Question about nonrefundable deposit

[Joy1004]

DH and I are thinking about a Celebrity cruise in Feb. 2025 which we now have on hold.

 

I understand the nonrefundable deposit is $500. However, we could pay $496 to receive back that deposit before Nov. 2024 if we do not go. Please excuse my ignorance but what am I missing here? Why would we pay $496 to get back $500 (basically a difference of $4) or would both payments be  refunded?

 

Thanks for your help ~ we have not cruised in a number of years and find things have changed!

[KKB]

27 minutes ago, Joy1004 said:

DH and I are thinking about a Celebrity cruise in Feb. 2025 which we now have on hold.

 

I understand the nonrefundable deposit is $500. However, we could pay $496 to receive back that deposit before Nov. 2024 if we do not go. Please excuse my ignorance but what am I missing here? Why would we pay $496 to get back $500 (basically a difference of $4) or would both payments be  refunded?

 

Thanks for your help ~ we have not cruised in a number of years and find things have changed!

You are not missing anything.

There is NO reason to pay for a NR deposit, imo.

I'll make the deposit & MAYBE lose it should an emergency arise.

Why would I pay basically THE SAME AMOUNT more to get a refundable deposit...and lose it for sure??!!

It is NOT like that with all cruiselines. 

Annoying that my FAVORITE line does this.

NOW--you nearly always can change to another cruise date for $100pp change--a much better option.

I also always made an open booking on all our Celebrity cruises since it was then only $200 down. Used to be fully refundable if not used. Alas, that also has gone by the wayside. BUT $200 lost is better than $500!

[jelayne]

Every cruise we have priced the Refundable deposit has been considerably more than the Non Refundable deposit. 

[wrk2cruise]

2 hours ago, Joy1004 said:

DH and I are thinking about a Celebrity cruise in Feb. 2025 which we now have on hold.

 

I understand the nonrefundable deposit is $500. However, we could pay $496 to receive back that deposit before Nov. 2024 if we do not go. Please excuse my ignorance but what am I missing here? Why would we pay $496 to get back $500 (basically a difference of $4) or would both payments be  refunded?

 

Thanks for your help ~ we have not cruised in a number of years and find things have changed!

 

In either case your deposit is $500.   If you want this to be refundable up to 90 days prior to sailing then your cruise fare will be $496 higher than it would be if you accepted the non-refundable deposit option.  That additional $496 is not billed until final payment date.

 

The only time it might make sense is if you are booking way far in advance and aren't 100% sure you would take the cruise.

 

As others have said with the non-refundable deposit, if you cancel you get nothing back you lose the $500.   If however you can find another sailing you may wish to take you can move the deposit by paying a $100 pp admin fee so basically you lose $200 and apply $300 to the new sailing.

 

[Jim_Iain]

2 hours ago, Joy1004 said:

DH and I are thinking about a Celebrity cruise in Feb. 2025 which we now have on hold.

 

I understand the nonrefundable deposit is $500. However, we could pay $496 to receive back that deposit before Nov. 2024 if we do not go. Please excuse my ignorance but what am I missing here? Why would we pay $496 to get back $500 (basically a difference of $4) or would both payments be  refunded?

 

Thanks for your help ~ we have not cruised in a number of years and find things have changed!

 

Well for one you could do what I did a number of times when they raised the NR to Astronomical levels for Suites -- CS example below for a TA in 2025.   I booked a Refundable and closer in to cruise date the price had dropped for NEW BOOKINGS ONLY.      I cancelled and immediately re-booked at the Non-Refundable fare.

 

$3,458 RF vs a $1,800 deposit NR

[Joy1004]

Thank you all for your very helpful answers! You have given us some different scenarios to consider. 
 

We will have to think it over and you have all made that decision much clearer. Much appreciated!

[Luvtoeat]

We have almost the same situation for a Feb 2025 cruise except our additional amount is approx. $350.00 so do we pay the additional amount or lose the $500.00 deposit if we cancel? You never expect to cancel before final payment which would be a little over 3 months from now. We always take travel insurance to cover pre-existing conditions and I wonder if that would cover having to cancel before final payment or it only starts once we leave home for the cruise.

[wrk2cruise]

6 hours ago, Luvtoeat said:

We have almost the same situation for a Feb 2025 cruise except our additional amount is approx. $350.00 so do we pay the additional amount or lose the $500.00 deposit if we cancel? You never expect to cancel before final payment which would be a little over 3 months from now. We always take travel insurance to cover pre-existing conditions and I wonder if that would cover having to cancel before final payment or it only starts once we leave home for the cruise.

 

If you cancel before final payment you only lose the $500 deposit, you don't pay the $350.

