Prices are higher if you are using a FCC

[BermudaBound2014]

For those of you still trying to decide between FCC and Cash (if you are in the USA and can get cash refund from MSC), you might be a be best to do a bit of research.  I priced out a November cruise using FCC and the price was 60% higher than if I bought the same cruise using 'new' cash. Holland America is running a special for 'free drinks and gratuity" but you can not book that special code if you are using FCC's.  It's a shell game folks. Be Aware.

 

Not to mention that (IMO) it is very likely that many cruisers will not see their monies returned at all, as I do not believe all cruise lines will 'make it' in the end.  Some are sitting better than others. NCL isn't looking good on the books and I'm bummed because if they go under I'll lose a 'next cruise' certificate. This isn't a statement about MSC in particular, as they are privately held so their financials are less transparent. Yes, they self report, but I'm skeptical by nature. We can only speculate about company financials even in the best of circumstances. 

 

Unless you have tremendous faith in the company, full refunds are the only fiscally responsible choice. 

[cellfree]

How do you even search for a cruise “using a FCC?” The cruise(s) I am deciding upon are a higher amount because the ones i had booked were either booked very early or there was a Balcony sale I was taking advantage of. I suggest the prices I see have nothing to do with payment type. 

[slei15]

MSC does not have specials that you can’t use an FCC on...All of the current sales allow their use. It isn’t as much a game as a liquidity issue. If they can preserve cash by offering a higher FCC value, it is a prudent move for them. They keep you as a cruiser, get your onboard spending, and don’t need to take on as much new debt. 

[cellfree]

slei15 I understand what you are saying. I was reacting to what BermudaBound20 said when she stated “I priced out a November cruise using FCC and the price was 60% higher than if I bought the same cruise using new cash.”

[phissy]

My understanding is that I can apply FCC to cruise booked and taken before Dec31,2021.

may only be applied once, cannot change to another cruise later. I have cruises booked for Dec 2021 and plan to apply my FCC to one when I receive it.

[BermudaBound2014]

There are several search engines that have adopted for the use of FCC. When you go to price cruises, there will be a selection that states "are you using a FCC' (or something like that). I can't mention the sites because they are against CC rules, but the big ones I use all have this option. What is going to be more likely is that the lines will offer specials that can not be combined with FCC. Example, 'free gratuity and beverages" offers that can't be combined with the use of a FCC. 

 

Let's face it, the lines need to secure NEW revenue, and FCC's are liabilities (while there will be some revenue in terms of on-board spending). I suspect lines will be offering tremendous incentives for those adding NEW revenue. Of course, we are all free to disagree :)

Edited April 26, 2020 by BermudaBound2014

[Até]

That seems to be more of an issue with using travel agents.  I can understand MSC  making a difference in their commission if customer is using a FCC.  Is MSC pulling back commissions from TA's on the cancelled cruises?

Edited April 26, 2020 by Até

[phissy]

1 hour ago, Até said:

That seems to be more of an issue with using travel agents.  I can understand MSC  making a difference in their commission if customer is using a FCC.  Is MSC pulling back commissions from TA's on the cancelled cruises?

According to the US  cruise Assurance TA page from MSC, instructions to TA are : do not request refund for cancellation (losing commission) but  apply for FCC for client and retain full commission. TA to receive additional full commission when FCC is applied to new cruise.

Edited April 26, 2020 by phissy
Updated

[Fogfog]

55 minutes ago, phissy said:

According to the US  cruise Assurance TA page from MSC, instructions to TA are : do not request refund for cancellation (losing commission) but  apply for FCC for client and retain full commission. TA to receive additional full commission when FCC is applied to new cruise.

THAT is telling

It means the TA is protecting their interests first....not the client.

TY for the post

Helpful

 

Re cruises in the coming year(s)  -- we are hopeful.

Though have min down on a sailing w NCL

Have more down with Regent for a 2021 sailing

 

Want to make plans with MSC yet not sure where to start.  Would cancel the NCL if we can get the ship/sailing similar with MSC-- yet the NCL has a very attractive broad  ports appeal (18 days)

 

 

 

Edited April 26, 2020 by Fogfog

[BermudaBound2014]

56 minutes ago, Fogfog said:

THAT is telling

It means the TA is protecting their interests first....not the client.

 

How do you figure? This is MSC telling the TA to tell their client to ask for a FCC to protect MSC financials (and TA commission). All good TA's in the USA still offered full cash refunds as an option. 

[Até]

Well, if the TA is keeping the initial commission from the cancelled cruise when refunded as a FCC they should be offering the same discounts/perks to the customer when re-booking with the FCC.  If they are in fact getting a second commission when the FCC is redeemed they should be giving even more discounts/perks. 

