Received Final Payment request for cruise leaving from Vancouver end of June

[gold]

Any recommendations on what I should do? I wouldn’t mind getting 125% FCC but if RCL goes bankrupt then I’m out of luck

 

 

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[lurkmaster]

my opinion is in this day and age cash is better than credit.

 

I don't know RCL financials that well but it appears they have somewhere around 8-11BN in long term debt and usually 250M in cash on hand. The largest asset it holds is it' actual ships which book value is around 25BN, but if you think about the buyers of that kind of asset what would someone really pay for that in a distressed situation? Maybe half of that? So you figure enough to cover the debt, everything else would be wiped out.

 

If the company goes bankrupt and has to liquidate its ships etc. after they pay off the debtholders, you might be next in line to get something. At the end of the day in these extenuating circumstances they would have to pry the cold hard cash from my hands a credit from them right now potentially isn't worth the paper its written on given the extreme nature of what is happening here, there i no guarantee that you ever get to use that credit.

[gold]

my opinion is in this day and age cash is better than credit.
 
I don't know RCL financials that well but it appears they have somewhere around 8-11BN in long term debt and usually 250M in cash on hand. The largest asset it holds is it' actual ships which book value is around 25BN, but if you think about the buyers of that kind of asset what would someone really pay for that in a distressed situation? Maybe half of that? So you figure enough to cover the debt, everything else would be wiped out.
 
If the company goes bankrupt and has to liquidate its ships etc. after they pay off the debtholders, you might be next in line to get something. At the end of the day in these extenuating circumstances they would have to pry the cold hard cash from my hands a credit from them right now potentially isn't worth the paper its written on given the extreme nature of what is happening here, there i no guarantee that you ever get to use that credit.

Would insurance cover a bankruptcy?


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[lurkmaster]

if it's a corporate bankruptcy no level of insurance will cover you that I would be aware of.

 

Maybe look into it.

Edited March 16, 2020 by lurkmaster

[Guest maddycat]

Wouldn't you be able to get a refund from your credit card company?  Services paid for but not received.

[darwinsrule]

Two issues:

 

(1) Canadian government has banned cruise ships to July 1st, with everything going on odds of that changing really falls between slim and none. 

(2) Just watching Delta flights heading to storage on Flight Radar.  With the reduction in capacity will you be able to get to Vancouver. 

 

So you really are doing it for FCC, everyone has their own risk tollerance.  What's yours?   Our trip doesn't leave till the end of August, PIF isn't until May 31st.  We are in wait and see what the situation is towards the end of May.  As much as we wanted to go back to Alaska, this year may not be in the cards, or the last minute offers may be to good to pass up. 

[gold]

Wouldn't you be able to get a refund from your credit card company?  Services paid for but not received.

I don’t think so


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[ARandomTraveler]

9 hours ago, gold said:

Would insurance cover a bankruptcy?


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My travel insurance covers me if the company I paid (Royal Caribbean in this instance) goes bankrupt. 

[Boatsie]

How much will you lose if you don’t hand over final payment now?

 

Under the CWC program, I believe getting a percentage of your total cruise cost refunded has been flushed.  Once they have you’re money, and you cancel under CWC, you only get back FCC.  

 

If the cruise gets “voluntarily” cancelled by them, which was the case currently,  it’s 125% or refund.  But future cancellations just might be “mandated” by authorities...in which case, the refund rules just might change again, and not probably in the favor of the customers.

Edited March 17, 2020 by Boatsie

[Coralc]

That's a tough spot to be in, but I think I would cancel and take the $200 loss and the FCC for the rest of the deposit and not give them anymore money. But I suppose you already have flights, which would be a tougher loss. It would be really hard for me to give them more money right now. 

 

Or you can stick it out and see if they cancel, then file a claim with your travel insurance for a refund on the flights and a FCC for the cruise. Or you could possibly get 1 year flight vouchers now. 

 

That will be a really hard decision to make at this stage of everything. Things are changing so quickly. It seems possibly or maybe likely that the Alaska season (especially early season) will be cancelled, but none of us know for sure. 

[lovescats5]

We are watching this closely.  We are on Ovation Sept. 4 to Alaska so we have a couple extra months for things to settle down.