What happens to a cabin if…

[AZjohn]

Hi,

After reading several threads on Travel Insurance, I was wondering what happens to a cabin that becomes vacant if the passengers have to cancel and the Travel Insurance Company is stuck with it? Does it just go vacant or does the insurance company resale the cabin? I would imagine if they could resale at a discount for a last minute purchase, some cruisers could get a great deal.:rolleyes:

Thanks,

John

[sail7seas]

The Travel Insurance Company does not resell the cabin. It remains empty and the ship is happy to have it as a cabin they can move someone to in the event they have a severe problem with a leak or whatever in someone's cabin. The ships go out so full these days there often is no empty cabin on the ship.

 

[the2ofus]

John, the travel insurance company does not have the cabin to re-sell. Their product and contract with the insured was the policy, not the cruise ship cabin.

 

In most cases, the pax would have notified the cruise line that they would not be sailing. In that case, the cruise line would be free to re-sell the cabin, or the ship could sail with an empty cabin which had already been paid for. No $$$ loss to the cruise line either way.

 

If the cruise had already begun, and the cabin was vacated at some point during the cruise, the cabin would probably remain empty, unless the hotel mgr. chose to offer it to someone on board who had requested or needed a room change.

[Krazy Kruizers]

When we had to cancel in 2002, HAL moved someone up to our suite. Insurance company didn't "sell" our cabin to anyone.

 

HAL actually made out as we had paid HAL for the suite and then HAL resold a lesser cabin after moving someone into our suite.

[sail7seas]

Curious, KK.........

 

How do you know HAL upgraded someone into your cancelled suite? Did you happen to know the people?

 

[Krazy Kruizers]

Someone mentioned on this site when they returned from that cruise that their table mates had been upgraded to a suite just a few days before the cruise. I put 2 and 2 together and figured that they had gotten our suite. Don't think there would have been a couple of suites that suddenly had to cancel on the same cruise. And the suites had been been sold out for several months prior to the cruise.

[Host Walt]

Not to complicate matters, but the insurance outfits are, understandably, into mitigating their losses.

 

When a claim is filed and paid you can bet the insurance company is in immediate contact with the cruise line not only to confirm the cancekllation but also to negotiate a settlement vis a' vis the late cancel penalties assessed.

 

No, the insurance company has no rights to the cabin nor can they sell it, but they are actively involved with the cruise line to make sure they get a financial break if the cruise line is successful at filling the cabin with a new revenue passenger.

[sail7seas]

Seeing as (some) cruiselines sell their own insurance, what is the incentive for HAL to be at all cooperative with a 'competing' insurer?

 

Certainly, if the guest who cancelled had written HAL insurance, there is good reason for HAL to work with their underwriter.

 

[sail7seas]

Someone mentioned on this site when they returned from that cruise that their table mates had been upgraded to a suite just a few days before the cruise. I put 2 and 2 together and figured that they had gotten our suite. Don't think there would have been a couple of suites that suddenly had to cancel on the same cruise. And the suites had been been sold out for several months prior to the cruise.

 

 

Chances are good you're right, KK.

[Host Walt]

Seeing as (some) cruiselines sell their own insurance, what is the incentive for HAL to be at all cooperative with a 'competing' insurer?

 

Certainly, if the guest who cancelled had written HAL insurance, there is good reason for HAL to work with their underwriter.

 

The principal reason is because the insurance company (TravelEx, say) will stop writing travel insurance for HAL (or CCL in general) cruises.

 

The cruise lines need a cooperative association with insurance carriers to keep the market open.

 

The big issue is, if there are two cabins made available by late cancels, and one is insured by TravelEx and the other by HAL, which one is sold first by HAL?

 

Likely answer is that the cabins are pooled and both insurers split the recovery.

[Krazy Kruizers]

Makes sense to me!!

