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Lessons Learned about Payments


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Given all the cruise cancelations, I think prudence dictates that I don't pay anything more than the absolute minimal deposit on a cruise right up to the last possible day. During "normal" times, there is no motivation from the cruise lines to pay in full in advance other than the personal satisfaction of having the cruise paid for. Actually, you might be denying yourself the benefit of a price reduction. Now, if you pay in full in advance, you don't know if you're going to get a refund, a future cruise credit or maybe, nothing at all. I know all about the current "Cruise with Confidence" program, but that could change tomorrow.

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Agree with PhillyLady, at first we tried booking out into the near future(July). That didn't go well, cancelled again.

RCI, as well as the other lines, are selling ALL these future sailings as if they will all go off as planned a year or two ago. Even selling drink packages, wifi, etc. We are concentrating on just recovering our invested monies, and and will begin booking last minute when they begin sailing again.

It does take away the fun of planning, BUT, that's a lot better than trying to get a refund 90 days later.

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I am doing this all across the vacation board when normally I pay for and plan things eight+ months out. I keep seeing amazing deals on 2021 cruises and I'm forcing myself not to book, as there isn't even a tentative goal point for cruising. Though interest rates aren't the best.....I will leave my money in the bank.

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We typically always have a 0% credit card with some type of rewards/cash back, with that fact we use to always pay in full right off the bat. We would just pay the card off monthly so it was back to zero 90 days out.  The fact that we get cash back is another reason we also paid it off, because than we used those rewards to pay for excursions, saving us money.

This time around they will wait until 90 days prior.  Our cruise is May next yr.  If we go through this again, by mid Feb we might be looking at L & S or CWC prior to that 90 day marker.  Don't want to go through the hassle if we paid in full. 

I have booked some things, such as Coco Beach Club pass and 2 excursions because I know they are limited in number.  However, for dining and beverage I will wait.  They are riding too high for me to bite off on.

This makes me ask from a finance aspect for RCL, how many of us that use to pay in full early on, now has said I will wait?  That means they have less money in their reserve account.  In turn it hurts their credit rating.  Lower credit rating higher interest rate loans.  If they now raise prices on sailings to get more in the reserve account, than it can bite them....lower bookings.  Same with things like any of their products, such as, UDP, DBP, Labadee cabanas, zipline,  and Coca Cay.   They have to find that magic number to meet their financial needs.

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2 hours ago, Pima1988 said:

This makes me ask from a finance aspect for RCL, how many of us that use to pay in full early on, now has said I will wait?  That means they have less money in their reserve account.  In turn it hurts their credit rating.  Lower credit rating higher interest rate loans.  If they now raise prices on sailings to get more in the reserve account, than it can bite them....lower bookings.  Same with things like any of their products, such as, UDP, DBP, Labadee cabanas, zipline,  and Coca Cay.   They have to find that magic number to meet their financial needs.

We also pay the cruise off early (save for around $50), pay the CC bill in full (every month)and take the rewards and apply to Cruise Planner purchases. However, there is no way I will continue this, at least not for a couple of years. To me, the reasons why there is such a lag between cancellations and refunds is two-fold 1) RCL laid off too many people, and 2) they've been banking on money that they didn't have, working that "Royal Math" to its fullest (rob Peter to pay Paul), and that concerns me. So much so that they will not be banking on my money until 90 days out from here on out. I will still watch the Cruise Planner, but also will not be purchasing, with one exception. There is a remote fly fishing excursion in Alaska via seaplane that sells out. When that hits the CP, I WILL be buying that one. Otherwise, Thanksgiving CP and 90 days out will be when RC will get our money.


Warning! Obvious statement incoming: if you don't pay off your CC balance in full every month, those rewards will COST you. Only do this if you can pay off that CC in full. Don't carry a balance on a rewards card. Not even the RC Visa. 

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1 hour ago, Pima1988 said:

 how many of us that use to pay in full early on, now has said I will wait?  

I have never paid my cruise in full prior to final payment date BUT I have, in the past, paid monthly "installments" so that my final payment was minimal at the end.  Not any more.  I am not laying out a single dime more than I have to up front now.  That is going to really pinch when I have to pay for all those Star Class bookings next year in total, but that's just the way it's going to have to be.  I don't want ANY more FCC's.  There are too many restrictions.  Cash refunds only for us from now on until all of this blows over.

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9 minutes ago, Baked Alaska said:

Warning! Obvious statement incoming: if you don't pay off your CC balance in full every month, those rewards will COST you. Only do this if you can pay off that CC in full. Don't carry a balance on a rewards card. Not even the RC Visa. 

THIS! I'll extend to say try not to carry a balance on ANY credit card. If you must, find a 0% promo card, transfer the balance and pay as much as you can until the expiration of promo, then rinse and repeat with balance. 

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2 minutes ago, Baked Alaska said:

There is a remote fly fishing excursion in Alaska via seaplane that sells out. When that hits the CP, I WILL be buying that one. Otherwise, Thanksgiving CP and 90 days out will be when RC will get our money.