 

If TA's are offering less discounts/perks when FCCs are used it suggests that MSC is offering a smaller commission with FCCs.  I would find a smaller commission reasonable in cases where the customer uses the same TA for both bookings, but I could see a situation where a customer who has a FCC and wants to use it with a new TA would not be offered the same "deals".  I'd be prepared to have to use the FCC with the same booking agency the initial cruise was booked with to get the full benefits.

[BermudaBound2014]

We are in unknown territory on so many levels. At this point anything is possible. Buckle up.

[Fogfog]

3 hours ago, BermudaBound2014 said:

 

How do you figure? This is MSC telling the TA to tell their client to ask for a FCC to protect MSC financials (and TA commission). All good TA's in the USA still offered full cash refunds as an option. 

I guess I read it that the TA benefits with the commission... as opposed to the pax getting the cash back...the TA has no incentive to see a pax get the cash back....as we don't know who will be afloat (both cruise lines and TAs)

Had read other posts claiming the price to use a FCC was more than a straight booking.

While I own a small amount of RCL  (bought when it bottomed out)... I recognize the risks

Fingers crossed for MSC. We really enjoy YC

Edited April 26, 2020 by Fogfog

[Robinsoncruiseso]

On 4/26/2020 at 10:15 AM, Até said:

That seems to be more of an issue with using travel agents.  I can understand MSC  making a difference in their commission if customer is using a FCC.  Is MSC pulling back commissions from TA's on the cancelled cruises?

No they are not.  As long as final payment had been made

 

[Robinsoncruiseso]

There is a lot of misinformation on this post.   

1.  Prices on new cruises are the same regardless if paid by FCC or cash.  When booking a new cruise you may either, put a cash deposit down now and then apply the FCC OR wait until FCC is issued and use to book new cruise.

2.  If the cruise was cancelled and paid in full, the original TA received commission as per contract.  Does not matter if you take FCC or refund.

3.  Your FCC can be used to book a cruise with the original TA, a new TA or direct with MSC.  Commission is paid on new booking.

4.  MSC is not running out of money.  See all those container ships out there.....they are still sailing.

5.  News flash...those who originally booked with a TA may be getting their refund or FCC quicker as the request form was open to TA's before it was open to those who booked direct.  If your TA did not take care of this for you the day the cancellations happened, may want to look at a different TA.

[JP82]

This seems like scare-mongering and a misleading title. Maybe some of us need to calm down.

 

I have an FCC from a cancelled April Cruise. I see the cruise in November, I want to use it on. It's the following cruise on Grandiosa from one I am already on that I will make a b2b, I have been considering it since I booked the initial one last year. It is the same price now, as it has been every time I have browsed and looked for the last few months.

 

So once I am certain that I am going to do it. I will use my FCC to book it at the advertised price!? Or am I missing something here?

[sidari]

53 minutes ago, Robinsoncruiseso said:

There is a lot of misinformation on this post.   

1.  Prices on new cruises are the same regardless if paid by FCC or cash.  When booking a new cruise you may either, put a cash deposit down now and then apply the FCC OR wait until FCC is issued and use to book new cruise.

2.  If the cruise was cancelled and paid in full, the original TA received commission as per contract.  Does not matter if you take FCC or refund.

3.  Your FCC can be used to book a cruise with the original TA, a new TA or direct with MSC.  Commission is paid on new booking.

4.  MSC is not running out of money.  See all those container ships out there.....they are still sailing.

5.  News flash...those who originally booked with a TA may be getting their refund or FCC quicker as the request form was open to TA's before it was open to those who booked direct.  If your TA did not take care of this for you the day the cancellations happened, may want to look at a different TA.

I would think that competition rules would not allow MSC to transfer money from their merchant company to the cruise company.

[sfaaa]

1 hour ago, sidari said:

I would think that competition rules would not allow MSC to transfer money from their merchant company to the cruise company.

 I would assume fund can be transferred  between parent and subsidiaries as inter co loans.

[amurray88]

My TA didn't charge any admit fee at all to cancel our cruise. My concern with the prices for FCC is that with my TA I'm able to negotiate prices and a discount, I can't do that with MSC if I'm using FCC. The price of my cruise was $1540, my TA spent time working it all out and done it for £1,380.... If I have to book with MSC I'd need to pay the $1540. 

 

I took the refund option, just struggling to find a way where I would gain out of the FCC...I can only see me losing.

 

To be clear with what I mean, cruise prices are so high for next year that I'd need to put a substantial amount of money towards a cruise even with 125% and in reality I'd never have paid that money if I didn't have FCC.