[Krazy Kruizers]

I have often wondered if the upgrade fairy worked for the people who got our suite or if HAL called a few people and asked who would be willing to move to a suite for XXX number of dollars.

 

Guess I'll never know.

[hammybee]

I have spoken of my ongoing issue with an issurer for a cancellation we had earlier this year. The cruise line rebated us 50% of the cost and resold the cabin as it was already a sold out cruise. The insurance company is on the hook for the remaining 50% as a three month hospitalization for an immediate family member was the cause of the cancellation.

 

As it currently stands, the cruiseline and the insurerer have made out and I am out of pocket 50%. I will prevail as the policy does not exempt hospitalization for eating disorders.

[lougee1043]

on our alaskan cruise we were upgraded at the dock from the old ss to a full suite --we met the people on board who were booked in the suite and they too we upgraded at the dock to the penthouse --both upgrades were done for free---------------could the penthouse have become vacant because of a last minute cancellation and we benefited --it would seem to me that an available penthouse could have been sold even at the dock

[sail7seas]

The principal reason is because the insurance company (TravelEx, say) will stop writing travel insurance for HAL (or CCL in general) cruises.

 

The cruise lines need a cooperative association with insurance carriers to keep the market open.

 

The big issue is, if there are two cabins made available by late cancels, and one is insured by TravelEx and the other by HAL, which one is sold first by HAL?

 

Likely answer is that the cabins are pooled and both insurers split the recovery.

 

 

:) Makes sense to me, too.

[tjcox9]

When I was traveling solo on the Prinsendam and had purchased an outside guarantee, I was pleasantly suprised at check-in to find I had been assigned a verandah. I could tell it was a late cancellation (don't know if insurance was involved or not) due to the fact that the personalized stationery was in my cabin with someone else's name.

 

Sorry for whatever reason they were unable to make the trip, but did enjoy my upgraded accommodations, for sure.

[cruiseco]

The principal reason is because the insurance company (TravelEx, say) will stop writing travel insurance for HAL (or CCL in general) cruises.

 

The cruise lines need a cooperative association with insurance carriers to keep the market open.

 

The big issue is, if there are two cabins made available by late cancels, and one is insured by TravelEx and the other by HAL, which one is sold first by HAL?

 

Likely answer is that the cabins are pooled and both insurers split the recovery.

 

I'd like to know your source for any of this.

 

First of all, the cruise lines would be thrilled if the third-party insurers somehow stopped insuring their cruises. Imagine how much additional revenue they would make if the only insurance option was their in-house policy. Their only incentive now to keep premiums down is the competition from other insurers. Losing that competition would mean maybe tripling or quadrupling their profits from insurance sales.

 

When a claim is filed and paid you can bet the insurance company is in immediate contact with the cruise line not only to confirm the cancellation but also to negotiate a settlement vis a' vis the late cancel penalties assessed..

 

The insurers have absolutely no legal claim to any money generated by the re-sale of a cabin. So the negotiation would go something like this:

 

Insurer: "Please. please, please give us some of the money you made reselling the cabin."

 

Cruise Line: "Blow it out your ear."

[senator6]

Interesting question, I don't know what happens when someone cancels before the cruise but on the Maasdam in March the folks in the suite next to us had a death in the family and left the cruise in the next port. The Cabin was only vacant for a few hours and then others moved in for the rest of the cruise. I believe they were related to the Captain.

[u4ea]

I have read that due to security, no cabins can be sold around 3 days prior to sailing because the manifest has to be declared to the authorities. I don’t know much about the purser’s job, but I think that’s part of it. I guess there can be exceptions with lots of paperwork too. So being presumptuous, the canceled cabins up to about 3 days prior to sailing would only be available for upgrade use etc. to those on the particular sailing’s manifest. Curious if anyone wishes to clarify.

Mark…..

[gatour]

I'd like to know your source for any of this.