 

If you have travel insurance and you cancel due to a covered reason before final payment the insurance would pay the $500 as it's a prepaid non-refundable payment.  Of course you lose the insurance premium in this case as well.   Most insurance company's will allow you to "open" the policy insuring the amount paid and then increase the coverage as you make additional non-refundable payments.  So you could open the policy only insuring the deposit amount, then increase it when you make air arrangements, make final payment etc.

 

If you move the reservation to another sailing by paying the $200 admin fee, many insurance companies will allow you to move the policy at no charge (maybe a one time only change).  Yet another option.

[leaveitallbehind]

To clarify, for non-suite US based bookings, the deposit amount required for a non-refundable deposit fare and a refundable deposit fare are the same.  There is no difference in the deposit amount required with each.  What is different is the fare base, which is higher on refundable deposit bookings.

 

With a refundable deposit booking you can change, modify, or cancel the booking as needed without penalty.  With a NRD booking you can change the booking for a fee, but if you cancel it altogether you will lose your deposit.  You can also convert a refundable deposit to NRD if desired prior to final payment without penalty.  You cannot convert a NRD to refundable, however.  

Edited July 27 by leaveitallbehind

[Luvtoeat]

Thanks for the responses. I need to check with the expert at the travel insurance agency to see if the insurance I will take within 21 days of deposit for pre-existing will let me cancel for a covered reason between the date policy is taken and final payment date. If that is the case no need to do a refundable deposit understanding that you can't just cancel for any reason but only a covered one.

I also need to look into a comment by prior poster that you can convert a refundable deposit to NRD prior to final payment without penalty, This would be an ideal situation but where can this information be be found on Celebrity website? 

[leaveitallbehind]

17 minutes ago, Luvtoeat said:

I also need to look into a comment by prior poster that you can convert a refundable deposit to NRD prior to final payment without penalty, This would be an ideal situation but where can this information be be found on Celebrity website? 

That was my response.  I don't believe that is published anywhere on the website (maybe on the booking terms fine print), but if you have a refundable deposit booking and want to convert it to NRD, you can do so prior to final payment by contacting whomever you booked through and they can process it.  It basically falls under the provision of changing, modifying, or canceling a refundable based fare with no penalty.

 

One caveat is if your category is sold out at the time you may not be able to do it as there would not be an active NRD fare in place to convert to then.

To be sure, call and ask. We have done this several times. You convert to the NRD program in place at the time.

 

As to your insurance scenario, you definitely will need to check with the insurance provider as to the terms & conditions and any restrictions regarding cancelation and then compare the insurance costs relative to the difference in refundable v NRD fares and cancelation penalties to see if that option holds value.

Edited July 27 by leaveitallbehind

[Luvtoeat]

17 minutes ago, leaveitallbehind said:

That was my response.  I don't believe that is published anywhere on the website (maybe on the booking terms fine print), but if you have a refundable deposit booking and want to convert it to NRD, you can do so prior to final payment by contacting whomever you booked through and they can process it.  It basically falls under the provision of changing, modifying, or canceling a refundable based fare with no penalty.

 

One caveat is if your category is sold out at the time you may not be able to do it as there would not be an active NRD fare in place to convert to then.

To be sure, call and ask. We have done this several times. You convert to the NRD program in place at the time.

 

As to your insurance scenario, you definitely will need to check with the insurance provider as to the terms & conditions and any restrictions regarding cancelation and then compare the insurance costs relative to the difference in refundable v NRD fares and cancelation penalties to see if that option holds value.

I am going to check with the travel agent as to being able to change from refundable to NRD and I will also check with Celebrity. It just seems that this would let people get around doing refundable by changing at the last minute and beat Celebrity out of the additional funds which they are trying really hard to get.

[leaveitallbehind]

27 minutes ago, Luvtoeat said:

I am going to check with the travel agent as to being able to change from refundable to NRD and I will also check with Celebrity. It just seems that this would let people get around doing refundable by changing at the last minute and beat Celebrity out of the additional funds which they are trying really hard to get.

Well all I can say is you are able to as we've done it.  The cruise line actually prefers NRD even at the lower rate as prior to them being offered, all deposits were refundable.  The average stateroom was booked and cancelled under those deposits an average of 8 times before a final booking was committed.  NRD fares were introduced to curb that.  And BTW, suite bookings have higher deposits and are only NRD for that very reason.

 

If you want the flexibility of changing you pay the premium fare with a refundable deposit.  But that flexibility also still allows for the NRD conversion.  Perhaps not many people realize that or decide to take advantage of it as the NRD fare and program still needs to be in place and attractive enough at the time of conversion.