Warning! Obvious statement incoming: if you don't pay off your CC balance in full every month, those rewards will COST you. Only do this if you can pay off that CC in full. Don't carry a balance on a rewards card. Not even the RC Visa. 

We are like you.

The only excursions we booked right now are the ones that we know are very limited in number and sell out quickly. IE Coco Cay Beach club pass.  We did get at a good price of 79.  I will rebook if comes down lower.

I think it depends on the CC.  We have a couple of 0% with varying reward systems.  I know my hubby will purchase on one.  Than he transfers it over to the other where we get points for purchases/transfers and payment.  I am pretty sure that is how he does it.  I just know I say: Honey, which card am I suppose to use to buy this?  Caveat, not because of balance, just because I am a debit card user daily, so when it is a big amount I know he has his system regarding the credit card rewards.

 

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15 minutes ago, WAAAYTOOO said:

I have never paid my cruise in full prior to final payment date BUT I have, in the past, paid monthly "installments" so that my final payment was minimal at the end.  Not any more.  I am not laying out a single dime more than I have to up front now.  That is going to really pinch when I have to pay for all those Star Class bookings next year in total, but that's just the way it's going to have to be.  I don't want ANY more FCC's.  There are too many restrictions.  Cash refunds only for us from now on until all of this blows over.

After the Anthem Grand Suite sting last year I opened another Ally savings account with the nickname "cruise fund." I get paid twice a month, on or about those days I transfer money from my checking account to it. So, earn a little interest and it's like monthly payments - all automated. For a little bonus, Ally has these "no penalty" 11-month CDs that I put my emergency fund into. Since my emergency fund doesn't need the interest, it gets deposited into the cruise fund account too. (I swear I don't work for Ally LOL).

Edited by sk8erguy1978
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21 minutes ago, Pima1988 said:

We are like you.

The only excursions we booked right now are the ones that we know are very limited in number and sell out quickly. IE Coco Cay Beach club pass.  We did get at a good price of 79.  I will rebook if comes down lower.

I think it depends on the CC.  We have a couple of 0% with varying reward systems.  I know my hubby will purchase on one.  Than he transfers it over to the other where we get points for purchases/transfers and payment.  I am pretty sure that is how he does it.  I just know I say: Honey, which card am I suppose to use to buy this?  Caveat, not because of balance, just because I am a debit card user daily, so when it is a big amount I know he has his system regarding the credit card rewards.

 

Ha! Forgot that one! Yes, Beach Club at $79, did purchase that one!! Nixed the Club Cabana. Too cold in Dec/Jan to enjoy I think (cost benefit analysis, here).

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52 minutes ago, Baked Alaska said:

Ha! Forgot that one! Yes, Beach Club at $79, did purchase that one!! Nixed the Club Cabana. Too cold in Dec/Jan to enjoy I think (cost benefit analysis, here).

1st/2nd week of Nov is when we stop sailing...I like my ocean water to be bath temp. Even when we went mid Nov. the furthest I went in was sitting on the edge and that was after lunch.   Hence, May - Nov are when we sail.  

 

 

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So we booked through a travel company and are supposed to cruise 8/22. I am less than 90 days from the date but haven't paid my balance. I had a few reminders but was debating if I am better off waiting a little longer to see if they cancel rather than have them hold onto the remaining $$. It was a non-refundable fare. Thoughts? Should I just pay it and wait out if it's cancelled.

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11 minutes ago, eamc01 said:

So we booked through a travel company and are supposed to cruise 8/22. I am less than 90 days from the date but haven't paid my balance. I had a few reminders but was debating if I am better off waiting a little longer to see if they cancel rather than have them hold onto the remaining $$. It was a non-refundable fare. Thoughts? Should I just pay it and wait out if it's cancelled.

I would contact the travel company immediately. It states right on booking confirmation the date full balance must be paid or they can cancel your reservation. I'd pay and wait, cancel and wait for FCC or try a L&S.

I've attached a screenshot from one of my booking confirmations. 

image.thumb.png.53d67c1a326e1f49a97c3159ed65a8ed.png

Edited by sk8erguy1978
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I live a debt free life, pay everything on my credit card, then pay off the balance every month. I want all the points. I hate owing anyone and haven't had any debt since 2012 when I paid off my student loans. Chase Reserve is letting you use some of your normally travel only points as a statement credit. Since I knew I wasn't traveling soon I used half this month. Have CP refunds coming in the next 30-45 days. I used to think paying up front meant less stress in the long run.....thanks Covid for changing that.

RCCI is in a hard place, they have some legality issues with refunds, which is why cancelling is the last thing they ever want. Refunds must be staggered because if this and with no income coming in, it is just rough. Even the deposits on cruises are an immense help to the bottom line. i believe that paying in full just puts them over. In truth I would guess that those who pay in full allow RCCI to amp and expand on a faster basis.

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