Price Discrepancies $ vs. Pound

[Seabourn Pearls]

I was checking prices and price trends for a few cruises on a "fishy" Web site and noticed the prices in dollars were trending north and the prices in pounds were trending lower. Moreover, when I did the currency conversion the pound prices were significantly lower. What gives?

[Project_gal]

That is an easy one to answer! Celebrity appear to set the exchange rate they use for different items [cruises, OBC, excursions, etc.] at different times and then hold them for that item for some time. The value of the pound has fallen steeply since around June last year but really plummeted after November/December last year.

 

I have no insider knowledge of this but [having worked in FX] I watch the exchange rate daily and watch prices Celebrity offer. Celebrity appear to manage FX extremely well and are, consequently, sometimes able to offer what appear like great deals to those outside the US.

 

The reason the prices in pound sterling look low at the moment is because Celebrity have not adjusted the exchange rate they are using for the cruises yet. Last Saturday we were able to purchase OBC at a rate that looked incredible then [but would have looked mediocre a couple of months ago].

 

It is all swings and roundabouts! In the US, you benefit from relative price stability. In the UK, sometimes there may be bargains but, more often, prices seem high compared to those in the US.

[Seabourn Pearls]

Your answer would make more sense if the cruise price in pounds weren't dropping while the cruise price in dollars is going up.

 

Cruise prices fluctuate all the time. I find it hard to believe an international company like Celebrity is 60 days behind in accounting for currency fluctuations and would be selling off inventory to British people at an unintentional discount.

 

If you are correct, is there a way for me to buy the cruise from a British travel agent?

[jveevers]

The AUD $ has also dropped a lot in relation to $ US since about Nov 2014 but has remained stable against EURO and GBP . This would indicate that the US $ has strengthened , rather than not the other currencies weakened.

[villauk]

 

If you are correct, is there a way for me to buy the cruise from a British travel agent?

 

As long as you don't mind non refundable deposits, no additional perks from TA (unless you're very lucky and even then it's nothing like US TAs provide), being charged for changes that are free in the US, not all UK TAs honour price drops, guarantee cabins that you are not allowed to change in the same category once issued, usually there'll be a reason why you can't upgrade after final payment etc. etc. etc., then you'll be fine :D.

[Project_gal]

Cruise prices fluctuate all the time. I find it hard to believe an international company like Celebrity is 60 days behind in accounting for currency fluctuations and would be selling off inventory to British people at an unintentional discount.

 

Celebrity and other companies hedge their FX just as they do oil prices, for example.