Princess Coffee Cards now have expiration dates

[RDC1]

I guess I don't understand the expiration on a coffee card, the cost to Princess is almost $0 to offer that as a perk. Makes no sense to me.

 

It is called opportunity cost, lost potential sales.

 

Also cost in labor and materials.

 

As well as a major accounting issue trying to estimate the accrual (value) of the number of unused cards that exist for their financials calculation. Under the new system that becomes trivial since they must be used during the same cruise where they are issued/purchased.

[Micahs Grandad]

It is called opportunity cost, lost potential sales.

 

Also cost in labor and materials.

 

As well as a major accounting issue trying to estimate the accrual (value) of the number of unused cards that exist for their financials calculation. Under the new system that becomes trivial since they must be used during the same cruise where they are issued/purchased.

 

How many people will realize they will not use up most of the card and buy less coffee by the cup?

 

An accrual will handle coffee costs moved into future cruises.

[RDC1]

How many people will realize they will not use up most of the card and buy less coffee by the cup?

 

An accrual will handle coffee costs moved into future cruises.

 

Don't quite get what you are saying here? If someone realizes that they won't use the card, they would then buy more by the cup not less, if they don't buy the card.

 

The issue is that during financial reporting the cruise line must calculate the amount of outstanding liability that exists in unused cards that may be utilized in the future. They must place list that accrual as a debt in their balance sheet. The amount of unused cards that have built up over the years would mean that this is a significant item on their balance sheet. By doing away with the cards and going to a system where the electronic card equivalent expires at the end of the cruise, there is no longer the need to calculate the accrual and the debt line item goes away at the end of August 2019.

[Happy2cruise]

An alternative to the coffee card saga is to purchase a $35 OBC and use that for your coffee instead of purchasing the coffee card that way what you don't use will not go to waste and you can use it some other way;p

[abbydancer2003]

An alternative to the coffee card saga is to purchase a $35 OBC and use that for your coffee instead of purchasing the coffee card that way what you don't use will not go to waste and you can use it some other way;p

 

Not a bad idea - and since you're buying it, if you don't use it, it's refundable. Of course, you're not getting the discount you'd get with the card, but unless you're sure you'll have 15 specialties, this might be better.

[geoherb]

Not a bad idea - and since you're buying it, if you don't use it, it's refundable. Of course, you're not getting the discount you'd get with the card, but unless you're sure you'll have 15 specialties, this might be better.

It depends on whether you also take advantage of the free freshly brewed coffee and specialty teas as well. I think the break-even point for DH's cappuccinos is 12. That's why the new coffee package isn't a good idea for us on cruises fewer than 12 nights.

[caribill]

An alternative to the coffee card saga is to purchase a $35 OBC and use that for your coffee instead of purchasing the coffee card that way what you don't use will not go to waste and you can use it some other way;p

 

That does not get you the unlimited fresh brewed coffee which is the major feature of a newly purchased card.

[abbydancer2003]

It depends on whether you also take advantage of the free freshly brewed coffee and specialty teas as well. I think the break-even point for DH's cappuccinos is 12. That's why the new coffee package isn't a good idea for us on cruises fewer than 12 nights.

 

After I posted, and while I was on my internetless flight, I remembered that you might have to factor in the brewed.

[umuva]

Don't quite get what you are saying here? If someone realizes that they won't use the card, they would then buy more by the cup not less, if they don't buy the card.

 

 

 

The issue is that during financial reporting the cruise line must calculate the amount of outstanding liability that exists in unused cards that may be utilized in the future. They must place list that accrual as a debt in their balance sheet. The amount of unused cards that have built up over the years would mean that this is a significant item on their balance sheet. By doing away with the cards and going to a system where the electronic card equivalent expires at the end of the cruise, there is no longer the need to calculate the accrual and the debt line item goes away at the end of August 2019.

 

 

 

Do you really think that Princess keeps a count of the punches? Or when you show up with a card and get free coffee? I don’t think there is a line on their balance sheet of unused coffee cards.

 

 

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