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What happens to your deposit or OBC if cruise line goes bankrupt?


deeze6
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Given the recent news that cruises are once again suspended there's no doubt one or more cruise lines are going under.

What happens to our deposits / on board credits if your cruise line declares bankruptcy?

Do we lose it all?

 

 

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9 minutes ago, deeze6 said:

Given the recent news that cruises are once again suspended there's no doubt one or more cruise lines are going under.

What happens to our deposits / on board credits if your cruise line declares bankruptcy?

Do we lose it all?

 

 

 

Hi

 

Welcome to Cruise Critic

 

short answer, generally Yes, you lose it all.

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Welcome to cruise critic.

 

The ability to get money back depends on your country of residence and their consumer protection from travel assurance funds, ABTA, etc.

 

Failing that you would most likely become one of many creditors, but I wouldn't expect much as their major assets are the cruise ships and there is currently limited demand for used tonnage. 

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I was about to pull the trigger and pay Carnival and Princess deposits on Cruises for April and May 2021, but now I am not sure.

I was expecting that by April 2021, the virus would be under control, but I am not sure about them going bankrupt and their future Cruises been cancelled.
And the risk of them defaulting on refunds of deposits

what do you think ?
is it safe for me to pay Carnival and Princess deposits for Cruises in April and May 2021?
the prices are crazy cheap and absolutely rock bottom right now.

In fact, since these cruises were listed on 15th April 2020, there have been 4 price drops, but still all the cabins are available even at these rock bottom prices.

The deposit for a Cruise under 10 nights is only $69, while the deposit for a cruise over 10 nights is $200 per cabin
What should I do?

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@drsel - I wouldn't risk it. If (and that's a big if) the cruises finally resume in September the cruise lines will have already lost 7-8 months of peak season income. I think its highly unlikely they will survive

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@drsel - I wouldn't risk it. If (and that's a big if) the cruises finally resume in September the cruise lines will have already lost 7-8 months of peak season income. I think its highly unlikely they will survive
Well that is a loaded statement. It's "highly unlikely" they will survive?

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2 minutes ago, JAMESCC said:

Well that is a loaded statement. It's "highly unlikely" they will survive?

Sent from my Pixel 4 XL using Tapatalk
 

Without going Chapter 11 that is....

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6 minutes ago, drsel said:

I was about to pull the trigger and pay Carnival and Princess deposits on Cruises for April and May 2021, but now I am not sure.

I was expecting that by April 2021, the virus would be under control, but I am not sure about them going bankrupt and their future Cruises been cancelled.
And the risk of them defaulting on refunds of deposits

what do you think ?
is it safe for me to pay Carnival and Princess deposits for Cruises in April and May 2021?
the prices are crazy cheap and absolutely rock bottom right now.

In fact, since these cruises were listed on 15th April 2020, there have been 4 price drops, but still all the cabins are available even at these rock bottom prices.

The deposit for a Cruise under 10 nights is only $69, while the deposit for a cruise over 10 nights is $200 per cabin
What should I do?
 

 

 

Consider it a $69 wager.  A small bet on the large return of a rock bottom price. 

 

The additional question might be what a cruise will actually be like in spring 2021.  Without a vaccine and if the virus is still active expect a rule-laden, rigid, dismal experience on the floating equivalent of an isolation ward.  Should one single passenger or crew test positive for COVID-19 be prepared for a 14-day onboard quarantine during which time the virus will be allowed to run rampant.  

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20 minutes ago, drsel said:

I was about to pull the trigger and pay Carnival and Princess deposits on Cruises for April and May 2021, but now I am not sure.

I was expecting that by April 2021, the virus would be under control, but I am not sure about them going bankrupt and their future Cruises been cancelled.
And the risk of them defaulting on refunds of deposits

what do you think ?
is it safe for me to pay Carnival and Princess deposits for Cruises in April and May 2021?
the prices are crazy cheap and absolutely rock bottom right now.

In fact, since these cruises were listed on 15th April 2020, there have been 4 price drops, but still all the cabins are available even at these rock bottom prices.

The deposit for a Cruise under 10 nights is only $69, while the deposit for a cruise over 10 nights is $200 per cabin
What should I do?
 

Its a "come-on."  The cruise lines own the game and set the rules.  Prices to entice, when even the cruise line itself doesn't know whether it will have any ships sailing, any ports open, any established procedures to protect passengers and staff, are fantasy.  Once they know they will change itineraries, add in costs, and reset higher prices.  You lose you down payment if you don't continue to play.  Better to wait until there is some solid evidence that things have stabilized.  And that could take at least a year or more.  

