Current Cancellation Policy??

[khuselid]

Hey all,

 

Am I the only one concerned about cancellation policy post 10/31? We are at the edge of having to pay our final on an 11/7 cruise and the Travel Assurance Plan ends as of 10/31. Our TA has been trying to pursue O regarding extension of that option but for now it's a no go.

 

For now any cruise sailing after 10/31 is subject to regular cancellation penalties. If anyone else has more info about this I would love to hear about it.

 

Thanks, Kim

[pinotlover]

When Oceania sent us our new final payment date in September for our November Nautica cruise, they likewise extended the cancellation penalty dates to that payment date.

 

Only ancedotal and may only apply to the Regatta and Nautica with no announcement of restart dates. If your ship has a restart date , I assume the normal payment and penalty dates apply.

[peyroutous]

I recently received a quote for a 17th November cruise on Riviera and was surprised that the final payment date was June 4th.

Previously FP was 60 days before sailing, Is this the “new normal” ?

[mauibabes]

K,

We are on the same trip with you and have others joining us in Monte Carlo like you will be.  Don’t panic! We will have been sailing for 20 days before you board so you will have been able to cancel long before your Sail date if there are any issues on Riviera. Our FP dates are 60 days from Sailing so August, no longer June. 
You call Oceania and speak to a Specialist and see what they tell you. Good luck and see you on Riviera. 
Bonnie and Gerry 
 

[PhD-iva]

We are also on the 17 November Rome to Miami TA on Riviera. The final payment date is June 20, unless I’m mistaken (been known to happen).

[LHT28]

24 minutes ago, peyroutous said:

I recently received a quote for a 17th November cruise on Riviera and was surprised that the final payment date was June 4th.

Previously FP was 60 days before sailing, Is this the “new normal” ?

Maybe the 60 day   date  was when they were unsure if the ship would be sailing

 Now it seems they will sail  so back to normal  rules

JMO

[peyroutous]

Already spoke to O specialist who confirmed the June 4th FP which is 5 months before the cruise!  
 

[arima22]

8 minutes ago, peyroutous said:

Already spoke to O specialist who confirmed the June 4th FP which is 5 months before the cruise!  
 

That is normal for longer cruises- check your terms and conditions policy statement.

[LHT28]

1 hour ago, peyroutous said:

Already spoke to O specialist who confirmed the June 4th FP which is 5 months before the cruise!  
 

The fine print

https://www.oceaniacruises.com/legal/terms-conditions/

[njhorseman]

7 hours ago, khuselid said:

Hey all,

 

Am I the only one concerned about cancellation policy post 10/31? We are at the edge of having to pay our final on an 11/7 cruise and the Travel Assurance Plan ends as of 10/31. Our TA has been trying to pursue O regarding extension of that option but for now it's a no go.

 

For now any cruise sailing after 10/31 is subject to regular cancellation penalties. If anyone else has more info about this I would love to hear about it.

 

Thanks, Kim

Earlier today NCL changed its final payment due date and hence the start of cancellation penalties for cruises departing for the remainder of 2021 to the 60 days that until today had been in place only  through October. Since Oceania's final payment policies during the pandemic have mimicked those of its corporate sibling I suspect that O will shortly move its due date for the remainder of 2021 to 60 days out.

[khuselid]

Now that would be so awesome! I'll keep an ear to the ground!

[CAG]

The final payment date for the November 17 Riviera sailing is 150 days prior because that sailing 16 days.  Final payment for cruises less than 15 days is 90 days prior.

[PhD-iva]

5 hours ago, CAG said:

The final payment date for the November 17 Riviera sailing is 150 days prior because that sailing 16 days.  Final payment for cruises less than 15 days is 90 days prior.

CAG, are you on that sailing? We are, and are very excited! See you soon!

[pinotlover]

This reminds me of the old joke line of the two stores selling pistachios, one for $4/ lb the other for $1/ lb. People would clamor down to the store advertising $1 /lb pistachios, but he never had any, but was willing to sell you something else. If you really wanted pistachios you went to the store selling them for $4. A lot of people never fiqure it out.

 

I would like to sail. I have long paid final payment for cruises 3-5 months out depending upon length of cruise. I am bright enough to realize that except for a small exception, those cruises with 60 day pre-payment dates aren’t going anywhere. I will gladly pay $4 lb for pistachios instead of $1 /lb for false promises. Can’t have it both ways.
 

