Cruise cancelled [take refund or future credit?]

[2muchfun]

My wife and I are both retired and had been taking 2-3 cruises each year. Our cruise that was scheduled for next week was cancelled. The cruise company has offered us 100% of our money back ($2650), or 125% cruise credit. What would you do - take the cash now or the credit? If we take the 125%, we can get cash back anytime through 12/31/21. We have 1 1/2 years of expenses in cash. My concern is the health of the cruise companies in this uncertain time.

[greg24]

Refund. They may not exist once you want to use the future credit.

[decapod10]

We're in a similar situation with Disney Cruise Line, we ended up taking the 125% credit, mainly because I would be very surprised if Disney Cruise Line went out of business, though strongly considered the refund even then. But, yeah if you're uncertain about whether the cruise line is going to go bankrupt, then take the cash.

[orlandoman]

My March 29th NCL cruise was cancelled with the same 125% future cruise credit or 100% refund back to credit card. I am taking the 100% cash back. If you look at the 3 major cruise lines they are all down big time, NCL's 52 month high was $59.78, it's $7.66 right this moment. I wouldn't be surprised if bankruptcy isn't in the cruise industry's future. Or, what future cruise prices will be. I'm just wanting to break even, at this point.

[blurryvision]

Get the refund. If and when this outbreak situation blows over, you can rethink about whether you want to go on another cruise. I expect heavy discounts in the future.

[Gufomel]

Take the refund and invest it. I’d say the expected return is higher than taking the credit and hoping the cruise line stays afloat (pun intended).

[bob60014]

Cash is king!

[jebmke]

Refund. They may not exist once you want to use the future credit.

this

[renue74]

I've considered buying CCL stock, but did some research this morning. Almost 40% of their corporate debt is due in 2020 and 2021, which would be a big chunk for a successful cruise line to pay. They will have to end up renegotiated debt terms or filing Ch. 11 and forcing debt negotiations.

Take the cash refund...and buy toilet paper.

[TLC1957]

Take the cash....if and when they come back they will offer significant discounts to get folks back on the ships.

[BogleFanGal]

I wonder if Virgin Cruises will survive...Branson has deep pockets, but it was a brand new line and concept that hasn't even been tested yet - they sunk a ton of money into Scarlett Lady, their first ship, maiden voyage was to supposed to be March 26, I think!

[ResearchMed]

I wonder if Virgin Cruises will survive...Branson has deep pockets, but it was a brand new line and concept that hasn't even been tested yet - they sunk a ton of money into Scarlett Lady, their first ship, maiden voyage was to supposed to be March 26, I think!

And Ritz Carlton Cruises was just starting up as well. I think their first voyage was to sail sometime like this June.
Ouch.

RM

[teCh0010]

Take the refund and invest it in cruise line stock. The risk is the same (Bankruptcy and get nothing) but the upside is much bigger than 25%

I feel like NCL is in the weakest position and most likely to go out of business.

[student]

I wonder if Virgin Cruises will survive...Branson has deep pockets, but it was a brand new line and concept that hasn't even been tested yet - they sunk a ton of money into Scarlett Lady, their first ship, maiden voyage was to supposed to be March 26, I think!

They cancelled my cruise and offer either 200% cruise credit or refund + 25% cruise credit. Difficult decision.

[1210sda]

Very timely post.

I was considering taking the 125% future credit, but have been convinced by other posters that Cruise line may not be around.

[NavyIC3]

If the cruise company refunds the money to a credit card is it possible to have the credit card company deposit the money to a bank account or send a check for the refund amount?

[Mr.BB]

Take the refund now. Odds are you could probably get the same cruise later on at a significant discount.

[bluebirdy]

I'd take the cash refund on all major cruiselines except Disney which is least likely to go under.

[alpenglow]

Refund. They may not exist once you want to use the future credit.

100% Refund

[F150HD]

same exact thread a few days ago, did you do a forum search?

at the rate its going, no way of knowing if some of these cruise lines will be around in X months or years.....I hope they survive but....on that note, cash refund seems prudent to me.

