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IDEA for Virgin: Select Voluntary Capacity Control of FCC


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As I mentioned in another thread, the financial team may have begun waking up to the cash flow strains the generous 25% & 100% Bonus FCC will create as passengers with credits book cruises over this first year, paying only 75% cash or less:  consuming inventory that was projected to raise 100% cash.  While this compensation was common with other lines, Virgin has less inventory with one ship, making it harder to absorb the all those free credits and still generate cash to pay bills.

 

So what about if Virgin SELECTIVELY offers to passengers an opportunity to INCREASE the value of their FCC by having the passengers agree to DEFER their FCC use until the 2021/2022 cruise season?  

 

Perhaps the greater cash flow damage is caused by the loyal passengers who rolled over their funds for the 100% bonus.  That could make it easier for them to re-book in a suite (limited inventory) compared to their original booking in a non-suite cabin.  I'm not sure if they were obligated to immediately re-book or they could hold the 200% FCC to book later.  If they were allowed to defer re-booking, they could be offered an incentive to agree to split their credit into two bookings-  one booked in months 1-12 based upon original booking and the second during months 13-24 from original booking.

 

To be clear, I'm suggesting Virgin OFFER additional compensation in exchange for these deferrals, rather than simply changing the rules for what they've already given.  

 

While it increases the line's deposit liability, it also increases the potential for breakage.  Conversely, it increases the opportunity for repeat guests while smoothing cash flows.

 

If you currently hold a FCC, would any of these offers appeal to you?

 

 

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One other wrinkly is that my FCC was enough for two sailings and I'm already rebooked for one.  If they offered another bonus on the unused portion to book in 2022....I'd seriously consider it.  But it would have to be good because I'd rather use it in '21.

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21 hours ago, rbt001 said:

While this compensation was common with other lines

200% FCC for cancelled cruises is/was not common on other lines. RCI is 125%.

 

Biker, who thinks VV was too generous and desperate in offering 200% FCC.

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I would not change my voyage date. I got a suite, lots and lots of on board credit, and it is now the inaugural sailing.. There will probably be lower capacity anyway, due to the many that will not sail this year anyway.

We shall see....

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Does anyone really believe that they are going to get the same quality originally promised with all of these FCC's covering upgrades and 2nd cruises? Many perks have already been eliminated from suites. 

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