 

And BTW, if your TA suggests that it cannot be done it may be because they are trying to preserve the higher commission from the higher refundable deposit fare.  Just saying....

Edited July 27 by leaveitallbehind

[wrk2cruise]

17 minutes ago, Luvtoeat said:

I am going to check with the travel agent as to being able to change from refundable to NRD and I will also check with Celebrity. It just seems that this would let people get around doing refundable by changing at the last minute and beat Celebrity out of the additional funds which they are trying really hard to get.

 

You can definitely convert from refundable to NRD before final payment as it's just considered a re-pricing.  The catch is that it's at prevailing rates so you pay whatever the NRD rate is with whatever promo is in place at the time.  Think of it as cancelling and rebooking which you certainly could do as well but that would mess with your insurance.  Celebrity just lets you reprice the reservation at the NRD rate code as it's less complicated then actually cancel/rebook.

 

As others have said the category can't be sold out and many times rates go up to not be beneficial as well.

[Luvtoeat]

7 minutes ago, wrk2cruise said:

 

You can definitely convert from refundable to NRD before final payment as it's just considered a re-pricing.  The catch is that it's at prevailing rates so you pay whatever the NRD rate is with whatever promo is in place at the time.  Think of it as cancelling and rebooking which you certainly could do as well but that would mess with your insurance.  Celebrity just lets you reprice the reservation at the NRD rate code as it's less complicated then actually cancel/rebook.

 

As others have said the category can't be sold out and many times rates go up to not be beneficial as well.

So that's the catch. You can switch but only at the current pricing which is almost always higher the closer to final payment date .We don't plan to cancel except for a covered reason so I really need to check with the travel insurance agency.

[leaveitallbehind]

27 minutes ago, Luvtoeat said:

So that's the catch. You can switch but only at the current pricing which is almost always higher the closer to final payment date.

That's the catch with any repricing.  But when we have decided to do it the last offered NRD pricing was still attractive enough v the refundable base fare pricing we booked at.

 

Enjoy your cruise.

Edited July 27 by leaveitallbehind

[Luvtoeat]

Just wanted to give an update after speaking to the boss of the travel insurance agency. He mentioned that I could initially insure only the deposit within the 21 days for the pre-existing for a lower premium and then at final payment to contact them to get balance of cruise covered and the total premium should be no more had I insured the total from the start. I never thought of doing that but it makes sense to pay a lower premium in case you have to cancel for a covered reason.

[wrk2cruise]

2 hours ago, Luvtoeat said:

Just wanted to give an update after speaking to the boss of the travel insurance agency. He mentioned that I could initially insure only the deposit within the 21 days for the pre-existing for a lower premium and then at final payment to contact them to get balance of cruise covered and the total premium should be no more had I insured the total from the start. I never thought of doing that but it makes sense to pay a lower premium in case you have to cancel for a covered reason.

 

Yes, but remember if you add any other non-refundable expenses to the trip (like air fare) prior to final payment contact the insurance company within the specified time to increase coverage by that amount to keep the insurance and the pre-existing conditions waiver.

[Iamcruzin]

I always purchase travel insurance anyway and it was a lot less to add the cruise ship insurance than pay the NRD fee. We have all intentions of going but life happens. 

[Luvtoeat]

1 hour ago, Iamcruzin said:

I always purchase travel insurance anyway and it was a lot less to add the cruise ship insurance than pay the NRD fee. We have all intentions of going but life happens. 

I don't think the coverage of the cruise line insurance is ever as extensive as what you can get from one of the major travel insurance websites and you can choose from many different companies depending mon the information you provide.

[Iamcruzin]

Just now, Luvtoeat said:

I don't think the coverage of the cruise line insurance is ever as extensive as what you can get from one of the major travel insurance websites and you can choose from many different companies depending mon the information you provide.

All I want to do is guarantee I get a refund or credit if I have to cancel for a covered event. I'm not buying it for the medical. I don't have to fly to port so I'm not worried about trip delays. Also the insurance companies charge you based on age. When I was younger and traveling with my children online travel insurance was cheaper than the cruise line as children were always free. As far as medical coverage you have to go through your own health insurance first and the trip insurance is your secondary insurance.

[Stuart Suss]

I have read conflicting answers to this question.

 

I book a voyage with a nonrefundable deposit. The price of the voyage for an identical class of stateroom drops prior to the final payment. I wish to reprice the voyage.

 

Is this a cancellation and rebooking for which I forfeit my nonrefundable deposit, or is a repricing permitted without forfeiture of the deposit?

 

Thank you.

[jelayne]

You can reprice with out a charge.  Becsure that the new fare includes any promotion you had at the original price or that the loss of the promotion is more than offset by the price savings.