[Ketawa]

If the cruise company refunds the money to a credit card is it possible to have the credit card company deposit the money to a bank account or send a check for the refund amount?

If it's a card that you use regularly (and pay off in full, I hope), it will either count towards your payment for your most recent statement, or offset charges made until your next statement closing.

If you don't use the card and will have a negative balance, you probably need to ask your credit card company. This has happened to me in the past with some infrequently used Amex cards, and after a couple statements with a negative balance, they automatically deposit it into my checking account.

[student]

If the cruise company refunds the money to a credit card is it possible to have the credit card company deposit the money to a bank account or send a check for the refund amount?

They will automatically send you a check after one or two months. I think it may be due to some anti money laundering law.

[RonSwanson]

If you didn't currently have a ticket, would you be willing to give them thousands of dollars now for an increase in value in the future knowing all of the risks?

Personally I would get a refund.

[THY4373]

Refund no question. We haven't hit bottom yet we have no idea how long the cruise industry will be down or if they will survive.

[BogleFanGal]

I wonder if Virgin Cruises will survive...Branson has deep pockets, but it was a brand new line and concept that hasn't even been tested yet - they sunk a ton of money into Scarlett Lady, their first ship, maiden voyage was to supposed to be March 26, I think!

They cancelled my cruise and offer either 200% cruise credit or refund + 25% cruise credit. Difficult decision.

If it were one of the majors like RC, Disney, with multiple cruise brands, that 200% is a nice deal...I'd consider it. But Virgin is totally unproven: hasn't sailed a single voyage...brand new ship, unproven cruise brand. And I imagine it would be way too easy for Branson to declare bankruptcy (since the cruise line is probably a separate LLC from the other Virgin brands he owns), take his toys and go home. You might get the money back in court, but who the heck needs that delay and hassle? I'd take the refund, for sure.

[alfaspider]

I'd take the cash refund on all major cruiselines except Disney which is least likely to go under.

I wouldn't be so sure about Disney. Not sure about the legal relationships with the parent, but there's probably a non-zero chance it could declare bankruptcy even if the parent is in reasonable shape.

You do not want to be an unsecured creditor to a cruise line right now. Take the money why you still can.

[oldcomputerguy]

A couple of posts speculating on possible business bailouts were removed. Discussion of proposed legislation is prohibited by forum policy. See Politics and Religion:

Note that discussions of proposed laws or regulations are prohibited.

[Sandtrap]

Full refund only
J🏝

[Trader Joe]

My wife and I are both retired and had been taking 2-3 cruises each year. Our cruise that was scheduled for next week was cancelled. The cruise company has offered us 100% of our money back ($2650), or 125% cruise credit. What would you do - take the cash now or the credit? If we take the 125%, we can get cash back anytime through 12/31/21. We have 1 1/2 years of expenses in cash. My concern is the health of the cruise companies in this uncertain time.

Easy answer. I would take the 100% refund.

[Soul.in.Progress]

Definitely refund. There are too many uncertainties with future cruise credit use.

[Jim Profit]

Take the refund NOW, and if the cruise line is dragging their feet do not hesitate to dispute the charge with your credit card company. We were scheduled to take a cruise the week of March 16th, and it was cancelled the week beforehand. After waiting on hold for 3+ hours the cruise company said they would process a 100% refund back onto our Bank of America credit card, that was March 13th. Today is April 4th, and there is still no credit for the trip put back on our credit card. Called the cruise line again and they claim to have submitted the refund March 13th, but is is being "held up" by our credit card issuer. Called Bank of America and they are saying that statement by the cruise line is not accurate, and they have nothing from the cruise line at all. Needless to say we have now initiated a dispute with Bank of America, and I wish we would have done it sooner. The cruise lines have every incentive to drag their feet here, as the more refunds they process the closer they will inch to probable bankruptcy.

