RCCL Cancelation Refund Calculation

[Bob26]

To rcicruise, I saw that web page on RCCL website as well.

 

7-Night

70 or more No Charge

69-30 Deposit amount

29-8 50% of total price

7 or less No refund

 

The question is what is considered "total price"? I believe that it is totally reasonable to expect that any person would answer: "Total price of the cruise is how much I paid for it, including port charges and fees".

 

Where exactly on RCCL website the definition of "total price" is being explained?

 

Bob.

[cruiseco]

And how, exaclty, do you know that the cruise wasn't booked before the no rebate policy went into effect?

 

 

Sorry, but all the charges on my credit card have always been directly by the cruise lines. Never have I paid a TA and then have them forward payment to RCI on a TA company check.

 

#1 It doesn't matter if the booking was made before the new rules or not. RCI is looking for known rebaters and has publically stated that they will "cold call" those agencies suspected of rebating to see if they are in compliance with the new rules. The absolute best way to get on the cold call list is to admit that you have rebated in the past. In general, TA's currently, in conversation with RCI, will deny that they have ever even heard of the word "rebate" and have never, ever done such a thing. Swear to God and hope to die.

 

 

#2 If you'll re-read my original post you'll see that I specifically said that the example was for those who paid by CASH or CHECK.

 

Again, this is really simple. The penalty is $610. The client submitted payments totalling $1100. $1100 less the $610 penalty equals a refund of $490.

 

If the client feels entitled to the additional $120 he needs to get it from the TA.

[Apex Cruiser]

Erie Dave,

 

You may want to check with the TA and comparison shop the cruise. Just got our invoice yesterday and everything is spelled out exactly, fee, port fees and taxes. Our TA has always done this and before the pricing changes they did some discounting. As agreed may be a way of hiding a higher price or a discount.

[cruiseco]

The rest of the money went to the TA as commission.

 

It's not that simple either. Here's how a rebate works:

 

The cruise line sets a price of $1220. The TA (let's say making a commission of 15%) gives the client a price of $1100.

 

This does not change the contract between the client and the cruise line. The client is still obligated to the contacted fare of $1220 in all aspects, including penalties.

 

What has happened is that in order to close the deal the TA has made a side agreement with the client in this form:

 

Mr. Client, you pay $1100 of the true fare and I'll cover the balance of $120.

 

Now, when payment comes due the client gives a credit card for his portion and in theory the TA has to pony up the other $120 at that time to cover full payment on the booking. But in reality, RCI is going to owe the TA $183 commission (15% X $1220) so the TA tells RCI to just subtract the $120 from the $183 and send him a check for the difference -- $63.

 

So you see, the TA doesn't have that $120 either. If the TA was to refund the $120 to the client he's $57 in the hole on the deal ($120 less $63). And it's probably even worse that that as I'm sure part of that $1220 wos non-commissionable as port charges, etc.

 

Another way to look at the "discrepancy" is that the client owes 50% of the amount actually paid on the booking ($550 = 50% of $1100) PLUS 50% of the amount that should have been paid but never was ($60 = 50% of the $120 rebate) for a total of $610. You can't just make that $120 disappear.

[cruiseco]

To rcicruise, I saw that web page on RCCL website as well.

 

 

Where exactly on RCCL website the definition of "total price" is being explained?

 

Bob.

 

Get a copy of your booking confirmation from the TA. It will show the total contracted price. Again, any deal you make separately with the TA is strictly between you and the TA and is no concern to RCI. You cannot make RCI liable for the actions of your TA.

[xpcdoojk]

Cruiseco, this is so illuminating! I do love it!

 

jc

[Erie Dave]

My invoice has everything spelled out on it. This was the first time my docs came directly from RCCL, however, and my actual docs had the "as agreed" on them. I have always compared prices on my trips, and my agent has always matched what I could find. I was simply curious about how it is listed on my official cruise docs.

[Ocean Boy]

. Again, any deal you make separately with the TA is strictly between you and the TA and is no concern to RCI.

Of course, that is no longer true with the inception of the no rebating policy. They have now made it their business.

[cruiseco]

As agreed may be a way of hiding a higher price or a discount.

 

There's a number of reasons why a TA would request that the docs be marked "as agreed".

 

#1 Say a family has gotten together to buy the grandfolks a 10-day Med cruise in an owner's suite with all the trimmings for $10,000. They may not want the grandparents to know how much was spent so "as agreed" docs can be requested. Kind of like taking the price sticker off the Chia Pet box before giving it to your wife for your anniversary.

 

#2 Say I work at an agency that has access to IIT rates (don't ask -- could be group rates, key account rates, whatever). A client comes in looking for a sailing that happens to be eligible for the IIT rates.

 

The current normal retail selling rate from the cruise line is $800 p/p

I can get IIT rates on the same cabin for $600

 

What I decide to do is sell him the IIT cabin for $700

 

Client gets a $100 savings off the best rate he could expcet to find anywhere else so he's happy.

 

If I had sold him the cabin at the IIT rate I would have made $90 ($600 X 15%)

If I had sold him the cabin at the normal retail rate I would have made $120 ($800 X 15%)

 

But I'll actually be making $190 (the normal $90 commission plus ALL of that extra $100) so I'm thrilled.

 

The only way this can blow up in my face is if the docs land in the client's lap showing that the true fare could have been as low as $600. So I request the docs be marked "as agreed" and everyone is happy.

 

Not that I ever did that in real life.

[LadeeBug100]

What if you have booked directly with the cruise line? Is your 50% refund actually $610.00 (using the example from above) or is it it some other amount?

[xpcdoojk]

$610

[LadeeBug100]

That's what I thought it should be, but you never know what they are likely to come up with, they may be using new math!

[jcanino]

That certainly wasn't the point of my posts. If the cruise had gone off as planned the original poster would have realized a $120 savings over what he would have paid dealing directly with the cruise line.

Similarly, with a rebating TA, if that TA goes out of business prior to making your final payment, the booking reverts to the cruise line. If the TA had given a rebated price and "saved you" $XXX, the cruise line would have no knowledge of that and you would be responsible for the entire amount.

[jcanino]

I never noticed this before, but on my recent cruise, the fare wasn't listed in my docs. I am not sure if this has been the case in the past, but this time the fare was simply listed as "as agreed." In this case, I am not really sure what RCI charged for the cruise, I only know what I paid for it. Is this kinda wierd, has it been happening for a while, or is it new?

In the case of your fare showing up "as agreed" it is more than likely a group rate. Actual pricing does not show up anywhere on group cruise documents.

[xpcdoojk]

Similarly, with a rebating TA, if that TA goes out of business prior to making your final payment, the booking reverts to the cruise line. If the TA had given a rebated price and "saved you" $XXX, the cruise line would have no knowledge of that and you would be responsible for the entire amount.

Ouch! :D

 

jc