers cruise companies in general, but about P&O in particular it says:

 

After Telegraph Money contacted it, P&O Cruises said it would add a note to the cancellation section in its terms, making clear the definition of “extraordinary or unavoidable circumstances”.

 

This is probably why the P&O T&C were unavailable recently (they're back now) and they have added the extra clarification. It doesn't help customers in any way though - just makes it clear that:

 

“unavoidable and extraordinary circumstances’’ means a situation beyond the control of P&O Cruises the consequences of which could not have been avoided by P&O Cruises even if all reasonable measures had been taken and which means that P&O Cruises cannot, as a result, provide the Package, or part thereof, including any part of the itinerary, and includes (without limitation) technical problems, war or threat of war, terrorist activity or the threat of terrorist activity, riots, civil commotion,
disaster, Act of God, natural and nuclear disaster, fire, closure of ports, strikes or other industrial action, medical problems on board the ship or at intended ports, including, in each case, incidents of infectious or other diseases or illnesses, lawful deviation at sea in response to a distress call or other emergency and adverse weather conditions; “

 

Back to the main point of the article, though, there was this comment:

 

None of the firms said they would refund a customer if a cancelled holiday was resold. Most claimed it would be too complicated to do or the sum would be impossible to calculate.

 

A CMA spokesman said: “It’s vital that businesses check to make sure their terms and conditions are fair. Unfair contract terms are not legally binding. Being clear on the small print can help prevent disputes, save businesses time and money and ensure customers don’t lose out.”

 

Lost deposits are very profitable to cruise companies (and not just P&O)  -  but they can't necessarily keep them.  It's likely to depend on how good you are at claiming them back!

In my view it really works both ways some people book multiple cruises when they come out than for whatever reason cancel later on because the original deposit was small,but if someone else tries to book the cruise they might not find what there after to later on find they have lost out on the cheaper prices when the spaces become available.

[pete14]

36 minutes ago, Harry Peterson said:

Interestingly, the Telegraph did a piece on this over the weekend headed 'How cruise firms double their money when you cancel':

 

https://www.telegraph.co.uk/money/consumer-affairs/cruise-firms-double-money-cancel

 

It's a Premium article, so you'd need an account to read it in full, but it's all about cruise companies pocketing the money from hefty deposits even though they've resold the cruise.

 

The article covers cruise companies in general, but about P&O in particular it says:

 

After Telegraph Money contacted it, P&O Cruises said it would add a note to the cancellation section in its terms, making clear the definition of “extraordinary or unavoidable circumstances”.

 

This is probably why the P&O T&C were unavailable recently (they're back now) and they have added the extra clarification. It doesn't help customers in any way though - just makes it clear that:

 

“unavoidable and extraordinary circumstances’’ means a situation beyond the control of P&O Cruises the consequences of which could not have been avoided by P&O Cruises even if all reasonable measures had been taken and which means that P&O Cruises cannot, as a result, provide the Package, or part thereof, including any part of the itinerary, and includes (without limitation) technical problems, war or threat of war, terrorist activity or the threat of terrorist activity, riots, civil commotion,
disaster, Act of God, natural and nuclear disaster, fire, closure of ports, strikes or other industrial action, medical problems on board the ship or at intended ports, including, in each case, incidents of infectious or other diseases or illnesses, lawful deviation at sea in response to a distress call or other emergency and adverse weather conditions; “

 

Back to the main point of the article, though, there was this comment:

 

None of the firms said they would refund a customer if a cancelled holiday was resold. Most claimed it would be too complicated to do or the sum would be impossible to calculate.

 

A CMA spokesman said: “It’s vital that businesses check to make sure their terms and conditions are fair. Unfair contract terms are not legally binding. Being clear on the small print can help prevent disputes, save businesses time and money and ensure customers don’t lose out.”

 

Lost deposits are very profitable to cruise companies (and not just P&O)  -  but they can't necessarily keep them.  It's likely to depend on how good you are at claiming them back!

Harry, I am a little confused. I am sure posts 16 and 19 were posted by a different poster. Does he know you have taken them over?

[daiB]

This has always made me think. Someone cancels with say 4 weeks to go and have paid in full. They then get a small % back from P&O or perhaps nothing. Then they get their insurance involved if they can. What happens to the cabin, if P&O or any cruise line can sell the cabin again they are well in. I am sure that is covered in the T’s and C’s but it sounds like a good little earner.

[Harry Peterson]

5 hours ago, daiB said:

This has always made me think. Someone cancels with say 4 weeks to go and have paid in full. They then get a small % back from P&O or perhaps nothing. Then they get their insurance involved if they can. What happens to the cabin, if P&O or any cruise line can sell the cabin again they are well in. I am sure that is covered in the T’s and C’s but it sounds like a good little earner.

In this situation the cruise line reselling the cabin - often at more than was first paid if the person booking booked during the time it first went on sale - gets two lots of money for the same cabin.

 

That's the point the Telegraph are making in the article, but the reference to the CMA (Competition and Markets Authority) indicates that legally they're on shaky ground. Whatever the T&Cs say, they're actually only allowed to keep the part of the deposit that relates to their actual loss.

 

If they've resold the cabin, the actual loss will be the original selling price, less the price resold for, less admin costs.  The admin costs might be difficult to calculate precisely, but they can hardly be huge now that everything's done by computers and algorithms!

 

Cruise companies (and other holiday companies) are getting away with a lot here, but few people challenge them - and that's the way they like it.

[Bazrat]

6 minutes ago, Harry Peterson said:

In this situation the cruise line reselling the cabin - often at more than was first paid if the person booking booked during the time it first went on sale - gets two lots of money for the same cabin.

 

That's the point the Telegraph are making in the article, but the reference to the CMA (Competition and Markets Authority) indicates that legally they're on shaky ground. Whatever the T&Cs say, they're actually only allowed to keep the part of the deposit that relates to their actual loss.

 

If they've resold the cabin, the actual loss will be the original selling price, less the price resold for, less admin costs.  The admin costs might be difficult to calculate precisely, but they can hardly be huge now that everything's done by computers and algorithms!

 

Cruise companies (and other holiday companies) are getting away with a lot here, but few people challenge them - and that's the way they like it.

Just a thought what if they don’t resell the cabin who stands the loss then,imagine if it happens on a regular basis.

[Harry Peterson]

7 minutes ago, Bazrat said:

Just a thought what if they don’t resell the cabin who stands the loss then,imagine if it happens on a regular basis.

That's precisely the situation deposits are designed for, and the loss will be covered by the deposit. 

[Bazrat]

On 5/31/2019 at 6:42 AM, Harry Peterson said:

That's precisely the situation deposits are designed for, and the loss will be covered by the deposit. 

Actually your wrong the deposit is to secure the booking no way would it cover the total loss to the company if they cannot resell the holiday.

[Harry Peterson]

11 minutes ago, Bazrat said:

Actually your wrong the deposit is to secure the booking no way would it cover the total loss to the company if they cannot resell the holiday.

You'll find, though, that 99 times out of 100 they do resell the holiday - often at a higher price.  The deposits retained will more than cover any 'losses'.

[Bazrat]

7 minutes ago, Harry Peterson said:

You'll find, though, that 99 times out of 100 they do resell the holiday - often at a higher price.  The deposits retained will more than cover any 'losses'.

Well as your now the expert on p&o finances there is little else I can add.