[CWRadio]

I have a river cruise with Uniworld for the end of May which has not been canceled yet.
When I book the cruise in September the contract stated if Uniworld cancel the cruise you will receive a cash refund.
Last week Uniworld changed there cancellation policy. If Uniworld cancels you will receive future cruise credit and add the words force majeure to the terms and conditions.
I would like to get a cash refund for all the reasons stated on the blog as well as being older and not knowing the future.
Questions:
Can Uniworld change my TC?
Any advice on what I can do? Thanks

[Nowizard]

In our case, it would be a refund since we will not go on another cruise after the recent past of illnesses on them, including the smaller ships. I would take a refund anyway if offered.

Tim

[New Providence]

I wonder how society will address "vacation" going forward. Many that were neutral about cruises will now never get on one. Projections are that air travel will also drop significantly. Will people travel more domestically? Work harder and avoid vacation time? Cruises will remain for low-income folk?

[student]

I also chose to take the full refund from Virgin Voyages. (Our cruise was cancelled.)

[stan1]

Take the refund now. Odds are you could probably get the same cruise later on at a significant discount.

I'd agree with this, fares will be discounted for a few years after it is safe to travel again. First you don't know when it will be safe to travel. Second if your criteria for safe travel is you being vaccinated not everyone is going to be wiling and able to rush out and book a cruise once they too are vaccinated. There will be excess capacity and good prices for years I think.

[Iorek]

Take the refund now. Odds are you could probably get the same cruise later on at a significant discount.

I'd agree with this, fares will be discounted for a few years after it is safe to travel again. First you don't know when it will be safe to travel. Second if your criteria for safe travel is you being vaccinated not everyone is going to be wiling and able to rush out and book a cruise once they too are vaccinated. There will be excess capacity and good prices for years I think.

I actually think there is a lot of uncertainty about future cruise prices, but that also argues for taking the refund.

It’s possible that either as a result of a lot of people having credits that they want/need to use in 2021, or perhaps some lines going out of business, that demand for cruise cabins is strong next year and prices even go up. Rather than be locked into a credit better to have the flexibility.

[The Broz]

Count me in the 'refund' camp.

A bird in the hand....

[rj49]

Take the refund while you can. Airlines like Lufthansa are doing their best to deny passengers refunds on cancelled flights, making them take a voucher instead. I saw a chart showing that most airlines have under 60 days of cash left, but over 100 with the value of already-sold tickets. The more who ask for refunds, the less likely they are to survive. It's even worse with cruise lines, given the risks of being stuck at sea on an infected ship and being stuck for an extended time with high-risk populations and enforced physical closeness and shared buffet and other facilities. Carnival also just told the SEC it's costing them $2-3 million to maintain each ship with a full crew now and $1 million for every ship with minimal crew. I can't see Seattle or Vancouver or any European port letting in cruise ships this summer, which ruins the summer season, and the huge risk next winter is that cruises start again right when there's a high possibility of another winter outbreak, as happened with the Spanish flu in 1918.

I've gone on probably 30 cruises the past 5 years, but in the future if I travel it will be to a warm coastal area where I can bike and find lots of personal space, or if I want the sun/food/pool combination in winter, places like Puerto Vallarta or Cabo all-inclusive resorts offer a similar experience without the significant risks.

[TravelGeek]

I have a river cruise with Uniworld for the end of May which has not been canceled yet.
When I book the cruise in September the contract stated if Uniworld cancel the cruise you will receive a cash refund.
Last week Uniworld changed there cancellation policy. If Uniworld cancels you will receive future cruise credit and add the words force majeure to the terms and conditions.
I would like to get a cash refund for all the reasons stated on the blog as well as being older and not knowing the future.
Questions:
Can Uniworld change my TC?
Any advice on what I can do? Thanks

I don’t think there is anything you can or should do now.

If and when Uniworld cancels the cruise, I would insist on a cash refund in accordance with the original contract you (and they) agreed to. It doesn’t make sense to me that a contract can unilaterally be altered after signing. If they refuse, I would pursue this through my credit card company.

If they by some miracle don’t cancel the cruise (where were you planning to go?), you are in a pickle and may have to cancel and accept whatever credit is offered for that scenario under the original contract or their modified cancellation policies.

