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Corona virus causing NCL cash flow problems? ie: No more refunds. Everything is now a Future Cruise Credit (FCC)


fstuff1
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NCL in a cash crunch with people wanting refunds and less people booking new cruises?

 

edit: or am i mis-reading all refunds even outside 90day final payment is FCC?

Edited by fstuff1
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16 minutes ago, fstuff1 said:

NCL in a cash crunch with people wanting refunds and less people booking new cruises?

 

edit: or am i mis-reading all refunds even outside 120day final payment is FCC?

Current policy, yes.  Can they apply it retroactively - I don't think so, unless there is something in the fine print somewhere that says they can.  The letter they sent out is ambiguous in that it doesn't specifically address refunds outside the penalty period for people who book before March 10. Since my remaining deposits are CruiseNext certificates, that kind of a change doesn't affect my refund since I don't pre-pay precisely for this reason.

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The FAQ you can follow from the letter is that ANY cruise, regardless of when you booked,  inside that time window, Mar 10 to end Sept is eligible for a credit if you call after Mar 10th

Edited by Aesop081
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I don't think it takes a genius to realize that new bookings were tanking due to virus fears. As a result, inbound cash flows were drying up due to the decline in bookings, coupled with a higher rate of cancellations which creates increased cash outlays. 

 

Based on this, the cash position is probably not as strong as NCL would like it to be and they are trying to cure that, in part, by eliminating the requirement to issue cash refunds while hoping the new policy also helps new bookings ( and cash flows) to increase while they try to deal with Coronavirus.

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LOL.....why do the same posters keep playing both sides of the coin on here?  They take whatever stance will allow them to be critical in a certain thread even when the contradict what they have already posted.

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33 minutes ago, molole said:

Wait what?  now we only receive FCC even if the cruise is canceled prior to final payment?  Source?  

 

There is no source other than the internet drama queens.

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1 hour ago, ray98 said:

LOL.....why do the same posters keep playing both sides of the coin on here?  They take whatever stance will allow them to be critical in a certain thread even when the contradict what they have already posted.

 

I don't read any response in this thread, including my own,  as being critical of NCL in a negative way. As a business, they are doing what they need to do to stay afloat. This is likely why they have changed the policy. It isn't necessarily 100% fair to the consumer, but given the current environment I am ok with it. I understand why they are doing it and accept it.

 

I don't see the point in acknowledging all other cruise lines in an NCL thread, but, so no one mistakenly thinks NCL is being singled out, obviously, all other cruise lines are going  through this uncharted territory. If you participate in other forums on these boards, that will quickly become clear.

 

I try not to attribute intent to anyone else's posts. Referring to other posters in derogatory ways, like drama queens, when I don't even know them would serve to discredit me, so I also try to avoid that type of immature behavior.

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9 hours ago, seekatz said:

Have you researched the cruise lines financial statement to make such a claim regarding "cash flow problems" ?

 

Interesting question.

 

Yesterday, someone posted NCL Pearl was cleaner than any hospital in the US. Like the claim about NCL cash flow, I found that interesting and when I inquired as to how they had the knowledge to make that claim, my inquiry was deleted.

 

I wonder if your legitimate inquiry is now going to get deleted, too?

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I have no doubts that cash position is playing a significant role in these decisions; one of the articles noting the decline in stock prices indicated a secondary reason all the cruise line stock is going down in price is the potential of not meeting financial requirements to maintain the most favorable financing terms on the considerable debt all of these cruise lines carry in order to build all these ships.  Wall Street tends to be short-sighted, but they know as well as anyone that cruising will recover once this health scare passes; it's the cascading effects all cruise lines face if they have to deal with a "run" on their available cash (think banks in the Great Depression).  As far as NCL just going nuts and raising prices next year, remember (1) they will have to fill ships next year as well and (2) Carnival and RCL aren't going anywhere.  What will be the true canary in the coalmine will be MSC, given the amount of debt they possess and the fact they are privately owned, and based out of Italy.

 

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2 hours ago, molole said:

Wait what?  now we only receive FCC even if the cruise is canceled prior to final payment?  Source?  

Yes, according to the NCL CAS agent I spoke with at length yesterday.  She was surprised, as was I.  Hoping it changes.  I cancelled two that were before final payment (120 days), and she was told by a supervisor that I would receive my c card deposit and CruiseNext payment ($2000 for each of the 2 cruises) as FCC's.  I'm not happy with that decision. 

Edited by Always Cruising
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The first day of my first semester in gradueat school (MBA) our professor in Finance said "When coming into a new company DONT look at the Balance sheet, DONT look at the Income statement, DONT look at any of the financial ratios....  LOOK AT THE CASH FLOWS.....  Current cash flows and ONLY current cash flows determine weather your company will sink or swim."

 

Sounds like this situation, doesent it?

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4 minutes ago, seemoreroyals said:

 

What happens Tuesday?

Tuesday is When their peace of mind policy comes into effect. It’ll let people cancel up to 48 hours away from departure date. It sounds like they aren’t letting anyone cancel at all now even outside of final payment.

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3 hours ago, molole said:

Wait what?  now we only receive FCC even if the cruise is canceled prior to final payment?  Source?  

New policy sent in a letter from Harry

 

All money given to most cruise lines turns into a non-refundable deposit. Use it on a more expensive cruise in the future or lose it. 

 

https://www.ncl.com/why-cruise-norwegian/book-with-confidence?intcmp=pro_hp_PEACEOFMIND
 

Edited by BirdTravels
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26 minutes ago, adam_s_allen said:

Tuesday is When their peace of mind policy comes into effect. It’ll let people cancel up to 48 hours away from departure date. It sounds like they aren’t letting anyone cancel at all now even outside of final payment.

Well if that's true happy my deposit is only a $250 cruise next, BUT, I'm only cancelling my October Greece cruise to book a September Alaskan cruise. I'm going to wait I won't even attempt to call this week.

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12 hours ago, fstuff1 said:

NCL in a cash crunch with people wanting refunds and less people booking new cruises?

 

edit: or am i mis-reading all refunds even outside 90day final payment is FCC?

Brilliant move by NCL. Keep the money plus insurance company payment for catastrophic losses. After the Cvirus passes in about a year they will bounce back and have overbooking because of how they fcc the current cancellations. Higher prices.

It’s like Vegas the house always wins.
Watching the stock for the bottom and purchase more and RCL too!

Not Carnival.stock....

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