Princess Cruise: Take Cash or Greater Future Credit

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jimmieg
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Princess Cruise: Take Cash or Greater Future Credit

Post by jimmieg »

With a 28 day Pacific cruise just cancelled by Princess, I have the generous option of cash refund + 25% bonus future cruise credit (FCC) towards another cruise OR take entire refund as a FCC (will use in 2021)and get a 50% bonus. Difference is about $3200 in cruise credits, but I would have to leave my cash with them.

Book value of CCL exceeds stock price, but I have nagging thoughts about their potential cash flow issues.

Take less and be at least whole. Take more and potentially be happier I did later?

Thoughts on my first-world problem?
KyleAAA
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by KyleAAA »

The market seems to believe some of the cruise lines might not survive in their current form. The market is probably over reacting, but I'd take the cash. I'm not sure what order customer credits would be if it came down to bankruptcy.
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Watty
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Watty »

Take the cash.

In addition to the risk of them going bankrupt you may need to book any future trips with them directly. If you book it through some other company you may be able to get additional discounts or perks.

When you book your future cruises you can also use a credit card to get a rebate.
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anon_investor
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by anon_investor »

Take the cash. Cash is king! Buy some VTSAX on sale. You may end up better off!
Baldrekr
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Baldrekr »

I'm in the same position, take the cash! BTW it may be a while before they refund you, it's been a week and no refund here yet. I hope they don't decide to hold onto all refunds to stay afloat and then go out of business.
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Doom&Gloom
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Doom&Gloom »

Cash. No-brainer imo.
Sage16
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Sage16 »

I just submitted my form for the cash back. I expect there will be lots of deals when things get going again as people cautiously and slowly return to cruising. And if I am wrong, I still have the cash to decide where to spend.
Bogle on investing: Diversify, focus on low costs, invest for the long term. Don't speculate and don't be distracted by volatility.
student
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by student »

How about this deal from Virgin. They cancelled our cruise.

1) 200% in Future Voyage Credit which you can apply to another sailing, rather than a refund. That’s double the value of your existing voyage fare.

2) A full refund of your voyage fare along with a Future Voyage Credit equal to 25% of the booked voyage fare to be used on a future sailing.

What would you pick?
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Mel Lindauer
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Mel Lindauer »

If they survive, they could raise the price of future cruises enough to wipe out any bonus rebate you got. Or they could declare bankruptcy and wipe it all out.

Take the cash and run.
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Watty
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Watty »

student wrote: Thu Mar 12, 2020 9:51 pm How about this deal from Virgin. They cancelled our cruise.

1) 200% in Future Voyage Credit which you can apply to another sailing, rather than a refund. That’s double the value of your existing voyage fare.

2) A full refund of your voyage fare along with a Future Voyage Credit equal to 25% of the booked voyage fare to be used on a future sailing.

What would you pick?

Cash.

If you had all the cash in your hand and had the 25% credit then would you buy option 1?
J295
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by J295 »

Cash.
anil686
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by anil686 »

I sailed Princess twice in the last couple of years and liked my experience with them. I just bought 100 shares yesterday to get the onboard credit and the dividend yield of over 13%...
Chris K Jones
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Chris K Jones »

A bird in the hand is worth two in the bush. I'd take the cash. Without question.
inbox788
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by inbox788 »

Cash is the obvious answer, but depending on the amount of the bonus and the likelihood you would cruise in 6-12 months, a 25% bonus credit wouldn’t be enticing, but 200% might. Add to that the expected low fares they’re going to have to use IF they survive, and whatever investments and subsidies they’ll get to resume business, and you could be living high on that bonus with nice upgrades.

In 3 years, we could have widespread combined Corona/Flu vaccination and some effective proven treatments and medications. The cruise lines will have a prearranged emergency medical evacuation plan in place that gets every ship to a port that can offload the passengers immediately and transported to appropriate facilities or home. This will be costly, but can be subsidized or included as a cost, but more than likely, they’ll tack on a surcharge. Possibly some sort of mandatory travel insurance plan. Still, what else would be needed to get things back to business as usual?

Timing for Virgin couldn’t be worse, and Disney and others have some new ships coming. It’s going to be a challenging time for the industry. For flexible travelers willing to deal with some extra risks, it’s going to be bargain hunting time.
obgraham
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by obgraham »

Contrarian, as usual.

If you like the Princess product, take the bonus. One way or another they will be back in business eventually. Hopefully!
MandyT
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by MandyT »

obgraham wrote: Fri Mar 13, 2020 11:34 am Contrarian, as usual.