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Its a "come-on."   Once they know they will change itineraries, add in costs, and reset higher prices.  You lose you down payment if you don't continue to play.  
Surely with your deposit, you are locked in at the Rock bottom price.
So they cannot increase that price for those who have already booked and paid the deposit of $69 or $200
Certainly they can increase it for fresh bookings

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6 minutes ago, drsel said:

Surely with your deposit, you are locked in at the Rock bottom price.
So they cannot increase that price for those who have already booked and paid the deposit of $69 or $200

Exactly -- yes, it's a gamble, but you know how much you're gambling with.

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5 minutes ago, calliopecruiser said:

Exactly -- yes, it's a gamble, but you know how much you're gambling with.

 

Hi

 

As long as everyone involved understands it's a crap shoot even with something booked well into the future, that's fine. 

 

The problem has always been for those that honestly felt that these cruises are a real product, otherwise it wouldn't be offered. It has been said by people on this site that the cruise lines are misleading their customers. That is not true.

 

You might go at a very good price, but until things change from what they are today, it doesn't matter what the price, it means nothing if they can't sail.

 

So, if you feel it is important to go ahead and make a booking (doesn't matter for when) because it is such a great deal, go ahead, but you can't complain if it doesn't happen, or if you lose your money. Supporting a company in this way, is your choice, but I have said it before, if I were to help someone in these times, I would choose to help a friend, before I would ever consider helping a company (any company). I don't like government bailouts either. That is my money they are handing out.

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19 minutes ago, Nic6318 said:

Supporting a company in this way, is your choice,

You think of it as supporting a company, I think of it as gambling against their bankruptcy.  It's not charity, it's a buying strategy - I believe it's more than reasonable to expect them to honour their offerings if they still exist.  The gamble is whether or not they'll be bankrupt by then, and if I win, I get a great price on a desired cruise.  If I lose, I lose a little cash. 

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2 hours ago, deeze6 said:

@drsel - I wouldn't risk it. If (and that's a big if) the cruises finally resume in September the cruise lines will have already lost 7-8 months of peak season income. I think its highly unlikely they will survive

If you think it is "highly unlikely they survive", why are you even considering booking? Wouldn't your best case scenario be you do not lose whatever money you gave them for the cruise?

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If you think it is "highly unlikely they survive", why are you even considering booking? Wouldn't your best case scenario be you do not lose whatever money you gave them for the cruise?

That post is by another poster, "deeze", not me

 

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12 minutes ago, ontheweb said:

If you think it is "highly unlikely they survive", why are you even considering booking? Wouldn't your best case scenario be you do not lose whatever money you gave them for the cruise?

That’s what heavy odds are all about - unless there is a dead certainty, a faint chance can pay off. A $100 wager (down payment) on a cruise which might not ever sail - but if it does would cost you $5,000 more if you book it later would give you a 50 to 1 payoff. That would make sense if you believed that there was at least one chance in 40 that it did sail.

 

Odds betting always depends upon figuring how unlikely “unlikely” really is.

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That’s what heavy odds are all about - unless there is a dead certainty, a faint chance can pay off. A $100 wager (down payment) on a cruise which might not ever sail - but if it does would cost you $5,000 more if you book it later would give you a 50 to 1 payoff. That would make sense if you believed that there was at least one chance in 40 that it did sail.   Odds betting always depends upon figuring how unlikely “unlikely” really is.  

 

 

In my case, it's $69 wager on a dirt cheap $876 Cruise and a $205 wager on another cheap $1335 cruise. Nothing even close to $5000. 

 

Both deposits and Cruise prices are for two adults in a cabin, not per person.

Both cruise prices include all port fees and taxes, but exclude gratuities and tips

 

 

 

 

 

 

 

 

 

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When Renaissance cruise line went bankrupt, I remember people on this board posting that they sought redress thru their credit card company.  Most got it, because the service they paid for in good faith wasn't delivered.  

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7 hours ago, deeze6 said:

Given the recent news that cruises are once again suspended there's no doubt one or more cruise lines are going under.

What happens to our deposits / on board credits if your cruise line declares bankruptcy?

Do we lose it all?

 

 

Your deposit might be treated as an unsecured creditor’s claim, and there may be some recovery down the road.  I am inclined to think that an OBC would be seen differently - it is really just a promise to adjust some future on board spending charges.  If the cruise doesn’t happen the on board spending could never exist - so it is impossible to put a value on an adjustment to a spending which never took place.

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