[Robinsoncruiseso]

7 hours ago, amurray88 said:

My TA didn't charge any admit fee at all to cancel our cruise. My concern with the prices for FCC is that with my TA I'm able to negotiate prices and a discount, I can't do that with MSC if I'm using FCC. The price of my cruise was $1540, my TA spent time working it all out and done it for £1,380.... If I have to book with MSC I'd need to pay the $1540. 

 

I took the refund option, just struggling to find a way where I would gain out of the FCC...I can only see me losing.

 

To be clear with what I mean, cruise prices are so high for next year that I'd need to put a substantial amount of money towards a cruise even with 125% and in reality I'd never have paid that money if I didn't have FCC.

If you book the cruise next year it will be the same price, cash or FCC.  Have your TA book it.  Then apply the FCC or Cash.  Only difference is if you had a $2000 cruise previously and took the refund, you would have $2000 to apply to new cruise.  If you took the FCC, you would have $2500 to apply to new cruise.

[BermudaBound2014]

16 hours ago, JP82 said:

This seems like scare-mongering and a misleading title. Maybe some of us need to calm down.

 

I have an FCC from a cancelled April Cruise. I see the cruise in November, I want to use it on. It's the following cruise on Grandiosa from one I am already on that I will make a b2b, I have been considering it since I booked the initial one last year. It is the same price now, as it has been every time I have browsed and looked for the last few months.

 

So once I am certain that I am going to do it. I will use my FCC to book it at the advertised price!? Or am I missing something here?

 

Fair enough. In retrospect, I can see how someone could view the post as scare-mongering for those outside of the USA. My apologies for not being clear. My statements apply only to consumers in the USA. MSC has different policies for each region and I am certainly in no position to speak for how MSC is running promotions in the UK.  However;  for USA citizens, my title is directly on-point as the price differences are already in play in terms of promotions which can not be applied to those holding a FCC. 

 

17 hours ago, Robinsoncruiseso said:

There is a lot of misinformation on this post. 

 

1.  Prices on new cruises are the same regardless if paid by FCC or cash.  When booking a new cruise you may either, put a cash deposit down now and then apply the FCC OR wait until FCC is issued and use to book new cruise. As a travel agent in the USA,  I find it hard to believe that you are not advising your clients of the disclaimer on FCC certs which read: "FCC Can Not Be combined with any future promotion" . The disclaimer allows the cruise industry to lobby for "NEW" income (we've already went over the fact that FCC's are not new income stream) by offering promotions that can not be used in combination with FCC certs. IMO; Cruise lines need NEW income and will be offering many incentives for those who are paying in new cash. Time will tell, but I"ll be more than happy to revisit this thread in the fall :).

 

2.  If the cruise was cancelled and paid in full, the original TA received commission as per contract.  Does not matter if you take FCC or refund It is my understanding that the offer to protect commission on cash refunds (not FCC) was only temporary on the first round of cruises that were covid cancelled by the cruise line. Everything I've read is pointing to reduced (or no) commission on cancelled cruises where the client takes cash refunds but  extra incentives to agents who can convince their clients to accept FCC.  Of course, each cruise line has their own policy, but there can be no doubt that cruise lines are making every attempt possible to encourage guests to select FCC. Here's an article discussing how travel agents are no longer receiving commission until the ship physically sails. This means no commission if the guest selected a cash refund and did not rebook with the same TA (which is a bonehead, bat karma move, but my guess is it it will happen)

"Some also, at least at the outset of the crisis, paid commissions on refunded bookings.

But those policies have been changing as fast as companies' expected travel resumption dates. Some of the companies that were paying commissions on all canceled travel have been moving away from that, saying such policies were not sustainable with an extended shutdown looming."

 https://www.travelweekly.com/Travel-News/Tour-Operators/Commission-payments-becoming-a-sore-point-for-advisors 

 

17 hours ago, Robinsoncruiseso said:

3.  Your FCC can be used to book a cruise with the original TA, a new TA or direct with MSC.  Commission is paid on new booking. Is suspect this statement is true. I also suspect commission will be paid on FCC's on all cruise lines regardless where the booking originated. I do not believe for one moment that full commission will continue to be paid to travelers who insist on a cash refund (ie, commission occurs once the ship sails, pun intended).

 

4.  MSC is not running out of money.  See all those container ships out there.....they are still sailing. Since your response was quoting my OP, I ask you kindly go back and reread my statement before you put any words into my text. Never did I even remotely imply that MSC was running out of money.  While it is my belief that not all cruise lines will weather this storm, the example I used was NCL. I even went so far as to clarify that no one knows MSC's Cruise line financials since they only self report. But here is the very sad reality; no one knows which lines will sustain and in these turbulent times of unprecedented uncertainty, accepting a FCC involves risk. No one can  logically disagree with that statement.