Disclaimer: not a lawyer

[DarthSage]

We have a cruise scheduled for late July, and if it's on, we're going. If not, we'll take the refund, versus FCC. I have no idea if we'll be able to cruise next summer, and with all those people having credits that need to be used, there's going to be a lot of competition for the rooms onboard any given ship. I think you only have until the end of 2021 to use the credit. Added bonus in our case, our planned cruise is 12 nights, for 6 people, so we're not talking a small amount of money.

I do hope we get to go, though. We're really looking forward to it.

[calmaniac]

We have a cruise scheduled for late July, and if it's on, we're going. If not, we'll take the refund, versus FCC. I have no idea if we'll be able to cruise next summer, and with all those people having credits that need to be used, there's going to be a lot of competition for the rooms onboard any given ship. I think you only have until the end of 2021 to use the credit. Added bonus in our case, our planned cruise is 12 nights, for 6 people, so we're not talking a small amount of money.

I do hope we get to go, though. We're really looking forward to it.

Wow, interesting take. Until there is an effective vaccine that has tamped down the new infection rate, you couldn't get me on a cruise for free.

This just shows how we all process the same risk/reward information differently.

[chw]

In your situation I would take the refund. 125% of nothing is still nothing if they go bankrupt.

I’m have a variation of this with Gate 1 Travel. They are offering a travel 100% credit or refund (refund option loses travel insurance fee) for land only- to be used within 18 months. However, the airfare is only offering credit to be used for international travel by end of 2021 (likely before I will be doing international travel without a vaccine), and only can be used as part of a travel package with Gate 1. Waiting to see if the airline ends up cancelling the flight (booked for early May), which should force them to offer cash refunds, which I will opt for.

[Mapmaker]

Did anyone who requested a refund actually get their refund? The second week of my back to back cruise was canceled while we were on the ship. I immediately requested the refund via the link in their e-mail to me. That was on March 13th. Still no refund.
It’s just bizarre that the Celebrity web site lists that canceled cruise week as one of my past cruises and awarded loyalty points as if it sailed without a hitch.

[Outafter20]

Did anyone who requested a refund actually get their refund? The second week of my back to back cruise was canceled while we were on the ship. I immediately requested the refund via the link in their e-mail to me. That was on March 13th. Still no refund.
It’s just bizarre that the Celebrity web site lists that canceled cruise week as one of my past cruises and awarded loyalty points as if it sailed without a hitch.

We requested our refund from Norwegian on 3/23 and still have not gotten the refund. The website says it can take up to 90 days.

[NavyIC3]

Did anyone who requested a refund actually get their refund? The second week of my back to back cruise was canceled while we were on the ship. I immediately requested the refund via the link in their e-mail to me. That was on March 13th. Still no refund.
It’s just bizarre that the Celebrity web site lists that canceled cruise week as one of my past cruises and awarded loyalty points as if it sailed without a hitch.

We requested our refund from Norwegian on 3/23 and still have not gotten the refund. The website says it can take up to 90 days.

It's amazing that it takes up to 90 days to get a refund.

[student]

I requested refund from Virgin Voyages and it was credited about a week after.

[carolinaman]

Refund. They may not exist once you want to use the future credit.

+1. Cruise companies are in serious financial trouble. No guarantee they will survive and their debts (including to you) will be canceled. Take the refund.

[CWRadio]

As previous stated I booked on a Uniworld river cruise via Costco travel for May 20.
Uniworld is only offering future cruise credit if the cruise is cancelled by Uniworld.
I can cancel 30 days before May 30. I can get back (uniworld insurance ) 50% of my money plus 50% back in FCC as defined in there terms and conditions and Uniworld insurance agreement.
Question:
Wait past the 30 days and see if Uniworld changes there cancellation policy to cash and offer a cash refund (as Viking does) or loose half of my money and take the 30 day penalty paid in half cash and half FCC?
What do you think? Thanks

[Freefun]

Take the refund.