Another fact in this matter, a few years back, there was an article about the high bookings to cancellation ratio for cruises. Industry wide I believe the number was about 1 actual sailing for every three bookings. Oceania’s numbers weren’t much different. The fact was the longer one had, and closer to the actual cruise, to cancel, they would; thus leaving the ships with less time to scramble and do late fillings.

 

This topic also goes along with the Thread on waitlisted cabins. A lot of ships are currently waitlisted, some up to 2 years out. We won’t have actual statistical data on whether that 1in 3 ratio holds for at least another 18 month or miraculously improves. I doubt that the cruise lines will bet against historical data and leave abbreviated periods between payment to cruise.

[khuselid]

Just to clarify I am not against o’s cancellation policy for longer sailings. I too have gladly paid months ahead of time for a longer cruise. The travel assurance program expires on October 31, before that one can cancel any cruise 15 days before sailing because of the pandemic. I have no intention of cancelling but if there is an outbreak that makes it feel less safe to sail, and O decides to go anyway, there could be lots of dollars to lose. It does seem that things are heading in a positive direction virus wise, but a lot can happen in 5 months! I’m not that anxious about it, if I was I wouldn’t have booked. I just wondered how others were handling his uncertainty. 

[pinotlover]

8 minutes ago, khuselid said:

Just to clarify I am not against o’s cancellation policy for longer sailings. I too have gladly paid months ahead of time for a longer cruise. The travel assurance program expires on October 31, before that one can cancel any cruise 15 days before sailing because of the pandemic. I have no intention of cancelling but if there is an outbreak that makes it feel less safe to sail, and O decides to go anyway, there could be lots of dollars to lose. It does seem that things are heading in a positive direction virus wise, but a lot can happen in 5 months! I’m not that anxious about it, if I was I wouldn’t have booked. I just wondered how others were handling his uncertainty. 

From experience arranging private tours for cruises into early 2022, those with your anxiety are cancelling those cruises and rebooking for late 2022-2023. 
 

Perhaps that decision is best for some to relieve stress.

[CAG]

18 hours ago, PhD-iva said:

CAG, are you on that sailing? We are, and are very excited! See you soon!

Yes, I will be on this sailing.  I am taking my Sister-in-law with me.  Since I am usually a solo traveler I have to pay for 2 so I might as well bring someone with me.  Oceania has been my cruise line of choice for a number of years so this will be like going home.

[PhD-iva]

CAG, We have an active rollcall. Hope to “see” you there.😉

Edited June 6, 2021 by PhD-iva

[jagoffee]

22 hours ago, pinotlover said:

This reminds me of the old joke line of the two stores selling pistachios, one for $4/ lb the other for $1/ lb. People would clamor down to the store advertising $1 /lb pistachios, but he never had any, but was willing to sell you something else. If you really wanted pistachios you went to the store selling them for $4. A lot of people never fiqure it out.

 

I would like to sail. I have long paid final payment for cruises 3-5 months out depending upon length of cruise. I am bright enough to realize that except for a small exception, those cruises with 60 day pre-payment dates aren’t going anywhere. I will gladly pay $4 lb for pistachios instead of $1 /lb for false promises. Can’t have it both ways.
 

Another fact in this matter, a few years back, there was an article about the high bookings to cancellation ratio for cruises. Industry wide I believe the number was about 1 actual sailing for every three bookings. Oceania’s numbers weren’t much different. The fact was the longer one had, and closer to the actual cruise, to cancel, they would; thus leaving the ships with less time to scramble and do late fillings.

 

This topic also goes along with the Thread on waitlisted cabins. A lot of ships are currently waitlisted, some up to 2 years out. We won’t have actual statistical data on whether that 1in 3 ratio holds for at least another 18 month or miraculously improves. I doubt that the cruise lines will bet against historical data and leave abbreviated periods between payment to cruise.

I have never seen any actual statistics concerning the % people that cancel before final payment.  I am not surprised that it is very high.  I know from reading CC that a significant number of people make bookings “just in case”.  Some cruise companies will even allow you to make s

duplicate bookings on the same cruise.

 

I have never completely understood why cruise companies continue to offer fully refundable deposits.  Celebrity is attempting to address this issue by offering a significant cruise price difference between cruises with non refundable and fully refundable deposits.  ( The refundable is still liberal with a $100 pp penalty plus FCC).