If you like the Princess product, take the bonus. One way or another they will be back in business eventually. Hopefully!
Is this necessarily the case? About thirty years ago, a friend gave me a 1-year subscription to a magazine as a gift. The publishing company went bankrupt. Some time later, the magazine went back into publication, but the "new" company refused to honor my subscription. Although that was probably a condition of the bankruptcy, they wouldn't even consider the possibility of a we-want-you-back discount. (No, I never bought another issue of the magazine, either at the newsstand or as a subscriber.)

So the devil might be in the details of "one way or another".
Sage16
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Sage16 »

Has anyone received their refund and/or future credits from Princess Cruises?

It has been 8 weeks since I requested my refund and I haven't heard or received anything from Princess. Their offer included future credits in addition to the refund and there is nothing in my account for that either. I am still getting marketing material from them.
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Helo80
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Helo80 »

Sage16 wrote: Tue May 05, 2020 5:29 pm It has been 8 weeks since I requested my refund and I haven't heard or received anything from Princess. Their offer included future credits in addition to the refund and there is nothing in my account for that either. I am still getting marketing material from them.
Are you referring to the onboard offer for $100 deposit and getting like $25 on up for a future cruise in onboard credit?
Sage16
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Sage16 »

Helo80 wrote: Tue May 05, 2020 5:32 pm
Sage16 wrote: Tue May 05, 2020 5:29 pm It has been 8 weeks since I requested my refund and I haven't heard or received anything from Princess. Their offer included future credits in addition to the refund and there is nothing in my account for that either. I am still getting marketing material from them.
Are you referring to the onboard offer for $100 deposit and getting like $25 on up for a future cruise in onboard credit?
No. My March cruise was cancelled and Princess has given the option of a cash refund plus some future cruise credits or no refund and twice the cost of the cruise in future cruise credits. The OP of this tread had asked if they should request the refund. I did and have been waiting now 8 weeks and wondering if anyone has received their refunds yet.
Bogle on investing: Diversify, focus on low costs, invest for the long term. Don't speculate and don't be distracted by volatility.
decapod10
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by decapod10 »

Sage16 wrote: Tue May 05, 2020 9:40 pm
Helo80 wrote: Tue May 05, 2020 5:32 pm
Sage16 wrote: Tue May 05, 2020 5:29 pm It has been 8 weeks since I requested my refund and I haven't heard or received anything from Princess. Their offer included future credits in addition to the refund and there is nothing in my account for that either. I am still getting marketing material from them.
Are you referring to the onboard offer for $100 deposit and getting like $25 on up for a future cruise in onboard credit?
No. My March cruise was cancelled and Princess has given the option of a cash refund plus some future cruise credits or no refund and twice the cost of the cruise in future cruise credits. The OP of this tread had asked if they should request the refund. I did and have been waiting now 8 weeks and wondering if anyone has received their refunds yet.
Not exactly the same situation as you, but I had a Disney Cruise in April that was cancelled (booked through Costco Travel), we got refunded in full. Not sure what Princess financial situation is like these days though.
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Cyclesafe
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by Cyclesafe »

One would have to be extremely lucky to actually get a refund from Carnival (Princess) at this very late date. Best to both apply for the refund and get a file going right now with your credit card company. The latter should be immediately cancelled by you - if by some chance - Carnival comes through.

And consider it a windfall if either tact works.

Good luck.
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galawdawg
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by galawdawg »

Take the cash refund. If you accept FCC, you may forfeit your credit card protections if CCL doesn't survive this crisis or files for bankruptcy protection and won't honor FCC.

And if you sail again in the future, you may wish to consider other cruise lines. CCL is a bad actor IMHO.

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MikeG62
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by MikeG62 »

Another take the cash (+25% off future trip). Who knows if they’ll be around in the future or what the future for cruising will even look like.
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ResearchMed
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Re: Princess Cruise: Take Cash or Greater Future Credit

Post by ResearchMed »

MikeG62 wrote: Wed May 06, 2020 8:37 am Another take the cash (+25% off future trip). Who knows if they’ll be around in the future or what the future for cruising will even look like.
They "may be around" in the future, but if they've re-organized through bankruptcy, it's likely that none of the previous debts will be good.
And during bankruptcy, it's not clear (to me, anyway; attorneys/accountants may know better) where in the pecking order "consumers with credits" would fit in. All the money may be long gone to other creditors before the list gets that far.

I'd strongly suggest that you take the refund, now.
Norwegian is already publicly mentioning bankruptcy.

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