Why Are Future Cruise Credits and Refunds Taking so Long?

[Host Jazzbeau]

New article on Cruise Critic:

Why Are Future Cruise Credits and Refunds Taking so Long?

[NavyCruiser]

Lots of issues with Ocean cruise lines.

 

We were very lucky when Gate1Travel's March European river cruise was canceled.  Upon our requests for a full refund, they refunded 100% of the cruise price as well as KLM's flights.  4 other family members from Hawaii also got 100% refund, including Delta's flight costs.

We were very surprised when we told them we want full refund, instead of FCC, they fully refunded back to our credit cards within a week.  Extremely pleased with Gate1Travel.

 

Now hope our Viking river cruise in France is still a go in late July....

[Coral]

I don't read most of CC's articles but someone sent me this the other day and I thought it was an awful article from a journalism stand point.They should be interviewing cruise execs and banks.  

[PaulS]

Seven weeks after my Avalon cruise was cancelled and seven weeks after I was told, in writing, that the refund would take four to six weeks, I still do not have the refund. When I called them last week, they told me it would be another four weeks. I’ll believe that when I see it.

The article says that part of the problem is backlog at the banks and credit card companies. Sorry, but I do not buy that. Other companies have processed refunds to my credit cards in a matter of days for returned merchandise in the last few weeks. 

[coevan]

22 hours ago, NavyCruiser said:

Now hope our Viking river cruise in France is still a go in late July..

 

 

sorry, but do not hold your breath

[CPT Trips]

On 5/13/2020 at 8:01 PM, PaulS said:

Seven weeks after my Avalon cruise was cancelled and seven weeks after I was told, in writing, that the refund would take four to six weeks, I still do not have the refund. When I called them last week, they told me it would be another four weeks. I’ll believe that when I see it.

The article says that part of the problem is backlog at the banks and credit card companies. Sorry, but I do not buy that. Other companies have processed refunds to my credit cards in a matter of days for returned merchandise in the last few weeks. 

Not surprised. We are having a similar repayment delay with Globus, both Globus and Avalon are part of the same company. The story we are getting, that the delays in processing refunds is because their staff are working from home, also lacks credibility. 
 

 

 

[jpalbny]

On 5/13/2020 at 8:01 PM, PaulS said:

The article says that part of the problem is backlog at the banks and credit card companies. Sorry, but I do not buy that. Other companies have processed refunds to my credit cards in a matter of days for returned merchandise in the last few weeks. 

 

PaulS, you have a good point here. This does seem to be a problem unique to cruise lines, and it doesn't make sense to me either.

 

I had plane tickets for China, leaving in less than 3 weeks on Delta. I had been holding on to them, even though I'd canceled the trip a while ago, to see if they'd cancel the flight. I figured if they canceled, I might be able to fight for a refund, instead of canceling myself and only being eligible for a voucher.

 

On Tuesday, they canceled the Detroit-Beijing leg. On Wednesday, I called and used their option for a call-back, as the wait time was several hours. They called back a few hours later, and once I asked them about the cancelled flight, they immediately offered a refund. No hassle, and they didn't even mention an option for a credit/voucher. They just asked if I would like a refund for the entire itinerary.

 

They said it could take up to two billing cycles, so I was expecting it to be slow. But yesterday, the refund posted to my AMEX. 

 

Whatever backlog there is at the CC/bank end, Delta seems to have it figured out, even though I am sure they are hemorrhaging cash these days. Quite pleased with their service at the moment.

[notamermaid]

Thank you to cruise critic for the article. If I was a river cruiser with a transaction of FCC or refund pending, I would only be half consoled. The regulation in the EU is 14 (working) days or two weeks - cannot remember the exact words. Now, with the situation as it is, skeleton staff, backlog, increased number of phone calls, I would be willing to wait four weeks. After that I would get nervous. I would love to know what the average "handling times" (is that the correct word?) of issuing FCC compared to refund is. If the time is FCC three weeks and the refund six weeks I seriously doubt the idea of cruise lines just being overwhelmed... even with prioritized handling of FFC.

 

notamermaid

 

[pully8]

Wonder how all those with FCC will be accommodated with a place on a cruise of their choice, once cruising begins again? It ties the person to the cruise line with no option of moving to a different one. 

[ural guy]

Our sailing on Vantage was canceled, and we agreed to a refund on 20 March.  No money has hit our account yet.  I've contacted them a few times, they say to have patience due to the backlog.

 

What I don't understand is that we were on the first Tulip cruise of the year, and I would think that refunds would come in order of the cruise sailing date.

 

I've had American Airlines refund money in about 10 days during this crisis, and United posted a voucher to our account the next day, as did Delta with a points flight.  

[Roger88]

This question has been asked before. These companies want to get hold of your money as long as possible to sustain their credit lines. Simple mathematics. All they have to do is wait till the last day of the credit period and then issue refund which will take another 90-120 days which will be enough to recover from the losses. I am not an expert in finance but this is how I see it 

[coevan]

OTOH, we received our refund from Ama in less than a week. We and our T.A. were in shock

[Coral]

9 minutes ago, coevan said:

OTOH, we received our refund from Ama in less than a week. We and our T.A. were in shock

Congrats! Ama is in good financial shape. Or I should say better than most ocean and river lines out there.

Edited May 18, 2020 by Coral

[AF-1]

On 5/16/2020 at 8:17 AM, pully8 said:

Wonder how all those with FCC will be accommodated with a place on a cruise of their choice, once cruising begins again? It ties the person to the cruise line with no option of moving to a different one. 

I took the FCC from AMA.  We have never been on river cruise;  AMA was to be our first one.  We will book a future cruise once we hear that both river and ocean cruises are back up and running.  I figure with the extra money from FCC; that will pay for our airfare next year.

[Roger88]

I think all these delays are connected with technical part of the question. I think it takes some other procedure for the system to process requests concerning FCC credits. While regular refunds go through bank systems, FFC credit is processed within the cruise company. Maybe I am wrong.. 

[Ride-The-Waves]

Likely depends on the company and how badly they need the cash.  Uniworld is into us fo $20,000 for a river cruise, now cancelled, in June.  Uniworld is privately owned and is part of 30 travel related companies, hotels, tour agencies, etc., of The Travel Corporation which had its beginning ins South Africa.  All the other elements os TTC are also hemorrhaging money.  They have offered 50 percent refund and the other 50 as FCC.  FCC is of no use to us as we are in that age group where "pre-existing conditions" become a factor.  Argh!

[Rorygirl4528]

Vantage cx my tulip trip on March 16 and I asked for a refund that day. They said the refund would take 6-8 weeks. I’m still waiting (May 25).  I called them and they said I was working my way to the top of the pile😱