 

Do you think the cruise companies believe that they will be in a significant competitive disadvantage in the US if they do not offer fully refundable deposits?  I suspect the policy relates to the desire to maintain a higher stock price, because investors value future bookings even if they are fully refundable.  

 

[davencl]

12 minutes ago, jagoffee said:

 I suspect the policy relates to the desire to maintain a higher stock price, because investors value future bookings even if they are fully refundable.  

 

I have a question. Do  general accounting standards account for future bookings?  I hadn't considered that. 

[pinotlover]

19 minutes ago, jagoffee said:

I have never seen any actual statistics concerning the % people that cancel before final payment.  I am not surprised that it is very high.  I know from reading CC that a significant number of people make bookings “just in case”.  Some cruise companies will even allow you to make s

duplicate bookings on the same cruise.

 

I have never completely understood why cruise companies continue to offer fully refundable deposits.  Celebrity is attempting to address this issue by offering a significant cruise price difference between cruises with non refundable and fully refundable deposits.  ( The refundable is still liberal with a $100 pp penalty plus FCC).

 

Do you think the cruise companies believe that they will be in a significant competitive disadvantage in the US if they do not offer fully refundable deposits?  I suspect the policy relates to the desire to maintain a higher stock price, because investors value future bookings even if they are fully refundable.  

 

I believe that marketing is very much a part of it, along with casting the net as wide as possible. My TA snarled at Viking where one can now make reservations up to three (3) years in advance on some cruises. Longer lead times, more cancellations, just like when Oceania got in the game and went from about 18 months to two years out on reservations. They get to hold your money longer, which is part of the game. The number of people on the ship doesn’t change, just how long they hold your cash. 
 

For many cruisers $1500 is mostly chump change. They’ll make six reservations, over 2-3 lines in a year they’re interested in, and decide come payment time which one or two to take. No lose proposition for them.

Edited June 7, 2021 by pinotlover

[LHT28]

33 minutes ago, jagoffee said:

I have never completely understood why cruise companies continue to offer fully refundable deposits.  Celebrity is attempting to address this issue by offering a significant cruise price difference between cruises with non refundable and fully refundable deposits.  ( The refundable is still liberal with a $100 pp penalty plus FCC).

 

 

some of the main stream line now offer  non refundable  deposits  but if you only lose $100  it seems like people do not care ..of course many people do not read the fine print that goes with the cheaper cruises offered with non refundable deposits 

 

Oceania used to have a lower deposit  but many people were booking several cruises for the same time frame then they decide what cruise to do  then dump the remaining one 

The cruise line then has to drop the price to sell the empty cabins

Then  they upped the deposit  & put in the Admin fee  if you canel at a certain time

I guess  it works for them as they still use that formula

 

I can see in the next few months  there will a case of demand  & they will sell every cabin they offer

JMO

[jagoffee]

38 minutes ago, davencl said:

I have a question. Do  general accounting standards account for future bookings?  I hadn't considered that. 

I cannot answer your question with absolute certainty, but I have always believed that the answer is yes.  I know Cruise lines always make comments about future bookings.

34 minutes ago, pinotlover said:

I believe that marketing is very much a part of it, along with casting the net as wide as possible. My TA snarled at Viking where one can now make reservations up to three (3) years in advance on some cruises. Longer lead times, more cancellations, just like when Oceania got in the game and went from about 18 months to two years out on reservations. They get to hold your money longer, which is part of the game. The number of people on the ship doesn’t change, just how long they hold your cash. 
 

For many cruisers $1500 is mostly chump change. They’ll make six reservations, over 2-3 lines in a year they’re interested in, and decide come payment time which one or two to take. No lose proposition for them.

I also believe that Viking Ocean Cruises standard policy requires final payment much earlier than other cruise lines.

[PhD-iva]

48 minutes ago, davencl said:

I have a question. Do  general accounting standards account for future bookings?  I hadn't considered that. 

Ah ha! Finally I will get to use my PhD in accounting on this forum. 🤪
When any company receives a deposit for a good or service that will be provided in the future, they book the cash as an asset and the same amount as a liability.
So there is no impact on revenue when a deposit is made. I agree that Equity analysts are very interested in future bookings.

[pinotlover]

Assets and liabilities stay in sync, but cash flow is altered.

 

As Popeye’s buddy would say “ I will gladly pay you next Tuesday for a hamburger today.” What a company prefers is “ why don’t you pay me today for that hamburger next Tuesday!” 
 

Profits are great, Cash Flow is King!