 

5.  News flash...those who originally booked with a TA may be getting their refund or FCC quicker as the request form was open to TA's before it was open to those who booked direct.  If your TA did not take care of this for you the day the cancellations happened, may want to look at a different TA. This seems like you are self-promoting the use of TA's? While I do personally use the services of travel agencies, there is zero evidence to support the claim that good TA's have gotten cash for their clients. I might be persuaded to believe that clients who accepted FCC's are getting them faster (for obvious reasons), but cruise lines are being tight palmed when handing back cash refunds and I find it very hard to believe that my agent is any less competent than you are. In fact, she laughed when I pointed her to this statement.

 

 

It doesn't take a rocket scientist to understand that cruise lines want guests to accept FCC for the obvious reason of cash-flow. The same non-rocket scientists can also easily understand that said cruise lines are offering incentives to travel agencies who convince their clients to select a FCC.  Perhaps that is why various social media sites are seeing an increase in travel agents who insist FCC's are as good as a cash refund.

 

I'm a proponent of choices, and even if there was little financial risk, I would likely refuse a FCC. I have zero loyalty to any one cruise line and prefer to keep my options open. In addition; there are zero guaranties that every line will survive this storm. Fear mongering? I don't think so. Even a cursory examination of financials indicate that unless ships get sailing by the fall there will very likely be causalities.

 

Bottom line; It is irrefutable that accepting a FCC involves significantly more financial risk than a cash refund.  Anyone who suggests otherwise is either misinformed or dishonest.

[slei15]

1 hour ago, BermudaBound2014 said:

1.  Prices on new cruises are the same regardless if paid by FCC or cash.  When booking a new cruise you may either, put a cash deposit down now and then apply the FCC OR wait until FCC is issued and use to book new cruise. As a travel agent in the USA,  I find it hard to believe that you are not advising your clients of the disclaimer on FCC certs which read: "FCC Can Not Be combined with any future promotion" . The disclaimer allows the cruise industry to lobby for "NEW" income (we've already went over the fact that FCC's are not new income stream) by offering promotions that can not be used in combination with FCC certs. IMO; Cruise lines need NEW income and will be offering many incentives for those who are paying in new cash. Time will tell, but I"ll be more than happy to revisit this thread in the fall :).

Nowhere on the FCC certificate nor anything else I have read or seen does that language exist for the US. See attached terms and conditions from the file. 

[wakey16]

On 4/26/2020 at 4:45 AM, phissy said:

My understanding is that I can apply FCC to cruise booked and taken before Dec31,2021.

may only be applied once, cannot change to another cruise later. I have cruises booked for Dec 2021 and plan to apply my FCC to one when I receive it.

I have been given a FCC 150% with NCL and have an email stating the cruise can be take any time up to Dec 2022. We did request a refund from the agent on  15th March but as with many people nothing yet, not sure if I should think about rebooking, just not sure.

[Roger88]

Its a perfect example of advertising campaign. They want to hold on to your money and keep you attached to their company via FCC credit. I dont say that its a bad thing, but in my personal opinion its always better to keep money in your pocket... even if it costs more for real money rather than with the credit. 

[BermudaBound2014]

1 hour ago, slei15 said:

Nowhere on the FCC certificate nor anything else I have read or seen does that language exist for the US. See attached terms and conditions from the file. 

 

As you know, MSC changes their website daily. I give my absolute word (my oath probably doesn't matter to strangers on the internet but it matters greatly to anyone who knows me) that the language I quoted was a direct cut and paste from MSC. FCC Can Not Be combined with any future promotion" I just did a quick search and can no longer find the exact language (which would be amazing for consumers), but I did find this ommission in the FCC FAQ, which, at one time clearly had additional terms and conditions and MSC has erased them all except the they forgot to erase beginning of the sentence with the word "You"....... 

 

 

And it's not just MSC that has (or had) those restrictions. Here is a cut and paste from HAL. The reason I am familiar with this is because a friend quoted a new HAL cruise with the promo "get it all" (or something like that) and could not get the free drinks and gratuity offered with the promo if using her FCC. https://www.hollandamerica.com/en_US/book-with-confidence.html

 

 

BTW: I would not accept a FCC on any cruise line. IMO, they are all playing shell games in an attempt to stay afloat.  These are really tough times with an uncertain end. I love cruising and would like nothing more than to see each line survive and thrive.