 

First of all, the cruise lines would be thrilled if the third-party insurers somehow stopped insuring their cruises. Imagine how much additional revenue they would make if the only insurance option was their in-house policy. Their only incentive now to keep premiums down is the competition from other insurers. Losing that competition would mean maybe tripling or quadrupling their profits from insurance sales.

 

 

 

The insurers have absolutely no legal claim to any money generated by the re-sale of a cabin. So the negotiation would go something like this:

 

Insurer: "Please. please, please give us some of the money you made reselling the cabin."

 

Cruise Line: "Blow it out your ear."

 

Except for the fact that the third party insurer would have no incentive to inform the cruise line of a known cancellation that they are covering. Don't forget that the cruise line does not just make money from just the cabin price they also make money from on-board purchases, shore exursions, etc. So there is an incentive for the cruise line to "refund" some of the money to a third-party insurance company, so they can resell the cabin.

[AZjohn]

Thank you all for your insight to this. I get it, it’s just like if I were to miss my flight. The airlines can do whatever they want to do with my seat (upgrade, sell, standby, keep it empty, etc.).

Oh well, so much for my idea of getting a great deal:o …LOL.

Thanks again,

John

[hammybee]

Thank you all for your insight to this. I get it, it’s just like if I were to miss my flight. The airlines can do whatever they want to do with my seat (upgrade, sell, standby, keep it empty, etc.).

Oh well, so much for my idea of getting a great deal:o …LOL.

Thanks again,

John

 

Good analogy, from the carrier's perspective. I wish I had thought of it earlier.

[kryos]

The insurers have absolutely no legal claim to any money generated by the re-sale of a cabin. So the negotiation would go something like this:

 

Insurer: "Please. please, please give us some of the money you made reselling the cabin."

 

Cruise Line: "Blow it out your ear."

LOL ... sounds logical to me too.

 

But ... on the other hand ... perhaps if third party insurers stopped insuring HAL cruises ... because HAL would not play ball with them in terms of mitigating losses ... people may simply stop insuring their cruises if the cruise line insurance was their only option. I will never take HAL insurance again. I used to be "stupid" and take the easy way out with HAL coverage. That was until I got major ripped on my 30-day cruise. I'm actually embarrassed to say what I paid for it. Then I find out that a third party insurer would be far cheaper, and provide the same level of coverage that I was looking for. Here with the HAL insurance I was not only paying top dollar, but also getting coverages I didn't need ... such as insurance on an automobile I rent in port. Guess what? I don't drive.

 

Believe me, HAL will work with third party insurers ... because if passengers are left with no choice but to book insurance through HAL, they very may well say "the heck with this" and go "self-insured" for their trip.

 

Blue skies ...

 

--rita

[cruiseco]

Except for the fact that the third party insurer would have no incentive to inform the cruise line of a known cancellation that they are covering. Don't forget that the cruise line does not just make money from just the cabin price they also make money from on-board purchases, shore exursions, etc. So there is an incentive for the cruise line to "refund" some of the money to a third-party insurance company, so they can resell the cabin.

 

Doesn't work that way. Before a cancellation claim will even be considered the client has to present "proof of loss". In the case of a cancellation claim that would mean documentation of the cancellation and the penalties in effect at the time of the cancellation. So, the cruise line knows the status of the cabin long before the insurer gets involved -- the very first action in the whole process is to notify the cruise ine of the cancellation.

 

If the client delays in notifying the cruise line he/she risks losing some money as the insurers will only pay the penalties in effect at the tie the cancellation becomes necessary. So if the client is told by a doctor that the cruise has to be canceled at a time when the penalty is 50% of the cruise fare but doesn't actually cancel until the penalty has gone to 100% of the cruise fare the insurance will only pay the 50%.

[shipcafe]

Staterooms most definitely will not sail unoccupied. Much like airline seats, they are perishable and gain no revenue upon the ship's departure. HAL's ship inventory is hard at work until sailing time to make sure that all available berths are occupied.