Interesting Telegraph Q&A re deposits

[Harry Peterson]

First, I must make it clear that this is a situation relating to Cunard. But I'm guessing the P&O T&C are probably the same as the Cunard ones given the common ownership - though I could be wrong.

 

The passengers cancelled well ahead of the cruise because of ill health, and asked Cunard to repay the deposit. Cunard refused. There was, unfortunately, no insurance in place.

 

What concerns me is the claim by Cunard that it's not just the deposit that's lost on cancellation - they say there's a contract for the full amount due on the cruise, even though it doesn't happen until March 2021. It's a world cruise but I doubt much turns on that.

 

Cunard refused to repay the deposit, perhaps unsurprisingly, but the claim that it would be entitled to the full amount in due course did surprise me. After intervention by the Telegraph they refunded the deposit and dropped the claim to the balance - as pointed out by the Telegraph, they're highly likely to resell the package and can claim only actual losses (probably none) because of the law relating to unfair terms and conditions in consumer contracts.

 

Is this an issue with P&O? Do they ever suggest that it's the full amount that's at risk, rather than just the deposit, on a long-term advance booking?

Edited August 12, 2019 by Harry Peterson

[Host Hattie]

Actually the column said that was what the agency they had booked with told them.

[Harry Peterson]

11 minutes ago, Host Hattie said:

Actually the column said that was what the agency they had booked with told them.

Indeed so.  But the comment from the journalist suggests Cunard themselves were taking the same approach:

 

Luckily, following my involvement, Cunard has done the right thing by agreeing to refund your £4,104 deposit in full. It will also release you from the contract, for which you are very grateful.

[Host Hattie]

The options originally offered were the usual ones, lose the deposit or transfer to a booking of the same or higher value. I believe P&O have the same booking conditions.

[terrierjohn]

Clearly Celebrity (RCI Group)  have much fairer terms than Cunard, after my wife's stroke in 2010 they refunded 60% (I think) of a total cruise fare which we had paid in full about 3/4 weeks previously. This was just over 30 days before the cruise date, from memory I think it would have dropped to 40% if within 30 days.

It did not really affect us, although our insurance broker did thank us for our prompt cancellation which did reduce our claim.

[mercury7289]

Ask Docco!

[majortom10]

I think it all depends on the law of the country in which you are making the booking. In the US you can cancel a cruise booking up until balance payment is due and deposits are refundable but that is US law. I have done many holidays whether land or cruise and always understood that under T&Cs if cancelled before final balance is due then deposit is lost and then you have to claim if applicable off travel insurance for lost deposits.  I know it is common practice especially those that book with Princess that they book many cruises in advance, especially if £1 deposit offer is on, just to guarantee good position of stateroom with no intention of going on all the cruises they then wait to see which cruise drops the furthest then refare that cruise and cancel all others with deposits refunded.

[the english lady]

1 hour ago, terrierjohn said:

Clearly Celebrity (RCI Group)  have much fairer terms than Cunard, after my wife's stroke in 2010 they refunded 60% (I think) of a total cruise fare which we had paid in full about 3/4 weeks previously. This was just over 30 days before the cruise date, from memory I think it would have dropped to 40% if within 30 days.

It did not really affect us, although our insurance broker did thank us for our prompt cancellation which did reduce our claim.

Pando have sliding amounts also, I always thought if you went for cancellation rather than moving cruise that it was an insurance jobby anyway. One thing I would never ever ever do is book a cruise with a large deposit due, with no  insurance in place.

[Harry Peterson]

I understand the claim to retain the deposit (although even that's not possible unless there's an equivalent actual loss to the operator), but I'm puzzled by the claim that it's not just the deposit involved but the full holiday cost.

 

Neither the P&O nor the Cunard terms state that.

[majortom10]

There has been plenty of press information in recent times that if you cancel with enough notice and the holiday company manages to sell your holiday whether it be a hotel, apartment or cruise and there is no loss to them that they should refund the deposit as well but dont know if this ever happens.

[Windsurfboy]

2 minutes ago, majortom10 said:

There has been plenty of press information in recent times that if you cancel with enough notice and the holiday company manages to sell your holiday whether it be a hotel, apartment or cruise and there is no loss to them that they should refund the deposit as well but dont know if this ever happens.

 

I expect it's easier to claim on insurance than fight a big company for their deposit. 

[happytravelleruk]

A few years ago we paid a deposit for a pando cruise.  A little later I was asked to go on a drug trial, during which I could not get any travel insurance.  We had to cancel and lost the deposit.  At no time were we asked to pay for the whole cruise.  The news story doesn't make sense in our experience.

[stephen@stoneyard.co.uk]

Could it be an extra cost imposed by the travel agent. I believe they can apply additional charges for changes etc.  Seems excessive though. 

 

Best wishes, Stephen.

 

 

[yorkshirephil]

After reading the Cunard T&C's and the full Telegraph article. I think that the TA is trying it on to keep their cut. If the cruise was a saver fare Cunard T&C's state 100% of the cruise price is payable on cancellation from date of booking which is what the TA seems to have said. However the consumer rights have a different take on this, which is what the Telegraph consumer champion has used to get Cunard to return the deposit.